Gaia (GAIA) AI Stock Analysis

• Market Cap: $120.60M
• Dividend Yield: N/A
• Average Volume (3M): 59.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 12.18%
• EPS Growth: 5.88%
• Country: US
• Employees: 104
• Sector: Communication Services
• Sector Strength: 93
• Industry: Entertainment
• EPS (TTM): -0.04
• Shares Outstanding: 19,672,638
• 10 Day Avg. Volume: 37,231
• 30 Day Avg. Volume: 59,556
• PEG Ratio: -1.27
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.33
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $7.50
• Price Target Upside: 55.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $4.50 ▼(-6.44%Downside)

Gaia's overall stock score reflects a mixed outlook. Financial challenges such as negative profit margins and cash flow issues weigh down the score despite strategic initiatives in AI and community growth. Technical analysis suggests cautious optimism, but valuation concerns persist. Leadership changes and strategic focus on high-value members could drive future performance improvements.

Positive Factors

Financial Performance

The subscription price increase led to revenue growth of 18%, showing strong financial performance.

Financial Stability

Positive cash flow generation and a decent balance sheet enhance the company's financial stability.

Future Growth

The company is planning new product launches, which are expected to contribute to future growth.

Negative Factors

Churn Impact

Gaia's management anticipates revenue growth of over 12% as price increases offset slightly elevated churn.

Financial Model Adjustment

Gaia is discontinuing approximately $1.5M in non-subscription revenue, adjusting the financial model accordingly.

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 primarily makes money through subscription fees paid by its users. It offers various membership plans that provide access to its streaming content, with options for monthly or annual billing. Revenue is generated as subscribers pay for unlimited access to Gaia's extensive library of videos and content. Additionally, Gaia may also earn income through partnerships with content creators and distributors who contribute to its platform. The company's focus on niche content tailored to a specific audience helps it build a loyal customer base, contributing to consistent subscription revenue.

Gaia Financial Statement Overview

Summary

Gaia's financial performance reflects significant challenges, with declining profitability and inconsistent cash flows. Despite strong cost management and a robust equity base, the company faces risks from negative profit margins and cash flow volatility.

Income Statement

The income statement reflects a challenging environment with declining profitability. The gross profit margin is healthy, indicating effective cost management; however, the company struggles with negative EBIT and net margins, suggesting operational inefficiencies. Revenue growth has been inconsistent, with recent improvements overshadowed by ongoing losses.

Balance Sheet

The balance sheet shows moderate stability with a declining debt-to-equity ratio, indicating manageable leverage. The equity ratio remains strong, suggesting a robust capital structure. However, the return on equity is negative due to consistent net losses, which could impact investor confidence.

Cash Flow

Cash flow analysis indicates struggles in generating consistent free cash flow, with recent growth overshadowed by past volatility. The operating cash flow to net income ratio is positive, suggesting decent cash generation relative to net losses, but the free cash flow remains low relative to net income, highlighting cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
90.36M	80.42M	82.03M	79.57M	66.83M
	Gross Profit
77.81M	68.79M	71.12M	69.05M	58.18M
	EBIT
-5.93M	-4.57M	-216.00K	-10.44M	-4.63M
	EBITDA
13.19M	11.97M	13.16M	15.13M	7.41M
	Net Income Common Stockholders
-5.23M	-5.80M	-2.73M	3.73M	519.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.86M	7.77M	11.56M	10.27M	12.61M
	Total Assets
141.22M	130.27M	138.30M	133.68M	110.02M
	Total Debt
11.51M	12.44M	22.34M	13.34M	14.20M
	Net Debt
5.65M	4.68M	10.78M	3.07M	1.60M
	Total Liabilities
47.20M	43.49M	49.32M	43.46M	35.78M
	Stockholders Equity
80.67M	85.50M	88.98M	90.22M	74.23M
Cash Flow		Free Cash Flow
1.94M	596.00K	-6.74M	3.53M	-1.68M
	Operating Cash Flow
6.92M	5.87M	11.52M	20.87M	11.65M
	Investing Cash Flow
-15.00M	-5.28M	-19.10M	-23.86M	-176.00K
	Financing Cash Flow
6.17M	-4.38M	8.88M	655.00K	-10.36M

Gaia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIA, the sentiment is Positive. The current price of 4.81 is above the 20-day moving average (MA) of 4.78, above the 50-day MA of 4.26, and below the 200-day MA of 4.86, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAIA.

Gaia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
GAIA	60 Neutral	$120.60M	―	-6.03%	―	12.18%	5.88%
LVO	58 Neutral	$72.98M	―	154.70%	―	11.43%	26.78%
CNVS	56 Neutral	$55.61M	―	-29.22%	―	39.86%	3.86%
RDI	49 Neutral	$48.25M	―	-540.12%	―	-7.36%	18.52%
NIPG	44 Neutral	$71.44M	―	-5.35%	―	―	―
ANGH	43 Neutral	$37.44M	―	-270.84%	―	88.72%	-85.53%

Gaia Corporate Events

Gaia Approves Amendment to Long-Term Incentive Plan

On May 8, 2025, Gaia, Inc. held its annual meeting where shareholders elected five directors to serve until the 2026 annual meeting. Additionally, shareholders approved an amendment to the 2019 Long-Term Incentive Plan, increasing the number of authorized Class A Common Stock shares by 700,000, bringing the total to 2,500,000 shares. This decision is expected to impact the company’s operations by potentially enhancing its ability to attract and retain talent, thereby strengthening its market position.

The most recent analyst rating on (GAIA) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Gaia stock, see the GAIA Stock Forecast page.

Gaia Appoints Kiersten Medvedich as New CEO

On May 12, 2025, Gaia announced the appointment of Kiersten Medvedich as the new CEO, effective late in the second quarter of 2025, succeeding James Colquhoun who will become the Chief Business Development Officer. The company also reported its financial results for the first quarter of 2025, highlighting a 12% increase in revenue and a 15% rise in gross profit, marking the fifth consecutive quarter of double-digit revenue growth. Gaia’s strategic investments in AI and its global community platform are aimed at fostering personalized and expansive member experiences.

The most recent analyst rating on (GAIA) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Gaia stock, see the GAIA Stock Forecast page.