Gaia to Present at LD Micro Main Event XIXOctober 06, 2025 8:30 AM EDT | Source: LD MicroBoulder, Colorado--(Newsfile Corp. - October 6, 2025) - Gaia, Inc. (NASDAQ: GAIA) ("Gaia" and/or the "Company"), the world's largest conscious streaming platform and community, will be attending the LD Micro Main Event XIX on October 19-21, 2025 at the Hotel del Coronado in San Diego, California. Gaia is scheduled to present on Monday, October 20th at 10:00 a.m. Pacific time, with one-on-one meetings to be ...

Summary of Gaia Inc. Conference Call - September 17, 2025 Company Overview - **Company Name**: Gaia Inc. (NasdaqGM:GAIA) - **Industry**: Subscription Video on Demand (SVOD) focused on spiritual and wellness content, often referred to as the "spiritual Netflix" [2][3] Core Business Insights - **Content Library**: Over 10,000 titles, with 90% exclusive content and worldwide rights for 98% [3] - **Market Trends**: 74% of Americans identify as spiritual rather than religious; the wellness industry projected to reach $9 trillion by 2028 [3] - **Financial Performance**: - Revenue growth forecasted at approximately $100 million for 2025, an 11% increase from 2024 [8] - Positive free cash flow for eight consecutive quarters, with a cash flow margin of 3% [12] - Gross margins at 86% and cash contribution margin at 93% [12][13] New Growth Drivers - **Igniton**: A new product line based on quantum technology, claiming to enhance memory by 80% and reduce inflammation markers by 54% [5][6] - **Licensing Opportunities**: Plans to license Igniton technology to other industries, including cosmetics and sports supplements [6] - **AI Companion**: Launching an AI tool to enhance user engagement and retention by providing personalized content recommendations [34] Community and Engagement - **Community Platform**: Set to launch next year, aimed at connecting like-minded individuals globally [39] - **Gaia Marketplace**: An e-commerce site that supports community engagement and offers products related to wellness [40] Financial Metrics - **Member Growth**: Currently at 878,000 members, with a goal to increase international membership from 40% to 50% within three years [10][11] - **Average Revenue Per User (ARPU)**: Increased to $107 in 2024, indicating improved monetization [9] - **Employee Productivity**: Gross profit per employee increased from $730,000 in 2024 to over $800,000 [10] Pricing Strategy - **Price Increase**: Implemented an 18% price increase in late 2023, which resulted in lower-than-expected churn, indicating strong pricing power [42][43] - **Future Pricing Plans**: Another price increase planned for March 2026, supported by enhanced content and product offerings [43] Balance Sheet Strength - **Cash Reserves**: Approximately $14 million in cash and cash equivalents, with no reliance on credit lines for the past eight quarters [16][17] - **Valuation of Assets**: Media library valued at over $180 million and member base estimated at over $300 million [17] Conclusion - Gaia Inc. is positioned for growth through its core SVOD business and new initiatives like Igniton and AI. The company is leveraging market trends in spirituality and wellness, maintaining strong financial health, and focusing on community engagement to enhance user experience and retention.

Core Insights - Gaia has launched Igniton quantum wellness supplements, IgniCognition and IgniLongevity, aimed at improving longevity and cognition through a curated marketplace [1][2] - Igniton, a majority-owned subsidiary of Gaia, has been recognized for its innovative approach to functional health at a prominent biohacking conference [2][3] Product Details - IgniCognition has shown over 80% improvement in total memory, approximately 50% in attention, and around 80% in mental performance quality within 30 days [4] - IgniLongevity has demonstrated a reduction in inflammatory markers (IL-6 by ~50% and CRP by ~40%), lowered blood pressure, and improved liver enzyme levels within 60 days [4] Technology and Innovation - Igniton utilizes subatomic quasi-particles from the Sun, known as ignitons, to enhance the efficacy of nutrients, leading to measurable improvements in cognitive and longevity metrics [3][4] - The supplements have been clinically validated to outperform non-charged formulations and placebo in university studies [4] Company Overview - Gaia operates as a member-supported global video streaming service, offering over 10,000 titles across various languages and focusing on conscious media [5] - Igniton is a quantum wellness technology company, 66% owned by Gaia, dedicated to amplifying human potential through proprietary enhancement technology [6]

