CuriosityStream Inc.
For the period ended Sep 30, 2026. Filed Nov 12, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 12, 2026
CURI$2.86+20.7%Stored close · as of Nov 12, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001628280-26-056713
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-12.
0001628280-26-073161
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 83 current paragraphs.
47 unchanged; 27 reworded; 9 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Since July 2021, the Company has held a 32% interest in SPIEGEL TV Geschichte und Wissen GmbH & Co. KG and its general partner (together, the “Spiegel Venture”), a German joint venture with SPIEGEL TV GmbH and Autentic GmbH that it accounted for under the equity method. The Spiegel Venture operates two pay television documentary channels and a FAST channel and distributes the Company’s Curiosity Stream service in German-speaking Europe. In April 2026, the other two owners exercised put options requiring the Company to purchase their interests, and on July 1, 2026, the Company acquired the remaining 68% interest for $1.9 million in cash, bringing its ownership to 100%. The acquisition provides the Company with a local platform for distributing its content and services in German-speaking Europe. The Company recognized gains of $0.9 million in connection with the acquisition, primarily from remeasuring its previously held 32% interest to fair value. The results of the Spiegel Venture are included in the Company’s consolidated results beginning July 1, 2026. See Note 17 —Acquisition of Spiegel Venture to the Unaudited Condensed Consolidated Financial Statements for further discussion.
Current report
Cost of revenues increased $3.0 million, or 40%, for the three months ended September 30, 2026 compared to the same period in 2025, principally due to an increase in distribution costs, driven by higher revenue share expense on higher AI licensing revenue, and an increase in content amortization reflecting the mix of content.
Current report
Interest and other income increased $0.8 million for the three months ended September 30, 2026, compared with the same period in 2025, primarily due to a $0.9 million gain on the remeasurement of our previously held equity interest in the Spiegel Venture upon acquisition. Interest income decreased $0.1 million, as lower interest earned on our investments, reflecting lower investment balances, was partially offset by $0.1 million of interest accretion on the long-term licensing fee receivable, which began in the third quarter.
Current report
For the nine months ended September 30, 2026, interest and other income increased $0.2 million compared with the same period in 2025, as the gain on the Spiegel Venture remeasurement was largely offset by a $0.8 million decrease in interest earned on our investments, reflecting lower investment balances.
Current report
Equity method investment income, which represents our share of Nebula’s results, was $0.1 million for each of the three and nine months ended September 30, 2026, compared with income of $0.1 million and a loss of $0.2 million for the same periods in 2025, respectively.
Current report
Our income tax provision was not material for the three and nine months ended September 30, 2026 and 2025. We have net operating loss carryforwards available to substantially offset our taxable income and maintain a full valuation allowance against our deferred tax assets.
Current report
As of September 30, 2026, we had cash, cash equivalents and restricted cash of$5.6 million and investments in debt securities of$4.4 million. We also have a $10.0 million revolving credit facility, which was undrawn as of September 30, 2026.
Current report
Our principal uses of cash are advertising and marketing, working capital and quarterly dividends. We fund these needs with cash on hand, investments and cash generated from operations, and may draw on our credit facility if needed. We also use trade and barter transactions to acquire high quality content through licensing agreements without using cash.
Current report
We believe that cash on hand, investments, cash expected to be generated from operations and availability under our credit facility will be sufficient tofund our operations, capital expenditures, dividends, and working capital needs for at least the next twelve months from the date of this filing.
Removed paragraphs (9)
Previous report
Our future operating results and cash flows are dependent upon a number of opportunities, such as our AI licensing initiatives and other factors, including our ability to efficiently grow our subscription business.
Previous report
For the six months ended June 30, 2026, general and administrative expenses increased $1.0 million, or 9%, from the same period in 2025, primarily driven by a $1.0 million increase in stock-based compensation expense resulting from the RSUs granted in July 2025, and a $0.2 million increase in payroll and related expenses primarily due to a higher accrual for annual incentive compensation, partially offset by a $0.3 million decrease in professional services.
Previous report
Interest and other income for the three and six months ended June 30, 2026, was $0.1 million and $0.3 million, respectively, compared to $0.4 million and $0.9 million for the same periods in 2025. The decrease in 2026 was primarily due to less interest income earned resulting from an overall decrease in investment balance starting in 2025 and continued through the first half of 2026.
