Gaia(GAIA) - 2025 Q3 - Quarterly Results

Revenue and Profit - Revenue for Q3 2025 increased by $3.0 million, or 14%, reaching $25.0 million compared to $22.0 million in Q3 2024[5] - Gross profit increased 14% to $21.6 million, with gross margin improving to 86.4% from 86.1% in the prior year quarter[5] - Net loss for Q3 2025 was $(1.2) million, consistent with the loss reported in Q3 2024[6] Cash Flow and Financial Position - Free cash flow for Q3 2025 was $0.9 million, compared to $0.1 million in Q3 2024, marking the seventh consecutive quarter of positive free cash flow[6] - Cash position improved to $14.2 million, along with an unused $10.0 million credit line, up from $4.4 million a year ago[7] - For the first nine months of 2025, free cash flow increased to $3.2 million, up from $1.8 million during the same period last year[6] - Net cash provided by operating activities for Q3 2025 was $326,000, a decrease of 20.3% compared to $409,000 in Q3 2024[17] - Free cash flow for the nine months ended September 30, 2025, was $3,229,000, an increase of 76.5% from $1,836,000 in the same period of 2024[18] - Net cash provided by financing activities for Q3 2025 was $3,839,000, a significant increase from $(142,000) in Q3 2024[17] - The net change in cash and cash equivalents for the nine months ended September 30, 2025, was $8,302,000, compared to $(3,401,000) in the same period of 2024[17] - Total net cash used in investing activities for the nine months ended September 30, 2025, was $(6,361,000), a decrease of 54.2% from $(13,881,000) in the same period of 2024[17] Member Engagement and Community Development - Member count rose by 37,000 to 883,000 as of September 30, 2025, up from 846,000 a year ago[5] - The launch of a proprietary AI Guide is expected to enhance member engagement and strengthen the community platform[4] Operating Expenses - Operating expenses for Q3 2025 totaled $22.8 million, compared to $20.1 million in Q3 2024[16] Capital Expenditures - Net cash used for capital expenditures in Q3 2025 was $(1,927,000), compared to $(1,361,000) in Q3 2024, reflecting a 41.7% increase[18] - Cash paid for interest in Q3 2025 was $72,000, down 48.9% from $141,000 in Q3 2024[18]