Company Overview - Gaia, Inc. is the world's largest streaming and community platform focused on personal transformation, health, wellness, and spirituality [1] - The company operates a member-supported global video streaming service that produces and curates conscious media across four primary channels: Seeking Truth, Transformation, Alternative Healing, and Yoga [2] - Gaia's content is available in four languages (English, Spanish, French, and German) and serves members in 185 countries [2] Content and Viewership - Gaia's library includes over 10,000 titles, with more than 88% being exclusive to the platform [2] - Approximately 75% of viewership is generated by content produced or owned by Gaia [2] Upcoming Investor Events - Gaia will participate in the 2025 Annual Gateway Conference on September 3, 2025, in San Francisco, California [3] - The company will also attend the 8th Annual Lake Street BIG8 Conference on September 11, 2025, in New York City, New York [3] - Additionally, Gaia will be part of the Sidoti Small-Cap Virtual Conference from September 17 to September 18, 2025 [3]

Financial Performance - Gaiam reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and an improvement from a loss of $0.09 per share a year ago, representing an earnings surprise of +12.50% [1] - The company posted revenues of $24.63 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.37%, and an increase from year-ago revenues of $22.08 million [2] - Over the last four quarters, Gaiam has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Gaiam shares have lost about 8% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $25.75 million, and -$0.18 on revenues of $100.42 million for the current fiscal year [7] Industry Context - The Broadcast Radio and Television industry, to which Gaiam belongs, is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Gaiam's stock performance [5]

