CuriosityStream (CURI) Stock Forecast & Price Target

CuriosityStream Inc. has demonstrated solid performance in its direct subscription revenue, which increased by 3% year-over-year to $9.4 million in the fourth quarter of FY24 and 11.6% year-over-year to $38.6 million for the full fiscal year. The company's gross margins have also seen significant improvement, rising to 52% in 4Q24 from 45% in the prior year, indicating enhanced profitability. Additionally, revenue estimates for FY26 have been raised to $62.3 million, reflecting a projected 10% year-over-year growth and stronger-than-expected performance in EBITDA and EPS metrics, supporting a positive outlook for the company.

CuriosityStream Inc. experienced a decline in revenue, reporting $12.6 million in 3Q24, which reflects a 19% year-over-year decrease and falls short of estimates by 13%. Despite a significant reduction in advertising, marketing, and general administrative expenses, the company's Adjusted EBITDA exhibited a loss of $1.9 million in 4Q24, contrasting with previous expectations for profitability. Furthermore, projections for FY25 indicate a modest revenue increase of only 6% year-over-year and a deeper EBITDA loss than previously anticipated, highlighting ongoing financial challenges amidst a competitive streaming landscape and a limited total addressable market for factual entertainment.