NASDAQ:GAIA Gaia Q2 2025 Earnings Report $5.75 +0.51 (+9.73%) Closing price 08/22/2025 04:00 PM EasternExtended Trading$5.74 0.00 (-0.09%) As of 08/22/2025 04:10 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Gaia EPS ResultsActual EPS-$0.07Consensus EPS -$0.08Beat/MissBeat by +$0.01One Year Ago EPSN/AGaia Revenue ResultsActual Revenue$24.63 millionExpected Revenue$24.33 millionBeat/MissBeat by +$307.00 thousandYoY Revenue GrowthN/AGaia Announcement DetailsQuarterQ2 2025Date8/11/2025TimeAfter Market ClosesConference Call DateMonday, August 11, 2025Conference Call Time4:30PM ETUpcoming EarningsGaia's Q3 2025 earnings is scheduled for Monday, November 3, 2025, with a conference call scheduled at 4:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Gaia Q2 2025 Earnings Call TranscriptProvided by QuartrAugust 11, 2025 ShareLink copied to clipboard.Key Takeaways Positive Sentiment: Gaia delivered 12% revenue growth to $24.6 million and 16% gross profit growth with margin expanding to 86.7%, while membership rose to 878,000. Positive Sentiment: Free cash flow more than doubled to $1.6 million and operating cash flow reached $2.3 million, backed by a $13.9 million cash balance and a fully available $10 million credit line. Positive Sentiment: Subsidiary Igniton raised $6 million at a $106 million post-money valuation—valuing Gaia’s two-thirds stake at $70 million—and product rollout has seen strong early demand. Negative Sentiment: Management plans a $2 price increase on monthly subscriptions in March 2026, which could pressure retention despite added AI and content enhancements. Neutral Sentiment: Gaia is developing a global conscious community platform and an AI companion to deepen engagement, with both slated to launch within the next year. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallGaia Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Good afternoon. Welcome to Gaia's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Joining us today from GAIA are Jirka Reisovy, Executive Chairman Kirsten Medvedic, CEO and Ned Preston, CFO. After the speakers' presentation, there will be a question and answer session. Operator00:00:23Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward looking statements and management may make additional forward looking statements in response to your questions, included but not limited to statements of expectations, future events or future financial performance. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. Although we believe these expectations are reasonable, Gaia management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of GE IT's latest annual report on Form 10 ks filed with the SEC. Operator00:01:21All non GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable GAAP measure. This call also contains time sensitive information that is accurate only as of the time and date of this broadcast, 08/11/2025. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on Gaia's Investor Relations website at ir.gaia.com. At this time, I would like to turn the call over to Gaia's Chairman, Jirka Reisovy. Please go ahead. Jirka RysavyExecutive Chairman at Gaia00:02:03Good afternoon, everyone. So revenue for the quarter increased 12% and gross profit 16%. Gross margin improved two twenty basis points to 86.7% from 84.5% at year ago quarter. Our member count grew to 878,000 and we are focusing now on high lifetime value members. Our annualized gross profit per employee increased to 814,000 from $695,000 in the year ago quarter. Jirka RysavyExecutive Chairman at Gaia00:02:45Our subsidiary Ignatone raised $6,000,000 recently at $106,000,000 post money valuation, value in Gaia two thirds ownership interest in Igniton at $70,000,000 2.5 times full increase from previous $28,000,000 Some Igniton products you can now it's also now available at Gaia marketplace. And if you want more information, you can get it at igniton.com. And I would turn the call over to our CEO, Kirsten. Kiersten MedvedichPresident & CEO at Gaia00:03:19Good afternoon, everyone. As we begin today's call, I want to honor this moment of transition. This is my first time speaking to you as CEO of Gaia, and let me begin by affirming our strategy is not changing. I am fully aligned with the path we've been walking, a strategy rooted in mission, discipline, and the long view. We are building on a foundation of purpose and deep intention, and we remain committed to moving forward with consistency and focus. Kiersten MedvedichPresident & CEO at Gaia00:03:50Our core streaming business remains the heart of Gaia. It is strong, resilient, and continues to grow over time. We are focused on scaling it sustainably by improving retention and deepening member engagement. With 90% of our content exclusive to Gaia, we offer something no other platform can: an intentional, curated experience that goes beyond content and into personal transformation and connection. And we're seeing the results, so let's talk about that. Kiersten MedvedichPresident & CEO at Gaia00:04:24In Q2, we carried our momentum from Q1 into a strong quarter, delivering double digit revenue growth and exceeding our expectations by $300,000 The key drivers of that performance were growth in both member count and ARPU as well as the launch of our Ignatant brand, which saw an enthusiastic response following its debut at the Biohacking Conference in May. This success reinforces something we've long believed, that those seeking to optimize their physical performance are often on the same path as those seeking to expand their consciousness. We also more than doubled our free cash flow quarter over quarter, reaching $1,600,000 in Q2, up from $700,000 in the prior quarter. Annualized gross profit per employee increased to $814,000 up from $695,000 in the prior year quarter. This is a clear reflection of the efficiency and scalability of our model, but even more so, is a testament to the focus and dedication of our amazing team. Kiersten MedvedichPresident & CEO at Gaia00:05:36Our people are the heart and soul of this company, and their ability to deliver excellence while staying aligned with our mission is what makes results like this possible. And as we look ahead, we see a profound culture shift emerging. More and more people are turning inward, seeking purpose, connection, and growth. On many of the AI platforms, questions about consciousness, meaning, and awakening now rank among the