0001193125-26-096522
SEC filingGaia, Inc. reported net revenues of $99.0 million for FY 2025, representing a 10.9% increase from $89.3 million in FY 2024. The growth was driven by an increase in member count and Average Revenue Per User (ARPU). Despite revenue growth, the company reported a net loss of $5.4 million, slightly improved from a $5.4 million loss in FY 2024. Gross profit margin improved to 87.1% from 86.1% due to ARPU improvements. Operating loss was $5.1 million compared to $5.7 million in the prior year. The company generated $5.7 million in net cash from operating activities, but used $10.0 million in investing activities primarily for investments and acquisitions. Total assets stood at $154.6 million with $13.5 million in cash and cash equivalents.
Gaia, Inc. reported FY 2025 results with net revenues of $99.0 million, representing a 10.9% increase from $89.3 million in FY 2024. The company continued to operate at a loss, reporting a net loss of $5.4 million, which was essentially unchanged from the $5.4 million loss in FY 2024. Gross profit improved to $86.2 million (87.1% margin) from $76.9 million (86.1% margin) in the prior year. Operating loss narrowed to $5.1 million from $5.7 million. The net loss attributable to common shareholders was $4.5 million compared to $5.2 million in FY 2024. Quarterly results showed sequential improvement, with Q4 2025 net loss of $828K being the smallest quarterly loss of the year.
Revenue growth of 10.9% was primarily driven by an increase in member count as well as an increase in Average Revenue Per User (ARPU). The company operates a global digital video subscription service with a library of over 10,000 titles, available in multiple languages including Spanish, German and French. Content is focused on yoga, transformation, alternative healing, seeking truth and conscious films. The company's strategy involves growing subscription business domestically and internationally by expanding its unique content library, enhancing user interface, extending streaming service to new internet-connected devices, and creating a conscious community. No segment breakdown or geographic mix was provided in the filing.
Gross profit margin improved to 87.1% in FY 2025 from 86.1% in FY 2024, primarily due to improvements in ARPU. Cost of revenues increased only 3.2% to $12.8 million despite the 10.9% revenue growth. Selling and operating expenses increased 9.5% to $81.9 million but decreased as a percentage of revenue to 82.7% from 83.8%. Corporate, general and administration expenses increased 20.5% to $9.4 million and increased as a percentage of revenue to 9.5% from 8.7%, driven primarily by legal fees, customer acquisition costs and higher compensation costs. The operating loss margin improved to -5.2% from -6.4% in the prior year.
The company generated $5.7 million in net cash from operating activities despite the net loss, with significant adjustments including $10.4 million in media library amortization and $8.1 million in depreciation and amortization. Investing activities used $10.0 million primarily for investment in Orion Architect ($2.0M), acquisition of UTV L.L.C. ($2.0M), and additions to property and equipment ($6.1M). Financing activities provided $12.1 million from various transactions including proceeds from common stock issuance ($7.0M) and mortgage refinance ($5.7M). Total assets were $154.6 million including media library ($39.1M), property and equipment ($27.0M), and goodwill ($34.0M). Total liabilities were $52.5 million with $5.5 million in long-term debt. Cash and cash equivalents were $13.5 million.
The company's forward-looking statements identify numerous risks including: ability to attract and retain members; competition for customer engagement; maintenance and expansion of device platforms for streaming; fluctuation in customer usage; quarterly operating results volatility; service disruptions; production risks; general economic conditions; loss of key personnel; price changes; brand reputation; acquisitions; new initiatives; security and information systems; legal liability for website content; failure of third parties to provide adequate service; future internet-related taxes; founder control; litigation; consumer trends; government regulation; and public health threats. The core strategy remains focused on growing subscription business domestically and internationally through content expansion, user interface enhancement, device expansion, and community building.