[10-Q] Gaia, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

Gaia, Inc. (GAIA) reported revenue growth and improved margins but remained modestly unprofitable for the quarter and six months ended June 30, 2025. Revenues rose about 12% to $24.6 million in Q2 and $48.5 million year-to-date, driven by higher member counts and improved ARPU after price increases. Gross margin expanded to 86.7% for the quarter and 87.2% year-to-date. The company generated positive operating cash flow of $3.6 million in the first six months and ended June 30, 2025 with $13.9 million in cash. Net loss was $2.0 million for the quarter and $3.3 million year-to-date, with loss attributable to common shareholders of $1.8 million and $2.8 million, respectively. Gaia completed a $7.0 million net Class A offering in Feb 2025, recorded a $15.146 million technology license on the balance sheet, and consolidated Igniton (majority-owned), which raised additional financing in July 2025. Current deferred revenue was $21.1 million and current portion of long-term debt was $5.7 million; management reports compliance with borrowing covenants.

Positive

• Revenue growth: Revenues increased ~12% to $24.6M for the quarter and $48.5M for the six months ended June 30, 2025.
• Improved gross margins: Gross margin expanded to 86.7% in Q2 and 87.2% year-to-date.
• Operating cash flow positive: Net cash provided by operating activities was $3.6M for the six months ended June 30, 2025.
• Stronger liquidity: Cash and cash equivalents totaled $13.9M at June 30, 2025 and the company raised $7.0M net from a Class A offering (Feb 2025).
• Access to credit: Revolving credit facility up to $10M (no borrowings outstanding as of June 30, 2025) and management reported covenant compliance.

Negative

• Continued net losses: Net loss of $2.0M in Q2 and $3.3M year-to-date ended June 30, 2025.
• Rising operating expenses: Selling & operating expenses increased 13.4% year-to-date and corporate G&A rose 33.3% year-to-date, pressuring operating results.
• Large accumulated deficit: Accumulated deficit of $93.243M on the balance sheet at June 30, 2025.
• Near-term debt maturity: Current portion of long-term debt of $5.719M due in 2025 (maturities on long-term debt, net of current portion, noted for year ended Dec 31, 2025).
• Full valuation allowance on deferred tax assets due to historical operating losses, limiting near-term tax benefit realization.

Insights

Financial Analyst

TL;DR: Revenue and margin improvement offset by continued operating losses and rising G&A; cash flow positive but profitability not yet achieved.

Gaia delivered healthy top-line growth (≈12% Q/Q and YTD) and expanding gross margins (86.7% Q2, 87.2% YTD), reflecting ARPU gains and favorable revenue mix. Operating expenses grew (selling & operating and G&A), producing a continuing net loss of $3.3 million YTD despite $3.6 million of operating cash flow. The February equity raise ($7.0M net) and $13.9M cash balance provide near-term liquidity, and management expects content/capital spend of $11–$13M for remainder of 2025. Impact rating: 0 (neutral).

Risk Analyst

TL;DR: Positive cash generation and covenant compliance, but accumulated deficit and near-term debt warrant close monitoring.

Key risk indicators include an accumulated deficit of $93.2 million and a current portion of long-term debt of $5.7 million due in 2025. The company has a full valuation allowance on deferred tax assets. While in compliance with credit covenants as of June 30, 2025, contingent foreign non-income tax exposures are ongoing and not reasonably estimable. Subsequent Igniton financings and license transactions add complexity to consolidated results. Impact rating: -1 (negative).

