Gaia Reports Third Quarter 2026 Financial Results

Gaia expects positive free cash flow in the fourth quarter after using $4.062 million in operating cash during the third quarter.

Rhea-AI Summary

Gaia (GAIA) reported a 12% revenue decline for the third quarter of 2026 as losses widened from a year earlier. Revenue was $22.031 million, versus $24.984 million, and gross margin fell to 85.2% from 86.4%. Net loss attributable to common shareholders widened to $3.018 million, or $0.12 per share, from $1.153 million, or $0.05 per share.

Gaia said its March reset reduced reliance on third parties and members generating lower average revenue, while largely eliminating discounts. Member churn improved by more than 20% from the first to third quarter. The company said revenue stabilized over the last 60 days at a quarterly run rate around $21.0 million and expects positive free cash flow in the fourth quarter. Third-quarter operating cash use was $4.062 million, versus $326,000 generated a year earlier. Cash ended September at $7.104 million, down from $13.540 million at year-end 2025.

8 points · 0 major

NegativeiHow this balance works

How this balance works

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0 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointMember churn improved by more than 20% from the first to third quarter of 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gaia expects a return to positive free cash flow in the fourth quarter of 2026.
• Moderate pointThird-quarter financing activities provided $8.383 million, versus $3.839 million a year earlier.
• Minor pointAnnualized gross profit per employee continued growing to $827,000.
• Minor pointThird-quarter selling and operating expenses fell to $19.636 million from $20.578 million a year earlier.

3 minor points

• Minor pointThird-quarter corporate, general and administration expenses fell to $2.082 million from $2.237 million a year earlier.
• Minor pointNine-month corporate, general and administration expenses fell to $5.941 million from $7.043 million a year earlier.
• Minor pointThird-quarter cash increased by $1.832 million, versus a $238,000 increase a year earlier.

Negative

• Moderate pointThird-quarter revenue decreased 12% to $22.031 million from $24.984 million a year earlier.
• Moderate pointThird-quarter common-shareholder loss widened to $3.018 million, or $0.12 per share, versus $1.153 million, or $0.05.
• Moderate pointThird-quarter operating loss widened to $2.950 million from $1.241 million a year earlier.
• Moderate pointThird-quarter operating cash use was $4.062 million, versus $326,000 generated a year earlier.
• Moderate pointCash declined to $7.104 million at September 30, 2026, from $13.540 million at December 31, 2025.
• Moderate pointRevolving credit borrowings, excluding current portions, reached $7.000 million at September 30, versus none at year-end 2025.

9 minor points

• Minor pointThird-quarter gross margin declined to 85.2% from 86.4% a year earlier.
• Minor pointThird-quarter gross profit fell to $18.768 million from $21.574 million a year earlier.
• Minor pointGaia reported a lower revenue level, stabilized at a quarterly run rate around $21.0 million over 60 days.
• Minor pointNine-month revenue fell to $69.674 million from $73.456 million a year earlier.
• Minor pointNine-month gross profit fell to $59.583 million from $63.827 million a year earlier.
• Minor pointNine-month common-shareholder loss widened to $7.302 million, or $0.29 per share, versus $3.968 million, or $0.16.
• Minor pointNine-month operating loss widened to $7.594 million from $4.449 million a year earlier.
• Minor pointNine-month operating cash use was $7.948 million, versus $3.908 million generated a year earlier.
• Minor pointClass A shares outstanding increased to 20,026,793 at September 30, 2026, from 19,562,520 at year-end 2025.

News Explained

At September 30, 2026, existing Class A holders faced a larger share base, while Gaia also reported revolving borrowing outstanding.

At September 30, 2026, Gaia reported $7,000 (amounts in thousands) on its revolving line and $7,104 in cash; the balance sheet showed no revolving-line balance at December 31, 2025, so the company had borrowing outstanding while also holding cash.

Class A shares outstanding increased from 19,562,520 at December 31, 2025 to 20,026,793 at September 30, 2026, meaning each existing Class A share represented a smaller fraction of the outstanding Class A shares, all else equal.

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Market move: GAIA -5.66% vs previous close. 3Q26 earnings report

$1.37 – $1.47 Day Range

$34.78M Mkt Cap at Last Price

On Nov 2, the day this news came out, the latest delayed price for GAIA is 5.66% below the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $1.37. Relative volume is above average at 1.5x what this stock usually trades by this time of day.

