12 Best Multibagger Penny Stocks to Buy Now

2. Curiositystream Inc. (NASDAQ:CURI)

Stock Performance Over Last Year: 412.26%

Number of Hedge Fund Holders: 5

Share Price as of February 5: $2.72

Curiositystream Inc. (NASDAQ:CURI) operates a global factual entertainment platform. It offers documentary series and features across science, technology, history, and nature categories. Viewers consume the company’s content through direct subscriptions and multiple distribution partnerships.

Curiositystream Inc.’s (NASDAQ:CURI) financial situation is solid. The latest financial report indicates that direct subscription revenue grew 13% year-over-year to $9.8 million. At the same time, total revenue reached $12.6 million. The company also achieved its highest-ever quarterly adjusted free cash flow of $2.6 million, marking its eighth consecutive quarter of growth. Reducing operating costs and content amortization saw the gross margin improve to 54% from 46% a year ago.

Curiositystream Inc. (NASDAQ:CURI) is working on leveraging AI to grow revenues. The company announced that it would license content and data for AI training purposes, a move that should generate a substantial sum of income. According to its President and CEO, Clint Stinchcomb, CuriosityStream’s pivot into the AI space should generate revenue that may exceed half of its direct subscription revenue.

“AI is fundamentally transforming the technology landscape, and CuriosityStream is uniquely positioned to deliver content at scale to meet the evolving needs of AI model training. These opportunities are part of our broader strategy to unlock new and significant revenue streams that complement our subscription business. In light of our work with various hyper-scalers and other tech companies for AI video training, we believe our overall licensing revenue will be more than half of our direct subscription revenue this year. And we believe this will be the case for some time going forward.”

This pivot comes alongside expanding distribution—they’ve launched PayTV channels in Europe and Latin America, rolled out new AVOD packages with Pluto, Tubi, and Roku, and launched four FAST channels with Samsung TV+. The company’s confidence in this strategy is reflected in its recent 20% dividend increase to $0.03 per share. With $39.8 million in cash, no debt, and projected Q4 revenue of $12-14 million, Curiositystream Inc. (NASDAQ:CURI) is on the right track in terms of capitalizing on both traditional content distribution and emerging AI opportunities.