Previous report
For the three and six months ended June 30, 2026, the Company recorded immaterial income compared to losses of $0.2 million and $0.3 million for the same periods in 2025, respectively. The Company no longer recognizes its share of losses from the Spiegel Venture, as the investment balance was fully reduced in 2024 due to cumulative losses. The Company continues to record its share of income and losses from Nebula.
Previous report
For the three and six months ended June 30, 2026, the Company recorded income tax provision of $0.4 million and$0.5 million, respectively, compared to income tax benefits of $0.1 million each for the same periods in 2025. The change in the income tax provision was primarily driven by changes in our estimated annual effective tax rate, reflecting projected full-year valuation allowance utilization and state income tax liabilities.
Previous report
Our provision for income taxes differs from the federal statutory rate primarily due to the Company being in a full valuation allowance position and not recognizing a tax benefit attributable to generated losses for either federal or state income tax purposes.
Previous report
As of June 30, 2026, the Company’s cash, cash equivalents and restricted cash totaled$5.4 million, with an additional$5.4 million held in investments in debt securities.To support ongoing working capital and operational needs, the Company plans to leverage cash generated from operations, as well as potential drawdowns on our credit facility if needed.
Previous report
As of June 30, 2026, we principally use cash for advertising and marketing, working capital, and quarterly dividend payments. While we generated positive cash flow from operating activities in 2024 and 2025, we experienced negative cash flows from operations for the three and six months ended June 30, 2026. Although we continue to focus on operational efficiency, operating cash flows may fluctuate in future periods. We believe that our current cash levels and investments, supplemented by anticipated operating cash flows, will be adequate tosupport our ongoing operations, capital expenditures, dividend payments, and working capital needs for at least the next twelve months from the date of this filing.
Previous report
We have used, and expect to continue to use, cash generated from operations and cash on hand to fund our quarterly dividend, subject to Board approval and market conditions. As of June 30, 2026, we continue to utilize trade and barter transactions, a strategy initiated in 2023, to exchange content assets through licensing agreements. These transactions allow us to acquire high-quality, monetizable content while preserving our cash liquidity.
Reworded paragraphs (27)
Previous wording
platforms, content licensing, bundled content licenses for SVOD and linear offerings, talks and courses and partner bulk sales.
Current wording
platforms, content licensing, bundled content licenses for SVOD and linear offerings, and partner bulk sales.
Previous wording
CuriosityStream’s award-winning content library features 15,000 programs that explore topics ranging from space engineering to ancient history to the rise of Wall Street, and includes shows and series from leading nonfiction producers. Each week we launch new video titles, which are available on demand in high- or ultra-high definition. Through new and long-standing international partnerships, substantial portions of our video library have been localized from English into eleven different languages. The Company also aggregates rights to millions of video and audio programs, course materials and other assets to utilize on our own services as well as license to other media and technology companies.
Current wording
CuriosityStream’s award-winning content library features 15,000 hours of programming that explore topics ranging from space engineering to ancient history to the rise of Wall Street, and includes shows and series from leading nonfiction producers. Each week we launch new video titles, which are available on demand in high- or ultra-high definition. Through new and long-standing international partnerships, substantial portions of our video library have been localized from English into eleven different languages. The Company also owns, licenses or has access to millions of hours of premium video and audio content, both finished and raw, across the landscape of content genres and languages, as well as a production-grade code library of over 1,000 repositories with decades of contextual history, 100,000 pull requests, and assets from seven operating companies for sublicensing to technology companies to train artificial intelligence (AI) models and products that utilize AI.
Previous wording
The financial data in the following table sets forth selected financial information derived from our Unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026, and 2025, and includes our results of operations as a percentage of revenue or as a percentage of costs, as applicable, for the periods indicated:
Current wording
The financial data in the following table sets forth selected financial information derived from our Unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026, and 2025, and includes our results of operations as a percentage of revenue or as a percentage of costs, as applicable, for the periods indicated:
Previous wording
For the three months ended June 30, 2026, the Company reported operating income and net income of $9.2 million and $8.9 million, respectively, compared to operating income and net income of $0.5 million and $0.8 million, respectively, for the three months ended June 30, 2025. This improvement in results was attributable to a $4.2 million, or 22%, increase in total revenue, driven by higher licensing revenue and a $4.5 million, or 24%, decrease in total operating expenses, driven by a reduction in costs across all operating expense categories.
