Why Did CuriosityStream Stock Rocket Higher Today?

Why Did CuriosityStream Stock Rocket Higher Today?

Howard Smith, The Motley Fool

Thu, August 13, 2026 at 7:14 PM GMT+3 2 min read

• CURI +38.22%
• NVDA +0.49%

CuriosityStream (NASDAQ: CURI) stock rocketed over 50% after releasing its second-quarter earnings last night. There were good reasons for the massive move, too. Shares of the company aren't soaring because of its on-demand streaming service. Rather, it is due to the company's move to monetize its content to builders of artificial intelligence (AI) large language models.

The stock settled some, but let's look at why shares were still up 37.5% as of 11:51 a.m. ET.

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Licensing revenue lifts margins

Management has been pivoting its business model from subscription service revenue to higher margin licensing revenue. Licensing accounted for over 60% of Q2 revenue and rose 48% year over year. That's the crux of the investment case for CuriosityStream. Management is being creative about it, too.

CuriosityStream now offers 17 ready-made video data set products, providing potential customers with easier paths to meet specific needs. Customers can more easily analyze, navigate, and use its well-organized video collections.

It's not just AI models, either. The company is licensing its factual video content to global media companies for broadcast and continues to manage its subscription service to maintain a steady revenue stream.

The strategy is paying off. Gross margin soared to 73% from 56% in Q1 and 53% in the prior year quarter. Management plans to continue to grow its high-value revenue, aiming to reach $100 million in annualized sales. Reaching that level while maintaining the profit margin achieved in Q2 would make the stock a buy, even after today's jump.

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Howard Smith has positions in CuriosityStream. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Did CuriosityStream Stock Rocket Higher Today? was originally published by The Motley Fool