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Investing.com - Needham has raised its price target on CuriosityStream Inc. (NASDAQ:CURI) to $6.00 from $5.50 while maintaining a Buy rating, citing expected growth in large language model (LLM) content licensing. The stock has shown remarkable momentum, delivering a 257% return year-to-date according to InvestingPro data.
The research firm revised its estimates to reflect CuriosityStream’s new employment contract with CEO Clint Stinchcomb, which includes performance incentives tied to quarterly revenue growth exceeding 40% year-over-year.
CuriosityStream has signed 16 LLM deals to date and is reportedly negotiating with approximately 50 additional potential partners, according to Needham’s analysis.
The firm noted that LLM revenue is recognized entirely in the quarter when content is delivered rather than as recurring revenue, which may lead to more volatile revenue growth for CuriosityStream going forward.
Needham’s updated price target reflects its introduction of fiscal year 2027 estimates and a rolled-forward discounted cash flow valuation, though the firm expressed a strong preference for recurring revenue streams over one-time transactions.
In other recent news, CuriosityStream Inc. reported its Q2 2025 financial results, which exceeded expectations. The company achieved a 30.58% revenue surprise, and its earnings per share also surpassed forecasts. In another development, CuriosityStream announced the pricing of a secondary offering of 7 million shares at $3.50 per share. This offering is conducted by a selling stockholder, and CuriosityStream will not receive any proceeds from this transaction. Additionally, the company has expanded its reach through a new distribution agreement with DIRECTV. This deal includes the launch of the subscription-based Curiosity Stream service and the free ad-supported Curiosity NOW channel on DIRECTV’s platform. Underwriters have the option to purchase an additional 15% of the offered shares within 30 days at the public offering price. These recent developments highlight CuriosityStream’s ongoing efforts to grow its presence and financial performance.
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