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Gaia Reports Second Quarter 2025 Results

1. Gaia reports 12% revenue growth, reaching $24.6 million in Q2 2025. 2. Gross profit increased 16%, marking six consecutive quarters of growth. 3. Gaia's subsidiary Igniton raised $6 million, valuing it at $106 million. 4. Member count grew to 878,000, boosting average revenue per user. 5. Positive free cash flow signals financial health and operational discipline.

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FAQ

Why Bullish?

The increased revenue and gross profit may attract investor interest, as demonstrated in previous earnings reports where positive financial updates resulted in stock price appreciation. For instance, previous earnings reports showing growth led to significant increases in GAIA's stock price following strong performance indicators in past quarters.

How important is it?

The financial highlights present a strong case for GAIA, potentially increasing investor confidence and stock demand. The ongoing momentum in revenue growth and cash flows is critical, raising optimism around GAIA's operational strategy.

Why Short Term?

Improved financial performance often leads to immediate investor reactions, especially if the growth narrative is consistent. The immediate reaction tends to occur soon after earnings announcements when traders adjust their positions based on new information.

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August 11, 2025 16:05 ET  | Source: Gaia, Inc. BOULDER, Colo., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2025. Highlights: Gross profit increased 16% and revenue increased 12%, compared to Q2 of the prior year, which represents the sixth consecutive quarter of double digit increasesContinued positive operating and free cash flow generationGaia’s subsidiary, Igniton, raised $6 million in July, increasing Igniton’s implied post-money valuation to $106 million "As planned, we continued to deliver on positive free cash flow and double-digit growth for the quarter," said Jirka Rysavy, Gaia's Chairman. "In July, our subsidiary, Igniton, raised $6 million of private common equity financing, including $2.0 million from Gaia, at an implied post-money valuation of $106 million, up from an implied post-money valuation of $40 million from last year’s raise. The proceeds from the financing will be used by Igniton for product launch, general operating expenses and certain capital expenditures to support future growth. Gaia now owns approximately two-thirds of Igniton equity." Kiersten Medvedich, Gaia's CEO, commented: "We are pleased to see the momentum from 2024 carrying into Q2, with strong revenue growth and improvements in profitability. Our annualized gross profit per employee increased to $814,000 from $695,000 in the prior-year quarter, a reflection of the dedication and focus of our team. With continued investment in content, AI, and our global community platform, we are building a more personalized, connected, and expansive Gaia—one that offers our members more value and deeper connection." Gaia CFO, Ned Preston, stated: “In the second quarter, when compared to the second quarter of 2024, we delivered 12% revenue growth, up $2.7 million to $24.6 million, while our improved operational execution and efficiency drove a $0.02 improvement in EPS to $(0.07). We strengthened our financial position by generating positive operating and free cash flow, underscoring our disciplined approach and long-term growth strategy.” Second Quarter 2025 Financial Results Revenue increased 12% to $24.6 million, compared to $21.9 million in Q2 2024, driven by growth in both member count and average revenue per user (ARPU). Total members increased to 878,000. Gross profit increased 16% to $21.3 million from $18.5 million in Q2 2024, with gross margin expanding to 86.7%, up from 84.5%. Net loss was $(1.8) million, or $(0.07) per share, versus $(2.2) million or $(0.09) per share, in Q2 2024. Operating cash flow was $2.3 million, with free cash flow of $1.6 million, reflecting ongoing operational discipline. Cash balance was at $13.9 million as of June 30, 2025, with a fully available $10 million line of credit. In July, Gaia also renewed our credit line for an additional three years with improved terms including a lower interest rate and a wider range of permitted use. Conference Call Date: Monday, August 11, 2025Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)Toll-free dial-in number: 1-877-269-7751International dial-in number: 1-201-389-0908Conference ID: 13754587 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860. The conference call will be broadcast live and available for replay here and via ir.gaia.com. A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 25, 2025. Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 13754587 About Gaia Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, over 88% of which is exclusive to Gaia, and approximately 75% of viewership is generated by content produced or owned by Gaia. Gaia is available on Apple TV, iOS, Android, Roku, Chromecast, and sold through Amazon Prime Video and Comcast Xfinity. For more information about Gaia, visit www.gaia.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward looking statements that involve risks and uncertainties. When used in this discussion, we intend the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “strive,” “target,” “will,” “would” and similar expressions as they relate to us to identify such forward-looking statements. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors set forth under “Risk Factors” and elsewhere in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2024. Risks and uncertainties that could cause actual results to differ include, without limitation: our ability to attract new members and retain existing members; our ability to compete effectively, including for customer engagement with different modes of entertainment; maintenance and expansion of device platforms for streaming; fluctuation in customer usage of our service; fluctuations in quarterly operating results; service disruptions; production risks; general economic conditions; future losses; loss of key personnel; price changes; brand reputation; acquisitions; new initiatives we undertake; security and information systems; legal liability for website content; failure of third parties to provide adequate service; future internet-related taxes; our founder’s control of us; litigation; consumer trends; the effect of government regulation and programs; the impact of public health threats; and other risks and uncertainties included in our filings with the Securities and Exchange Commission. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect our views only as of the date of this press release. We undertake no obligation to update any forward-looking information. Non-GAAP Measures In addition to disclosing financial results calculated in accordance with generally accepted accounting principles in the United States of America (GAAP), the financial information included in this release contains non-GAAP financial measures, including Free Cash Flow. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net income, and reconciliations to GAAP financial statements should be carefully evaluated. Free Cash Flow represents net cash provided by operating activities plus cash paid for interest payments, less cash used in investing activities, plus cash from non-core business activities. We believe Free Cash Flow is also useful as one of the bases for comparing the Gaia’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, Gaia’s calculation of Free Cash Flow might not necessarily be comparable to such other similarly titled captions of other companies. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. Company Contact:Ned PrestonChief Financial OfficerGaia, Inc.Investors@gaia.com Investor Relations:Gateway Group, Inc.Cody Slach(949) 574-3860GAIA@gateway-grp.com GAIA, INC.Condensed Consolidated Balance Sheets   June 30,  December 31, (in thousands, except share and per share data) 2025  2024   (unaudited)    ASSETS      Current assets:      Cash and cash equivalents $13,924  $5,860 Accounts receivable  5,717   5,560 Other receivables  —   1,809 Prepaid expenses and other current assets  3,851   2,513 Total current assets  23,492   15,742 Media library, net  39,142   38,987 Operating right-of-use asset, net  5,026   5,454 Property and equipment, net  25,862   26,883 Technology license, net  15,146   15,550 Investments and other assets, net  6,370   6,658 Goodwill  31,943   31,943 Total assets $146,981  $141,217 LIABILITIES AND EQUITY      Current liabilities:      Accounts payable $13,679  $12,435 Accrued and other liabilities  2,101   3,491 Long-term debt, current portion  5,719   5,801 Operating lease liability, current portion  869   839 Deferred revenue  21,069   19,268 Total current liabilities  43,437   41,834 Operating lease liability, net of current portion  4,427   4,869 Deferred taxes, net  526   501 Total liabilities  48,390   47,204 Shareholder's equity:      Class A common stock, $0.0001 par value, 150,000,000 shares authorized, 19,704,103 and 18,066,942 shares issued, 19,639,116 and 18,001,955 shares outstanding at June 30, 2025 and December 31, 2024, respectively  2   2 Class B common stock, $0.0001 par value, 50,000,000 shares authorized, 5,400,000 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively  1   1 Additional paid-in capital  178,944   171,100 Accumulated deficit  (93,243)  (90,428)Total Gaia, Inc. shareholders’ equity  85,704   80,675 Noncontrolling interests  12,887   13,133 Total equity  98,591   94,013 Total liabilities and equity $146,981  $141,217    GAIA, INC.Condensed Consolidated Statements of Operations (unaudited)   For the Three Months Ended June 30,  For the Six Months Ended June 30, (in thousands, except per share data) 2025  2024  2025  2024              Revenues, net $24,632  $21,856  $48,472  $43,169 Cost of revenues  3,285   3,385   6,220   6,518 Gross profit  21,347   18,471   42,252   36,651 Operating Expenses:            Selling and operating  20,634   18,476   40,656   35,881 Corporate, general and administration  2,909   1,988   4,806   3,617 Total operating expenses  23,543   20,464   45,462   39,498 Loss from operations  (2,196)  (1,993)  (3,210)  (2,847)Interest and other income (expense), net  124   (144)  (12)  (252)Loss before income taxes  (2,072)  (2,137)  (3,222)  (3,099)Income tax (benefit) expense  1   —   49   — Loss from continuing operations  (2,073)  (2,137)  (3,271)  (3,099)Income from discontinued operations  26   (26)  5   (35)Net loss $(2,047) $(2,163) $(3,266) $(3,134)Net (loss) income attributable to noncontrolling interests  (246)  30  $(451) $104 Net loss attributable to common shareholders $(1,801) $(2,193) $(2,815) $(3,238)             Loss per share:            Basic            Continuing operations (attributable to common shareholders) $(0.07) $(0.09) $(0.11) $(0.14)Discontinued operations $-  $-  $-  $- Basic loss per share $(0.07) $(0.09) $(0.11) $(0.14)Diluted            Continuing operations (attributable to common shareholders) $(0.07) $(0.09) $(0.11) $(0.14)Discontinued operations $-  $-  $-  $- Diluted loss per share $(0.07) $(0.09) $(0.11) $(0.14)  Condensed Consolidated Statements of Cash Flows (unaudited)   For the Three Months Ended June 30,  For the Six Months Ended June 30, (in thousands) 2025  2024  2025  2024        Net cash provided by (used in):            Net cash (used in) provided by operating activities $2,284  $(2,081) $3,582  $3,855 Net cash used in investing activities  (1,404)  (11,447)  (2,434)  (12,520)Net cash provided by (used in) financing activities  (46)  6,388   6,916   6,358 Net change in cash, cash equivalents, and restricted cash $834  $(7,140) $8,064  $(2,307)  Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)   For the Three Months Ended June 30,  For the Six Months Ended June 30, (in thousands) 2025  2024  2025  2024        Net cash (used in) provided by operating activities $2,284  $(2,081) $3,582  $3,855 Cash paid for interest  81   154   218   262 Net cash used in investing activities  (1,404)  (11,447)  (2,434)  (12,520)Change in cash from non-core business activities  683   14,096   974   10,101 Free cash flow $1,644  $722  $2,340  $1,698  

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