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)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Report Announcement](index=1&type=section&id=Report%20Announcement) Gaia, Inc. announced its financial results for the second quarter ended June 30, 2025, on August 11, 2025 - Gaia, Inc. (NASDAQ: GAIA) reported financial results for Q2 ended June 30, 2025, on August 11, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) [Key Business and Financial Highlights](index=1&type=section&id=Highlights) Gaia achieved positive free cash flow and double-digit growth for the sixth consecutive quarter, with revenue increasing 12% to $24.6 million and gross profit rising 16% to $21.3 million, while EPS improved to $(0.07) - Sixth consecutive quarter of **double-digit revenue and gross profit increases**[6](index=6&type=chunk) - Generated **positive operating and free cash flow**[5](index=5&type=chunk)[6](index=6&type=chunk) - Annualized gross profit per employee increased to **$814,000** from $695,000 in Q2 2024[3](index=3&type=chunk) - Subsidiary Igniton raised **$6 million** in private common equity financing in July, increasing its implied post-money valuation to **$106 million** from $40 million last year; Gaia now owns approximately **two-thirds** of Igniton equity[3](index=3&type=chunk)[6](index=6&type=chunk) Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenue | $24.6M | $21.9M | +12% | | Gross Profit | $21.3M | $18.5M | +16% | | Gross Margin | 86.7% | 84.5% | +2.2 pp | | Net Loss per Share | $(0.07) | $(0.09) | +$0.02 | | Operating Cash Flow | $2.3M | N/A | N/A | | Free Cash Flow | $1.6M | N/A | N/A | [Company Overview](index=2&type=section&id=Company%20Overview) [About Gaia](index=2&type=section&id=About%20Gaia) Gaia is a member-supported global video streaming service offering conscious media across four channels in four languages to members in 185 countries, with a library of over 10,000 titles, predominantly exclusive and owned content - Gaia is a **member-supported global video streaming service and community**[8](index=8&type=chunk) - Offers conscious media through **four channels**: Seeking Truth, Transformation, Alternative Healing, and Yoga[8](index=8&type=chunk) - Content available in **four languages** (English, Spanish, French, German) to members in **185 countries**[8](index=8&type=chunk) - Library includes over **10,000 titles**, with over **88% exclusive** to Gaia and approximately **75% of viewership from owned content**[8](index=8&type=chunk) [Financial Performance for Second Quarter 2025](index=1&type=section&id=Financial%20Performance%20for%20Second%20Quarter%202025) [Summary of Q2 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Gaia reported a 12% increase in revenue to $24.6 million, driven by member growth, with gross profit rising 16% to $21.3 million, and net loss improving to $(1.8) million, while generating positive operating and free cash flow Q2 2025 Financial Performance Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Revenue | $24.6M | $21.9M | +12% | | Gross Profit | $21.3M | $18.5M | +16% | | Gross Margin | 86.7% | 84.5% | +2.2 pp | | Net Loss | $(1.8)M | $(2.2)M | -$0.4M | | EPS | $(0.07) | $(0.09) | +$0.02 | | Operating Cash Flow | $2.3M | N/A | N/A | | Free Cash Flow | $1.6M | N/A | N/A | - Total members increased to **878,000**, contributing to revenue growth[4](index=4&type=chunk) - Cash balance stood at **$13.9 million** as of June 30, 2025, with a renewed **$10 million** line of credit with improved terms[5](index=5&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Gaia's total assets increased to $147.0 million from $141.2 million at December 31, 2024, primarily due to a significant increase in cash and cash equivalents, while total liabilities and equity also grew Selected Balance Sheet Data (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :------------ | :----------- | :----- | | Cash and cash equivalents | $13,924 | $5,860 | +$8,064 | | Total current assets | $23,492 | $15,742 | +$7,750 | | Total assets | $146,981 | $141,217 | +$5,764 | | Total current liabilities | $43,437 | $41,834 | +$1,603 | | Total liabilities | $48,390 | $47,204 | +$1,186 | | Total equity | $98,591 | $94,013 | +$4,578 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net revenues increased 12% year-over-year to $24.6 million, resulting in a 16% rise in gross profit to $21.3 million, and an improved net loss attributable to common shareholders of $(1.8) million Q2 2025 Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Revenues, net | $24,632 | $21,856 | +$2,776 | | Cost of revenues | $3,285 | $3,385 | -$100 | | Gross profit | $21,347 | $18,471 | +$2,876 | | Total operating expenses | $23,543 | $20,464 | +$3,079 | | Loss from operations | $(2,196) | $(1,993) | -$203 | | Net loss attributable to common shareholders | $(1,801) | $(2,193) | +$392 | | Basic loss per share | $(0.07) | $(0.09) | +$0.02 | YTD June 30, 2025 Statements of Operations (in thousands) | Metric | YTD 2025 | YTD 2024 | YoY Change | | :------------------------------------ | :------- | :------- | :--------- | | Revenues, net | $48,472 | $43,169 | +$5,303 | | Gross profit | $42,252 | $36,651 | +$5,601 | | Net loss attributable to common shareholders | $(2,815) | $(3,238) | +$423 | | Basic loss per share | $(0.11) | $(0.14) | +$0.03 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 2025, Gaia generated $2.3 million in net cash from operating activities, a significant improvement from the prior year, with overall cash, cash equivalents, and restricted cash increasing by $0.8 million Q2 2025 Statements of Cash