Gaia (GAIA) AI Stock Analysis

• Market Cap: $106.71M
• Dividend Yield: N/A
• Average Volume (3M): 39.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 12.98%
• EPS Growth: 27.93%
• Country: US
• Employees: 104
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 19,709,326
• 10 Day Avg. Volume: 51,935
• 30 Day Avg. Volume: 39,171
• PEG Ratio: 1.08
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 53.98
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 15.96
• 1Y Price Target: $7.00
• Price Target Upside: 65.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $100.72M

• Rating: 53 Neutral
• Price Target: $5.00 ▲(18.48% Upside)

Gaia's overall score is driven by strong earnings call sentiment and improving cash flow, but is weighed down by technical indicators suggesting bearish momentum and a negative P/E ratio indicating profitability challenges. The company's strategic initiatives in AI and improved cash position are positive, but concerns about member growth and churn persist.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Member Count Growth

Increasing member count enhances recurring revenue streams and strengthens the company's market position in the wellness streaming sector.

Improved Cash Flow

Improved cash flow management enhances financial flexibility, enabling strategic investments and reducing reliance on external financing.

Negative Factors

Profitability Challenges

Ongoing profitability challenges hinder the company's ability to generate sustainable earnings, impacting long-term financial health.

Operational Inefficiencies

Negative operating margins indicate inefficiencies, which could limit the company's ability to scale effectively and improve profitability.

Increased G&A Expenses

Rising G&A expenses can strain profitability and cash flow, necessitating better cost control for sustainable financial performance.

Gaia Business Overview & Revenue Model

Company Description

Gaia, Inc. operates a digital video subscription service and on-line community for underserved member base in the United States, Canada, Australia, and internationally. It has a digital content library of approximately 10,000 titles in Spanish, German, and French languages available to its subscribers on internet-connected devices. The company's network includes Yoga channel, which provides access to yoga, eastern arts, and other movement based classes; Transformation channel that offers spiritual growth, personal development, and consciousness content; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that offers category-leading talent that enables to draw speakers, authors, and experts in the alternative media world. It also operates gaia.com and gaiamtv.com websites. Gaia, Inc. complements its produced and owned content through long term licensing agreements. 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.

How the Company Makes Money

Gaia generates revenue primarily through a subscription-based model, where users pay a monthly or annual fee for access to its content library. This subscription model creates a recurring revenue stream, providing a steady income base. Additionally, Gaia may enhance its earnings through partnerships with wellness influencers, content creators, and other organizations in the health and spirituality sectors, which can lead to co-branded content or marketing opportunities. The company may also explore additional revenue streams through merchandising or offering premium content and courses for an extra fee.

Gaia Financial Statement Overview

Summary

Gaia shows strong cost management and improving cash flow, but struggles with profitability and operational efficiency. The balance sheet is stable with low leverage, yet returns on equity are negative, indicating a need for enhanced profitability.

Income Statement

Gaia's income statement reveals a mixed performance. The company has a strong gross profit margin of 87.18% TTM, indicating efficient cost management. However, the net profit margin is negative at -5.06% TTM, reflecting ongoing profitability challenges. Revenue growth is modest at 2.98% TTM, suggesting limited expansion. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.13 TTM, indicating conservative leverage. However, the return on equity is negative at -5.75% TTM, pointing to challenges in generating shareholder returns. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Gaia's cash flow statement shows a significant improvement in free cash flow growth at 213.58% TTM, suggesting better cash management. The operating cash flow to net income ratio is 0.15 TTM, indicating moderate cash generation relative to earnings. The free cash flow to net income ratio is 0.26 TTM, reflecting a positive cash conversion despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.89M	90.36M	80.42M	82.03M	79.57M	66.83M
Gross Profit	85.39M	77.81M	68.79M	71.12M	69.05M	58.18M
EBITDA	10.04M	12.69M	11.97M	13.16M	15.13M	7.41M
Net Income	-4.77M	-5.23M	-5.80M	-3.89M	3.73M	519.00K
Balance Sheet
Total Assets	151.09M	141.22M	130.27M	135.18M	133.68M	110.02M
Cash, Cash Equivalents and Short-Term Investments	14.16M	5.86M	7.77M	11.56M	10.27M	12.61M
Total Debt	10.75M	11.51M	12.44M	22.34M	14.92M	15.03M
Total Liabilities	49.55M	47.20M	43.49M	49.32M	43.46M	35.78M
Stockholders Equity	86.27M	80.67M	85.50M	84.79M	90.22M	74.23M
Cash Flow
Free Cash Flow	1.09M	1.94M	596.00K	-6.74M	3.53M	-1.68M
Operating Cash Flow	6.57M	6.92M	5.87M	11.52M	20.87M	11.65M
Investing Cash Flow	-7.48M	-15.00M	-5.28M	-19.10M	-23.86M	-176.00K
Financing Cash Flow	10.71M	6.17M	-4.38M	8.88M	655.00K	-10.36M

Gaia Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIA, the sentiment is Negative. The current price of 4.22 is below the 20-day moving average (MA) of 5.41, below the 50-day MA of 5.71, and below the 200-day MA of 4.86, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 24.79 is Positive, neither overbought nor oversold. The STOCH value of 9.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAIA.

Gaia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	62 Neutral	$50.68M	19.33	9.22%	―	77.07%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAIA	53 Neutral	$106.71M	―	-5.63%	―	12.98%	27.93%
RDI	46 Neutral	$47.15M	―	―	―	7.59%	61.22%
AMC	45 Neutral	$1.33B	―	―	―	9.74%	12.29%
STRZ	41 Neutral	$180.43M	-9.03	―	―	-2.85%	75.96%
LVO	39 Underperform	$59.67M	-2.49	―	―	-18.76%	-21.71%

Gaia Corporate Events

Gaia, Inc. Reports Strong Q3 2025 Revenue Growth

Gaia, Inc., a conscious media and community company, operates in the global video streaming industry, offering a diverse range of content focused on seeking truth, transformation, alternative healing, and yoga. The company recently reported its financial results for the third quarter of 2025, highlighting a 14% increase in revenue compared to the previous year. This growth was supported by a strategic price increase in subscriptions and the launch of a proprietary AI model aimed at enhancing user engagement. Gaia’s financial performance for the quarter was marked by a revenue increase to $25 million, a rise in gross profit to $21.6 million, and a steady member count growth to 883,000. Despite a net loss of $1.2 million, the company achieved its seventh consecutive quarter of positive free cash flow, which improved to $0.9 million. Looking ahead, Gaia’s management remains optimistic about leveraging technology and community initiatives to drive future growth and enhance member experiences.

Gaia Inc. Reports Positive Earnings Call Highlights

The recent earnings call for Gaia Inc. painted a generally positive picture, highlighting significant growth in revenue, gross profit, and member count. The company showcased successful fundraising efforts and an increased valuation for its subsidiary, Igniton, alongside improved free cash flow. Despite these achievements, challenges such as a reported net loss and increased general and administrative expenses were noted. Overall, the positives appear to outweigh the negatives, suggesting a favorable outlook for Gaia Inc.

Gaia Inc. Achieves Strong Growth in Q2 2025

Gaia Inc., a conscious media and community company, operates in the global video streaming industry, offering a diverse range of content across four primary channels. In its second quarter of 2025, Gaia Inc. reported a 12% increase in revenue, marking the sixth consecutive quarter of double-digit growth. The company also achieved a 16% rise in gross profit, reflecting strong operational performance. A notable highlight was the successful $6 million fundraising by its subsidiary, Igniton, which significantly increased its valuation.