CuriosityStream — Q2 2026 Earnings Summary

Financial Performance

• Revenue reached $23.2 million for the quarter, a 22% year-over-year increase from $19.0 million in Q2 2025.
• Licensing revenue was $14.1 million, up 48% year-over-year.
• Gross profit was $16.9 million, representing a 72.8% gross margin, compared to $10.1 million (53.4%) in Q2 2025.
• Net income was $8.9 million, a 1,033% increase from $0.8 million in Q2 2025.
• Adjusted EBITDA was $11.4 million, up 276% from $3.0 million in Q2 2025, marking the sixth consecutive quarter of positive Adjusted EBITDA.
• Operating expenses were reduced by $4.5 million (24.1%) compared to Q2 2025.
• Earnings per share (EPS) was $0.15.
• Net cash used in operating activities was $3.0 million for the six months ended June 30, 2026, compared to $4.7 million provided in the same period in 2025.
• Cash, restricted cash, and held-to-maturity securities totaled $10.9 million as of June 30, 2026, with no debt outstanding.
• Deferred revenue was $8.2 million as of June 30, 2026, down from $8.4 million as of December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 revenue guidance raised to a range of $77 million to $82 million.
• Full-year 2026 Adjusted EBITDA guidance raised to a range of $18 million to $22 million.
• Second-half 2026 revenue guidance set at $38 million to $41 million.
• Second-half 2026 Adjusted EBITDA guidance set at $6 million to $10 million.
• Projected cash and investments balance of $17 million to $22 million by December 31, 2026.
• Management expects a significant step-up in revenue and cash flow in 2026 compared to 2025 driven by subscription and licensing efforts.

Business Segments and Product Lines

• Licensed thousands of hours of premium video to over 25 public broadcasters, streamers, pay-TV, and digital-first distributors.
• Licensed millions of tokens of code for AI training, reinforcement learning, and evaluation.
• Private code corpus now exceeds 880 billion tokens available for AI training.
• Licensed 40,000 segments of High Dynamic Range (HDR) dataset.
• Licensed thousands of hours of synchronized multi-camera action sequences to a leading video research lab.
• New subscription launches occurred in Mexico and the US with partners including Apple, Sling, and Dish.
• Released new content including the season of Independence Dawn and Butterfly Effect, plus over 160 films and series.
• Achieved best-ever retention of involuntary churn in May 2026.
• Total rights-cleared media library exceeds three million hours of video and audio.

Market and Competitive Landscape

• Licensing opportunities are built on three pillars: video licensing to traditional media, audio/video licensing for AI training, and private code licensing for AI training.
• Built a differentiated content library with rights to over three million hours of video and audio across multiple genres.
• Achieved seven straight quarters of expanded data and video licensing partnerships for AI training.

Risks and Challenges

• Forward-looking statements involve risks including the ability to maintain and develop new revenue-generating relationships and partnerships.
• Risks include the ability to significantly increase the subscriber base and retain customers.
• Potential impacts from pending and future legislation.
• Risks associated with the internet, online commerce, and media industry.
• Highly competitive nature of the industry.
• Risks related to litigation, complaints, adverse publicity, and privacy/data protection laws or breaches.

Management Commentary and Tone

• CEO Clint Stinchcomb described the quarter as a "record second quarter" demonstrating earnings power from differentiated content and an efficient operating model.
• Management noted gross margins expanded to 73%.
• Stinchcomb stated the company believes it is in the "early stages of realizing the full value of our IP."
• Management highlighted strong licensing execution, sturdy subscription revenue, and continued cost discipline as drivers for record net income and Adjusted EBITDA.

Other Key Points

• Board of Directors declared a third-quarter cash dividend of $0.085 per share, payable September 18, 2026, to stockholders of record on September 4, 2026.
• Paid an ordinary dividend of $5.0 million during the six months ended June 30, 2026.
• Repurchased nearly $0.6 million in common shares during the six months ended June 30, 2026.
• Acquired business assets for $1.95 million during the six months ended June 30, 2026.
• Stock-based compensation was $4.1 million for the six months ended June 30, 2026.
• Content assets net increased to $32.5 million as of June 30, 2026, from $31.0 million at year-end 2025.
• Total assets were $67.5 million as of June 30, 2026, down from $75.7 million at December 31, 2025.
• Total liabilities were $26.0 million as of June 30, 2026, down from $34.2 million at December 31, 2025.