Current wording
For the three months ended September 30, 2026, the Company reported operating income and net income of $3.7 million and $4.8 million, respectively, compared to an operating loss and net loss of $4.5 million and $3.7 million, respectively, for the three months ended September 30, 2025. This improvement in results was attributable to a $2.4 million, or 13%, increase in total revenue, driven by higher licensing revenue, and a $5.8 million, or 25%, decrease in total operating expenses, driven by a reduction in general and administrative and advertising and marketing expenses, partially offset by an increase in cost of revenues.
Previous wording
For the six months ended June 30, 2026, the Company reported operating income and net income of $7.6 million each, compared to operating income and net income of $0.6 million and $1.1 million, respectively, for the same period in 2025. This improvement in results was attributable to a $4.3 million, or 13%, increase in total revenue, driven by higher licensing revenue, and a $2.8 million, or 8%, decrease in total operating expenses, reflecting lower cost of revenues and advertising and marketing, partially offset by higher general and administrative expenses.
Current wording
For the nine months ended September 30, 2026, the Company reported operating income and net income of $11.3 million and $12.4 million, respectively, compared to an operating loss and net loss of $3.9 million and $2.6 million, respectively, for the same period in 2025. This improvement in results was attributable to a $6.7 million, or 13%, increase in total revenue, driven by higher licensing revenue, and a $8.6 million, or 15%, decrease in total operating expenses, driven by a reduction in general and administrative and advertising and marketing expenses.
Previous wording
The Company’s streaming content is provided to subscribers directly, via the Company’s website, applications, and channel stores offerings, as well as through wholesale distribution agreements.
Current wording
The Company’s programming is provided to subscribers directly, via the Company’s website, applications, and channel stores offerings, as well as through wholesale distribution agreements.
Previous wording
Individual customers can purchase subscriptions directly via the Company’s SVOD platform accessible by internet connected devices and applications for such devices as well as through distributor channel stores offering subscriptions to Company products on an a la carte basis. Individual subscriptions may be monthly or annual and pricing may vary based on the customer’s location worldwide. Customers may also subscribe to Company services indirectly via distribution partners who deliver CuriosityStream content via the distributor’s platform or system. Such wholesale distribution agreements typically convey a broad scope of rights, such as access to a 24/7 linear channel and an on-demand content library, with pricing and packaging flexibility, in exchange for an annual fixed fee or per-subscriber fee as part of a multi-year deal. The streaming library is composed of thousands of accessible on-demand and ad-free productions and includes shows and series from leading nonfiction producers.
Current wording
Individual customers can purchase subscriptions directly via the Company’s SVOD platform accessible by internet connected devices and applications for such devices as well as through distributor channel stores offering subscriptions to Company products on an a la carte basis. Individual subscriptions may be monthly or annual and pricing may vary based on the customer’s location worldwide. Customers may also subscribe to Company services indirectly via distribution partners who deliver CuriosityStream content via the distributor’s platform or system. Such wholesale distribution agreements typically convey a broad scope of rights, such as access to a 24/7 linear channel and an on-demand content library, with pricing and packaging flexibility, in exchange for an annual fixed fee or per-subscriber fee as part of a multi-year deal. The programming library is composed of thousands of accessible on-demand and ad-free productions and includes shows and series from leading nonfiction producers.
Previous wording
For the three and six months ended June 30, 2026, subscription revenue decreased due to a lower overall subscriber count, partially offset by an increase in average monthly revenue per paying subscriber reflecting the strategic price increases implemented in March 2026, which applied to our subscription offerings across our direct business platforms.
Current wording
For the three and nine months ended September 30, 2026, subscription revenue decreased due to a lower overall subscriber count, which reflects our deliberate focus on acquiring and retaining more profitable subscriber relationships. This decrease was partially offset by an increase in average monthly revenue per paying subscriber reflecting the strategic price increases implemented in March 2026, which applied to our subscription offerings across our direct business platforms, and the subscription revenue from the Spiegel Venture, which we have consolidated since its acquisition on July 1, 2026.
