Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 12% year-over-year to $24.6 million, driven by growth in member count and ARPU [15] - Gross profit rose by 16% to $21.3 million, with gross margin expanding to 86.7% from 84.5% in the previous year [15] - Annualized gross profit per employee increased to $814,000 from $695,000 in the prior year quarter [4][9] Business Line Data and Key Metrics Changes - The core streaming business remains strong, with a focus on improving retention and member engagement [7] - The launch of the Ignaton brand contributed positively to performance, with significant interest noted at the Biohacking Conference [8][28] Market Data and Key Metrics Changes - Total member count grew to 878,000, indicating a successful strategy in attracting high lifetime value members [4][15] - Free cash flow more than doubled quarter-over-quarter, reaching $1.6 million in Q2, up from $700,000 in the prior quarter [8] Company Strategy and Development Direction - The company is committed to building a global conscious community, enhancing member engagement through deeper connections and shared experiences [11][12] - Plans to launch a Conscious AI Companion sourced from original content to enhance member journeys [12][13] - The focus remains on long-term sustainable growth driven by the core SVOD business and community engagement [13] Management's Comments on Operating Environment and Future Outlook - Management noted a cultural shift towards seeking purpose and connection, positioning Gaia to meet this demand [10] - The company expects continued revenue growth and positive free cash flow generation, with a price increase planned for March 2026 [19][25] Other Important Information - Ignaton raised $6 million in private equity financing, with Gaia holding a two-thirds ownership interest [5][17] - The cash balance at the end of June was $13.9 million, with a fully available $10 million line of credit [16] Q&A Session Summary Question: What are the key priorities for the next three to six months? - The CEO highlighted early tenure engagement, product improvements, better marketing targeting, and investments in AI and community [22] Question: How will AI be utilized? - AI will be used to enhance member experience and develop an AI companion for meaningful member engagement [24] Question: What pricing changes are expected in March? - A price increase of approximately $2 on monthly subscriptions is anticipated, with added value from AI solutions and new content [25][35] Question: What updates are available regarding Ignaton's go-to-market strategy? - The product received a strong response at the Biohacking Conference, and further launches are planned for after Labor Day [28][40] Question: How will the $6 million raised for Ignaton be spent? - Funds will be allocated for product launch, general operating expenses, and capital expenditures to support growth [48] Question: Is the company still on track for 12% revenue growth for the year? - Management confirmed that they expect to achieve the 12% revenue growth target for the year [49] Question: How is the Marketplace performing? - The Marketplace is viewed as a community-building tool, with strong demand for trips and new products being introduced [51][53]

