CuriosityStream Inc.'s (NASDAQ:CURI) Path To Profitability
CuriosityStream Inc. (NASDAQ:CURI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CuriosityStream Inc. operates as a factual content streaming service and media company. The US$57m market-cap company announced a latest loss of US$49m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which CuriosityStream will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for CuriosityStream
CuriosityStream is bordering on breakeven, according to the 2 American Entertainment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$2.6m in 2026. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 108% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving CuriosityStream's growth isn’t the focus of this broad overview, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that CuriosityStream has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on CuriosityStream, so if you are interested in understanding the company at a deeper level, take a look at CuriosityStream's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Valuation: What is CuriosityStream worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CuriosityStream is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CuriosityStream’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
