Gaia, Inc. Reports 12% Revenue Growth to $23.8 Million in Q1 2025

Gaia, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 12% to $23.8 million, up from $21.3 million in the same period last year. The company’s gross profit also saw an improvement, rising to $20.9 million, which translates to a gross profit margin of 87.7%, compared to 85.3% in the prior year. Despite the revenue growth, Gaia recorded a net loss of $1.2 million, slightly higher than the $971,000 loss reported in the first quarter of 2024. The loss per share for the quarter was $0.04, consistent with the previous year.

The financial performance reflects a strategic focus on expanding its member base and enhancing Average Revenue Per User (ARPU) through price increases. The company reported an increase in member count, which contributed to the revenue growth. However, operating expenses also rose, with selling and operating expenses increasing by 14.9% to $20.0 million, primarily due to higher marketing costs. Corporate, general, and administrative expenses also increased by 18.8% to $1.9 million.

In terms of operational developments, Gaia continues to expand its digital content library, which now includes over 10,000 titles. The company has also made strides in geographic expansion, serving members in the United States and over 185 countries. The U.S. market generated $14.2 million in revenue, while international markets contributed $9.6 million. The company’s strategic initiatives include a focus on unique content that appeals to a niche audience interested in alternative media, which is expected to enhance its competitive position in the streaming market.

Gaia's balance sheet showed total assets of $148.5 million as of March 31, 2025, an increase from $141.2 million at the end of 2024. The company’s cash and cash equivalents rose significantly to $13.1 million, up from $5.9 million at the end of the previous year. This increase was bolstered by a successful public offering of 1.6 million shares of Class A common stock, generating net proceeds of $7 million. The company has indicated that it plans to use these funds to support ongoing operations and content development.

Looking ahead, Gaia remains optimistic about its growth trajectory, emphasizing its commitment to expanding its content offerings and enhancing user engagement. The company expects to continue generating positive cash flows from operations and plans to invest between $11 million and $13 million in content and capital expenditures throughout 2025. Gaia's management believes that its current cash position, along with anticipated operational cash flows, will be sufficient to support its strategic initiatives and operational needs in the near term.