PART I—FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financials show Gaia, Inc. with increased assets and revenues, a narrowed net loss, and higher cash from financing activities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$147.0 million** by June 30, 2025, driven by a rise in cash and equity from a stock offering Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $23,492 | $15,742 | | **Total assets** | **$146,981** | **$141,217** | | **Total current liabilities** | $43,437 | $41,834 | | **Total liabilities** | **$48,390** | **$47,204** | | **Total equity** | **$98,591** | **$94,013** | | **Total liabilities and equity** | **$146,981** | **$141,217** | - Cash and cash equivalents increased significantly to **$13.9 million** as of June 30, 2025, from **$5.9 million** at the end of 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues grew **12.7%** in Q2 and **12.3%** in H1 2025, driven by member growth and ARPU, leading to improved gross margins Key Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | $24,632 | $21,856 | $48,472 | $43,169 | | **Gross profit** | $21,347 | $18,471 | $42,252 | $36,651 | | **Loss from operations** | $(2,196) | $(1,993) | $(3,210) | $(2,847) | | **Net loss attributable to common shareholders** | $(1,801) | $(2,193) | $(2,815) | $(3,238) | | **Diluted loss per share** | $(0.07) | $(0.09) | $(0.11) | $(0.14) | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$98.6 million** by June 30, 2025, primarily due to a **$7.0 million** common stock offering, despite net losses - In the first half of 2025, the company issued **1,600,000 shares** of common stock in a public offering, raising net proceeds of approximately **$7.0 million**[13](index=13&type=chunk)[32](index=32&type=chunk) - The accumulated deficit increased from **$(90.4) million** at the end of 2024 to **$(93.2) million** at June 30, 2025, due to net losses incurred during the period[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operations was **$3.6 million**, with a **$6.9 million** boost from financing, leading to an **$8.1 million** increase in cash Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $3,582 | $3,855 | | **Net cash used in investing activities** | $(2,434) | $(12,520) | | **Net cash provided by financing activities** | $6,916 | $6,358 | | **Net change in cash and cash equivalents** | $8,064 | $(2,307) | | **Cash and cash equivalents, end of period** | $13,924 | $5,459 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail Gaia's global digital video subscription service, revenue policies, discontinuation of transactional courses, a **$7.0 million** stock offering, and its single reportable segment - The company operates a global digital video subscription service with over **10,000 titles**, with **90%** being exclusive content, organized into four primary channels[18](index=18&type=chunk)[19](index=19&type=chunk) - On March 7, 2025, the Board voted to discontinue its stand-alone business unit selling transactional courses, now presented as discontinued operations[23](index=23&type=chunk) - In February 2025, the company sold **1,600,000 shares** of Class A common stock, resulting in net proceeds of **$7.0 million**[32](index=32&type=chunk) - The company has one reportable segment, with the United States accounting for approximately **60%** of revenue for the six months ended June 30, 2025[47](index=47&type=chunk)[50](index=50&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) H1 2025 revenue grew **12.3%** from member growth and ARPU, improving gross margin and strengthening liquidity via a **$7.0 million** stock offering [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Revenues grew **12.7%** in Q2 and **12.3%** in H1 2025, driven by member growth and ARPU, leading to improved gross margins Revenue and Gross Profit Comparison (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | Six Months 2025 | Six Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | $24,632 | $21,856 | 12.7% | $48,472 | $43,169 | 12.3% | | **Gross profit** | $21,347 | $18,471 | 15.6% | $42,252 | $36,651 | 15.3% | | **Gross profit margin** | 86.7% | 84.5% | +2.2pp | 87.2% | 84.9% | +2.3pp | - The increase in revenues for both the three and six-month periods was primarily driven by an increase in member count and improvements in Average Revenue Per User (ARPU) due to price increases[66](index=66&type=chunk)[71](index=71&type=chunk) - Selling and operating expenses increased by **11.4%** in Q2 and **13.4%** in H1 2025 compared to the prior year, primarily due to higher marketing expenses[69](index=69&type=chunk)[73](index=73&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with a **$13.9 million** cash balance, supported by operating cash flow and a **$7.0 million** stock offering, with **$10.0 million** available credit - As of June 30, 2025, the company's cash balance was **$13.9 million**[78](index=78&type=chunk) - Budgeted content and capital expenditures for the remainder of 2025 are expected to be between **$11.0 million** and **$13.0 million**, to be funded with cash flows from operations[77](index=77&type=chunk) - In February 2025, the company raised net proceeds of **$7.0 million** from a Class A common stock offering[84](index=84&type=chunk) - The company has a revolving credit facility of up to **$10.0 million** with KeyBank, with no outstanding borrowings as of June 30, 2025[79](index=79&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Gaia, Inc. is exempt from providing market risk disclosures - The company is a smaller reporting company as defined in Rule 12b-2 of the Securities Exchange Act of 1934 and is not required to provide the information under this item[93](index=93&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[94](index=94&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[95](index=95&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[97](index=97&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) Risk Factors are incorporated by reference from the Annual Report on Form 10-K for the year ended December 31, 2024 - The company incorporates by reference the Risk Factors included in its Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 10, 2025[98](index=98&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities - None[99](index=99&type=chunk) [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[100](index=100&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[101](index=101&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer pursuant to SEC rules and the Sarbanes-Oxley Act, as well as Inline XBRL documents[103](index=103&type=chunk)

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: "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-mone ...

Core Insights - Gaia, Inc. reported a 12% increase in revenue for Q2 2025, reaching $24.6 million, driven by growth in member count and average revenue per user [3][7] - The company achieved a gross profit of $21.3 million, a 16% increase from the previous year, with gross margin expanding to 86.7% [3][7] - Gaia's subsidiary, Igniton, raised $6 million in private equity financing, increasing its implied post-money valuation to $106 million [2][7] Financial Performance - Revenue for Q2 2025 was $24.6 million, up from $21.9 million in Q2 2024, reflecting a 12% growth [3][7] - Gross profit increased to $21.3 million from $18.5 million, marking a 16% rise [3][7] - The net loss narrowed to $(1.8) million, or $(0.07) per share, compared to $(2.2) million, or $(0.09) per share, in Q2 2024 [3][7] Cash Flow and Financial Position - Operating cash flow was $2.3 million, with free cash flow of $1.6 million, indicating ongoing operational discipline [4][16] - As of June 30, 2025, the cash balance stood at $13.9 million, with a fully available $10 million line of credit [4][12] - The company generated positive operating and free cash flow, reinforcing its disciplined approach to financial management [2][4] Member Growth and Engagement - Total membership increased to 878,000, contributing to revenue growth [3][7] - The annualized gross profit per employee rose to $814,000 from $695,000 in the prior-year quarter, reflecting improved operational efficiency [2][3] Strategic Initiatives - Continued investment in content, AI, and the global community platform is aimed at enhancing member value and connection [2][3] - The financing raised by Igniton will support product launch and capital expenditures for future growth [2][7]