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Key Figures

Revenue: $22.0 million, down 12% Gross margin: 85.2% Net loss: $(3.0) million +4 more

Revenue

$22.0 million, down 12%

Q3 2026; compared with $25.0 million in Q3 2025

Gross margin

85.2%

Q3 2026; compared with 86.4% in Q3 2025

Net loss

$(3.0) million

Q3 2026; compared with $(1.2) million in Q3 2025

Loss per share

$(0.12)

Q3 2026; compared with $(0.05) in Q3 2025

Member churn improvement

More than 20%

From Q1 to Q3 2026

Cash balance

$7.1 million

As of September 30, 2026

Positive free cash flow

Expected in Q4 2026

Management forecast

Previous Earnings Reports

1 past event · Latest: Aug 10

Same Type 1 event

1. Aug 10

   Quarterly earnings

   24h Move

   -35.0%

   Revenue and gross margin declined while the common-shareholder loss widened amid the member-acquisition shift.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

arpu, free cash flow, amortization

3 terms

arpu financial

"revenue reliance on third parties and lower ARPU regions"

ARPU, or Average Revenue Per User, measures how much money a company earns, on average, from each of its customers over a set period. It helps investors understand how effectively a business is generating income from its customer base, similar to calculating how much each customer spends at a store. Higher ARPU often indicates stronger sales per customer and better revenue performance.

free cash flow financial

"expect to return to positive free cash flow during the fourth quarter"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

amortization financial

"while content-related amortization remained relatively consistent"

Amortization is the process of spreading a large cost over a series of future periods, either by gradually writing off the value of an intangible asset (like a patent or license) or by showing how loan principal is paid down over time. For investors it matters because amortization affects reported profits and cash flow — similar to slicing a big bill into smaller monthly payments — and therefore influences valuations, comparisons between companies, and expectations for future earnings.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOULDER, Colo., Nov. 02, 2026 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the third quarter ended September 30, 2026.

“Our third quarter results reflect the successful completion of the reset we announced at the beginning of March—a deliberate move to reduce our revenue reliance on third parties and lower ARPU regions,” said Kiersten Medvedich, Chief Executive Officer of Gaia. “As part of this shift to prioritize long-term value, we have largely eliminated discounting, with the sole exception of returning members acquired without meaningful marketing spend. We are already seeing traction from these disciplined choices, with member churn rate improving by more than 20% from the first to the third quarter. We remain confident that this focus on the quality of our direct member base is building a stronger, more sustainable foundation.”

Gaia CFO, Ned Preston, stated: “Over the last 60 days, our revenue has stabilized at a quarterly run rate around $21.0 million. We have compensated for this lower revenue by effectively reducing expenses, which has allowed our annualized gross profit per employee to continue growing to $827,000. As predicted, we expect to return to positive free cash flow during the fourth quarter, resuming the trend of nine consecutive quarters of positive free cash flow we delivered prior to our March reset.”

Third Quarter 2026 Financial Results

Revenue decreased 12% to $22.0 million, compared to $25.0 million in the third quarter of 2025. The decrease primarily reflected the decision to reduce acquisition of lower ARPU members and prioritize direct subscribers, which have historically demonstrated lower churn.

Gross margin was 85.2% compared to 86.4% a year ago, primarily attributable to lower revenue, while content-related amortization remained relatively consistent.

Net loss was $(3.0) million, or $(0.12) per share, versus $(1.2) million or $(0.05) per share, in the third quarter of 2025.

Gaia’s cash balance as of September 30, 2026, was $7.1 million.

Conference Call

Date: Monday, November 2, 2026
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-877-269-7751
International dial-in number: 1-201-389-0908
Conference ID: 13763050

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.

The conference call will be broadcast live and available for replay here and via ir.gaia.com.

A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 16, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13763050

About Gaia
Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, over 90% of which is exclusive to Gaia, and approximately 75% of viewership is generated by content produced or owned by Gaia. Gaia is available on Apple TV, iOS, Android, Roku, Chromecast, and sold through Amazon Prime Video and Comcast Xfinity. For more information about Gaia, visit www.gaia.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward looking statements that involve risks and uncertainties. When used in this discussion, we intend the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “strive,” “target,” “will,” “would” and similar expressions as they relate to us to identify such forward-looking statements. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors set forth under “Risk Factors” and elsewhere in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2025. Risks and uncertainties that could cause actual results to differ include, without limitation: our ability to attract new members and retain existing members; our ability to compete effectively, including for customer engagement with different modes of entertainment; maintenance and expansion of device platforms for streaming; fluctuation in customer usage of our service; fluctuations in quarterly operating results; service disruptions; production risks; general economic conditions; future losses; loss of key personnel; price changes; brand reputation; acquisitions; new initiatives we undertake; security and information systems; legal liability for website content; failure of third parties to provide adequate service; future internet-related taxes; our founder’s control of us; litigation; consumer trends; the effect of government regulation and programs; the impact of public health threats; and other risks and uncertainties included in our filings with the Securities and Exchange Commission. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect our views only as of the date of this press release. We undertake no obligation to update any forward-looking information.