0001089872false--12-31Q2http://fasb.org/us-gaap/2024#AccountingStandardsUpdate202307Memberhttp://fasb.org/srt/2024#ChiefExecutiveOfficerMember0001089872gaia:PerpetualLicenseMembergaia:TelomeronMember2024-04-012024-04-300001089872gaia:BoulderRoadMembergaia:WestsideBoulderLLCMember2020-09-090001089872country:US2025-01-012025-06-300001089872gaia:LicensePurchaseMember2025-01-012025-06-300001089872us-gaap:CommonStockMember2023-12-310001089872us-gaap:CommonStockMember2024-04-012024-06-300001089872us-gaap:CommonClassBMember2025-06-300001089872country:US2024-01-012024-06-300001089872us-gaap:AdditionalPaidInCapitalMember2024-03-310001089872srt:MinimumMember2025-01-012025-06-3000010898722025-01-012025-03-310001089872us-gaap:CommonStockMember2024-12-3100010898722025-04-012025-06-300001089872us-gaap:RetainedEarningsMember2024-04-012024-06-3000010898722024-12-3100010898722023-12-310001089872gaia:IgnitonMember2024-04-182024-04-180001089872us-gaap:CommonClassAMember2025-08-110001089872country:US2025-04-012025-06-300001089872gaia:FederalMember2025-06-300001089872us-gaap:CommonClassBMember2024-12-310001089872us-gaap:CommonClassAMember2024-12-310001089872us-gaap:BaseRateMember2025-06-300001089872us-gaap:CommonClassBMember2025-08-110001089872us-gaap:NonUsMember2024-04-012024-06-300001089872us-gaap:AdditionalPaidInCapitalMember2025-03-310001089872gaia:KeybankMemberus-gaap:RevolvingCreditFacilityMembergaia:CreditAndSecurityAgreementMember2022-08-250001089872us-gaap:RetainedEarningsMember2025-03-310001089872gaia:KeybankMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMembergaia:CreditAndSecurityAgreementMember2025-07-310001089872us-gaap:AdditionalPaidInCapitalMember2025-06-300001089872gaia:KeybankMembergaia:CreditAndSecurityAgreementMember2025-01-012025-06-300001089872gaia:StateMember2025-06-300001089872us-gaap:NoncontrollingInterestMember2024-03-310001089872us-gaap:RetainedEarningsMember2024-12-3100010898722025-06-3000010898722024-04-012024-06-300001089872us-gaap:CommonClassAMemberus-gaap:OverAllotmentOptionMembergaia:LakeStreetCapitalMarketsLimitedLiabilityCompanyMember2025-02-012025-02-2800010898722024-01-012024-03-310001089872gaia:LicensePurchaseMembergaia:IgnitonMember2025-01-012025-06-300001089872us-gaap:RetainedEarningsMember2024-06-300001089872us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001089872us-gaap:CommonStockMember2025-04-012025-06-300001089872gaia:EmployeeStockOptionsAndRestrictedStockUnitsMember2024-01-012024-06-3000010898722024-01-012024-06-300001089872us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310001089872gaia:KeybankMemberus-gaap:LetterOfCreditMembergaia:CreditAndSecurityAgreementMember2025-06-300001089872us-gaap:CommonStockMember2024-03-310001089872us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2025-06-300001089872us-gaap:CommonStockMember2025-03-310001089872us-gaap:NoncontrollingInterestMember2025-04-012025-06-300001089872gaia:TechnologyLicenseMember2025-06-300001089872gaia:PerpetualLicenseMembergaia:IgnitonMember2024-04-012024-04-300001089872gaia:FirstInterstateBankMembergaia:BoulderRoadAndWestsideBoulderLimitedLiabilityCompanyMembergaia:MortgageLoanMembergaia:LoanAgreementMember2020-12-282020-12-280001089872us-gaap:CommonStockMember2024-06-300001089872us-gaap:NoncontrollingInterestMember2024-12-310001089872us-gaap:RetainedEarningsMember2023-12-310001089872gaia:EmployeeStockOptionsAndRestrictedStockUnitsMember2024-04-012024-06-300001089872us-gaap:CommonStockMember2025-06-300001089872gaia:FirstInterstateBankMembergaia:BoulderRoadAndWestsideBoulderLimitedLiabilityCompanyMembergaia:LoanAgreementMembergaia:MortgageLoanMember2020-12-280001089872gaia:IgnitonMemberus-gaap:SubsequentEventMember2025-07-012025-07-310001089872us-gaap:NoncontrollingInterestMember2025-01-012025-03-310001089872us-gaap:CommonStockMember2024-01-012024-03-310001089872country:US2024-04-012024-06-300001089872us-gaap:CommonStockMember2025-01-012025-03-310001089872us-gaap:NonUsMember2024-01-012024-06-300001089872us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300001089872gaia:KeybankMemberus-gaap:LetterOfCreditMembergaia:CreditAndSecurityAgreementMember2022-08-2500010898722025-03-310001089872us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001089872gaia:KeybankMemberus-gaap:LetterOfCreditMembergaia:CreditAndSecurityAgreementMember2024-12-310001089872us-gaap:NonUsMember2025-01-012025-06-300001089872us-gaap:NoncontrollingInterestMember2024-04-012024-06-300001089872us-gaap:AdditionalPaidInCapitalMember2024-06-300001089872gaia:BoulderRoadMembersrt:MinimumMember2020-12-282020-12-280001089872us-gaap:RetainedEarningsMember2024-03-3100010898722024-06-3000010898722024-03-310001089872us-gaap:RetainedEarningsMember2024-01-012024-03-310001089872us-gaap:AdditionalPaidInCapitalMember2024-12-310001089872gaia:KeybankMemberus-gaap:SubsequentEventMember2025-07-292025-07-290001089872us-gaap:NonUsMember2025-04-012025-06-300001089872gaia:EmployeeStockOptionsAndRestrictedStockUnitsMember2025-01-012025-06-300001089872gaia:TwoFiveYearExtensionsMember2025-06-300001089872gaia:BoulderRoadMembersrt:MaximumMember2020-12-282020-12-280001089872us-gaap:NoncontrollingInterestMember2025-06-300001089872us-gaap:RetainedEarningsMember2025-06-300001089872us-gaap:NoncontrollingInterestMember2024-06-300001089872us-gaap:CommonClassAMemberus-gaap:OverAllotmentOptionMembergaia:LakeStreetCapitalMarketsLimitedLiabilityCompanyMember2025-02-280001089872us-gaap:CommonClassAMembergaia:LakeStreetCapitalMarketsLimitedLiabilityCompanyMember2025-02-280001089872gaia:EmployeeStockOptionsAndRestrictedStockUnitsMember2025-04-012025-06-300001089872gaia:NetOperatingLossesExpireInTwoZeroThreeSevenMembergaia:FederalMember2025-06-300001089872gaia:IgnitonMember2024-04-180001089872us-gaap:RetainedEarningsMember2025-01-012025-03-310001089872us-gaap:CommonClassAMembergaia:LakeStreetCapitalMarketsLimitedLiabilityCompanyMember2025-02-012025-02-280001089872us-gaap:NoncontrollingInterestMember2025-03-310001089872us-gaap:CommonClassAMember2025-06-3000010898722025-01-012025-06-300001089872us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001089872us-gaap:RetainedEarningsMember2025-04-012025-06-300001089872us-gaap:AdditionalPaidInCapitalMember2023-12-310001089872us-gaap:NoncontrollingInterestMember2023-12-310001089872gaia:BoulderRoadMember2020-09-092020-09-090001089872gaia:PerpetualLicenseMember2024-04-012024-04-300001089872gaia:NetOperatingLossesExpireInTwoZeroThreeSevenMembergaia:FederalMember2025-01-012025-06-30xbrli:puregaia:Titlexbrli:sharesiso4217:USDxbrli:sharesgaia:Channeliso4217:USDgaia:Segment

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-27517

GAIA, INC.

(Exact name of registrant as specified in its charter)

COLORADO		84-1113527
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

833 WEST SOUTH BOULDER ROAD,

LOUISVILLE, COLORADO 80027

(Address of principal executive offices)

(303) 222-3600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	GAIA	NASDAQ Global Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class		Outstanding at August 11, 2025
Class A Common Stock ($0.0001 par value)		19,709,325
Class B Common Stock ($0.0001 par value)		5,400,000

GAIA, INC.

FORM 10-Q

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):	3
	Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024	4
	Condensed Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2025 and 2024	5
	Condensed Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended June 30, 2025 and 2024	6
	Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2025 and 2024	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
PART II—OTHER INFORMATION		19
Item 1.	Legal Proceedings	19
Item 1A.	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	19
Item 5.	Other Information	19
Item 6.	Exhibits	20
	SIGNATURES	21

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Unaudited Condensed Consolidated Financial Statements

We have prepared our unaudited condensed consolidated financial statements included herein pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). While certain information and note disclosures normally included in annual audited financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to these rules and regulations, we believe that the disclosures made are adequate to make the information not misleading. In our opinion, the unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly, in all material respects, our condensed consolidated balance sheets as of June 30, 2025, the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, the condensed consolidated statements of changes in equity for the three and six months ended June 30, 2025 and 2024, and condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024. Operating results for the three and six months ended June 30, 2025 and 2024 are not necessarily indicative of the results that may be expected for a full year or any future period. The consolidated balance sheet as of December 31, 2024, was derived from our annual audited consolidated financial statements included in our Annual Report on Form 10-K. These condensed consolidated financial statements have not been audited. The unaudited condensed consolidated financial statements contained herein should be read in conjunction with our annual audited consolidated financial statements, including the notes thereto, for the year ended December 31, 2024.

3

GAIA, INC.

