CuriosityStream (CURI) Stock Forecast & Price Target

CuriosityStream Inc. has demonstrated significant growth in subscription revenue, supported by an increase in service availability on channel stores, which positively impacts subscriber trends. The company is expected to achieve revenues of $80.7 million in FY26, representing a 13% year-over-year increase, along with an adjusted EBITDA of $10.1 million, a notable 24% growth from previous estimates. Furthermore, the ongoing expansion of content licensing partnerships and a strong trajectory in free cash flow highlight the company's potential for sustainable revenue and profitability growth in the near future.

CuriosityStream faces significant risks that negatively impact its financial outlook, including economic weakness and a limited total addressable market (TAM) for factual entertainment. The company's subscription revenues have declined year-over-year, indicating volatility in revenue growth, particularly as it transitions from direct subscriber relationships to partner subscriptions, which could further hinder revenue stability. Additionally, the high stock compensation expenses are expected to adversely affect GAAP net income in the upcoming quarters, compounding the challenges the company faces in a competitive streaming landscape.