Company Contact:
Ned Preston
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com

Investor Relations:
Gateway Group, Inc.
Cody Slach
(949) 574-3860
GAIA@gateway-grp.com

GAIA, INC.
Condensed Consolidated Balance Sheets (unaudited)

		September 30,				December 31,
(in thousands, except share and per share data)		2026				2025
ASSETS
Current assets:
Cash and cash equivalents		$	7,104			$	13,540
Accounts receivable			6,364				5,437
Prepaid expenses and other current assets			4,076				3,527
Total current assets			17,544				22,504
Media library, net			39,165				39,133
Operating right-of-use asset, net			8,297				8,836
Property and equipment, net			28,767				26,963
Technology license, net			14,137				14,743
Investments and other intangible assets, net			8,329				8,488
Goodwill			33,982				33,982
Total assets		$	150,221			$	154,649
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	11,472			$	15,224
Accrued and other liabilities			4,324				3,396
Long-term debt, current portion			227				227
Operating lease liability, current portion			660				614
Deferred revenue			17,382				18,502
Total current liabilities			34,065				37,963
Revolving line of credit, net of current portion			7,000				—
Long-term debt, net of current portion			5,281				5,452
Operating lease liability, net of current portion			8,003				8,501
Deferred taxes, net			647				603
Total liabilities			54,996				52,519
Shareholder's equity:
Class A common stock, $0.0001 par value, 150,000,000 shares authorized, 20,172,598 and 19,709,325 shares issued, 20,026,793 and 19,562,520 shares outstanding at September 30, 2026 and December 31, 2025, respectively			2				2
Class B common stock, $0.0001 par value, 50,000,000 shares authorized, 5,400,000 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			1				1
Additional paid-in capital			184,900				183,393
Treasury stock at cost: 146,805 shares as of September 30, 2026 and December 31, 2025			(525	)			(525	)
Accumulated deficit			(102,224	)			(94,922	)
Total Gaia, Inc. shareholders’ equity			82,154				87,949
Noncontrolling interests			13,071				14,181
Total equity			95,225				102,130
Total liabilities and equity		$	150,221			$	154,649

Condensed Consolidated Statements of Operations (unaudited)

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(in thousands, except per share data)		2026				2025				2026				2025
Revenues, net		$	22,031			$	24,984			$	69,674			$	73,456
Cost of revenues			3,263				3,410				10,091				9,629
Gross profit			18,768				21,574				59,583				63,827
Operating Expenses:
Selling and operating			19,636				20,578				61,236				61,233
Corporate, general and administration			2,082				2,237				5,941				7,043
Total operating expenses			21,718				22,815				67,177				68,276
Loss from operations			(2,950	)			(1,241	)			(7,594	)			(4,449	)
Interest and other income, net			(131	)			22				(145	)			9
Loss before income taxes			(3,081	)			(1,219	)			(7,739	)			(4,440	)
Income tax expense			33				12				60				61
Loss from continuing operations		$	(3,114	)		$	(1,231	)		$	(7,799	)		$	(4,501	)
Loss from discontinued operations			—				(63	)			—				(59	)
Net loss		$	(3,114	)		$	(1,294	)		$	(7,799	)		$	(4,560	)
Net loss attributable to noncontrolling interests		$	(96	)		$	(141	)		$	(497	)		$	(592	)
Net loss attributable to common shareholders		$	(3,018	)		$	(1,153	)		$	(7,302	)		$	(3,968	)
Loss per share:
Basic (attributable to common shareholders)		$	(0.12	)		$	(0.05	)		$	(0.29	)		$	(0.16	)
Diluted (attributable to common shareholders)		$	(0.12	)		$	(0.05	)		$	(0.29	)		$	(0.16	)
Weighted-average shares outstanding:
Basic			25,019				25,044				25,011				24,805
Diluted			25,019				25,044				25,011				24,805

Condensed Consolidated Statements of Cash Flows (unaudited)

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(in thousands)		2026				2025				2026				2025
Net cash (used in) provided by:
Net cash (used in) provided by operating activities		$	(4,062	)		$	326			$	(7,948	)		$	3,908
Net cash used in investing activities			(2,489	)			(3,927	)			(6,625	)			(6,361	)
Net cash provided by financing activities			8,383				3,839				8,137				10,755
Net change in cash and cash equivalents		$	1,832			$	238			$	(6,436	)		$	8,302

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Gaia's third-quarter 2026 revenue and earnings per share?

Gaia reported revenue of $22.031 million and a common-shareholder loss of $0.12 per share. Revenue declined 12% from $24.984 million in the third quarter of 2025, when the common-shareholder loss was $0.05 per share.

When does Gaia expect to return to positive free cash flow?

Gaia expects to return to positive free cash flow in the fourth quarter of 2026. Before its March reset, the company had delivered nine consecutive quarters of positive free cash flow.

What discounts does Gaia still offer after its 2026 reset?

Gaia has largely eliminated discounting, with an exception for returning members acquired without meaningful marketing spend. The company describes the change as part of its shift toward the long-term value of its direct member base.