Creating a transformational network to empower a global conscious community August 2025 . Forward-Looking Statements This presentation 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 ...

Core Points - Gaia, Inc. will conduct a conference call on August 11, 2025, to discuss its financial results for Q2 2025 [1][2] - The conference call will include a question and answer period and will be accessible via a toll-free number [2] - A live broadcast of the conference call will be available, along with a replay option until August 25, 2025 [3] Company Overview - Gaia is the largest streaming and community platform focused on personal transformation, health, wellness, and spirituality [1] - The platform offers over 10,000 titles, with more than 88% being exclusive content, and approximately 75% of viewership comes from Gaia-produced or owned content [3] - Gaia operates in 185 countries and provides content in four languages: English, Spanish, French, and German [3]

Summary of Gaia Inc. Conference Call Company Overview - **Company**: Gaia Inc. (GAIA) - **Industry**: Streaming Video on Demand (SVOD) - **Business Model**: Focuses on underserved niches in personal growth, ancient wisdom, and wellness through a subscription-based streaming platform [7][9] Core Financial Highlights - **Subscription Pricing**: Monthly subscription at $13.99 and annual at $119, with a premium tier at $299 [7] - **Subscriber Growth**: - End of last year: 860,000 subscribers - Current: 867,000 subscribers - Target: 5,000,000 subscribers [12][31] - **Revenue Performance**: - FY 2024 revenue: just over $90 million, an 11% year-on-year increase [31] - Projected revenue for 2025: over $100 million, a 12% increase [32] - **Gross Margin**: Stable at 86% with a cash contribution margin over 93% [10][31] - **Customer Acquisition Cost (CAC)**: Remained steady over the past eight years, while Lifetime Value (LTV) has tripled [11] Unique Business Attributes - **Content Production**: - 88% of content is exclusive, produced on-site at a 150,000 square foot campus in Colorado [19] - Content efficiency multiple of 2x compared to Netflix [22] - **International Expansion**: - 98% of the library has international rights, with localization strategies in Spanish, German, and French [23] - Currently operating in 44 countries, aiming for over 50% international membership in three years [24] Growth Initiatives - **Marketplace Launch**: Introduced a marketplace for retreats and curated products, expected to enhance revenue streams [27] - **AI and Community Tech**: Developing a generative AI chatbot and community platform to enhance member engagement [29] - **Private Subsidiary Ignatant**: Anticipated to contribute significantly to revenue, with a recent successful pre-launch [30][42] Challenges and Responses - **Revenue Fluctuations**: Q1 revenue was lower than Q4 due to one-off items and external factors affecting marketplace initiatives [39][40] - **Tour Cancellations**: Travel advisories impacted tours in Egypt, but alternative tours in Peru are being expanded [40] - **Focus on High LTV Markets**: Targeting higher-value customers in regions like the US and DACH to stabilize growth [44][45] Future Outlook - **Free Cash Flow**: Expected to generate over $5 million in free cash flow in 2025, with potential to triple as revenue grows [33] - **Price Increases**: Scheduled for March 2026, following a successful price increase in Q4 2024 [15][28] - **Licensing Opportunities**: Exploring content licensing deals with hyperscalers, expected to contribute additional revenue streams by 2026 [48] Conclusion Gaia Inc. is positioned for growth in the SVOD market with a strong focus on niche content, efficient production, and innovative revenue streams. The company is actively addressing challenges while maintaining a positive outlook for future financial performance and subscriber growth.

