Press Releases August 10, 2026 04:05 PM

Gaia Reports Second Quarter 2026 Financial Results

Gaia reports Q2 2026 results showing revenue decline amid strategic shift to higher-quality subscriber base with ongoing investment in AI-powered content

By Derek Hwang
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GAIA

Gaia, Inc. reported a 5% decline in Q2 2026 revenue to $23.3 million, impacted by a strategic focus on acquiring higher-quality, direct members and reduced reliance on lower ARPU regions. Despite decreased revenue and increased marketing costs leading to a net loss of $3.0 million, the company is optimistic about long-term growth driven by new AI-powered content initiatives and expects to return to positive free cash flow by Q4 2026.

Gaia Reports Second Quarter 2026 Financial Results
GAIA
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Key Points

  • Revenue decreased 5% due to a strategic shift toward higher-quality subscribers and disciplined discounting.
  • Gross margin remained high at 85.3%, though slightly lower than prior year, with stable content-related costs.
  • Company is investing in AI-powered content initiatives to boost daily engagement and aims for positive free cash flow by Q4 2026.

BOULDER, Colo., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Summary vs Second Quarter 2025 (where applicable)

  • Revenue was $23.3 million compared to $24.6 million, of which international revenue decreased $1.6 million.
  • Annualized gross profit per employee for the quarter increased to $819,000.

Management Commentary

“Our second quarter results reflect the deliberate trade-off we outlined last quarter—prioritizing the long-term quality and value of our direct member base over near-term results,” said Kiersten Medvedich, Chief Executive Officer of Gaia. “While that transition, combined with increased advertising costs, pressured our top line, we've moved quickly to bring costs back in line. At the same time, we're seeing real traction in new content initiatives that drive daily engagement, from our new AI powered features. We remain confident in this strategy and are focused on returning to positive free cash flow in the fourth quarter.”

Gaia CFO, Ned Preston, stated: “The seasonality of our annual member renewals impacted our cash inflows by $2.4 million. This, together with lower revenue and higher marketing costs, brought our operating cash flow for the second quarter to $(5.4) million.”

Second Quarter 2026 Financial Results

Revenue decreased 5% to $23.3 million, compared to $24.6 million in the second quarter of 2025, due to lower revenue from lower quality subscribers and lower ARPU regions. The decrease also reflects the impact of the company’s shift in its marketing strategy, which includes a disciplined approach to discounting and a movement towards direct and higher ARPU member acquisition.

Gross margin was 85.3% compared to 86.7% year ago, primarily attributable to lower revenue, while content-related costs remained relatively consistent.

Net loss was $(3.0) million, or $(0.12) per share, versus $(1.8) million or $(0.07) per share, in the second quarter of 2025.

Gaia’s cash balance as of June 30, 2026, was $5.3million, with a fully available $10 million line of credit.

Conference Call

Date: Monday, August 10, 2026
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-877-269-7751
International dial-in number: 1-201-389-0908
Conference ID: 13761111

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.

The conference call will be broadcast live and available for replay here and via ir.gaia.com.

A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 24, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13761111

About Gaia 
Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, over 90% of which is exclusive to Gaia, and approximately 75% of viewership is generated by content produced or owned by Gaia. Gaia is available on Apple TV, iOS, Android, Roku, Chromecast, and sold through Amazon Prime Video and Comcast Xfinity. For more information about Gaia, visit www.gaia.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward looking statements that involve risks and uncertainties. When used in this discussion, we intend the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “strive,” “target,” “will,” “would” and similar expressions as they relate to us to identify such forward-looking statements. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors set forth under “Risk Factors” and elsewhere in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2025. Risks and uncertainties that could cause actual results to differ include, without limitation: our ability to attract new members and retain existing members; our ability to compete effectively, including for customer engagement with different modes of entertainment; maintenance and expansion of device platforms for streaming; fluctuation in customer usage of our service; fluctuations in quarterly operating results; service disruptions; production risks; general economic conditions; future losses; loss of key personnel; price changes; brand reputation; acquisitions; new initiatives we undertake; security and information systems; legal liability for website content; failure of third parties to provide adequate service; future internet-related taxes; our founder’s control of us; litigation; consumer trends; the effect of government regulation and programs; the impact of public health threats; and other risks and uncertainties included in our filings with the Securities and Exchange Commission. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect our views only as of the date of this press release. We undertake no obligation to update any forward-looking information.

