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Gaia Inc (GAIA)
NASDAQ:GAIA
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Gaia
(NASDAQ:GAIA)
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Rating:52Neutral
Price Target:
$3.50
▲(0.00% Upside)
Gaia's overall stock score is primarily influenced by its strong earnings call performance, highlighting revenue growth and strategic initiatives. However, financial performance challenges and bearish technical indicators weigh heavily on the score. The negative P/E ratio and lack of dividend yield further impact the valuation.
Positive Factors
Revenue Growth
The 14% revenue growth indicates a strong market position and effective strategies, contributing to long-term financial health and expansion.
AI Integration
The AI Guide enhances user engagement and retention, indicating a strategic shift towards technology that could drive future growth and differentiation.
Cash Position
A stronger cash position enhances financial flexibility, enabling investment in growth initiatives and providing a buffer against economic uncertainties.
Negative Factors
Profitability Challenges
Negative profitability margins highlight ongoing challenges in cost management and revenue generation, potentially impacting long-term sustainability.
Member Growth Impact
Price increases affecting member growth could limit revenue expansion and market penetration, challenging the company's growth trajectory.
Churn Concerns
High churn rates on larger platforms could reduce subscriber base stability and revenue predictability, impacting long-term growth.
Gaia (GAIA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$91.15M
Dividend YieldN/A
Average Volume (3M)93.12K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth12.98%
EPS Growth27.93%
CountryUS
Employees104
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.05
Shares Outstanding19,709,326
10 Day Avg. Volume120,958
30 Day Avg. Volume93,117
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)1.30
Price to Sales (P/S)1.16
P/FCF Ratio53.98
Enterprise Value/Market Cap1.76
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit1.88
Enterprise Value/Ebitda15.96
Forecast
1Y Price Target
$7.00Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Gaia Business Overview & Revenue Model
Company DescriptionGaia, 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 MoneyGaia generates revenue primarily through subscription services, offering monthly and annual membership plans that provide access to its extensive library of content. The company also monetizes its platform through partnerships and collaborations with content creators, wellness experts, and influencers, which can include revenue-sharing agreements. Additionally, Gaia may explore opportunities in merchandising, selling related products or services that align with its brand and content offerings. The increasing global interest in wellness and alternative health practices contributes to its revenue by attracting a dedicated subscriber base.
Gaia Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive overall sentiment with significant revenue growth, the successful launch of new AI initiatives, and a stronger cash position. However, challenges such as member growth impact due to price increases and churn on larger platforms present areas of concern.Q3-2025 Updates
Positive Updates
Revenue and Gross Margin Growth
Gaia grew its revenue by 14% to $25 million during the third quarter, with gross margins improving by 30 basis points to 86.4% from 86.1% in the previous year.
AI Guide Launch
Gaia launched its new AI Guide in beta, which has shown encouraging early results with increased session depth and repeat usage, indicating higher engagement.
Improved Cash Position
Gaia's cash position improved significantly to $14.2 million from $4.4 million a year ago, and the company renewed a $10 million line of credit with improved terms.
Igniton Valuation
The value of Gaia's subsidiary, Igniton, is approximately $106 million, with Gaia's 2/3 ownership valued at about $70 million.
Positive Free Cash Flow
Gaia reported its seventh consecutive quarter of positive free cash flow, totaling $0.9 million for the quarter and $3.2 million for the first nine months of 2025.
Negative Updates
Member Growth Impact
The increase in subscription prices led to slower member growth, although revenue growth was achieved.
Churn Concerns
Churn is nearly double on larger platforms compared to direct members, which affects overall subscriber growth and revenue per subscriber.
Igniton Launch Delays
The full launch of Igniton on the Gaia Marketplace faced delays, impacting the anticipated revenue growth for the year.
Company Guidance
During Gaia's Third Quarter 2025 Earnings Conference Call, the company reported a 14% increase in revenue, reaching a $100 million run rate, or $25 million for the quarter, up from $22 million the previous year. The gross margin improved by 30 basis points to 86.4%, and the member count grew to 883,000 despite slower growth due to a $2 subscription price increase. The annualized gross profit per employee rose to $814,000 from $730,000, contributing to improved free cash flow. Gaia's cash position significantly strengthened to $14.2 million from $4.4 million the previous year. The company highlighted its strategic shift towards integrating AI, with the launch of an AI Guide aimed at enhancing member engagement and retention. Additionally, Gaia's subsidiary, Igniton, was valued at $106 million, with Gaia's two-thirds ownership valued at $70 million, and its products are now available on the Gaia Marketplace. The company continues to prioritize direct member relationships over third-party platforms, aiming for higher average revenue per user (ARPU) and reduced churn. Looking forward, Gaia plans a further subscription price increase and anticipates ongoing double-digit revenue growth, with significant investments in content and community platform developments.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
Negative
3.50
Price Trends
3.96
Negative
4.90
Negative
4.66
Negative
Market Momentum
-0.14
Negative
38.88
Neutral
35.74
Neutral
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 3.5 is below the 20-day moving average (MA) of 3.72, below the 50-day MA of 3.96, and below the 200-day MA of 4.66, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 35.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAIA.
Gaia Risk Analysis
Gaia disclosed 33 risk factors in its most recent earnings report. Gaia reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gaia Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $91.15M | -18.04 | -5.63% | ― | 12.98% | 27.93% | |
46 Neutral | $39.26M | -24.80 | -3.49% | ― | 77.29% | 97.98% | |
46 Neutral | $841.23M | -1.03 | ― | ― | 9.74% | 12.29% | |
45 Neutral | $189.23M | -9.47 | ― | ― | -2.85% | 75.96% | |
44 Neutral | $44.57M | -1.80 | ― | ― | 7.11% | 69.85% | |
43 Neutral | $46.87M | ― | ― | ― | -32.17% | -135.06% |
* Communication Services Sector Average
GAIA
Gaia
3.50
-0.71
-16.86%
CNVS
Cineverse
2.14
-1.28
-37.43%
AMC
AMC Entertainment
1.45
-2.06
-58.69%
RDI
Reading International
1.10
-0.27
-19.71%
LVO
LiveOne
4.03
-7.37
-64.65%
STRZ
Starz Entertainment Corp
11.31
0.88
8.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.