Condensed Consolidated Balance Sheets

		June 30,				December 31,
(in thousands, except share and per share data)		2025				2024
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	13,924			$	5,860
Accounts receivable			5,717				5,560
Other receivables			—				1,809
Prepaid expenses and other current assets			3,851				2,513
Total current assets			23,492				15,742
Media library, net			39,142				38,987
Operating right-of-use asset, net			5,026				5,454
Property and equipment, net			25,862				26,883
Technology license, net			15,146				15,550
Investments and other assets, net			6,370				6,658
Goodwill			31,943				31,943
Total assets		$	146,981			$	141,217
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	13,679			$	12,435
Accrued and other liabilities			2,101				3,491
Long-term debt, current portion (Note 4)			5,719				5,801
Operating lease liability, current portion			869				839
Deferred revenue			21,069				19,268
Total current liabilities			43,437				41,834
Operating lease liability, net of current portion			4,427				4,869
Deferred taxes, net			526				501
Total liabilities			48,390				47,204
Commitments and Contingencies (Note 8)
Shareholders’ equity:
Class A common stock, $0.0001 par value, 150,000,000 shares authorized, 19,704,103 and 18,066,942 shares issued, 19,639,116 and 18,001,955 shares outstanding at June 30, 2025 and December 31, 2024, respectively			2				2
Class B common stock, $0.0001 par value, 50,000,000 shares authorized, 5,400,000 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			1				1
Additional paid-in capital			178,944				171,100
Accumulated deficit			(93,243	)			(90,428	)
Total Gaia, Inc. shareholders’ equity			85,704				80,675
Noncontrolling interests			12,887				13,338
Total equity			98,591				94,013
Total liabilities and equity		$	146,981			$	141,217

See accompanying notes to the unaudited condensed consolidated financial statements.

4

GAIA, INC.

Condensed Consolidated Statements of Operations (unaudited)

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)		2025				2024				2025				2024
Revenues, net		$	24,632			$	21,856			$	48,472			$	43,169
Cost of revenues			3,285				3,385				6,220				6,518
Gross profit			21,347				18,471				42,252				36,651
Operating expenses:
Selling and operating			20,634				18,476				40,656				35,881
Corporate, general and administration			2,909				1,988				4,806				3,617
Total operating expenses			23,543				20,464				45,462				39,498
Loss from operations			(2,196	)			(1,993	)			(3,210	)			(2,847	)
Other income (expense), net			124				(144	)			(12	)			(252	)
Loss before income taxes			(2,072	)			(2,137	)			(3,222	)			(3,099	)
Income tax expense			1				—				49				—
Loss from continuing operations			(2,073	)			(2,137	)			(3,271	)			(3,099	)
Gain (loss) from discontinued operations			26				(26	)			5				(35	)
Net loss			(2,047	)			(2,163	)			(3,266	)			(3,134	)
Net (loss) income attributable to noncontrolling interests			(246	)			30				(451	)			104
Net loss attributable to common shareholders		$	(1,801	)		$	(2,193	)		$	(2,815	)		$	(3,238	)
Loss per share:
Basic
Continuing operations (attributable to common shareholders)		$	(0.07	)		$	(0.09	)		$	(0.11	)		$	(0.14	)
Discontinued operations		$	—			$	—			$	—			$	—
Basic loss per share		$	(0.07	)		$	(0.09	)		$	(0.11	)		$	(0.14	)
Diluted
Continuing operations (attributable to common shareholders)		$	(0.07	)		$	(0.09	)		$	(0.11	)		$	(0.14	)
Discontinued operations		$	—			$	—			$	—			$	—
Diluted loss per share		$	(0.07	)		$	(0.09	)		$	(0.11	)		$	(0.14	)
Weighted-average shares outstanding:
Basic			25,022				23,372				24,686				23,267
Diluted			25,022				23,372				24,686				23,267

See accompanying notes to the condensed consolidated financial statements.

5

GAIA, INC.

Condensed Consolidated Statements of Changes in Equity (unaudited)

(in thousands, except shares)		Common Stock Shares				Accumulated Deficit				Common Stock Amount				Additional Paid-in Capital				Non-controlling interests				Total Equity
Balance at December 31, 2024			23,401,955			$	(90,428	)		$	3			$	171,100			$	13,338			$	94,013
Issuance of Gaia, Inc. common stock in public offering			1,600,000				—				—				6,986				—				6,986
Issuance of Gaia, Inc. common stock for employee stock purchase plan			5,696				—				—				22				—				22
Share-based compensation			—				—				—				323				—				323
Net loss			—				(1,014	)			—				—				(205	)			(1,219	)
Balance at March 31, 2025			25,007,651			$	(91,442	)		$	3			$	178,431			$	13,133			$	100,125
Issuance of Gaia, Inc. common stock for RSU releases			31,465				—				—				—				—				—
Share-based compensation			—				—				—				513				—				513
Net loss			—				(1,801	)			—				—				(246	)			(2,047	)
Balance at June 30, 2025			25,039,116			$	(93,243	)		$	3			$	178,944			$	12,887			$	98,591
(in thousands, except shares)		Common Stock Shares				Accumulated Deficit				Common Stock Amount				Additional Paid-in Capital				Non-controlling interests				Total Equity
Balance at December 31, 2023			23,148,374			$	(85,195	)		$	3			$	170,695			$	1,277			$	86,780
Issuance of Gaia, Inc. common stock for employee stock purchase plan			7,444				—				—				14				—				14
Issuance of Gaia, Inc. common stock for RSU releases			4,708				—				—				—				—				—
Share-based compensation			—				—				—				335				—				335
Net (loss) income			—				(1,045	)			—				—				74				(971	)
Balance at March 31, 2024			23,160,526			$	(86,240	)		$	3			$	171,044			$	1,351			$	86,158
Issuance of Gaia, Inc. common stock for RSU releases and share-based compensation			220,505				—				—				327				—				327
Igniton activity			—				—				—				(809	)			12,242				11,433
Net (loss) income			—				(2,193	)			—				—				30				(2,163	)
Balance at June 30, 2024			23,381,031			$	(88,433	)		$	3			$	170,562			$	13,623			$	95,755

See accompanying notes to the condensed consolidated financial statements.

6

GAIA, INC.

