CuriosityStream 2025 Q1 Earnings Historic Turnaround with 106.3% Net Income Increase

CuriosityStream (CURI) reported its fiscal 2025 Q1 earnings on May 6, 2025. CuriosityStream achieved a significant milestone by reporting its first-ever positive net income for Q1 2025, with net income of $0.3 million, reversing a $5.0 million loss in Q1 2024. The company’s revenue grew 26% year-over-year to $15.1 million, surpassing analysts' expectations of $14.81 million. For Q2 2025, CuriosityStream has provided guidance for revenue between $16 million and $17 million, indicating a strong outlook.

Revenue
The total revenue of CuriosityStream increased by 25.7% to $15.09 million in 2025 Q1, up from $12 million in 2024 Q1. The Direct Business segment generated $8.71 million, while Content Licensing contributed $5.41 million. Bundled Distribution and Other segments brought in $571,000 and $398,000, respectively, culminating in a total revenue of $15.09 million.

Earnings/Net Income
CuriosityStream returned to profitability with EPS of $0.01 in 2025 Q1, reversing from a loss of $0.09 per share in 2024 Q1 (111.1% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $319,000 in 2025 Q1, representing a 106.3% positive swing from the net loss of $5.04 million in 2024 Q1. This EPS reflects a positive financial performance.

Post-Earnings Price Action Review
The strategy of buying CuriosityStream shares after a quarter-over-quarter revenue drop and holding for 30 days yielded mixed results over the past five years. While brief periods of positive returns were noted, the overall performance was lackluster, underperforming the S&P 500 index. From May 2020 to April 2025, the CURI portfolio achieved a total return of approximately 12%, compared to the S&P 500's return of about 34%. The strategy performed poorly in the immediate aftermath of revenue drops, such as in Q2 2020 and Q4 2020, where the portfolio declined by 5% and 7%, respectively. Consistency was a challenge, with multiple instances of underperformance, particularly during the COVID-19 pandemic. Although some positive returns were observed during market recoveries, the strategy failed to capitalize consistently on broader market conditions, leading to overall underperformance compared to the S&P 500 index.

CEO Commentary
Clint Stinchcomb, Chief Executive Officer, shared optimism about the company's growth and shareholder returns. He highlighted the 26% year-over-year revenue increase to $15.1 million in Q1, alongside a sequential growth of 7%. Stinchcomb emphasized the company's focus on returning surplus cash to shareholders through a dividend program and noted several new third-party agreements. He expressed confidence in CuriosityStream’s strong balance sheet, which positions the company well in the current environment.

Guidance
For the second quarter, CuriosityStream expects revenue between $16 million and $17 million and adjusted free cash flow between $2 million and $3 million. The CEO reiterated confidence in future performance, highlighting a commitment to ongoing growth and shareholder value.

Additional News
CuriosityStream has announced its expansion into European markets by launching its streaming service on Prime Video as an add-on subscription channel in Finland, The Netherlands, and Sweden. This strategic move aims to leverage Amazon's established presence to reach millions of new viewers. Additionally, the company launched Curiosity University on The Roku Channel as a premium subscription service, offering a range of educational content. CuriosityStream also reported a 20% increase in its quarterly dividend, reflecting confidence in the company's financial strategy and growth prospects.