Gaia 2025 Q3 Earnings Revenue Grows 13.4% as Net Loss Narrows by 13.7%

Gaia (GAIA) reported Q3 2025 earnings on Nov 5, 2025, with revenue rising 13.4% to $24.98 million. The company maintained a net loss of $-0.05 per share but reduced its net loss by 13.7% year-over-year to $-1.29 million. Despite missing revenue estimates by $0.25 million, management reiterated low double-digit annual growth guidance, aligning with prior expectations.

Revenue

Gaia’s total revenue increased to $24.98 million in Q3 2025, a 13.4% rise from $22.03 million in Q3 2024. This growth was driven by a $2 subscription price hike and a 14% year-over-year member count increase to 883,000. The company also achieved a $100 million annualized run rate, reflecting stronger pricing power and ARPU expansion.

Earnings/Net Income

The EPS of -$0.05 remained unchanged year-over-year, while the net loss narrowed to $-1.29 million from $-1.50 million, a 13.7% reduction. Improved gross margins (86.4%) and free cash flow ($900,000) offset ongoing losses, signaling better cost control and operational efficiency. The EPS of -$0.05 indicates ongoing losses, but the 13.7% reduction in net loss suggests improving cost management.

Post-Earnings Price Action Review

Gaia’s stock price declined sharply post-earnings, tumbling 8.71% in a single trading day, 13.18% over the subsequent week, and 19.83% month-to-date as of Nov 5, 2025. The sell-off reflects investor concerns over the company’s persistent net loss and revenue shortfall relative to Wall Street expectations, despite positive free cash flow and margin improvements. The price action underscores market skepticism about Gaia’s ability to achieve profitability in the near term.

CEO Commentary

Jirka Rysavy (Executive Chairman):

Emphasized strategic investments in AI-driven engagement, pricing discipline, and direct-member growth. Noted a mid-2026 $2 price hike and confidence in ARPU expansion despite churn risks.

Kiersten Medvedich (President):

Highlighted the AI guide’s “encouraging” engagement metrics and a 2026 focus on community platform development. Stated churn on third-party platforms is “nearly double” direct channels, reinforcing direct-member prioritization.

Tone:

Cautious optimism, balancing AI innovation with operational discipline.

Guidance

Management confirmed low double-digit revenue growth for 2025 and 2026, with continued ARPU expansion and free cash flow generation. No formal guidance was provided for 2026 beyond the mid-April 2026 price increase and Ignition’s projected $3 million annualized run rate.

Additional News

1. AI Integration:

   Gaia launched a beta AI guide, reporting increased session depth and repeat usage. A full rollout is planned for 2026.

2. Ignition Partnership:

   The subsidiary Ignition, valued at $100 million, began selling products on Gaia’s marketplace, with $700,000 in Q3 sales. Full commercialization is expected in 2026.

3. Community Platform:

   A global community platform, aimed at fostering member engagement, is under development for 2026 launch.