Condensed Consolidated Statements of Cash Flows (unaudited)

		For the Six Months Ended June 30,
(in thousands)		2025				2024
Cash flows from operating activities:
Net loss		$	(3,266	)		$	(3,134	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Media library amortization			5,194				4,924
Depreciation and amortization			4,217				4,193
Noncash operating lease expense			481				472
Share-based compensation expense			836				662
Additions to media library			(5,341	)			(3,938	)
Changes in operating assets and liabilities:
Accounts receivable			(157	)			(895	)
Other receivables			1,809				(712	)
Prepaid expenses and other current assets			(1,232	)			(413	)
Accounts payable			1,060				1,892
Accrued and other liabilities			(1,820	)			(1,072	)
Deferred revenue			1,801				1,876
Net cash provided by operating activities			3,582				3,855
Cash flows from investing activities:
Additions to property and equipment			(2,434	)			(2,520	)
Purchase of intangible assets			—				(10,000	)
Net cash used in investing activities			(2,434	)			(12,520	)
Cash flows from financing activities:
Repayment of short-term debt			(5,092	)			(4,089	)
Proceeds from short-term borrowings			5,000				4,000
Proceeds from sale of subsidiary common stock, net of transaction costs			—				6,433
Proceeds from the issuance of common stock			7,008				14
Net cash provided by financing activities			6,916				6,358
Net change in cash and cash equivalents			8,064				(2,307	)
Cash and cash equivalents, beginning of period			5,860				7,766
Cash and cash equivalents, end of period		$	13,924			$	5,459
Supplemental disclosure of cash flow information
Cash paid for interest		$	218			$	262
Supplemental schedule of non-cash investing and financing activities
Additions to property and equipment in Accounts payable		$	(184	)		$	(202	)
Non-cash consideration paid for intangible assets		$	—			$	6,156

See accompanying notes to the condensed consolidated financial statements.

7

Notes to condensed consolidated financial statements

References in this report to “we”, “us”, “our”, the “Company” or “Gaia” refer to Gaia, Inc. and its consolidated subsidiaries, unless we indicate otherwise. All textual currency references are expressed in thousands of U.S. dollars (unless otherwise indicated).

1. Organization, Nature of Operations, and Principles of Consolidation

Gaia, Inc. operates a global digital video subscription service and on-line community that strives to connect a unique and underserved member base. Our digital content library includes over 10,000 titles, with a growing selection of titles available in Spanish, German and French. Our members have unlimited access to this vast library of inspiring films, cutting edge documentaries, interviews, yoga classes, transformation-related content and more – 90% of which is exclusively available to our members for digital streaming on most internet-connected devices anytime, anywhere, commercial free.

Our mission is to create a transformational network that empowers a global conscious community. Content on our network is currently organized into four primary channels—Yoga, Transformation, Alternative Healing, and Seeking Truth—and delivered directly to our members through our streaming platform. We curate programming for these channels by producing content in our in-house production studios with a staff of media professionals. This produced and owned content currently comprises approximately 75% of our members’ viewing time. We complement our produced and owned content through long term licensing agreements.

We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with GAAP, and they include our accounts and those of our subsidiaries. Intercompany transactions and balances have been eliminated. The unaudited condensed consolidated financial position, results of operations and cash flows for the interim periods disclosed in this report are not necessarily indicative of future financial results.

Use of Estimates and Reclassifications

The preparation of the condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and disclosures. Although we base these estimates on our best knowledge of current events and actions that we may undertake in the future, actual results may be different from the estimates.

We have made certain reclassifications to prior period amounts to conform to the current period presentations. As disclosed below, the Company’s Board voted to discontinue its stand-alone business unit selling transactional courses and, as such, we reclassed the results of operations for this business unit in our Condensed Consolidated Financial Statements for the three and six months ended June 30, 2024.

Discontinued Operations

On March 7, 2025, the Company’s Board voted to discontinue its stand-alone business unit selling transactional courses, which represented approximately $237 and $225 of revenue for the three months ended June 30, 2025 and 2024, respectively and approximately $432 and $605 of revenue for the six months ended June 30, 2025 and 2024, respectively. We have presented the results of operations related to winding up this line of business as discontinued operations on the accompanying Condensed Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements Not Yet Adopted

There have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the year ended December 31, 2024. The following recently issued accounting pronouncements are being evaluated but have not yet been adopted.

In October 2023, Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements (“ASU 2023-06”), to clarify or improve disclosure and presentation requirements of a variety of topics and align the requirements in the FASB ASC with the SEC’s regulations. The amendments in ASU 2023-06 will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impact of adopting ASU 2023-06.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (ASC Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (ASC Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional

8

information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (ASC Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC Topic 280 on an interim and annual basis. The Company adopted ASU 2023-07 during the year ended December 31, 2024. The Company applied ASU 2023-07 retrospectively to the earliest period presented. See Note 9 Segment and Geographic Information in the accompanying notes to the condensed consolidated financial statements for further detail.

2. Revenue Recognition

Revenues consist primarily of subscription fees paid by our members. We present revenues net of the taxes that are collected from members and remitted to governmental authorities. Members are billed in advance and revenues are recognized ratably over the subscription term. Deferred revenues consist of subscription fees collected from members that have not been earned and are recognized ratably over the remaining term of the subscription. We recognize revenue on a net basis for relationships where our third-party platform partners (“Partners”) have the primary relationship, including billing and service delivery, with the member. We recognize revenue on a gross basis for members whose primary relationship is with Gaia. Payments made to Partners to assist in promoting our service on their platforms are expensed to marketing expenses in the period incurred. We do not allow access to our service to be provided as part of a bundle by any of our Partners.

3. Equity and Share-Based Compensation

During the three months ended June 30, 2025 and 2024, we recognized approximately $513 and $327, respectively, of share-based compensation expense. During the first six months of 2025 and 2024, we recognized approximately $836 and $662, respectively, of share-based compensation expense. Total share-based compensation expense is reported in selling and operating expenses and corporate, general and administration expenses on our condensed consolidated statements of operations. There were no options exercised during the three and six months ended June 30, 2025 or 2024.

Class A Common Stock Offering

In February 2025, we entered into an underwriting agreement with Roth Capital Partners, LLC and Lake Street Capital Markets, LLC (the “Underwriters”) relating to the offer and sale of 1,600,000 shares of our Class A common stock ($0.0001 par value) (the “Shares”). We sold the Shares to the Underwriters at the public offering price of $5.00 per share, less underwriting discounts and commissions, resulting in net proceeds of $7.0 million. The offering was made pursuant to a registration statement on Form S-3. We provided a 45-day option to the Underwriters to purchase up to an additional 240,000 Shares at $5.00 per share, less underwriting discounts and commissions (the “Over-Allotment Option”). On March 7, 2025, the Underwriters elected to waive the right to exercise the Over-Allotment Option.

4. Debt

On September 9, 2020, our wholly owned subsidiary Boulder Road LLC (“Boulder Road”) sold a 50% undivided interest in a portion of our corporate campus to Westside Boulder, LLC (“Westside”). Boulder Road retained a 50% undivided interest in the property as well as full ownership of our studio and production facilities. Boulder Road received consideration of $13.2 million in the transaction.

