Gaia (NASDAQ:GAIA) executives highlighted revenue growth, improving cash flow, and a shift toward a more direct-to-consumer strategy during the company’s fourth quarter 2025 earnings call held March 2, 2026. Management also discussed ongoing AI product integration, a new price increase, and plans to stop emphasizing total subscriber count as a primary metric going forward.
Quarterly results and full-year performance
Chairman Jirka Rysavy said the company’s fourth quarter revenue increased to $25.5 million, with gross margin of 87.6%, above the company’s full-year average. Rysavy added that free cash flow in the quarter increased by $1.1 million to $1.7 million, and the company’s member count exceeded 900,000 for the first time.
Preston said operating cash flow was $1.8 million for the quarter. Free cash flow of $1.7 million marked the company’s eighth consecutive quarter of positive free cash flow.
For the full year 2025, Preston reported revenue of $99.0 million, up from $89.3 million in 2024 for 11% year-over-year growth. Gross profit rose to $86.2 million from $76.9 million, and gross margin improved to 87.1% from 86.1%. The company’s full-year loss narrowed to ($4.5) million, or ($0.18) per share, compared with ($5.2) million, or ($0.22) per share, in 2024. Preston attributed the annual loss in part to increased marketing spend and amortization.
Management also emphasized operating efficiency metrics. Rysavy said gross profit per employee rose to $827,000 from $730,000 last year, while CEO Kiersten Medvedich cited a similar figure of $825,000 versus $730,000.
Cash position and balance sheet updates
Preston said free cash flow for 2025 improved by $2.2 million to $4.9 million, up from $2.7 million in the prior year, reflecting what he described as ongoing operational discipline. The company ended 2025 with $13.5 million in cash, up from $5.9 million a year earlier, and Preston noted Gaia also has a fully available $10 million line of credit.
Preston added that the company has zero debt outside a mortgage on its campus, and said Gaia finalized a new five-year extension on that mortgage in December.
Strategy shifts: direct members, AI integration, and reporting changes
Medvedich described the quarter as a milestone as Gaia builds on its subscription video-on-demand (SVOD) foundation while “advancing toward a more integrated AI platform.” She said the company added 20,000 members in the quarter and exited the year at an annualized revenue run rate of approximately $100 million.
A central theme of the call was Gaia’s focus on its direct channel. Medvedich said approximately two-thirds of direct members have been with the platform for more than one year, a figure she said continues to increase. She said the direct platform delivers “2x retention and approximately 2x the revenue per member” compared to third-party distribution, and argued that third-party platforms do not support the AI and community capabilities Gaia is building.
As a result, Medvedich said Gaia is intentionally concentrating investment and innovation on the direct platform and, starting this quarter, will no longer report total subscriber count as a primary metric. She said management believes revenue growth, free cash flow, lifetime value, and earnings provide a clearer view of the business as it matures, calling that approach consistent with broader SVOD industry trends.
Medvedich also discussed AI product efforts, saying AI is embedded across major functions including the code base, content production, and creative workflows, contributing to gains in efficiency. She said Gaia launched a beta version of its AI guide to direct members late last year and that it generated more than 2 million prompts in its first 60 days. According to Medvedich, early engagement data showed deeper session activity and increased repeat usage following interactions with the feature. She said the company is extending AI-driven capabilities such as personalized onboarding, intelligent recommendations, enhanced search, and contextual guidance.
Pricing, profitability outlook, and 2026 growth expectations
Management discussed a price increase beginning this quarter that will roll out progressively throughout the year. In response to analyst questions, executives said the company is implementing 14% to 17% price increases for new customers and for existing customers in opt-out countries, similar to a prior increase in October 2024. Medvedich said churn patterns were tracking favorably versus the prior price increase and that the company was “already seeing lower churn” compared to the previous round.
Medvedich said Gaia sees “a clear path to profitability in 2026” with disciplined expense management, and she added that the company expects to achieve profitability in the fourth quarter of this year. Preston echoed that theme in response to questions, stating the company plans to remain free cash flow positive and reiterating the target of becoming “P&L positive by Q4 of this year.”
Rysavy said management expects a similar annual revenue growth rate in 2026 to what the company delivered in 2025, driven by ARPU growth and a focus on direct members, along with continued improvement in gross profit per employee and ongoing positive cash flow generation. Preston also reiterated “double-digit” revenue growth expectations for 2026, noting that guidance is based largely on the core business rather than newer initiatives.
Other updates: leadership transition, third-party mix, and new initiatives
Medvedich said that in January, James Colquhoun’s contract concluded and his responsibilities transitioned to a new Chief Operating Officer, Yonathan Nuta. She said Nuta previously held executive leadership roles at Gaia from 2016 to 2021 and later served as Chief Product Officer at Babylon and Fabric.
Asked about third-party subscribers, Preston said Gaia has previously talked about limiting third-party members to about 20% and indicated that the company was around that level in 2024 and 2025. He said Gaia is not planning to actively convert a large portion of third-party subscribers to direct but will focus marketing on direct channels, including what Medvedich described as “really strong brand campaigns” this year.
Executives also addressed newer initiatives. In response to questions about AI and content licensing, Preston said those efforts remain in early stages and that any contribution in 2026 would likely be a “small pickup” consisting of one-time, non-recurring revenue streams. He said Gaia’s 2026 outlook is not dependent on licensing revenue.
Regarding Igniton, Rysavy said the business generated $3.2 million in 2025, and noted the company introduced Signal products in the second half of the year. He said Igniton “will grow” and suggested it could grow faster than the core business, but did not quantify expectations.
On community initiatives, Rysavy said Gaia remains on track to launch a community experience later this year, with a broader launch expected closer to the end of the year.
About Gaia (NASDAQ:GAIA)
Gaia, Inc operates a subscription-based streaming platform specializing in conscious media, alternative health, spirituality and personal transformation. The company’s digital library features a curated selection of original series, documentaries, yoga and meditation classes, and instructional content aimed at mindfulness, holistic wellness and metaphysical exploration. Gaia’s service is accessible through its website, mobile applications and a variety of connected-TV devices, providing on-demand access to content across multiple channels and formats.
Since launching its streaming service in 2011, Gaia has focused on developing proprietary programming and forging content partnerships with thought leaders, teachers and filmmakers in the fields of yoga, Ayurveda, consciousness studies and alternative healing.
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