Previous wording
Licensing growth during the period was driven by an increase in traditional cash licensing, including the long-term content license agreement with Curiosity Brands, as well as expanded barter activity. Because acquiring content under non-cash barter transactions requires the concurrent recognition of licensing revenue at the estimated fair value of the assets received, increased barter volume directly impacts recognized revenue. The frequency and timing of these arrangements fluctuate based on when content exchanges are executed with our partners.
Current wording
For the three months ended September 30, 2026, licensing growth was driven by an increase in AI and non-cash barter licensing. For the nine months ended September 30, 2026, the growth in licensing reflects higher traditional cash licensing, including the long-term content license agreement with Curiosity Brands, as well as expanded barter activity, partially offset by lower AI licensing revenue. Because acquiring content under non-cash barter transactions requires the concurrent recognition of licensing revenue at the estimated fair value of the assets received, increased barter volume directly impacts recognized revenue. The frequency and timing of these arrangements fluctuate based on when content exchanges are executed with our partners.
Previous wording
Cost of revenues encompasses distribution fees, content amortization, hosting and streaming delivery costs, payment processing costs, commission costs, and subtitling and broadcast costs. Producing and co-producing content and commissioned content is generally more costly than content acquired through licenses.
Current wording
Cost of revenues encompasses content amortization, distribution fees, and other costs, including hosting and streaming delivery costs, AI storage costs, commissions, subtitling and broadcast costs. Producing and co-producing content and commissioned content is generally more costly than content acquired through licenses.
Previous wording
Distribution fees include revenue share arrangements with our content, Smart Bundle and digital distributor partners, payment processing fees and fees owed to the Spiegel Venture related to its streaming service. We pay a fixed percentage fee to our AI training content partners. We also pay fixed percentage fees to certain distribution partners for allowing their subscriber base to access our subscription platform.
Current wording
Distribution fees include revenue share arrangements related to our licensing business, Smart Bundle and digital distributor partners, and payment processing fees. We pay a percentage fee to our AI training content partners, which varies depending on the nature of the licensed content. We also pay fixed percentage fees to certain distribution partners for allowing their subscriber base to access our subscription platform.
Previous wording
The following table details cost of revenues for the three and six months ended June 30, 2026, and 2025:
Current wording
The following table details cost of revenues for the three and nine months ended September 30, 2026, and 2025:
Previous wording
Cost of revenues decreased $2.6 million, or 29%, and $3.0 million, or 19%, for thethree and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by a decrease in distribution costs, principally reflecting the timing of AI revenue share expenses. These increases were partially offset by an increase in Other, primarily driven by higher storage and other technology costs reflecting the investment in our data library for AI training. We expect these costs to decline in the second half of 2026.
Current wording
Cost of revenues were flat for the nine months ended September 30, 2026, compared to the same period in 2025. Increases in content amortization and other cost of revenues, primarily driven by higher storage and other technology costs reflecting the investment in our data library for AI training in the first half of the year, were offset by a decrease in distribution costs, reflecting lower revenue share expense on lower AI licensing revenue.
Previous wording
Our advertising and marketing expenditures are a primary operating cost for our business, focused specifically on the acquisition and retention of Direct subscribers. While these costs may fluctuate based on our specific outreach objectives, we prioritize the allocation of marketing dollars toward efficient customer acquisition methods for our streaming service.
Current wording
Our advertising and marketing expenditures are principally focused on the acquisition and retention of Direct subscribers. While these costs may fluctuate based on our specific outreach objectives, we prioritize the allocation of marketing dollars toward efficient customer acquisition methods for our streaming service.
Previous wording
For thethree and six months ended June 30, 2026, advertising and marketing expenses decreased $1.4 million, or 42%, and $0.8 million, or 13%, respectively, compared to the same periods in 2025. The decreases were primarily driven by more efficient marketing spend.
Current wording
For the three and nine months ended September 30, 2026, advertising and marketing expenses decreased $1.9 million, or 56%, and $2.7 million, or 28%, respectively, compared to the same periods in 2025 primarily driven by more efficient marketing spend.