On December 28, 2020, Boulder Road and Westside (“Borrower”) entered into a loan agreement with First Interstate Bank, as lender, providing for a mortgage loan in the principal amount of $13.0 million. The mortgage bears interest at a fixed rate of 3.75% per annum, matures on December 28, 2025, is secured by a deed of trust on our corporate campus, a portion of which is owned by Boulder Road and Westside as tenants-in-common and the remainder of which is owned by Boulder Road. Westside and Boulder Road each received 50% of the loan proceeds and are each responsible for 50% of the monthly installments. Gaia guaranteed payment of the mortgage. The mortgage contains customary affirmative and negative covenants (each with customary exceptions), including limitations on the Borrower’s ability to incur liens or debt, make investments, or engage in certain fundamental changes. Additionally, the Credit Agreement requires Boulder Road to maintain a minimum Debt Service Ratio – Pre Distribution of 1.35 to 1.00 annually and a minimum Debt Service Ratio – Post Distribution of 1.15 to 1.00 annually. As of June 30, 2025 and December 31, 2024, the Borrower was in compliance with all related covenants.

On August 25, 2022, Gaia, as borrower, and certain subsidiaries, as guarantors, entered into a Credit and Security Agreement with KeyBank National Association (“KeyBank”), as amended by the Second Amendment thereto, dated July 29, 2025 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility in an aggregate amount of up to $10 million (which may

9

be increased up to $15 million) with a sublimit of $1 million available for issuances of letters of credit. Borrowings under the Credit Agreement are available for working capital and general corporate purposes and permitted acquisitions. There were no outstanding borrowings as of June 30, 2025 and December 31, 2024.

Loans made, or letters of credit issued, under the Credit Agreement mature on August 25, 2028 and are secured (subject to permitted liens and other exceptions) by a first priority lien on all business assets, including intellectual property, of Gaia and the subsidiary guarantors.

The interest rate applicable to revolving loan advances is 1.75% per annum for advances that are Secured Overnight Financing Rate (“SOFR”) loans and 0.75% per annum for advances that are base rate loans.

The Credit Agreement contains customary affirmative and negative covenants (each with customary exceptions), including limitations on the Company’s ability to incur liens or debt, make investments, pay dividends, enter into transactions with its affiliates and engage in certain fundamental changes. Additionally, the Credit Agreement requires Gaia to maintain a Fixed Charge Coverage Ratio of not less than 1.20 to 1.00 and to not permit the Leverage Ratio to exceed 2.00 to 1.00 for any computation period. As of June 30, 2025 and 2024, the Borrower was in compliance with all related covenants.

Maturities on long-term debt, net of current portion are $5.72 million for the year ended December 31, 2025.

5. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 4, we leased the property pursuant to a master lease for an initial term extending through September 30, 2030, with two five-year extensions. The extension options are not recognized as part of the right-of-use asset and lease liability. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the initial lease term. At June 30, 2025, the weighted average remaining lease term was 5.25 years and the weighted average discount rate was 3.75%.

Because the rate implicit in the lease is not readily determinable, we used our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:

		June 30,				December 31,
(in thousands)		2025				2024
		(unaudited)
Operating right-of-use asset, net		$	5,026			$	5,454
Operating lease liability, current portion		$	869			$	839
Operating lease liability, net of current portion			4,427				4,869
		$	5,296			$	5,708

Operating lease expense is recognized on a straight-line basis over the lease term. Our operating lease expense was $268 and $265 for the three months ended June 30, 2025 and 2024, respectively, and $533 and $530 for the six months ended June 30, 2025 and 2024, respectively. At June 30, 2025, and for the subsequent years ending December 31, future maturity is as follows:

(in thousands)
2025 (remaining)		$	521
2026			1,064
2027			1,093
2028			1,123
2029			1,154
Thereafter			883
Future lease payments, gross			5,838
Less: Imputed interest			(542	)
Total operating lease liability		$	5,296

6. Loss Per Share

Basic loss per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted loss per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period (“common stock equivalents”). Common stock equivalents consist of

10

incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units utilizing the treasury stock method.

The weighted-average diluted shares outstanding computation is:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Weighted-average common stock outstanding			25,022				23,372				24,686				23,267
Weighted-average number of shares			25,022				23,372				24,686				23,267

We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common shareholders:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Employee stock options and RSUs			2,247				(25	)			2,247				1,548
			2,247				(25	)			2,247				1,548

7. Income Taxes

Periodically, we perform assessments of the realization of our net deferred tax assets considering all available evidence, both positive and negative. Based on our historical operating losses, combined with our plans to continue to invest in our revenue growth and content library, we have a full valuation allowance on our deferred tax assets as of June 30, 2025. As of June 30, 2025, our net operating loss carryforwards on a gross basis were $92.1 million and $29.5 million for federal and state, respectively, of which $7.8 million in federal net operating losses expire in 2037. Net operating losses generated in 2018 and beyond do not expire.

8. Commitments and Contingencies

From time to time, we are involved in legal proceedings that we consider to be in the normal course of business. We record accruals for losses related to those matters against us that we consider to be probable and that can be reasonably estimated. Based on available information, in the opinion of management, settlements, arbitration awards and final judgments, if any, that are considered probable of being rendered against us in litigation or arbitration in existence at June 30, 2025, and that can be reasonably estimated, are either reserved against or would not have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

The Company is subject to tax examinations for non-income taxes in foreign jurisdictions where it provides services to consumers residing in foreign jurisdictions. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from foreign tax authorities. An accrual for non-income tax liability is recognized for foreign jurisdictions when it is probable that a liability has been incurred and the non-income tax exposure can be reasonably estimated. For other foreign jurisdictions requiring non-income taxes, the Company has determined that the non-income tax exposure is reasonably possible. However, considering the Company’s prior experience with foreign tax authorities, the Company is unable to reasonably estimate the amount of non-income tax exposure that may be incurred.

9. Segment and Geographic Information

Our chief operating decision maker, Kiersten Medvedich, Chief Executive Officer, reviews operating results on a consolidated basis and has determined that we have one reportable segment.

