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]

Core Viewpoint - Appia Rare Earths & Uranium Corp. has initiated Phase 1 of a new auger drilling campaign targeting the Gaia area within the PCH rare-earth element project in Brazil, aiming to evaluate its rare earth potential [1][2][3]. Group 1: Drilling Campaign Details - The company has acquired two auger drill rigs and plans to conduct a total of 241 holes, starting with the first 100 holes [1]. - The Gaia target was selected due to its geological and geophysical similarities to the previously successful Taygeta and Merope zones, which have shown high-grade ionic-adsorption clay mineralization [1][3]. - Drilling is scheduled to commence by August 1, 2025 [1]. Group 2: Geological Context - The PCH property features two distinct styles of critical rare earth element mineralization: Ionic Adsorption Clays (IAC) and high-grade carbonatitic breccia [4]. - The terrain is characterized by gently rolling hills and is conveniently located 15 minutes from a nearby mining town, facilitating infrastructure access [4]. Group 3: Economic Considerations - IAC mineralization is noted for its easier extraction process, resulting in significantly lower operating and capital costs due to the absence of blasting, crushing, and milling [5]. - The extraction process utilizes ammonium sulfate, a cost-effective fertilizer, which eliminates the need for tailings storage facilities [5]. Group 4: Market Demand - The PCH project contains significant amounts of heavy rare earths, which are increasingly in demand for permanent magnets used in electric vehicles and other clean energy applications [6].

Core Points - Gaia, Inc. will conduct a conference call on August 11, 2025, to discuss its financial results for Q2 2025 [1][2] - The conference call will include a question and answer period and will be accessible via a toll-free number [2] - A live broadcast of the conference call will be available, along with a replay option until August 25, 2025 [3] Company Overview - Gaia is the largest streaming and community platform focused on personal transformation, health, wellness, and spirituality [1] - The platform offers over 10,000 titles, with more than 88% being exclusive content, and approximately 75% of viewership comes from Gaia-produced or owned content [3] - Gaia operates in 185 countries and provides content in four languages: English, Spanish, French, and German [3]

Summary of Gaia Inc. Conference Call Company Overview - **Company**: Gaia Inc. (GAIA) - **Industry**: Streaming Video on Demand (SVOD) - **Business Model**: Focuses on underserved niches in personal growth, ancient wisdom, and wellness through a subscription-based streaming platform [7][9] Core Financial Highlights - **Subscription Pricing**: Monthly subscription at $13.99 and annual at $119, with a premium tier at $299 [7] - **Subscriber Growth**: - End of last year: 860,000 subscribers - Current: 867,000 subscribers - Target: 5,000,000 subscribers [12][31] - **Revenue Performance**: - FY 2024 revenue: just over $90 million, an 11% year-on-year increase [31] - Projected revenue for 2025: over $100 million, a 12% increase [32] - **Gross Margin**: Stable at 86% with a cash contribution margin over 93% [10][31] - **Customer Acquisition Cost (CAC)**: Remained steady over the past eight years, while Lifetime Value (LTV) has tripled [11] Unique Business Attributes - **Content Production**: - 88% of content is exclusive, produced on-site at a 150,000 square foot campus in Colorado [19] - Content efficiency multiple of 2x compared to Netflix [22] - **International Expansion**: - 98% of the library has international rights, with localization strategies in Spanish, German, and French [23] - Currently operating in 44 countries, aiming for over 50% international membership in three years [24] Growth Initiatives - **Marketplace Launch**: Introduced a marketplace for retreats and curated products, expected to enhance revenue streams [27] - **AI and Community Tech**: Developing a generative AI chatbot and community platform to enhance member engagement [29] - **Private Subsidiary Ignatant**: Anticipated to contribute significantly to revenue, with a recent successful pre-launch [30][42] Challenges and Responses - **Revenue Fluctuations**: Q1 revenue was lower than Q4 due to one-off items and external factors affecting marketplace initiatives [39][40] - **Tour Cancellations**: Travel advisories impacted tours in Egypt, but alternative tours in Peru are being expanded [40] - **Focus on High LTV Markets**: Targeting higher-value customers in regions like the US and DACH to stabilize growth [44][45] Future Outlook - **Free Cash Flow**: Expected to generate over $5 million in free cash flow in 2025, with potential to triple as revenue grows [33] - **Price Increases**: Scheduled for March 2026, following a successful price increase in Q4 2024 [15][28] - **Licensing Opportunities**: Exploring content licensing deals with hyperscalers, expected to contribute additional revenue streams by 2026 [48] Conclusion Gaia Inc. is positioned for growth in the SVOD market with a strong focus on niche content, efficient production, and innovative revenue streams. The company is actively addressing challenges while maintaining a positive outlook for future financial performance and subscriber growth.