Previous wording
The following table details general and administrative costs for the three and six months ended June 30, 2026, and 2025:
Current wording
The following table details general and administrative costs for the three and nine months ended September 30, 2026, and 2025:
Previous wording
For the three months ended June 30, 2026, general and administrative expenses decreased $0.5 million, or 8%, compared to the same period in 2025, primarily driven by a $0.4 million decrease in stock-based compensation expense resulting from the RSUs granted in July 2025 and a $0.2 million decrease in professional services, reflecting our ongoing commitment to disciplined expense management and operational efficiency.
Current wording
For the three and nine months ended September 30, 2026, general and administrative expenses decreased $6.9 million, or 58%, and $5.9 million, or 25%, compared to the same periods in 2025, respectively, primarily driven by a decrease in stock-based compensation expense resulting from the RSUs granted in July 2025 which were subject to accelerated expense recognition due to certain vesting provisions and a decrease in professional services, reflecting our ongoing commitment to disciplined expense management and operational efficiency.
Previous wording
For the six months ended June 30, 2026, the Company used $3.0 million of net cash in operating activities. Additionally, the Company generated $1.6 million in net cash from investing activities, mainly related to maturities of investments in debt securities. Net cash used in financing activities was $11.6 million, mainly due to dividends paid and repurchase of treasury stock.
Current wording
For the nine months ended September 30, 2026, operating activities provided $1.5 million of net cash. Additionally, the Company generated $2.7 million in net cash from investing activities, mainly related to maturities of investments in debt securities. Net cash used in financing activities was $17.0 million, mainly due to dividends paid and repurchase of treasury stock.
Previous wording
Our Board of Directors has declared the next cash dividend of$0.085 per share to be paid on September 18, 2026, for an expected aggregate amount of $5.0 million. Subject to future declaration by our Board of Directors, we intend to continue to pay regular quarterly cash dividends.
Current wording
Our Board of Directors has declared the next cash dividend of$0.085 per share to be paid on December 15, 2026, for an expected aggregate amount of $5.0 million. We intend to continue paying regular quarterly cash dividends, subject to Board approval and market conditions.
Previous wording
On June 10, 2024, our Board of Directors authorized and approved a share repurchase program for up to $4.0 million of the then-outstanding shares of our common stock. Under the stock repurchase program, we may repurchase shares through open market purchases, privately negotiated transactions, block purchases, or otherwise in accordance with applicable federal securities laws. On March 10, 2026, the Board authorized an additional$2.0 million for the purchase of the Company’s common stock under this existing program, increasing the total authorized amount to$6.0 million. Since the program’s inception through June 30, 2026, we had repurchased$1.1 million of common stock under this program. As of June 30, 2026, $4.9 million remains available for future repurchases under the Board-authorized program.
Current wording
In June 2024, our Board of Directors authorized a share repurchase program for up to $4.0 million of our common stock, which it increased to $6.0 million in March 2026. Through September 30, 2026, we had repurchased$1.1 million of common stock under the program, and $4.9 million remained available. We did not repurchase any shares during the three months ended September 30, 2026. We may repurchase shares through open market repurchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable securities laws.
Previous wording
The following table presents our cash flows from operating, investing and financing activities for the six months ended June 30, 2026, and 2025:
Current wording
The following table presents our cash flows from operating, investing and financing activities for the nine months ended September 30, 2026, and 2025:
Previous wording
For the six months ended June 30, 2026, our net cash used in operating activities was $3.0 million compared to $4.7 million for the same period in 2025.
Current wording
For the nine months ended September 30, 2026, our net cash provided by operating activities was $1.5 million compared to $9.1 million for the same period in 2025.
Previous wording
For the six months ended June 30, 2026, net income was $7.6 million. Operating cash flows reflected non-cash adjustments, including $8.0 million of amortization of content assets, $4.1 million of stock-based compensation and $0.4 million of other depreciation, amortization and non-cash items, which do not represent cash inflows or outflows and are added back in reconciling net income to operating cash flow. Additions to content assets of $9.5 million, acquired primarily through barter activities, were similarly non-cash and are excluded from operating cash flow. Cash used during the period primarily consisted of a $13.1 million net use of cash from changes in operating assets and liabilities.
