Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $25 million, up 14% from $22 million in Q3 2024, driven by growth in both RPO and member count [10] - Gross profit increased 14% to $21.6 million from $19 million in Q3 2024, with gross margins expanding to 86.4%, up from 86.1% [10] - Cash position improved significantly to $14.2 million from $4.4 million a year ago, with a fully available $10 million line of credit [11] - Free cash flow for Q3 was $0.9 million, marking the seventh consecutive quarter of positive free cash flow [10] Business Line Data and Key Metrics Changes - Member count grew to 883,000, reflecting the impact of a $2 subscription price increase implemented a year ago [3][10] - Annualized gross profit per employee increased to $814,000, up from $703,000 in the previous year [3] Market Data and Key Metrics Changes - The company is focusing on deepening relationships with direct members, as churn is nearly double on larger platforms and revenue per subscriber is roughly half compared to direct members [9] Company Strategy and Development Direction - Gaia is transitioning from a traditional SVOD model to an AI-forward company, integrating technology with conscious media and community [5][6] - The company plans to launch a community platform next year, enhancing member engagement and connection [7] - A focus on sustainable, profitable member growth rather than short-term volume is emphasized, with a priority on direct member relationships [26] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a key transition year, focusing on advancing technology and infrastructure to deliver value to direct members [8] - The company anticipates low double-digit annual growth for this year and similar revenue growth for the next year [12] Other Important Information - Igniton products are now available on Gaia Marketplace, with initial sales of approximately $300,000 in the quarter [18] - The company plans to raise content spend by 23% from the prior year [29] Q&A Session Summary Question: What was the churn number during the quarter and how does it compare historically? - Management indicated that they do not use a specific churn number, but losses from price increases typically result in about half of the price increase being offset by churn [16] Question: How will the AI offering change the core subscription model? - The AI is expected to enhance engagement, leading to increased RPO and decreased churn [18] Question: What are the plans for pricing increases? - The company plans to implement another $2 price increase around mid-April [22] Question: How will the focus on direct members affect marketing spend? - The company will prioritize direct member relationships, which may lead to slower growth in partner channels [25] Question: What is the expected content spend for next year? - Content spend is expected to increase by 23% from the prior year, with a rough figure of about $15 million for pure content investment [31] Question: What is the revenue expectation for Igniton? - Igniton is expected to reach a run rate of around $3 million, with approximately half of that expected for the current year [39]

BOULDER, Colo., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the third quarter ended September 30, 2025. Highlights: Revenue increased 14%, compared to the prior year quarterLaunched proprietary AI modelSeventh consecutive quarter of positive operating and free cash flow generation “Last October, we raised our subscription prices for most of our members by two dollars. While the losses from the price increase resulted in ...