CuriosityStream Inc. (NASDAQ: CURI) stock surged Thursday after the factual entertainment company reported better-than-expected third-quarter 2026 results.
The company reported earnings of 8 cents per share, beating analysts’ estimate of 3 cents.
Revenue rose 13% year over year to $20.7 million, topping the $19.976 million estimate.
CEO Clint Stinchcomb highlighted growing demand for the company’s video, audio and proprietary data assets from traditional media and artificial intelligence companies.
AI Licensing Drives Revenue Growth
Licensing revenue jumped 35% to $11.7 million, accounting for 57% of quarterly revenue.
The segment generated over $7 million from cash licensing agreements, primarily driven by new AI deals.
Subscription revenue declined slightly.
Gross margin narrowed to 48.8% from 58.7% due to higher revenue-sharing costs tied to AI licensing.
However, adjusted EBITDA climbed 67% to $5 million, marking the seventh consecutive profitable quarter on that basis.
Advertising, marketing, and general and administrative expenses fell 58% year over year.
Net income improved by $8.6 million, including a $900,000 noncash gain related to the Spiegel Venture.
CuriosityStream ended September with $10 million in cash and investments, no debt and an unused $10 million credit facility.
The company paid $5.1 million in dividends during the quarter.
It also declared a fourth-quarter dividend of 8.5 cents per share, payable Dec. 15 to shareholders of record Dec. 3.
Expansion and Leadership Changes
CuriosityStream launched its streaming service through Amazon.com Inc. (AMZN) Prime Video in Canada, expanding its international reach.
The company also acquired the remaining 68% stake in its German documentary channel business, Spiegel Venture, for $1.9 million.
Additionally, Sean Piche became chief financial officer Sept. 1.
CuriosityStream Raises 2026 Outlook
CuriosityStream raised the lower end of its full-year revenue forecast to $79 million from $77 million. It maintained the upper end at $82 million. Analysts expect revenue of $79.27 million.
Management also increased its adjusted EBITDA outlook to $20 million to $22 million from $18 million to $22 million.
The company plans to expand licensing revenue, maintain subscription profitability and use AI tools to improve efficiency.
CURI Price Action: CuriosityStream shares were up 25.53% at $2.97 at the time of publication on Thursday, according to market data.
Trading volume reached 5.219 million shares, about 4.68 times the 100-day average of 1.116 million shares, signaling unusually heavy trading activity.
