The deliberate revenue decline and negative cash flow signal execution risk in the transition strategy. Watch for Q3 results to see if the 20% churn reduction and ARPU increase targets begin to materialize. The cash runway ($5.3M + $10M line) provides limited cushion if the turnaround takes longer than expected.
Price Chart
Executive Summary
Gaia reported Q2 2026 revenue of $23.3M, down 5% YoY and missing consensus of $24.6M, as the company's strategic shift to prioritize direct member acquisition over third-party platforms weighed on top line. Net loss widened to $(3.0)M ($(0.12)/share) from $(1.8)M a year ago, though EPS beat the $(0.13) consensus estimate. Operating cash flow turned negative to $(5.4)M, and cash balance fell to $5.3M, offset by a $10M credit line.
Key Financial Metrics
Key Facts
- Revenue decreased 5% YoY to $23.3M from $24.6M, missing consensus of $24.6M
- Net loss per share of $(0.12) improved vs consensus of $(0.13) but worsened from $(0.07) a year ago
- Operating cash flow swung to negative $(5.4)M from positive $2.3M in Q2 2025
- Cash balance fell to $5.3M from $13.1M at year-end 2025; fully available $10M line of credit
- Gross margin contracted to 85.3% from 86.7% a year ago
Financial Impact
Revenue declined $1.3M YoY; net loss increased $1.2M to $(3.0)M; operating cash flow worsened by $7.7M to $(5.4)M
Risk Factors
- Cash burn accelerating with no visible inflection point; operating cash flow negative for the first time in recent quarters
- Transition to direct member acquisition may take longer than management's Q4 positive FCF target
- Subscriber churn and ARPU improvements may not offset the revenue decline from third-party platform reduction
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-342333 |
| Document: gaia-20260810.htm | 0001193125-26-342333 |
| Document: 0001193125-26-342333-index-headers.html | 0001193125-26-342333 |
| Document: 0001193125-26-342333-index.html | 0001193125-26-342333 |
| Document: 0001193125-26-342333.txt | 0001193125-26-342333 |
| 8-K Data (Synthetic) | 0001193125-26-342333 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 11w ago | 8-K | $1.24 $1.21 | ▲ +2.02% | ▲ +2.27% | $1.28 (−3.64%) |
May 4, 2026 25w ago | 8-K | $2.56 $2.50 | ▼ −2.34% | ▼ −3.73% | $1.28 (−50.00%) |
Apr 27, 2026 26w ago | Press Release | $3.06 | awaiting T+1 | — | $1.28 (−58.17%) |
Mar 5, 2026 33w ago | Insider Cluster | $3.18 $3.24 | ▲ +1.89% | ▲ +3.20% | $1.28 (−59.75%) |
Mar 5, 2026 33w ago | Insider Cluster | $3.18 $3.24 | ▲ +1.89% | ▲ +3.20% | $1.28 (−59.75%) |
Mar 5, 2026 33w ago | Insider Cluster | $3.18 $3.24 | ▲ +1.89% | ▲ +3.20% | $1.28 (−59.75%) |
Mar 2, 2026 34w ago | Press Release | $3.18 $3.33 | ▲ +4.72% | ▲ +3.96% | $1.28 (−59.75%) |
US Market Status
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