most frequently asked topics. That is a global signal, and it's one Gaia is uniquely prepared to meet. Kiersten MedvedichPresident & CEO at Gaia00:06:11So right now, we're currently planning the next phase of our platform, a foundation for a global conscious community. We are listening to what people want, and they want deeper connections and shared experiences. Whether it be face to face or across the globe, the desire is the same. People want to connect, and we're creating a beautiful space for that. Our plan is to build a community around the very topics our content explores, offering members a place not just to watch, but to engage and grow together. Kiersten MedvedichPresident & CEO at Gaia00:06:45We're designing it with the same care and intentionality that defines our content, and we believe it will become a meaningful advantage in how we serve our global member base. Our plan is to launch within the next year. While from the outside this may look like the next evolution, it's really returned to Gaia's deeper purpose, a purpose not just to inform, but to connect. So in parallel, we're making progress on Gaia's Conscious AI Companion. We believe this will become a beautiful bridge between our exclusive content and the personal journeys of our members. Kiersten MedvedichPresident & CEO at Gaia00:07:21Our AI companion will be sourced primarily from Gaia's original content. This allows us to offer something rare guidance that is deeply aligned with our brand and rooted in the wisdom our members have come to love and trust. Lastly, and most importantly, our focus remains centered on long term sustainable growth, driven by our core SVOD business and our global member community. Gaia is built for scale with a high margin model, exclusive content, and a brand that continues to earn trust and engagement. We are staying true to our North Star while remaining agile enough to capture revenue opportunities along the way. Kiersten MedvedichPresident & CEO at Gaia00:08:02So it is so exciting. The world is actually catching up with us. Last year, the word manifest was named Word of the Year by the Cambridge Dictionary, and that is more than a headline. It is a cultural signal, And Gaia is ready to meet that moment because we've been preparing for it from the very, very beginning. Thank you all for being here and being part of this vision. Now over to Ned for financial details. Ned PrestonCFO at Gaia00:08:30Thanks, Kirsten. For the 2025, Gaia delivered revenue of $24,600,000 up $2,700,000 or 12% year over year, driven by growth in both member count and ARPU as well as the launch of Ignaton. Total members increased in Q2 to 878,000. Gross profit increased 16% to $21,300,000 from $18,500,000 in 2024, with gross margin expanding to 86.7%, up from 84.5%. Net loss was negative $1,800,000 or $07 per share versus negative $2,200,000 or negative $09 per share in 2024. Ned PrestonCFO at Gaia00:09:19Operating cash flow was $2,300,000 with free cash flow of $1,600,000 reflecting ongoing operational discipline. Our cash balance at the June was $13,900,000 with a fully available $10,000,000 line of credit. In July, Guy also renewed its credit line for an additional three years with improved terms, including a lower interest rate and a wider range of permitted use. We continue to manage costs carefully and maintain healthy margins while investing in the strategic areas that will create long term value for our shareholders. As mentioned earlier, and as further outlined in Gaia's 10 Q, our subsidiary, Ignaton, raised $6,000,000 of private common equity financing in the month of July, which included $2,000,000 from Gaia. Ned PrestonCFO at Gaia00:10:12Ignaton's implied post money valuation is now $106,000,000 up from an implied post money valuation of $40,000,000 from last year's raise. The proceeds from the financing will be used by Ignaton for product launch, general operating expenses and certain capital expenditures to support future growth. Gaia now owns approximately two thirds of Ignaton equity. More information about Ignaton can be found at www.ignaton.com Gaia members can purchase Ignaton products at a discount through Gaia's marketplace. I will now turn the call back over to Jirka. Jirka RysavyExecutive Chairman at Gaia00:10:53Yes, just for the summary, we expect obviously continuing growth of our revenue and ARPU as well, increasing gross profit per employee as we have pretty good results for this last year, and also obviously continued generation of positive free cash flow. And this concludes our remarks. So I'd like to open it to questions. So please, operator. Operator00:11:19Thank you. And our first question comes from Mark Argento with Lake Street. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:11:40Hi, Kirsten. Nice to hear from you on the call. Yeah, I just wanted to maybe if you could just provide a little bit of your background and kind of your main focus here over the next three to six months in terms of kind of key priorities. Kiersten MedvedichPresident & CEO at Gaia00:11:59Sure. So my background is in content. I was at Sony for fifteen years, and I came on to Gaia to run the content team about nine years ago and somehow worked my way up to where I am today as CEO. And my focus going forward for the next six months is in three areas. One is early tenure engagement, which consists of specifically zero to three months, which will consist of product improvements, better marketing targeting, which means basically fishing in new ponds, and then also increase, content publishing. Kiersten MedvedichPresident & CEO at Gaia00:12:39And then the other two areas, as I, talked about, were investments in our AI and investment in our community. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:12:48Great. In terms of AI, are you thinking about using AI more as a tool for a better user experience? Or would you guys get into the you know, having an AI, you know, user interface that that the community or other customers can engage with? Kiersten MedvedichPresident & CEO at Gaia00:13:10We're looking at both. One from using AI to get better member learnings and to become smarter and delivering our members a better experience from a content perspective. And then the other is an AI companion right now that we're in the process of tweaking. And we feel that that's definitely going to deliver meaningful value to our members. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:13:39Got it. So I think in the press release, you guys talked about potentially taking pricing in Q1. Do you plan when take price? Are you guys going to expand additional content or what's the value prop going to be there for the consumer? Ned PrestonCFO at Gaia00:14:03Yeah. Hey, Mark, this is Ned and I'll take that one. Yeah. So as we've discussed in the past, we are still looking to raise prices in March 2026. At that time, we do foresee that our AI solution will be progressing and so it'll be adding value to retention and other marketing activities. Ned PrestonCFO at Gaia00:14:22But the customer experience by then will also start seeing some of those benefits as well as some new content. So the premise around the price increase in March '26 will have added value for our customers and then they'll continue to see added value throughout the rest of 2026 as things like our community and other elements come to bear. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:14:46That's helpful. And then last question for me on Ignatant, obviously raised some additional capital there. Could you provide us any updates in terms of how you're thinking about the go to market or any new updates on that side of the house? Jirka RysavyExecutive Chairman at Gaia00:15:05Yeah, we introduced the product in the last few days of May. In Austin, there was a biohacking conference, which one of the largest one in this field. The response was absolutely stunning. There was a line on our booth, basically through whole conference about So they never saw anything like that. Jirka RysavyExecutive Chairman at Gaia00:15:27We sold all the products we brought by far taking a lot of back orders, which we now failed. And so because of that, we kind of decided to actually raise some money. So we took, we just did that at least the first part of it. And we just introduced it recently. We put it also in GAIA marketplace. Jirka RysavyExecutive Chairman at Gaia00:15:49So you can get some on the GAIA marketplace starting now. And we plan to use some of this money raised for bigger launch because the response and we expect that to be after Labor Day. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:16:05Great, okay. And do you anticipate doing any kind of partnership deals using the technology or will you guys, will it be all branded under your own brand? Jirka RysavyExecutive Chairman at Gaia00:16:20Yes, we would not this year, but I would kind of say we might, we probably would, we have a lot of audio requests existing from existing brands. Can we enhance their product because igneous technology can increase efficiency pretty much all the molecules would have any trace of water. So all organic molecules, so we would focus on hydrogen. And so we probably would, might license, improve some product with some upfront license fee and then the regular margin on selling the product, but we would obviously always have a license fee first. So, but we don't expect to do any of that this year. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:17:06Appreciate the update. I'll hop back in the queue. Thanks, Mark. Kiersten MedvedichPresident & CEO at Gaia00:17:12Thanks, Mark. Operator00:17:14Our next question comes from George Kelly with ROTH Capital Partners. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:17:21Hey, everybody. Thanks. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:17:23First just a follow-up on one of the prior questions. How much pricing do you expect to take in March? Ned PrestonCFO at Gaia00:17:31Yes. So similar to what we did last time George, it was $2 on monthly and we'll take a look at the annual increase as well. So it'll be in that mid to high teens area. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:17:43Okay, sounds good. Jirka RysavyExecutive Chairman at Gaia00:17:44And then Not necessarily will be in all countries because some countries are opt in opt out. So it depends that we would, doesn't mean we would raise pricing on all our customers, but it would be probably an 80 plus percent. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:18:01Okay. And then a couple more questions on Ignaton. Can you help us at all understand the sort of revenue opportunity maybe that you've seen coming out of the biohacking conference and just your expectations for the back half of the year? I don't, not to get too specific on guidance or anything, but how much could this sort of help lift the overall business just as you look out in the next few quarters? Jirka RysavyExecutive Chairman at Gaia00:18:32Well, we don't really, we kind of focus on a launch, which will be like after Labor Day. So that would be probably better to ask questions because we only so far did the BioAgging Conference where you've been there, so you know how the success would we have. So the bottle, it's $200 per bottle and we had all the feedback was positive. There was no issues on that. So establishing distributorship, obviously we have distributors in some countries, but we have to get it approved some of the countries. Jirka RysavyExecutive Chairman at Gaia00:19:13But I think that's kind of hard to say because we don't really have an experience. So we focused right now on from what we shipped so far because we're getting order now, was kind of to finalize the packaging, not the bottles, but the boxes, how it shipped, how we charge the distributors and all that stuff. And I can probably on a third quarter call, can answer that question, but we basically, we get something budgeted in the third quarter because we thought we're going to launch it in July, but then when we did the introduction and we get meaningful sales, so they will give us probably 250,000 more than we expected in second quarter. But then in the third quarter, we didn't launch it in July. So we basically postponed our second quarter revenue till like March. Jirka RysavyExecutive Chairman at Gaia00:20:13So we'll probably offset what we kind of generated in second, we will not generate in third. And otherwise, the fourth quarter, there might be some upside, but we don't really know yet till we launch it. Since this since it was so successful, our launch probably will be bigger than we originally planned, but not probably right in labor day, we start slow and we probably a little push it before Christmas. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:20:41Okay, okay, understood. That's helpful. And then just on the launch, you mentioned that the labor day sort of official launch. Can you detail it? Jirka RysavyExecutive Chairman at Gaia00:20:49No, it wouldn't be labor day. It will be probably somewhere in like second week. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:20:54Okay, under September. Can you detail what that launch is going to look like though? What's the marketing plan? Jirka RysavyExecutive Chairman at Gaia00:21:00We don't really know yet because the success what we have and now the original and extra funding, we put we're looking some stuff what we didn't look before. So we would not have the finalized still probably next three weeks. Ned PrestonCFO at Gaia00:21:18Yeah, hey George, this is Ned and just real quick as you probably picked up on some of our commentary. I would consider a very soft launch back at the May biohacking conference and then as of the end of last week, the site has changed, it's been updated. Any customer can go in and buy off of our igniton.com website and then Gaia members are now able to also purchase off of our Gaia marketplace at a slightly discounted rate. So the larger launch that you're talking about, it will be in the September timeframe, but I did want to point out that we have officially launched out and are seeing an uptick. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:21:58Okay. And then last one for me, just a modeling question. G and A in the quarter stepped up a little bit. Was there anything kind of one time maybe it was the biohacking conference? Is there anything else? And can you quantify that if there was? Ned PrestonCFO at Gaia00:22:13Yeah. It definitely wasn't people related. G and I was up for things, one time items like the biohacking conference and a couple other things that will come back into shape in future quarters. It wasn't fixed. It was a one time event. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:22:28Okay. Okay. Understood. Thank you. Operator00:22:39And our next question comes from James Sidoti with Sidoti and Company. Jim SidotiAnalyst at Sidoti & Company, LLC00:22:44Hi, good afternoon. Thanks for taking the questions. Can you give us a sense on how you're going to spend the $6,000,000 you raised for Edmonton? Is that to build capacity, to build sales and marketing? Where is that money going to go? Jirka RysavyExecutive Chairman at Gaia00:23:01We don't really, in the capacity, already spend the money before. We kind of getting one more unit to boost the production. However, we don't need it from any other production. However, the success was so surprising that we rather be kind of ready, but I think we would not really see that till we push it somewhere around Christmas. So now the capacity by far exceeds what we can sell. Jim SidotiAnalyst at Sidoti & Company, LLC00:23:36Okay. All right. And then in terms of the base business, you grew revenue about 10% in the March, about 12% in the June. I think in the past, you said you expect to grow revenue about 12% for the year. You still feel like you're on track to hit that? Ned PrestonCFO at Gaia00:23:54Yeah. Hey Jim, it's Ned. Yeah, that absolutely is our expectation is that 12% for the year. As we said earlier, it was great performance across all of our core business in the quarter. So firing on all cylinders regarding core SVOD business and then a little bit upside from Ignatant, but I can't emphasize enough that the big reason for our accelerating growth is because of the increase in ARPU and adding another 10 plus thousand net members. Jim SidotiAnalyst at Sidoti & Company, LLC00:24:27Okay. And then last one, can you talk a little bit about how marketplace is going? I know you kind of changed some of the travel destinations because there's some of the world events so far this year. How's that going? Are there other products or services that you started to launch to the Marketplace in 2025? Jirka RysavyExecutive Chairman at Gaia00:24:49I just want to kind of say that we see Marketplace as a part of community. And then I will get Kirsten answer the question. Kiersten MedvedichPresident & CEO at Gaia00:24:56That's exactly what I was going to say. Our MarketPlace continues to be a strong foundation for community building, which has always been its core purpose. I think James mentioned on the call earlier this year that we had a pivot away from Egypt, which led us to introduce trips to Peru instead. The spring Peru trip quickly sold out and our fall Peru trip is already at capacity as well. So we're seeing a strong demand for where we've made adjustments. Kiersten MedvedichPresident & CEO at Gaia00:25:26So and as far as new products, you will see new products slowly come on. But just to reiterate, it has always been the foundation of community. Jirka RysavyExecutive Chairman at Gaia00:25:39The marketplace goal is not to chase the revenue. Marketplace is becoming one of the aspects of community. So this is not something to chase revenue with. Jim SidotiAnalyst at Sidoti & Company, LLC00:25:52So the goal is really to help build that subscriber base and retain subscribers? Jirka RysavyExecutive Chairman at Gaia00:25:57Well, yes, subscribers and other point of touch point with our members. And as we build community, obviously the community, what forms around the topic or geographically can go together on these trips. That's one of the ideas. Jim SidotiAnalyst at Sidoti & Company, LLC00:26:17Okay, all right, thank you. Operator00:26:23And at this time, this concludes our question and answer session. I'd now like to turn the call back over to Mr. Raisaviv for his closing remarks. Jirka RysavyExecutive Chairman at Gaia00:26:33Well, thank you everyone for joining and we look forward to speaking with you when we will report the third Q, which will be in early November. Thank you very much. Operator00:26:43Thank you for joining us today for Gaia's second quarter twenty twenty five earnings Conference Call. You may now disconnect and have a great day.Read moreParticipantsExecutivesJirka RysavyExecutive ChairmanKiersten MedvedichPresident & CEONed PrestonCFOAnalystsMark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital MarketsGeorge KellyMD & Senior Research Analyst at Roth Capital Partners, LLCJim SidotiAnalyst at Sidoti & Company, LLCPowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Gaia Earnings HeadlinesNetflix for the Spirit? Here’s Why Gaia Is Blowing Up in Wellness CirclesAugust 22 at 2:40 AM | msn.comNetflix for the Spirit? Here’s Why Gaia Is Blowing Up in Wellness CirclesAugust 22 at 2:40 AM | yahoo.comOne stock to replace NvidiaInvesting Legend Hints the End May be Near for These 3 Iconic Stocks One company to replace Amazon… another to rival Tesla… and a third to upset Nvidia. These little-known stocks are poised to overtake the three reigning tech darlings in a move that could completely reorder the top dogs of the stock market. Eric Fry gives away names, tickers and full analysis in this first-ever free broadcast. | InvestorPlace (Ad)Grace Kirton and Locquiao Gaia opening their GCSE resultsAugust 21 at 9:38 AM | msn.comDesigner says he’s a fast-fashion victim because of influencers pushing TikTok ‘dupes’August 19, 2025 | nypost.comNRoth Capital Brokers Decrease Earnings Estimates for GaiaAugust 16, 2025 | americanbankingnews.comSee More Gaia Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Gaia? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Gaia and other key companies, straight to your email. Email Address About GaiaGaia (NASDAQ:GAIA) operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.View Gaia ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles After Earnings Miss, Walmart Is Still a Top Consumer Staples PlayRoyal Caribbean Earnings Beat Fuels Strong 2025 OutlookDLocal Stock Soars 43% After Earnings Beat and Raised GuidanceGreen Dot's 30% Rally: Turnaround Takes Off on Explosive EarningsElbit Systems Jumps on Record Earnings and a $1.6B ContractBrinker Serves Up Earnings Beat, Sidesteps Cost PressuresWhy BigBear.ai Stock's Dip on Earnings Can Be an Opportunity Upcoming Earnings PDD (8/25/2025)BHP Group (8/25/2025)Bank Of Montreal (8/26/2025)Bank of Nova Scotia (8/26/2025)CrowdStrike (8/27/2025)NVIDIA (8/27/2025)Royal Bank Of Canada (8/27/2025)Snowflake (8/27/2025)Autodesk (8/28/2025)Marvell Technology (8/28/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Good afternoon. Welcome to Gaia's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Joining us today from GAIA are Jirka Reisovy, Executive Chairman Kirsten Medvedic, CEO and Ned Preston, CFO. After the speakers' presentation, there will be a question and answer session. Operator00:00:23Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward looking statements and management may make additional forward looking statements in response to your questions, included but not limited to statements of expectations, future events or future financial performance. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. Although we believe these expectations are reasonable, Gaia management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of GE IT's latest annual report on Form 10 ks filed with the SEC. Operator00:01:21All non GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable GAAP measure. This call also contains time sensitive information that is accurate only as of the time and date of this broadcast, 08/11/2025. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on Gaia's Investor Relations website at ir.gaia.com. At this time, I would like to turn the call over to Gaia's Chairman, Jirka Reisovy. Please go ahead. Jirka RysavyExecutive Chairman at Gaia00:02:03Good afternoon, everyone. So revenue for the quarter increased 12% and gross profit 16%. Gross margin improved two twenty basis points to 86.7% from 84.5% at year ago quarter. Our member count grew to 878,000 and we are focusing now on high lifetime value members. Our annualized gross profit per employee increased to 814,000 from $695,000 in the year ago quarter. Jirka RysavyExecutive Chairman at Gaia00:02:45Our subsidiary Ignatone raised $6,000,000 recently at $106,000,000 post money valuation, value in Gaia two thirds ownership interest in Igniton at $70,000,000 2.5 times full increase from previous $28,000,000 Some Igniton products you can now it's also now available at Gaia marketplace. And if you want more information, you can get it at igniton.com. And I would turn the call over to our CEO, Kirsten. Kiersten MedvedichPresident & CEO at Gaia00:03:19Good afternoon, everyone. As we begin today's call, I want to honor this moment of transition. This is my first time speaking to you as CEO of Gaia, and let me begin by affirming our strategy is not changing. I am fully aligned with the path we've been walking, a strategy rooted in mission, discipline, and the long view. We are building on a foundation of purpose and deep intention, and we remain committed to moving forward with consistency and focus. Kiersten MedvedichPresident & CEO at Gaia00:03:50Our core streaming business remains the heart of Gaia. It is strong, resilient, and continues to grow over time. We are focused on scaling it sustainably by improving retention and deepening member engagement. With 90% of our content exclusive to Gaia, we offer something no other platform can: an intentional, curated experience that goes beyond content and into personal transformation and connection. And we're seeing the results, so let's talk about that. Kiersten MedvedichPresident & CEO at Gaia00:04:24In Q2, we carried our momentum from Q1 into a strong quarter, delivering double digit revenue growth and exceeding our expectations by $300,000 The key drivers of that performance were growth in both member count and ARPU as well as the launch of our Ignatant brand, which saw an enthusiastic response following its debut at the Biohacking Conference in May. This success reinforces something we've long believed, that those seeking to optimize their physical performance are often on the same path as those seeking to expand their consciousness. We also more than doubled our free cash flow quarter over quarter, reaching $1,600,000 in Q2, up from $700,000 in the prior quarter. Annualized gross profit per employee increased to $814,000 up from $695,000 in the prior year quarter. This is a clear reflection of the efficiency and scalability of our model, but even more so, is a testament to the focus and dedication of our amazing team. Kiersten MedvedichPresident & CEO at Gaia00:05:36Our people are the heart and soul of this company, and their ability to deliver excellence while staying aligned with our mission is what makes results like this possible. And as we look ahead, we see a profound culture shift emerging. More and more people are turning inward, seeking purpose, connection, and growth. On many of the AI platforms, questions