11

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Revenues, net		$	24,632			$	21,856			$	48,472			$	43,169
Cost of revenues			3,285				3,385				6,220				6,518
Gross profit			21,347				18,471				42,252				36,651
Operating expenses:
Selling and operating			20,634				18,476				40,656				35,881
Corporate, general and administration			2,909				1,988				4,806				3,617
Total operating expenses			23,543				20,464				45,462				39,498
Loss from operations			(2,196	)			(1,993	)			(3,210	)			(2,847	)
Interest and other expense, net			124				(144	)			(12	)			(252	)
Loss before income taxes			(2,072	)			(2,137	)			(3,222	)			(3,099	)
Income tax expense			1				—				49				—
Loss from continuing operations			(2,073	)			(2,137	)			(3,271	)			(3,099	)
Loss from discontinued operations			26				(26	)			5				(35	)
Net loss			(2,047	)			(2,163	)			(3,266	)			(3,134	)
Net (loss) income attributable to noncontrolling interests			(246	)			30				(451	)			104
Net loss attributable to common shareholders		$	(1,801	)		$	(2,193	)		$	(2,815	)		$	(3,238	)

Geographic Information

We have members in the United States and over 185 foreign countries. The major geographic territories are the U.S., Canada and Australia based on the billing location of the member.

The following represents geographical data for our operations:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands)		2025				2024				2025				2024
Revenue:
United States		$	14,734			$	12,390			$	28,955			$	24,536
International			9,898				9,466				19,517				18,633
		$	24,632			$	21,856			$	48,472			$	43,169

10. Igniton Transactions

In April 2024, the Company entered into a series of transactions with its majority owned subsidiary, Igniton, Inc., a Colorado corporation (“Igniton”), and a third-party entity to purchase a royalty free perpetual license for a total of $16.2 million of consideration comprised of $10.2 million of cash, $5.0 million of common stock of Igniton and $1.0 million of the Company’s equity security investment in Telomeron (the “License Purchase”). The license allows the Company to utilize the technology developed by the third party. This license is being recorded within the Technology license, net line item on the condensed consolidated balance sheets.

The License Purchase was funded through an equity financing through Igniton, which raised $6.8 million of cash, $5.0 million in Igniton stock issuance from third-party investors and $4.0 million investment from Gaia.

Technology license, net consists of the following as of June 30, 2025:

(in thousands)		June 30, 2025
Technology license		$	16,156
Accumulated amortization			(1,010	)
Technology license, net		$	15,146

12

On April 18, 2024, Igniton closed a sale of 2,750,000 shares of Igniton common stock (the “Igniton Shares”) to certain funds managed by AWM Investment Company, Inc. (“AWM”) for total net proceeds of approximately $3.2 million. Igniton’s total proceeds included an approximately $0.4 million premium that was passed to the Company in exchange for the issuance to AWM of a non-transferable right granting AWM a one-time ability to sell the Igniton Shares to the Company for the total net proceeds paid (the “Option”), payable at the Company’s option, in cash or shares of the Company’s Class A common stock having a value per share equal to the trailing 5-day average Volume-Weighted Average Price prior to the exercise of the Option. The amounts have been recorded within Additional paid-in capital and Noncontrolling interests within the Condensed Consolidated Statements of Changes in Equity.

11. Subsequent Events

On July 29, 2025, Gaia entered into the Second Amendment to the Credit Agreement with KeyBank with improved financial terms. See Note 4. Debt for additional information.

During July 2025, Igniton raised $6.0 million of private common equity financing, including $2.0 million from Gaia. The Company has approximately two-thirds ownership interest and continues to consolidate Igniton. The proceeds from the financing are expected to be used by Igniton for product launch, general operating expenses and certain capital expenditures to support future growth.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This report 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,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Form 10-Q and under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024. 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 SEC. 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 report. We undertake no obligation to update any forward-looking information.

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this report. This section is designed to provide information that will assist readers in understanding our unaudited consolidated financial statements, changes in certain items in those statements from year to year, the primary factors that caused those changes and how certain accounting principles, policies and estimates affect the consolidated financial statements.

Overview and Outlook

We operate a global digital video subscription service with a library of over 10,000 titles, with live communications and live events with a growing selection of titles available in Spanish, German and French that caters to a unique, underserved member base. Our digital content is available to our members on most internet-connected devices anytime, anywhere, commercial-free. Through our online Gaia subscription service our members have unlimited access to a library of inspiring films, cutting edge documentaries, interviews, yoga classes, transformation related content, live events, and more – 90% of which is exclusively available to our members for digital streaming on most internet-connected devices.

Gaia’s position in the streaming video landscape is firmly supported by its wide variety of exclusive and unique content, which provides a complementary offering to other entertainment-based streaming video services. Our original content is developed and produced in-house in our lifestyle campus near Boulder, Colorado. By offering exclusive and unique content through our streaming service, we believe we will be able to significantly expand our target member base.

13

Our available content is currently focused on yoga, transformation, alternative healing, seeking truth and conscious films. This content is specifically targeted to a unique member base that is interested in alternative content provided by mainstream media. We have grown these content options both organically through our own productions and through strategic acquisitions or licensing. In addition, through our investments in our streaming video technology and our user interface, we have expanded the many ways our subscription member base can access our unique library of media titles.

Our core strategy is to grow our subscription business domestically and internationally by expanding our unique and exclusive content library, enhancing our user interface, extending our streaming service to new internet-connected devices as they are developed and creating a conscious community built around our content.

We are a Colorado corporation. Our principal and executive office is located at 833 West South Boulder Road, Louisville, Colorado 80027-2452. Our telephone number at that address is (303) 222-3600.

14

Results of Operations

The table below summarizes certain detail of our financial results for the periods indicated:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Revenues, net		$	24,632			$	21,856			$	48,472			$	43,169
Cost of revenues			3,285				3,385				6,220				6,518
Gross profit			21,347				18,471				42,252				36,651
Operating expenses:
Selling and operating			20,634				18,476				40,656				35,881
Corporate, general and administration			2,909				1,988				4,806				3,617
Total operating expenses			23,543				20,464				45,462				39,498
Loss from operations			(2,196	)			(1,993	)			(3,210	)			(2,847	)
Interest and other expense, net			124				(144	)			(12	)			(252	)
Loss before income taxes			(2,072	)			(2,137	)			(3,222	)			(3,099	)
Income tax expense			1				—				49				—
Loss from continuing operations			(2,073	)			(2,137	)			(3,271	)			(3,099	)
Loss from discontinued operations			26				(26	)			5				(35	)
Net loss			(2,047	)			(2,163	)			(3,266	)			(3,134	)
Net (loss) income attributable to noncontrolling interests			(246	)			30				(451	)			104
Net loss attributable to common shareholders		$	(1,801	)		$	(2,193	)		$	(2,815	)		$	(3,238	)

