Gaia, Inc. Q2 FY2025 earnings call

• Kiersten Medvedich affirmed the strategy remains unchanged, focusing on the core streaming business, improving retention and member engagement, with 90% of content exclusive to Gaia.
• Igniton's products are now available at Gaia Marketplace.
• Q2 saw double-digit revenue growth, exceeding expectations by $300,000, driven by member count and ARPU growth, and Igniton's launch.
• Free cash flow doubled quarter-over-quarter to $1.6 million in Q2.
• Planning a global conscious community platform launch within the next year and developing a Conscious AI Companion.

Revenue for the second quarter of 2025 was $24.6 million, up 12% year-over-year. Gross profit increased 16% to $21.3 million, with gross margin expanding to 86.7% (up from 84.5% in Q2 2024). Total members grew to 878,000. Annualized gross profit per employee increased to $814,000 from $695,000 in the prior year quarter. Subsidiary Igniton raised $6 million in private common equity financing, with an implied post-money valuation of $106 million, and Gaia owns approximately 2/3 of Igniton's equity.

• Expect continuing revenue and ARPU growth, and increasing gross profit per employee.
• Plan to raise prices in March 2026 with added value from AI and new content.
• Igniton launch post-Labor Day, with potential upside in the fourth quarter.

Q: Please provide background and key priorities over next 3-6 months.

A: Kiersten Medvedich's focus includes early tenure engagement (product improvements, better marketing targeting, increased content publishing), investments in AI, and investments in community.

Q: Thoughts on using AI for user experience?

A: Looking at both using AI for better member learnings and an AI companion in development.

Q: Plans for pricing increase in March 2026?

A: Expect mid- to high teens increase, with added value from AI solution, retention, marketing activities, and new content.

Q: Igniton go-to-market updates?

A: Introduced at Biohacking Conference, products available on Gaia Marketplace, launch post-Labor Day, with plans to use raised funds for bigger launch.

Q: How much pricing expected in March?

A: Similar to last time, $2 monthly increase, with annual increase in mid- to high teens area.

Q: Igniton revenue opportunity from Biohacking Conference?

A: Success at conference, but launch post-Labor Day, with potential upside in Q4 but details to be clarified later.

Q: G&A spend increase in quarter?

A: G&A up due to one-time items like Biohacking Conference, which will normalize in future quarters.

Q: How $6 million raised for Igniton will be spent?

A: To boost production, but details on exact use to be seen around Christmas.

Q: Base business revenue growth track?

A: Expecting 12% revenue growth for the year remains on track.

Q: Marketplace update?

A: Marketplace is part of community building, with adjustments to trips (e.g., pivot from Egypt to Peru) and new products slowly coming, core purpose is community building.