Current wording
For the nine months ended September 30, 2026, net income was $12.4 million. Operating cash flows reflected non-cash adjustments, including $13.0 million of amortization of content assets, $5.1 million of stock-based compensation and $0.3 million of other depreciation, amortization and non-cash items, which do not represent cash inflows or outflows and are reconciling items between net income and operating cash flow. Additions to content assets of $14.4 million, acquired primarily through barter activities, were similarly non-cash and are excluded from operating cash flow. Cash used during the period primarily consisted of a $14.0 million net use of cash from changes in operating assets and liabilities, principally reflecting the impact of the long-term content licensing agreement entered into with the buyer of Curiosity Brands and the timing of certain payables, partially offset by the impact of overpayments received from a distribution partner that self-reports and remits fees under its agreement, which we identified in the third quarter and expect to refund to the partner by December 31, 2026.
Previous wording
Cash flow from investing activities consists of purchases, sales and maturities of investments, business acquisitions and equity investments and purchases of property and equipment.
Current wording
Cash flow from investing activities consists of purchases, sales and maturities of investments, business acquisitions, net of cash acquired, and purchases of property and equipment.
Previous wording
For the six months ended June 30, 2026 and 2025, we recorded a net cash inflow in investing activities of $1.6 million and $8.3 million, respectively. The 2026 inflow was primarily driven by $6.5 million of maturities and $1.0 million of sales of investments in debt securities, partially offset by $3.9 million of purchases of investments in debt securities and a $2.0 million deposit paid in advance of the closing of our acquisition of Spiegel Venture, which closed on July 1, 2026 (see Note 17 — Subsequent Events). The 2025 inflow was primarily driven by $17.5 million of maturities and $2.0 million of sales of investments in debt securities, partially offset by $11.1 million of purchases of investments in debt securities.
Current wording
For the nine months ended September 30, 2026 and 2025, we recorded a net cash inflow in investing activities of $2.7 million and $16.9 million, respectively. The 2026 inflow was primarily driven by $7.5 million of maturities and $1.0 million of sales of investments in debt securities, partially offset by $3.9 million of purchases of investments in debt securities and $1.8 million paid for our acquisition of the Spiegel Venture, net of cash acquired, which closed on July 1, 2026 (see Note 17 —Acquisition of Spiegel Venture). The 2025 inflow was primarily driven by $25.3 million of maturities and $3.5 million of sales of investments in debt securities, partially offset by $11.8 million of purchases of investments in debt securities.
Previous wording
For the six months ended June 30, 2026 and 2025, net cash used in financing activities was $11.6 million and $14.0 million, respectively. The decrease in cash used was primarily driven by a $2.8 million decrease in dividends paid and a $0.6 million decrease in payments related to tax withholding, partially offset by $0.9 million used for repurchases of common stock in 2026, with no comparable activity in 2025.
Current wording
For the nine months ended September 30, 2026 and 2025, net cash used in financing activities was $17.0 million and $19.8 million, respectively. The decrease in cash used was primarily driven by a $2.3 million decrease in dividends paid and a $1.5 million decrease in payments related to tax withholding, partially offset by $0.9 million used for repurchases of common stock in 2026, with no comparable activity in 2025.
Previous wording
Going forward, we expect to continue making expenditures for purchases of property and equipment, which we expect to remain minimal. The amount, timing and allocation of capital expenditures are largely discretionary and within management's control. Depending on market conditions, we may choose to defer a portion of our budgeted expenditures until later periods to achieve the desired balance between sources and uses of liquidity and prioritize capital projects that we believe have the highest expected returns and potential to generate cash flow. Subject to financing alternatives, we may also increase our capital expenditures significantly to take advantage of opportunities we consider to be attractive.
Current wording
Going forward, we expect expenditures for purchases of property and equipment to remain minimal. The amount, timing and allocation of capital expenditures are largely discretionary and within management's control. Depending on market conditions, we may choose to defer a portion of our budgeted expenditures until later periods to achieve the desired balance between sources and uses of liquidity and prioritize capital projects that we believe have the highest expected returns and potential to generate cash flow. Subject to financing alternatives, we may also increase our capital expenditures significantly to take advantage of opportunities we consider to be attractive.