The following table sets forth certain financial data as a percentage of revenues, net for the periods indicated:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2025				2024				2025				2024
		(unaudited)								(unaudited)
Revenues, net			100.0	%			100.0	%			100.0	%			100.0	%
Cost of revenues			13.3	%			15.5	%			12.8	%			15.1	%
Gross profit margin			86.7	%			84.5	%			87.2	%			84.9	%
Operating expenses:
Selling and operating			83.8	%			84.5	%			83.9	%			83.1	%
Corporate, general and administration			11.8	%			9.1	%			9.9	%			8.4	%
Total operating expenses			95.6	%			93.6	%			93.8	%			91.5	%
Loss from operations			(8.9	)%			(9.1	)%			(6.6	)%			(6.6	)%
Interest and other expense, net			0.5	%			(0.7	)%			(0.0	)%			(0.6	)%
Loss before income taxes			(8.4	)%			(9.8	)%			(6.6	)%			(7.2	)%
Income tax expense			0.0	%			0.0	%			0.1	%			0.0	%
Loss from continuing operations			(8.4	)%			(9.8	)%			(6.7	)%			(7.2	)%
Loss from discontinued operations			0.1	%			(0.1	)%			0.0	%			(0.1	)%
Net loss			(8.3	)%			(9.9	)%			(6.7	)%			(7.3	)%
Net (loss) income attributable to noncontrolling interests			(1.0	)%			0.1	%			(0.9	)%			0.2	%
Net loss attributable to common shareholders			(7.3	)%			(10.0	)%			(5.8	)%			(7.5	)%

Three months ended June 30, 2025 compared to three months ended June 30, 2024

Revenues, net. Revenues increased $2.7 million, or 12%, to $24.6 million during the three months ended June 30, 2025, compared to $21.9 million during the three months ended June 30, 2024. This was primarily driven by an increase in member count as well as improvements in Average Revenue Per User (“ARPU”) due to the increase in prices.

Cost of revenues. Cost of revenues decreased $0.1 million or 2.9% to $3.3 million during the three months ended June 30, 2025, compared to $3.4 million during the three months ended June 30, 2024, which primarily relates to the increase in revenues and

15

revenue mix. Gross profit margin increased during the three months ended June 30, 2025 to 86.7% from 84.5% for the three months ended June 30, 2024 primarily due to improvements in ARPU.

Selling and operating expenses. Selling and operating expenses increased $2.1 million, or 11.4%, to $20.6 million during the three months ended June 30, 2025, compared to $18.5 million for the three months ended June 30, 2024, driven primarily by an increase in marketing expense. As a percentage of net revenues, selling and operating expenses decreased to 83.8% for the three months ended June 30, 2025 compared to 84.5% for the three months ended June 30, 2024.

Corporate, general and administration expenses. Corporate, general and administration expenses increased $0.9 million to $2.9 million for three months ended June 30, 2025 from $2.0 million for three months ended June 30, 2024. As a percentage of net revenues, these expenses increased to 11.8% for the three months ended June 30, 2025 from 9.1% for the three months ended June 30, 2024.

Six months ended June 30, 2025 compared to six months ended June 30, 2024

Revenues, net. Revenues increased $5.3 million, or 12.3%, to $48.5 million during the six months ended June 30, 2025 compared to $43.2 million during the six months ended June 30, 2024. This was primarily driven by an increase in member count as well as improvements in ARPU due to an increase in prices.

Cost of revenues. Cost of revenues decreased $0.3 million or 4.6% to $6.2 million during the six months ended June 30, 2025, compared to $6.5 million during the six months ended June 30, 2024, which primarily relates to the increase in revenues and revenue mix, offset by a one-time adjustment in royalty expense. Gross profit margin increased during the six months ended June 30, 2025, to 87.2% from 84.9% for the six months ended June 30, 2024 primarily due to improvements in ARPU and the one-time adjustment in royalty expense.

Selling and operating expenses. Selling and operating expenses increased $4.8 million, or 13.4%, to $40.7 million during the six months ended June 30, 2025, compared to $35.9 million for the six months ended June 30, 2024, driven primarily by an increase in marketing expense. As a percentage of net revenues, selling and operating expenses increased to 83.9% for the six months ended June 30, 2025 compared to 83.1% for the six months ended June 30, 2024.

Corporate, general and administration expenses. Corporate, general and administration expenses increased $1.2 million, or 33.3% to $4.8 million for the six months ended June 30, 2025 from $3.6 million for the six months ended June 30, 2024. As a percentage of net revenues, these expenses increased to 9.9% for the six months ended June 30, 2025 from 8.4% for the six months ended June 30, 2024.

Seasonality

Our member base reflects seasonal variations driven primarily by periods when consumers typically spend more time indoors and, as a result, tend to increase their viewing, similar to those of traditional TV and cable networks. We have generally experienced the greatest member growth in the fourth and first quarters (October through February), and slowest during May through August. This drives quarterly variations in our spending on member acquisition efforts and the number of net new subscribers we add each quarter but does not result in a corresponding seasonality in net revenue. As we continue to expand internationally, we expect regional seasonality trends to demonstrate more predictable seasonal patterns as our service offering in each market becomes more established and we have a longer history to assess such patterns.

Liquidity and Capital Resources

Our capital needs arise from working capital required to fund operations, capital expenditures related to acquisition and development of media content, development and marketing of our digital platforms, acquisitions of new businesses and other investments, replacements, expansions and improvements to our infrastructure, and future growth. These capital requirements depend on numerous factors, including the rate of market acceptance of our offerings, our ability to expand our customer base, the cost of ongoing upgrades to our offerings, our expenditures for marketing, and other factors. Additionally, we will continue to pursue opportunities to expand our media libraries, evaluate possible investments in businesses and technologies, and increase our marketing programs as needed.

Our budgeted content and capital expenditures for the remainder of 2025 are expected to be between $11.0 million to $13.0 million which we intend to fund with cash flows generated from operations. These planned expenditures will be predominately utilized to expand our content library and build out the capabilities of our digital platforms. The planned expenditures are discretionary and, with our in-house production capabilities, we have the ability to scale expenditures based on the available cash flows from operations. We began to generate positive cash flows from operations in 2020 and have continued to generate cash flows from operations since. We expect to continue generating positive cash flows from operations during the remainder of 2025. We generated approximately 3.6

16

million in cash flows from operations during the six months ended June 30, 2025. As of June 30, 2025, our cash balance was $13.9 million.

As described in Note 4, during August 2022, we entered into a Credit Agreement with KeyBank, which provides for a revolving credit facility in an aggregate amount of up to $10.0 million. Funds from the Credit Agreement are available for working capital and general corporate purposes, but not to fund any permitted acquisitions or other investments. As of June 30, 2025, there were no outstanding borrowings under the Credit Agreement.

