Gaia (GAIA) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 2% year-over-year to $24.3 million, driven by higher ARPU from subscription price increases and reduced discounting.

• Gross profit remained flat at $20.9 million, with gross margin at 86.0%.

• Net loss widened to $1.3 million ($0.05 per share) from $1.0 million ($0.04 per share) in Q1 2025.

• Strategic pivot to direct membership growth, pricing discipline, and reduced reliance on third-party channels.

• Investments in content, AI, personalization, and community to enhance engagement and value.

Financial highlights

• Q1 2026 revenue was $24.3 million, up from $23.8 million in Q1 2025.

• Gross profit: $20.9 million; gross margin: 86.0%, down from 87.7% year-over-year.

• Net loss: $1.3 million, or $(0.05) per share.

• Operating cash flow: $1.5 million; free cash flow: $1.1 million, ninth consecutive positive quarter.

• Cash balance: $13.1 million as of March 31, 2026; $10 million line of credit fully available.

Outlook and guidance

• Targeting break-even P&L in Q4 2026 and full-year profitability in 2027.

• ARPU expected to increase 20%-25% and churn to decrease by 20% by Q4 2026 versus Q4 2025.

• Near-term revenue growth may moderate as focus shifts to higher-value direct subscribers.

• Gross margin projected to decline 2-3 points by year-end due to revenue mix shift, returning to 86% in 2027.

• Plans to invest 15%-20% of annual revenues in content and technology, scaling with cash flows.