EX-99.1 2 gaia-ex99_1.htm EX-99.1 EX-99.1

 

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Gaia Reports Second Quarter 2025 Results

 

BOULDER, CO – August 11, 2025 - 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 increases
•
Continued positive operating and free cash flow generation
•
Gaia’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.

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Conference Call

Date: Monday, August 11, 2025

Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)

Toll-free dial-in number: 1-877-269-7751

International dial-in number: 1-201-389-0908

Conference 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: 1-844-512-2921

International replay number: 1-412-317-6671

Replay 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

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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 Preston

Chief Financial Officer

Gaia, Inc.

Investors@gaia.com

 

Investor Relations:

Gateway Group, Inc.

Cody Slach

(949) 574-3860

GAIA@gateway-grp.com


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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

 

 

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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

 

 

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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

)

 

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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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