about consciousness, meaning, and awakening now rank among the most frequently asked topics. That is a global signal, and it's one Gaia is uniquely prepared to meet. Kiersten MedvedichPresident & CEO at Gaia00:06:11So right now, we're currently planning the next phase of our platform, a foundation for a global conscious community. We are listening to what people want, and they want deeper connections and shared experiences. Whether it be face to face or across the globe, the desire is the same. People want to connect, and we're creating a beautiful space for that. Our plan is to build a community around the very topics our content explores, offering members a place not just to watch, but to engage and grow together. Kiersten MedvedichPresident & CEO at Gaia00:06:45We're designing it with the same care and intentionality that defines our content, and we believe it will become a meaningful advantage in how we serve our global member base. Our plan is to launch within the next year. While from the outside this may look like the next evolution, it's really returned to Gaia's deeper purpose, a purpose not just to inform, but to connect. So in parallel, we're making progress on Gaia's Conscious AI Companion. We believe this will become a beautiful bridge between our exclusive content and the personal journeys of our members. Kiersten MedvedichPresident & CEO at Gaia00:07:21Our AI companion will be sourced primarily from Gaia's original content. This allows us to offer something rare guidance that is deeply aligned with our brand and rooted in the wisdom our members have come to love and trust. Lastly, and most importantly, our focus remains centered on long term sustainable growth, driven by our core SVOD business and our global member community. Gaia is built for scale with a high margin model, exclusive content, and a brand that continues to earn trust and engagement. We are staying true to our North Star while remaining agile enough to capture revenue opportunities along the way. Kiersten MedvedichPresident & CEO at Gaia00:08:02So it is so exciting. The world is actually catching up with us. Last year, the word manifest was named Word of the Year by the Cambridge Dictionary, and that is more than a headline. It is a cultural signal, And Gaia is ready to meet that moment because we've been preparing for it from the very, very beginning. Thank you all for being here and being part of this vision. Now over to Ned for financial details. Ned PrestonCFO at Gaia00:08:30Thanks, Kirsten. For the 2025, Gaia delivered revenue of $24,600,000 up $2,700,000 or 12% year over year, driven by growth in both member count and ARPU as well as the launch of Ignaton. Total members increased in Q2 to 878,000. Gross profit increased 16% to $21,300,000 from $18,500,000 in 2024, with gross margin expanding to 86.7%, up from 84.5%. Net loss was negative $1,800,000 or $07 per share versus negative $2,200,000 or negative $09 per share in 2024. Ned PrestonCFO at Gaia00:09:19Operating cash flow was $2,300,000 with free cash flow of $1,600,000 reflecting ongoing operational discipline. Our cash balance at the June was $13,900,000 with a fully available $10,000,000 line of credit. In July, Guy also renewed its credit line for an additional three years with improved terms, including a lower interest rate and a wider range of permitted use. We continue to manage costs carefully and maintain healthy margins while investing in the strategic areas that will create long term value for our shareholders. As mentioned earlier, and as further outlined in Gaia's 10 Q, our subsidiary, Ignaton, raised $6,000,000 of private common equity financing in the month of July, which included $2,000,000 from Gaia. Ned PrestonCFO at Gaia00:10:12Ignaton's implied post money valuation is now $106,000,000 up from an implied post money valuation of $40,000,000 from last year's raise. The proceeds from the financing will be used by Ignaton for product launch, general operating expenses and certain capital expenditures to support future growth. Gaia now owns approximately two thirds of Ignaton equity. More information about Ignaton can be found at www.ignaton.com Gaia members can purchase Ignaton products at a discount through Gaia's marketplace. I will now turn the call back over to Jirka. Jirka RysavyExecutive Chairman at Gaia00:10:53Yes, just for the summary, we expect obviously continuing growth of our revenue and ARPU as well, increasing gross profit per employee as we have pretty good results for this last year, and also obviously continued generation of positive free cash flow. And this concludes our remarks. So I'd like to open it to questions. So please, operator. Operator00:11:19Thank you. And our first question comes from Mark Argento with Lake Street. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:11:40Hi, Kirsten. Nice to hear from you on the call. Yeah, I just wanted to maybe if you could just provide a little bit of your background and kind of your main focus here over the next three to six months in terms of kind of key priorities. Kiersten MedvedichPresident & CEO at Gaia00:11:59Sure. So my background is in content. I was at Sony for fifteen years, and I came on to Gaia to run the content team about nine years ago and somehow worked my way up to where I am today as CEO. And my focus going forward for the next six months is in three areas. One is early tenure engagement, which consists of specifically zero to three months, which will consist of product improvements, better marketing targeting, which means basically fishing in new ponds, and then also increase, content publishing. Kiersten MedvedichPresident & CEO at Gaia00:12:39And then the other two areas, as I, talked about, were investments in our AI and investment in our community. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:12:48Great. In terms of AI, are you thinking about using AI more as a tool for a better user experience? Or would you guys get into the you know, having an AI, you know, user interface that that the community or other customers can engage with? Kiersten MedvedichPresident & CEO at Gaia00:13:10We're looking at both. One from using AI to get better member learnings and to become smarter and delivering our members a better experience from a content perspective. And then the other is an AI companion right now that we're in the process of tweaking. And we feel that that's definitely going to deliver meaningful value to our members. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:13:39Got it. So I think in the press release, you guys talked about potentially taking pricing in Q1. Do you plan when take price? Are you guys going to expand additional content or what's the value prop going to be there for the consumer? Ned PrestonCFO at Gaia00:14:03Yeah. Hey, Mark, this is Ned and I'll take that one. Yeah. So as we've discussed in the past, we are still looking to raise prices in March 2026. At that time, we do foresee that our AI solution will be progressing and so it'll be adding value to retention and other marketing activities. Ned PrestonCFO at Gaia00:14:22But the customer experience by then will also start seeing some of those benefits as well as some new content. So the premise around the price increase in March '26 will have added value for our customers and then they'll continue to see added value throughout the rest of 2026 as things like our community and other elements come to bear. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:14:46That's helpful. And then last question for me on Ignatant, obviously raised some additional capital there. Could you provide us any updates in terms of how you're thinking about the go to market or any new updates on that side of the house? Jirka RysavyExecutive Chairman at Gaia00:15:05Yeah, we introduced the product in the last few days of May. In Austin, there was a biohacking conference, which one of the largest one in this field. The response was absolutely stunning. There was a line on our booth, basically through whole conference about So they never saw anything like that. Jirka RysavyExecutive Chairman at Gaia00:15:27We sold all the products we brought by far taking a lot of back orders, which we now failed. And so because of that, we kind of decided to actually raise some money. So we took, we just did that at least the first part of it. And we just introduced it recently. We put it also in GAIA marketplace. Jirka RysavyExecutive Chairman at Gaia00:15:49So you can get some on the GAIA marketplace starting now. And we plan to use some of this money raised for bigger launch because the response and we expect that to be after Labor Day. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:16:05Great, okay. And do you anticipate doing any kind of partnership deals using the technology or will you guys, will it be all branded under your own brand? Jirka RysavyExecutive Chairman at Gaia00:16:20Yes, we would not this year, but I would kind of say we might, we probably would, we have a lot of audio requests existing from existing brands. Can we enhance their product because igneous technology can increase efficiency pretty much all the molecules would have any trace of water. So all organic molecules, so we would focus on hydrogen. And so we probably would, might license, improve some product with some upfront license fee and then the regular margin on selling the product, but we would obviously always have a license fee first. So, but we don't expect to do any of that this year. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:17:06Appreciate the update. I'll hop back in the queue. Thanks, Mark. Kiersten MedvedichPresident & CEO at Gaia00:17:12Thanks, Mark. Operator00:17:14Our next question comes from George Kelly with ROTH Capital Partners. Mark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital Markets00:17:21Hey, everybody. Thanks. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:17:23First just a follow-up on one of the prior questions. How much pricing do you expect to take in March? Ned PrestonCFO at Gaia00:17:31Yes. So similar to what we did last time George, it was $2 on monthly and we'll take a look at the annual increase as well. So it'll be in that mid to high teens area. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:17:43Okay, sounds good. Jirka RysavyExecutive Chairman at Gaia00:17:44And then Not necessarily will be in all countries because some countries are opt in opt out. So it depends that we would, doesn't mean we would raise pricing on all our customers, but it would be probably an 80 plus percent. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:18:01Okay. And then a couple more questions on Ignaton. Can you help us at all understand the sort of revenue opportunity maybe that you've seen coming out of the biohacking conference and just your expectations for the back half of the year? I don't, not to get too specific on guidance or anything, but how much could this sort of help lift the overall business just as you look out in the next few quarters? Jirka RysavyExecutive Chairman at Gaia00:18:32Well, we don't really, we kind of focus on a launch, which will be like after Labor Day. So that would be probably better to ask questions because we only so far did the BioAgging Conference where you've been there, so you know how the success would we have. So the bottle, it's $200 per bottle and we had all the feedback was positive. There was no issues on that. So establishing distributorship, obviously we have distributors in some countries, but we have to get it approved some of the countries. Jirka RysavyExecutive Chairman at Gaia00:19:13But I think that's kind of hard to say because we don't really have an experience. So we focused right now on from what we shipped so far because we're getting order now, was kind of to finalize the packaging, not the bottles, but the boxes, how it shipped, how we charge the distributors and all that stuff. And I can probably on a third quarter call, can answer that question, but we basically, we get something budgeted in the third quarter because we thought we're going to launch it in July, but then when we did the introduction and we get meaningful sales, so they will give us probably 250,000 more than we expected in second quarter. But then in the third quarter, we didn't launch it in July. So we basically postponed our second quarter revenue till like March. Jirka RysavyExecutive Chairman at Gaia00:20:13So we'll probably offset what we kind of generated in second, we will not generate in third. And otherwise, the fourth quarter, there might be some upside, but we don't really know yet till we launch it. Since this since it was so successful, our launch probably will be bigger than we originally planned, but not probably right in labor day, we start slow and we probably a little push it before Christmas. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:20:41Okay, okay, understood. That's helpful. And then just on the launch, you mentioned that the labor day sort of official launch. Can you detail it? Jirka RysavyExecutive Chairman at Gaia00:20:49No, it wouldn't be labor day. It will be probably somewhere in like second week. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:20:54Okay, under September. Can you detail what that launch is going to look like though? What's the marketing plan? Jirka RysavyExecutive Chairman at Gaia00:21:00We don't really know yet because the success what we have and now the original and extra funding, we put we're looking some stuff what we didn't look before. So we would not have the finalized still probably next three weeks. Ned PrestonCFO at Gaia00:21:18Yeah, hey George, this is Ned and just real quick as you probably picked up on some of our commentary. I would consider a very soft launch back at the May biohacking conference and then as of the end of last week, the site has changed, it's been updated. Any customer can go in and buy off of our igniton.com website and then Gaia members are now able to also purchase off of our Gaia marketplace at a slightly discounted rate. So the larger launch that you're talking about, it will be in the September timeframe, but I did want to point out that we have officially launched out and are seeing an uptick. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:21:58Okay. And then last one for me, just a modeling question. G and A in the quarter stepped up a little bit. Was there anything kind of one time maybe it was the biohacking conference? Is there anything else? And can you quantify that if there was? Ned PrestonCFO at Gaia00:22:13Yeah. It definitely wasn't people related. G and I was up for things, one time items like the biohacking conference and a couple other things that will come back into shape in future quarters. It wasn't fixed. It was a one time event. George KellyMD & Senior Research Analyst at Roth Capital Partners, LLC00:22:28Okay. Okay. Understood. Thank you. Operator00:22:39And our next question comes from James Sidoti with Sidoti and Company. Jim SidotiAnalyst at Sidoti & Company, LLC00:22:44Hi, good afternoon. Thanks for taking the questions. Can you give us a sense on how you're going to spend the $6,000,000 you raised for Edmonton? Is that to build capacity, to build sales and marketing? Where is that money going to go? Jirka RysavyExecutive Chairman at Gaia00:23:01We don't really, in the capacity, already spend the money before. We kind of getting one more unit to boost the production. However, we don't need it from any other production. However, the success was so surprising that we rather be kind of ready, but I think we would not really see that till we push it somewhere around Christmas. So now the capacity by far exceeds what we can sell. Jim SidotiAnalyst at Sidoti & Company, LLC00:23:36Okay. All right. And then in terms of the base business, you grew revenue about 10% in the March, about 12% in the June. I think in the past, you said you expect to grow revenue about 12% for the year. You still feel like you're on track to hit that? Ned PrestonCFO at Gaia00:23:54Yeah. Hey Jim, it's Ned. Yeah, that absolutely is our expectation is that 12% for the year. As we said earlier, it was great performance across all of our core business in the quarter. So firing on all cylinders regarding core SVOD business and then a little bit upside from Ignatant, but I can't emphasize enough that the big reason for our accelerating growth is because of the increase in ARPU and adding another 10 plus thousand net members. Jim SidotiAnalyst at Sidoti & Company, LLC00:24:27Okay. And then last one, can you talk a little bit about how marketplace is going? I know you kind of changed some of the travel destinations because there's some of the world events so far this year. How's that going? Are there other products or services that you started to launch to the Marketplace in 2025? Jirka RysavyExecutive Chairman at Gaia00:24:49I just want to kind of say that we see Marketplace as a part of community. And then I will get Kirsten answer the question. Kiersten MedvedichPresident & CEO at Gaia00:24:56That's exactly what I was going to say. Our MarketPlace continues to be a strong foundation for community building, which has always been its core purpose. I think James mentioned on the call earlier this year that we had a pivot away from Egypt, which led us to introduce trips to Peru instead. The spring Peru trip quickly sold out and our fall Peru trip is already at capacity as well. So we're seeing a strong demand for where we've made adjustments. Kiersten MedvedichPresident & CEO at Gaia00:25:26So and as far as new products, you will see new products slowly come on. But just to reiterate, it has always been the foundation of community. Jirka RysavyExecutive Chairman at Gaia00:25:39The marketplace goal is not to chase the revenue. Marketplace is becoming one of the aspects of community. So this is not something to chase revenue with. Jim SidotiAnalyst at Sidoti & Company, LLC00:25:52So the goal is really to help build that subscriber base and retain subscribers? Jirka RysavyExecutive Chairman at Gaia00:25:57Well, yes, subscribers and other point of touch point with our members. And as we build community, obviously the community, what forms around the topic or geographically can go together on these trips. That's one of the ideas. Jim SidotiAnalyst at Sidoti & Company, LLC00:26:17Okay, all right, thank you. Operator00:26:23And at this time, this concludes our question and answer session. I'd now like to turn the call back over to Mr. Raisaviv for his closing remarks. Jirka RysavyExecutive Chairman at Gaia00:26:33Well, thank you everyone for joining and we look forward to speaking with you when we will report the third Q, which will be in early November. Thank you very much. Operator00:26:43Thank you for joining us today for Gaia's second quarter twenty twenty five earnings Conference Call. You may now disconnect and have a great day.Read moreParticipantsExecutivesJirka RysavyExecutive ChairmanKiersten MedvedichPresident & CEONed PrestonCFOAnalystsMark ArgentoPresident, Co-Founder & Head - Institutional Equities at Lake Street Capital MarketsGeorge KellyMD & Senior Research Analyst at Roth Capital Partners, LLCJim SidotiAnalyst at Sidoti & Company, LLCPowered by