Gaia, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue decreased 12% year-over-year to $22.0 million for the quarter ended September 30, 2026, compared to $25.0 million in the third quarter of 2025.
• Gross margin was 85.2% for the quarter, down from 86.4% in the prior year period, primarily due to lower revenue.
• Net loss was $(3.0) million, or $(0.12) per share, compared to a net loss of $(1.2) million, or $(0.05) per share, in the third quarter of 2025.
• Cash balance was $7.1 million as of September 30, 2026, down from $13.5 million as of December 31, 2025.
• Deferred revenue was $17.4 million as of September 30, 2026, compared to $18.5 million as of December 31, 2025.
• Total debt increased to $7.5 million (comprising $7.0 million revolving line of credit and $0.5 million long-term debt) as of September 30, 2026, compared to $5.7 million total debt as of December 31, 2025.
• Annualized gross profit per employee grew to $827,000.

Guidance and Future Outlook:

• Revenue has stabilized at a quarterly run rate of approximately $21.0 million over the last 60 days.
• Management expects to return to positive free cash flow during the fourth quarter of 2026.
• The company aims to resume the trend of nine consecutive quarters of positive free cash flow previously delivered prior to the March reset.

Business Segments and Product Lines:

• The company is executing a strategic reset to reduce revenue reliance on third parties and lower ARPU regions.
• Discounting has been largely eliminated, with the sole exception of returning members acquired without meaningful marketing spend.
• Member churn rate improved by more than 20% from the first to the third quarter of 2026.
• Gaia operates a library of over 10,000 titles, with over 90% exclusive to Gaia and approximately 75% of viewership generated by content produced or owned by Gaia.

Market and Competitive Landscape:

• Gaia serves members in 185 countries through four primary channels: Seeking Truth, Transformation, Alternative Healing, and Yoga, in four languages.
• The company competes for customer engagement with different modes of entertainment.

Risks and Challenges:

• Risks include the ability to attract and retain new members, competition for customer engagement, and fluctuations in quarterly operating results.
• Additional risks involve service disruptions, production risks, general economic conditions, loss of key personnel, and potential litigation.
• The company's founder maintains control of the company.

Management Commentary and Tone:

• CEO Kiersten Medvedich stated that the third-quarter results reflect the successful completion of the March reset, emphasizing a shift to prioritize long-term value and the quality of the direct member base.
• CFO Ned Preston noted that expense reductions have compensated for lower revenue, allowing for growth in gross profit per employee.
• Management expressed confidence that the focus on direct subscribers is building a stronger, more sustainable foundation.

Other Key Points:

• The company delivered a net loss attributable to common shareholders of $(3.0) million for the quarter.
• Weighted-average shares outstanding were 25.0 million for the quarter.
• Gaia is available on Apple TV, iOS, Android, Roku, Chromecast, Amazon Prime Video, and Comcast Xfinity.
• A conference call was held on November 2, 2026, to discuss these results.