Curiositystream (CURI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 53% year-over-year to $19 million, surpassing guidance and driven by a 609% surge in content licensing for AI training, offsetting declines in other segments.

• Net income was $0.8 million for Q2 and $1.1 million for the six months, reversing prior year losses, with record adjusted EBITDA of $3 million.

• The company maintains a diversified revenue model across subscriptions, licensing, and advertising, with a focus on expanding international distribution and AI data licensing.

• Operating expenses rose 24% year-over-year, mainly due to higher distribution costs and stock-based compensation, but were outpaced by revenue growth.

• Expanded global distribution, launched new services, and declared regular and special dividends, reflecting confidence in liquidity and future cash flows.

Financial highlights

• Revenue increased to $19 million in Q2 2025, up from $12.4 million in Q2 2024, with content licensing up 609% to $9.3 million.

• Adjusted EBITDA improved by $4 million year-over-year, from negative $1 million to positive $3 million.

• Adjusted free cash flow was $2.9 million in Q2, marking the sixth consecutive quarter of positive free cash flow.

• Gross margin improved to 53.4% from 51.6% a year ago.

• Paid $10.4 million in dividends in Q2, including a $5.8 million special dividend.

Outlook and guidance

• Q3 2025 revenue expected in the range of $15 to $18 million.

• Full-year 2025 adjusted free cash flow guidance is $11 to $13 million.

• Management expects continued growth in licensing and steady growth in subscriptions, with ongoing investment in content and technology.

• The company intends to maintain regular quarterly dividends and has sufficient liquidity to support ongoing operations and growth initiatives.

• Ongoing assessment of the impact of the One Big Beautiful Bill Act (OBBBA) on future tax positions and financial statements.