Company Contact:
Ned Preston
Chief Financial Officer
Gaia, Inc.
[email protected]

Investor Relations:
Gateway Group, Inc.
Cody Slach
(949) 574-3860
[email protected]

GAIA, INC.
Condensed Consolidated Balance Sheets (unaudited)

   June 30,  December 31, (in thousands, except share and per share data) 2026  2025        ASSETS      Current assets:      Cash and cash equivalents $5,272  $13,540 Accounts receivable  5,461   5,437 Prepaid expenses and other current assets  3,892   3,527 Total current assets  14,625   22,504 Media library, net  39,274   39,133 Operating right-of-use asset, net  8,479   8,836 Property and equipment, net  28,608   26,963 Technology license, net  14,339   14,743 Investments and other intangible assets, net  8,384   8,488 Goodwill  33,982   33,982 Total assets $147,691  $154,649 LIABILITIES AND EQUITY      Current liabilities:      Accounts payable $14,840  $15,224 Accrued and other liabilities  1,703   3,396 Long-term debt, current portion  227   227 Operating lease liability, current portion  644   614 Deferred revenue  18,094   18,502 Total current liabilities  35,508   37,963 Long-term debt, net of current portion  5,338   5,452 Operating lease liability, net of current portion  8,172   8,501 Deferred taxes, net  623   603 Total liabilities  49,641   52,519 Shareholder's equity:      Class A common stock, $0.0001 par value, 150,000,000 shares authorized, 20,172,598 and 19,709,325 shares issued, 20,025,793 and 19,562,520 shares outstanding at June 30, 2026 and December 31, 2025, respectively  2   2 Class B common stock, $0.0001 par value, 50,000,000 shares authorized, 5,400,000 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively  1   1 Additional paid-in capital  183,998   183,393 Treasury stock at cost: 146,805 shares as of June 30, 2026 and December 31, 2025, respectively  (525)  (525)Accumulated deficit  (99,206)  (94,922)Total Gaia, Inc. shareholders’ equity  84,270   87,949 Noncontrolling interests  13,780   14,181 Total equity  98,050   102,130 Total liabilities and equity $147,691  $154,649 


Condensed Consolidated Statements of Operations (unaudited)

   For the Three Months Ended June 30,  For the Six Months Ended June 30, (in thousands, except per share data) 2026  2025  2026  2025        Revenues, net $23,330  $24,632  $47,643  $48,472 Cost of revenues  3,421   3,285   6,828   6,220 Gross profit  19,909   21,347   40,815   42,252 Operating Expenses:            Selling and operating  21,599   20,634   41,600   40,656 Corporate, general and administration  1,526   2,909   3,859   4,806 Total operating expenses  23,125   23,543   45,459   45,462 Loss from operations  (3,216)  (2,196)  (4,644)  (3,210)Interest and other income, net  (30)  124   (14)  (12)Loss before income taxes  (3,246)  (2,072)  (4,658)  (3,222)Income tax (benefit) expense  (7)  1   27   49 Loss from continuing operations $(3,239) $(2,073) $(4,685) $(3,271)Gain from discontinued operations  —   26   —   5 Net loss $(3,239) $(2,047) $(4,685) $(3,266)Net loss attributable to noncontrolling interests $(210) $(246) $(401) $(451)Net loss attributable to common shareholders $(3,029) $(1,801) $(4,284) $(2,815)             Loss per share:            Basic (attributable to common shareholders) $(0.12) $(0.07) $(0.17) $(0.11)Diluted (attributable to common shareholders) $(0.12) $(0.07) $(0.17) $(0.11)             Weighted-average shares outstanding:            Basic  24,962   25,022   24,979   24,686 Diluted  24,962   25,022   24,979   24,686 


Condensed Consolidated Statements of Cash Flows (unaudited)

   For the Three Months Ended June 30,  For the Six Months Ended June 30, (in thousands) 2026  2025  2026  2025        Net cash (used in) provided by:            Net cash (used in) provided by operating activities $(5,379) $2,284  $(3,886) $3,582 Net cash used in investing activities  (2,282)  (1,404)  (4,136)  (2,434)Net cash (used in) provided by financing activities  (165)  (46)  (246)  6,916 Net change in cash and cash equivalents $(7,826) $834  $(8,268) $8,064 



Risks

  • Revenue pressure from shifting subscriber base and marketing strategy could continue to impact short-term financial performance.
  • Increased advertising costs leading to negative operating cash flow pose liquidity risk.
  • Dependence on consumer trends and retention in a competitive streaming market impacts future growth prospects.

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