Key Highlights

  • GAAP Net Income was USD 4.8 million, or USD 0.08 per diluted share, in the third quarter of 2026, compared with a net loss of USD 3.7 million a year earlier, and included USD 0.9 million of non-cash gains.
  • Revenue rose 13% to USD 20.7 million from USD 18.4 million, while licensing Revenue grew 35% to USD 11.7 million and made up 57% of the total.
  • Adjusted EBITDA increased 67% to USD 5.0 million, a 24% Margin versus 16%, and it was the seventh consecutive quarter of positive adjusted EBITDA, according to the CFO.
  • Management raised full-year 2026 guidance to revenue of USD 79 million to USD 82 million and adjusted EBITDA of USD 20 million to USD 22 million.

AI Licensing Deals Lift Revenue and the Bottom Line

CuriosityStream (NASDAQ:CURI) discussed its third-quarter 2026 results on a call dated November 11, 2026. The company licenses a library of premium video, audio and operational data, and runs a subscription streaming service. Management said nearly all cash licensing revenue came directly from AI developers, mainly the largest labs. Operating Income was USD 3.7 million versus an operating loss of USD 4.5 million a year ago. Subscription revenue declined slightly, though management said the profitability of that Business improved significantly. The CEO's quoted revenue of USD 21 million differs from the CFO's USD 20.7 million, and the more precise CFO figure is used here.

Lower Gross Margin Reflects the Cost of AI Deals

Gross profit was USD 10.1 million, a 49% margin, compared with USD 10.8 million and 59% a year earlier. The CFO said revenue sharing with content partners, which can reach 50% or more of a given deal, and amortization of barter programming explain the change. Advertising and Marketing plus general and administrative expenses fell USD 8.8 million, or 58%, and by USD 3 million, or 36%, excluding stock-based compensation and restructuring. A reduction in force after quarter end should bring a one-time charge of about USD 0.6 million and annualized savings of USD 1.2 million to USD 1.5 million.

Cash, the Dividend and Why Quarterly Results May Vary

Operating activities generated USD 4.5 million of cash in the quarter, and the company paid a regular dividend of USD 0.08 per share, about USD 5 million. It ended with USD 10 million in cash and investments, no Debt and an undrawn USD 10 million revolving facility. Management said a USD 10 million licensing deal signed in the second quarter, recognized as USD 8.5 million of revenue, is payable in four annual installments of USD 2.5 million from mid-2027. Licensing timing can swing quarterly results, the CEO noted. The call did not mention the share price reaction.

Where Things Stand

The swing to profit came from licensing, and it was real but lumpy. CuriosityStream (NASDAQ:CURI) earned USD 4.8 million on revenue growth of 13%, with licensing, mostly AI related, supplying 57% of revenue, and management raised its adjusted EBITDA outlook. Offsetting that, gross margin fell and customer concentration among the largest AI labs is high. Next markers are the filing of the quarterly report, the expected cost savings from the reduction in force and whether free Cash Flow can fund the dividend in 2027.