As described in Note 10, in April 2024, the Company entered into a series of transactions with its subsidiary, Igniton, Inc., a Colorado corporation (“Igniton”), and a third-party entity to purchase a perpetual license for a total of $16.2 million of consideration comprised of $10.2 million of cash and $5.0 million of common stock of Igniton and $1.0 million of the Company’s equity security investment in Telomeron (the “License Purchase”). The license allows the Company to utilize the technology developed by the third party. This license is being recorded within the Technology license, net line item on the condensed consolidated balance sheets. The License Purchase was primarily funded through an equity financing through Igniton, which raised $6.8 million of cash and $5.0 million in Igniton stock issuance from third-party investors.

During July 2025, Igniton raised $6.0 million of private common equity financing, including $2.0 million from Gaia, at an implied post-money valuation of approximately $106 million. This valuation is based on the terms of the private financing and does not represent a remeasurement of fair value under GAAP.The Company has approximately two-thirds ownership interest and continues to consolidate Igniton. The proceeds from the financing are expected to be used by Igniton for product launch, general operating expenses and certain capital expenditures to support future growth.

In the normal course of our business, we investigate, evaluate and discuss acquisition, joint venture, minority investment, strategic relationship and other business combination opportunities in our market. For any future investment, acquisition, or joint venture opportunities, we may consider using then-available liquidity, issuing equity securities or incurring indebtedness.

While there can be no assurances, we believe our cash on hand, our cash expected to be generated from operations, our potential additional borrowing capabilities now that we have a history of generating positive operating cash flows, and our potential capital raising capabilities will be sufficient to fund our operations on both a short-term and long-term basis. However, our projected cash needs may change as a result of acquisitions, product development, unforeseen operational difficulties, or other factors.

Class A Common Stock Offering

In February 2025, we entered into an underwriting agreement with Roth Capital Partners, LLC and Lake Street Capital Markets, LLC (the “Underwriters”) relating to the offer and sale of 1,600,000 shares of our Class A common stock ($0.0001 par value) (the “Shares”). We sold the Shares to the Underwriters at the public offering price of $5.00 per share, less underwriting discounts and commissions, resulting in net proceeds of $7.0 million. The offering was made pursuant to a registration statement on Form S-3. We provided a 45-day option to the Underwriters to purchase up to an additional 240,000 Shares at $5.00 per share, less underwriting discounts and commissions (the “Over-Allotment Option”). On March 7, 2025, the Underwriters elected to waive the right to exercise the Over-Allotment Option.

Cash Flows

The following table summarizes our sources (uses) of cash during the periods presented:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Net cash provided by (used in):
Operating activities		$	2,284			$	(2,081	)		$	3,582			$	3,855
Investing activities			(1,404	)			(11,447	)			(2,434	)			(12,520	)
Financing activities			(46	)			6,388				6,916				6,358
Net change in cash		$	834			$	(7,140	)		$	8,064			$	(2,307	)

Three months ended June 30, 2025 compared to three months ended June 30, 2024

Operating activities. Cash flows provided by operations increased approximately $4.4 million during the three months ended June 30, 2025 compared to the same period in 2024. The increase was driven by changes in earnings, timing of working capital primarily from receiving the employee retention tax credit of approximately $1.7 million, and changes in other liabilities.

Investing activities. Cash flows used in investing activities decreased approximately $10.0 million during the three months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily driven by a technology license acquired by one of our

17

subsidiaries during the three months ended June 30, 2024. Excluding the subsidiary technology license purchase from prior year, the cash flows from investing activities were relatively flat period over period.

Financing activities. Cash flows used in financing activities decreased $6.4 million during the three months ended June 30, 2025 compared to the same period in 2024 due to funding the license purchase from an equity financing through Igniton of $6.4 million, net during the three months ended June 30, 2024.

Six months ended June 30, 2025 compared to six months ended June 30, 2024

Operating activities. Cash flows provided by operations decreased $0.3 million during the six months ended June 30, 2025 compared to the same period in 2024.

Investing activities. Cash flows used in investing activities increased approximately $10.1 million during the six months ended June 30, 2025compared to the same period in 2024. The decrease was primarily driven by a technology license acquired by one of our subsidiaries during the three months ended June 30, 2024. Excluding the subsidiary technology license purchase from prior year, the cash flows from investing activities were relatively flat period over period.

Financing activities. Cash flows provided by financing activities increased $0.6 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to proceeds from the issuance of common stock of $7.0 million compared to funding the subsidiary technology license purchase from an equity financing through Igniton of $6.4 million, net during the three months ended June 30, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined in Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon its evaluation as of June 30, 2025, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q were effective at a reasonable assurance level. Management, including our Chief Executive Officer and Chief Financial Officer, believes the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

18

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

We incorporate by reference the Risk Factors included as Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 that we filed with the SEC on March 10, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 5. Other Information.

During the three months ended June 30, 2025, no director or officer of Gaia adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as such terms are defined under Item 408(a) of Regulation S-K.

19

Item 6. Exhibits

Exhibit No.		Description
31.1*		Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2*		Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1**		Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104		The cover page for the Company's Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101

* Filed herewith

** Furnished herewith

20

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Gaia, Inc.
		(Registrant)
August 11, 2025	By:	/s/ Kiersten Medvedich
Date		Kiersten Medvedich
		Chief Executive Officer
		(Principal Executive Officer)
August 11, 2025	By:	/s/ Ned Preston
Date		Ned Preston
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

21

FAQ

What were GAIA's revenues and growth for Q2 2025?

Gaia reported $24.6 million in net revenues for the quarter ended June 30, 2025, an increase of approximately 12% versus Q2 2024.

Is GAIA cash-flow positive and how much cash did it have at June 30, 2025?

Gaia generated $3.6 million of net cash from operating activities for the six months ended June 30, 2025 and had $13.9 million in cash and cash equivalents at period end.

Did GAIA remain profitable in H1 2025?

No. Gaia reported a net loss of $3.266 million for the six months ended June 30, 2025, and a quarterly net loss of $2.047 million in Q2 2025.

What financing or capital actions did GAIA complete in 2025?

In February 2025 Gaia completed a Class A common stock offering of 1.6 million shares for net proceeds of approximately $7.0 million.

What material transactions with Igniton are disclosed for GAIA?

Gaia consolidated majority-owned Igniton, recorded a technology license (gross $16.156M, net $15.146M) from April 2024 transactions, and Igniton raised additional private financing in July 2025 including $2.0M from Gaia.

Does GAIA have debt covenants and are they in compliance?

Yes. Credit agreements include covenant ratios (e.g., Fixed Charge Coverage and Leverage Ratio), and the report states the borrower was in compliance with related covenants as of June 30, 2025.