Company Overview - Gaia, Inc. is a conscious media and community company that operates a global video streaming service, producing and curating content across four primary channels: Seeking Truth, Transformation, Alternative Healing, and Yoga [3] - The service is available in four languages (English, Spanish, French, and German) and serves members in 185 countries [3] - Gaia's library includes over 10,000 titles, with more than 88% being exclusive to the platform, and approximately 75% of viewership is generated by content produced or owned by Gaia [3] Upcoming Events - Gaia's management will participate in the iAccess Alpha Virtual Best Ideas Summer Investment Conference 2025 on June 24 and 25, 2025 [1] - CEO James Calhoun and CFO Ned Preston will deliver a company presentation on June 24, followed by one-on-one meetings with investors on June 25 [1][2] Investor Engagement - The iAccess Alpha conferences feature companies recommended by investors, including webcast presentations on Day 1 and one-on-one meetings on Day 2 [2] - Interested parties can register and schedule meetings with Gaia through the conference website [2]

Business Overview - Gaia is a premium SVOD channel focusing on niche content in personal growth, ancient wisdom, and wellness[3,4] - The core demographic is 65% female, aged 45-65, highly educated, with a household income of $75,000+[7] - Gaia targets a subscriber base of 5 million out of a total addressable market of 26 million[17] Financial Performance - In 2024, Gaia achieved revenues of $90363000 with a gross profit of $78810000, resulting in an 86% gross margin and a 93% cash contribution margin[37] - For the year 2024, the company reported positive free cash flow of $2737000, representing a 3% free cash flow margin[37] - The company's LTV-CAC efficiency ratio has grown from 28X in 2018 to 62X in 2024[10] Growth & Expansion - Gaia's international members currently stand at 44% and are estimated to reach 50% within 3 years[28] - The company possesses international rights for 98% of its content library[28] - Gaia's average revenue per member has increased from $933 in 2018 to $1074 in 2024[21]

Summary of Gaia (GAIA) Conference Call - June 12, 2025 Company Overview - Gaia operates as a conscious community and streaming network, often referred to as a "spiritual Netflix" with over 860,000 global members paying a monthly subscription fee of $13.99 or an annual fee of $119 [2][3][4] Core Business Insights - Gaia has a premium membership tier, Gaia Plus, priced at $299 per year, which includes live broadcasts and events [4] - The company achieved positive free cash flow for Q4 and the full year 2024, with an 86% gross margin and a 93% cash contribution margin [6][27] - The average revenue per user (ARPU) is over $107 per year, with plans for a price increase in Q1 2026 [11][35] Market Potential - Gaia's total addressable market (TAM) is projected to reach 5 million subscribers, with current membership nearing 1 million [8][10] - The company is positioned to benefit from the growing trend of households subscribing to multiple streaming services [8] Financial Performance - Revenue for 2024 topped $90 million, reflecting over 11% year-on-year growth, with a gross profit of just under $79 million [27] - The company anticipates revenue growth to exceed $100 million in 2025, with a projected gross margin increase to 87% [29] Content Strategy - 88% of Gaia's content is produced in-house, allowing for greater control and efficiency in content creation [13] - The company measures content performance through a royalty pool system, demonstrating high returns on legacy content [14][15] International Expansion - Gaia has rights for 98% of its content library internationally and is currently available in 185 countries, with plans to increase international membership to over 50% in three years [16] Distribution Channels - Gaia utilizes direct web platforms and various apps (iPhone, Android, Roku, etc.) for distribution, alongside partnerships with major platforms like Amazon Prime and YouTube [18][19] New Initiatives - The launch of GAIA Marketplace aims to enhance ARPU by offering members discounts on retreats and courses, with a successful sold-out retreat in Peru [20][21][54] - A new subsidiary, Ignaton, focused on quantum healing technology, is seen as a high-growth opportunity, with plans for market launch in Q3 [24][39] AI and Technology Investments - Gaia is developing a conscious generative AI chat model to enhance user engagement and retention [52] - AI is also being utilized to reduce translation costs and improve content accessibility [51] Management Transition - A management transition is underway, with Kirsten Medvedev assuming the role of CEO, while James Colhoun will focus on growth opportunities [38][42] Key Metrics and Future Outlook - The company aims to improve retention rates and reduce customer acquisition costs through smarter marketing strategies [58][60] - Gaia's media library is valued at over $182 million, and the member base could be worth over $300 million based on conservative estimates [33] Conclusion - Gaia is positioned for significant growth with a strong focus on expanding its subscriber base, enhancing ARPU, and leveraging new initiatives and technology to drive future success [36][59]