Flows (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------------ | :------ | :------ | :--------- | | Net cash provided by (used in) operating activities | $2,284 | $(2,081) | +$4,365 | | Net cash used in investing activities | $(1,404) | $(11,447) | +$10,043 | | Net cash provided by (used in) financing activities | $(46) | $6,388 | -$6,434 | | Net change in cash, cash equivalents, and restricted cash | $834 | $(7,140) | +$7,974 | YTD June 30, 2025 Statements of Cash Flows (in thousands) | Metric | YTD 2025 | YTD 2024 | YoY Change | | :------------------------------------------ | :------- | :------- | :--------- | | Net cash provided by (used in) operating activities | $3,582 | $3,855 | -$273 | | Net cash used in investing activities | $(2,434) | $(12,520) | +$10,086 | | Net cash provided by (used in) financing activities | $6,916 | $6,358 | +$558 | | Net change in cash, cash equivalents, and restricted cash | $8,064 | $(2,307) | +$10,371 | [Reconciliation of Free Cash Flow](index=6&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Gaia reported a free cash flow of $1.6 million for Q2 2025, a significant increase from $0.7 million in Q2 2024, driven by positive operating cash flow and changes in non-core business activities Q2 2025 Free Cash Flow Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------------ | :------ | :------ | :--------- | | Net cash provided by (used in) operating activities | $2,284 | $(2,081) | +$4,365 | | Cash paid for interest | $81 | $154 | -$73 | | Net cash used in investing activities | $(1,404) | $(11,447) | +$10,043 | | Change in cash from non-core business activities | $683 | $14,096 | -$13,413 | | Free cash flow | $1,644 | $722 | +$922 | YTD June 30, 2025 Free Cash Flow Reconciliation (in thousands) | Metric | YTD 2025 | YTD 2024 | YoY Change | | :------------------------------------------ | :------- | :------- | :--------- | | Net cash provided by (used in) operating activities | $3,582 | $3,855 | -$273 | | Cash paid for interest | $218 | $262 | -$44 | | Net cash used in investing activities | $(2,434) | $(12,520) | +$10,086 | | Change in cash from non-core business activities | $974 | $10,101 | -$9,127 | | Free cash flow | $2,340 | $1,698 | +$642 | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call) Details for the conference call held on Monday, August 11, 2025, at 4:30 p.m. Eastern time, including dial-in numbers and replay information - Conference call held on **August 11, 2025, at 4:30 p.m. ET**[7](index=7&type=chunk) - Replay available until **August 25, 2025**[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, highlighting that actual results may differ materially due to various risks and uncertainties detailed in SEC filings, and the company undertakes no obligation to update such information - Press release contains **forward-looking statements** subject to risks and uncertainties[9](index=9&type=chunk) - Actual results may differ materially from anticipated results due to factors like ability to attract/retain members, competition, service disruptions, and general economic conditions[9](index=9&type=chunk)[10](index=10&type=chunk) - Company undertakes **no obligation to update** forward-looking information[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Measures) The report includes non-GAAP financial measures, specifically Free Cash Flow, defined as net cash from operating activities plus cash paid for interest, less cash used in investing activities, plus cash from non-core business activities, presented as a supplement to GAAP results for performance assessment - Financial information includes **non-GAAP measures**, such as Free Cash Flow[11](index=11&type=chunk) - Free Cash Flow is defined as 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[11](index=11&type=chunk) - Non-GAAP measures should not be considered a substitute for GAAP results and are used by management and investors for assessing performance[11](index=11&type=chunk) [Contact Information](index=3&type=section&id=Company%20Contact) Provides contact details for Gaia's Chief Financial Officer, Ned Preston, and for Investor Relations through Gateway Group, Inc - Company contact: **Ned Preston, CFO, Investors@gaia.com**[12](index=12&type=chunk) - Investor Relations: **Cody Slach, Gateway Group, Inc., GAIA@gateway-grp.com, (949) 574-3860**[12](index=12&type=chunk)

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]

Business Model & Target Market - Gaia is a premium SVOD channel focusing on niche content in Personal Growth & Transformation, Ancient Wisdom & Unexplained Mysteries, and Wellness, Yoga & Meditation[4, 5] - The core demographic is 65% female, aged 45-65, highly educated, with a household income of $75,000+[8] - Gaia's total addressable market is 26 million, with a subscriber target of 5 million[16, 17] Financial Performance & Efficiency - Gaia has strong unit economics with negative working capital[10] - The LTV-CAC efficiency ratio has grown from 2.8X in 2018 to 6.2X in 2024[11] - The company has a high gross margin of 86% and a cash contribution margin of 93%[12, 38] - Full year 2024 revenues were $90363000, with a gross profit of $78810000 and adjusted EBITDA of $15223000[38] - For the three months ended June 30, 2025, Free Cash Flow was $1644000[49] Growth & Expansion - International members currently account for 40% of the member base and are estimated to reach 50% within 3 years[29] - Gaia has international rights for 98% of its content library[29] - The company is expanding through initiatives like the Gaia Marketplace (Q3 2024) and Gaia Community (June 2026)[33, 34]