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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on GAIA

Negative drivers behind Gaia, Inc.'s recent performance include the company's decision to issue 1,600,000 shares of its Class A common stock at $5.00 per share, diluting existing shareholders' stake. This equity offering may have weighed on investor sentiment, potentially offsetting any positive impact from the company's participation in The Microcap Conference 2025. Furthermore, the announcement of preliminary fourth-quarter and full-year 2024 results, which may not meet investor expectations, could also be a concern.

1.c. Company Highlights

2. Gaia's Q3 2025 Earnings: Strong Growth and Improved Financials

Gaia's third-quarter 2025 revenue grew 14% to $25 million, with gross margin improving to 86.4%. The company's member count increased to 883,000, and annualized gross profit per employee rose to $814,000. Actual EPS came out at '-0.05', in line with estimates. The company's cash position improved significantly to $14.2 million, and Gaia has a fully available $10 million line of credit. The value of Gaia's subsidiary, Ignition, is approximately $106 million, with Gaia's 2/3 ownership interest valued at $70 million.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth & Margin Improvement:: Q3 2025 revenue rose 14% to $25 million, with gross margin expanding to 86.4%.
  • Member Base & Liquidity:: Member count reached 883,000, and cash reserves rose to $14.2 million, supported by a $10 million line of credit.
  • Ignition Subsidiary Value:: Gaia’s 2/3 stake in Ignition is valued at $70 million, with the subsidiary’s total value at $106 million.
  • AI Guide Beta Performance:: Early data shows increased session depth and repeat usage, signaling potential for enhanced user engagement.
  • Content Investment Expansion:: Content spend will grow 23% to $15 million, reflecting commitment to content quality and innovation.

Operational Highlights

Gaia launched its new AI Guide in beta, which has shown encouraging early results, with session depth and repeat usage trending upward. The company plans to fully roll out the AI Guide, which will include personalized guidance, contextual recommendations, and integrated chats. Gaia is also developing a community platform, expected to launch next year, which will allow members to explore, learn, and connect with like-minded individuals.

Growth Prospects and Guidance

The company expects its annual growth rate for 2025 to be in the low double digits, with similar revenue growth expected for 2026. Analysts estimate next year's revenue growth at 11.2%. Gaia plans to raise its subscription prices by $2 in mid-April, which is expected to result in some churn but will ultimately drive revenue growth. The company will prioritize revenue and members with higher ARPU, focusing on sustainable, profitable member growth.

Content Investment and Ignition Performance

Gaia's content spend will increase by 23% from the prior year, with a rough figure of $15 million allocated for pure content investment. The company's Ignition product, launched on Gaia Marketplace, generated $700,000 in revenue for the quarter, with expectations of reaching a $3 million run rate in 2026. The Ignition product has a gross margin of approximately 82%, slightly below Gaia's overall gross margin.

Valuation and Future Prospects

Gaia's current valuation metrics show a P/S Ratio of 0.99 and an EV/EBITDA of -68.81. The company's focus on direct member relationships will continue, with the company prioritizing revenue and members with higher ARPU, and allocating marketing resources accordingly. The AI investment is expected to drive member retention, support price increases, and provide a unique, proprietary experience for users.

3. NewsRoom

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Gaia to Present at Sidoti Year End Virtual Investor Conference

Dec -04

Source: globenewswire.com

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Gaia to Present at Wedbush Digital Content Forum

Dec -03

Source: globenewswire.com

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GAIA to Participate in 14th Annual ROTH Technology Conference

Nov -13

Source: globenewswire.com

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Gaia Continues To Grow Without Being Able To Leverage Earnings

Nov -06

Source: seekingalpha.com

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Gaia, Inc. (GAIA) Q3 2025 Earnings Call Transcript

Nov -03

Source: seekingalpha.com

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Gaia (GAIA) Projected to Post Quarterly Earnings on Monday

Nov -01

Source: defenseworld.net

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Halper Sadeh LLC Encourages Gaia, Inc. Shareholders to Contact the Firm to Discuss Their Rights

Oct -24

Source: businesswire.com

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Appia Closes Non-Brokered Private Placement, Completes Auger Drilling at Gaia, Ships Samples to the Lab, and Advances a New Auger Phase at Taygeta - PCH Project (Goiás, Brazil)

Oct -16

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Digital Video Subscription Service and On-line Community

Expected Growth: 14%

Gaia's digital video subscription service and online community growth is driven by increasing demand for conscious media, expanding content offerings, and a growing user base seeking spiritual and wellness content. The 14% growth rate is also fueled by effective marketing strategies, user engagement, and retention efforts, as well as the company's ability to adapt to changing consumer preferences.

7. Detailed Products

Yoga and Meditation Classes

Gaia offers a wide range of yoga and meditation classes, taught by experienced instructors, to help individuals cultivate physical, mental, and spiritual well-being.

Documentary Films and Original Series

Gaia produces and distributes thought-provoking documentary films and original series that explore topics such as consciousness, spirituality, and personal growth.

Guided Meditations and Relaxation Exercises

Gaia offers a vast library of guided meditations and relaxation exercises, led by experienced practitioners, to help individuals relax, focus, and recharge.

Spiritual Growth and Personal Development Courses

Gaia offers a range of online courses and workshops, taught by renowned experts, to help individuals develop their spiritual practice, build confidence, and cultivate a deeper sense of purpose.

Conscious Media and Podcasts

Gaia produces and distributes conscious media, including podcasts, that explore topics such as spirituality, personal growth, and social awareness.

8. Gaia, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Gaia, Inc. is moderate due to the presence of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.30%
Debt Cost 3.95%
Equity Weight 92.70%
Equity Cost 7.35%
WACC 7.10%
Leverage 7.88%

11. Quality Control: Gaia, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sinclair Broadcast Group

A-Score: 5.4/10

Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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AMC Networks

A-Score: 4.5/10

Value: 9.8

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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LiveOne

A-Score: 3.8/10

Value: 9.6

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.53$

Current Price

3.53$

Potential

-0.00%

Expected Cash-Flows