Gaia(GAIA) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Report Announcement 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][2] Key Business and Financial 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] - Generated positive operating and free cash flow[5][6] - Annualized gross profit per employee increased to $814,000 from $695,000 in Q2 2024[3] - 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][6] 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 About Gaia 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] - Offers conscious media through four channels: Seeking Truth, Transformation, Alternative Healing, and Yoga[8] - Content available in four languages (English, Spanish, French, German) to members in 185 countries[8] - Library includes over 10,000 titles, with over 88% exclusive to Gaia and approximately 75% of viewership from owned content[8] Financial Performance for Second Quarter 2025 Summary of Q2 2025 Financial Results 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] - Cash balance stood at $13.9 million as of June 30, 2025, with a renewed $10 million line of credit with improved terms[5] Condensed Consolidated Balance Sheets 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 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 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 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 Conference Call Information 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] - Replay available until August 25, 2025[8] Forward-Looking Statements 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] - 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][10] - Company undertakes no obligation to update forward-looking information[10] Non-GAAP Financial Measures 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] - 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] - Non-GAAP measures should not be considered a substitute for GAAP results and are used by management and investors for assessing performance[11] Contact Information 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] - Investor Relations: Cody Slach, Gateway Group, Inc., GAIA@gateway-grp.com, (949) 574-3860[12]