One-glance verdict
Undervalued
$1.98 our estimate vs market $1.27
Wall Street consensus: $3.38 (70.2% higher than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Gaia, Inc.
GAIA · NGM · Communication Services · Entertainment
Current price
$1.27
52-week range
$1.16 - $4.48
Market cap
$32.42M
Balance sheet
Distressed
-10.93x Concerning
Net debt $14.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 2014.9% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -0.3% to -13.4% over 3 years.
- Risk Return on equity was -8.7% last year — the company lost money on shareholders' equity.
What this company does
Gaia, Inc.
Gaia, Inc. runs a streaming service with a focus on spiritual and wellness content, much like a specialized Netflix for topics like yoga, personal growth, and alternative healing. Their main income comes from monthly subscriptions, which represent recurring revenue (money customers agree to pay on a regular basis, like a gym membership). This subscription model is important because it provides a predictable stream of income for the company.
How the company got here
Gaia, Inc. was founded in 1988 by Jirka Rysavy. Initially, the company focused on selling yoga equipment and alternative medicine products through mail order. Over time, Gaia evolved into a digital media platform, transitioning its business model to a subscription-based streaming service. This shift involved acquiring and merging with other companies in the early 2000s, and a significant rebranding from Gaiam, Inc. to Gaia, Inc. in 2016. The company has also expanded its content production capabilities by developing its own in-house studios.
What it actually does
Gaia operates a streaming service that provides subscribers with access to a library of over 8,000 titles. This content is available on most internet-connected devices and can be viewed offline. The service is commercial-free and focuses on a variety of topics within the "conscious media" space.
Seeking Truth
This segment offers content that explores new perspectives on current events and societal changes. It aims to provide viewers with enlightening insights into a world that is constantly evolving.
Transformation
The Transformation channel provides a wide range of content focused on spiritual growth, personal development, and expanding consciousness. It features documentaries, interviews, and series designed to help individuals on their journey of self-discovery and inner development.
Alternative Healing
This channel is dedicated to content related to food and nutrition, holistic healing practices, alternative and integrative medicines, and strategies for longevity. It explores various approaches to health and well-being outside of conventional medicine.
Yoga
The Yoga channel offers access to streaming yoga classes, as well as content related to Eastern arts and other movement-based disciplines. It caters to individuals interested in physical and mindful practices for health and wellness.
What management is betting on now
Gaia's management is focused on growing its subscriber base and expanding its content library. They are investing in original content production to offer exclusive programming that aligns with their mission of empowering a global conscious community. The company is also exploring new initiatives like the Gaia Marketplace to offer a wider range of products and services to its members.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.56M
FY2025 Q1
$268.00K
FY2025 Q2
$880.00K
FY2025 Q3
$-1.60M
FY2025 Q4
$76.00K
FY2026 Q1
$-131.00K
FY2026 Q2
$-7.89M
FY2026 Q3
$-6.05M
Revenue
$22.03M
Net income
$-3.02M
Diluted EPS
-0.12
Operating cash flow
$-4.06M
Free cash flow
$-6.05M
Fetching…
Sources
Revenue
$23.33M
Net income
$-3.03M
Diluted EPS
-0.12
Operating cash flow
$-5.38M
Free cash flow
$-7.89M
Fetching…
Sources
Revenue
$24.31M
Net income
$-1.25M
Diluted EPS
-0.05
Operating cash flow
$1.49M
Free cash flow
$-131.00K
Fetching…
Sources
Revenue
$25.50M
Net income
$-75.00K
Diluted EPS
-0.02
Operating cash flow
$1.77M
Free cash flow
$76.00K
Fetching…
Sources
Revenue
$24.98M
Net income
$-1.15M
Diluted EPS
-0.05
Operating cash flow
$326.00K
Free cash flow
$-1.60M
Fetching…
Sources
Revenue
$24.63M
Net income
$-2.05M
Diluted EPS
-0.07
Operating cash flow
$2.28M
Free cash flow
$880.00K
Fetching…
Sources
Revenue
$23.84M
Net income
$-1.22M
Diluted EPS
-0.04
Operating cash flow
$1.30M
Free cash flow
$268.00K
Fetching…
Sources
Revenue
$24.43M
Net income
$-764.00K
Diluted EPS
-0.03
Operating cash flow
$2.66M
Free cash flow
$1.56M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.98 vs current price $1.27
Wall Street consensus is the average analyst price target: $3.38 (70.2% higher than our fair-value estimate).
Our most-likely fair value is $1.98 a share — about 55.6% above today's price of $1.27, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $14.1M. Interest coverage -10.9x.
Net debt
$14.07M
Interest coverage
-10.93x
Gaia, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
GAIA
BASELINE
Gaia, Inc.
Total debt $21.17M Interest coverage -10.93x This is the baseline the peer rows are being compared against.
Total debt $3.68M Interest coverage -7.43x Neither company has much profit cushion over interest right now.
Total debt $26.07M Interest coverage -31.09x Neither company has much profit cushion over interest right now.
Total debt $14.42M Interest coverage -3.98x Neither company has much profit cushion over interest right now.
Total debt $18.82M Interest coverage -17.92x Neither company has much profit cushion over interest right now.
What you should know
The case for and against GAIA
2 Rewards
3 Risks
Rewards
-
Revenue grew 2014.9% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -0.3% to -13.4% over 3 years.
-
Return on equity was -8.7% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 19.5% (peer median: 24.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-3.45x
P/B
0.39x
P/S
0.34x
EV/EBITDA
-110.73x
PEG ratio
1.23x
Profitability
How much profit each dollar creates
Gross margin
86.1%
Operating margin
-13.4%
Net margin
-8.2%
ROE
-8.7%
ROA
-3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.22x
Current ratio
0.52x
Quick ratio
0.40x
Total debt
$21.17M
Total cash
$7.10M
Growth
How the business has been compounding
Revenue TTM
$95.17M
Revenue 5Y CAGR
-51.2%
EPS TTM
-0.31
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-6.18M
Free CF TTM
$-377.00K
FCF margin
-0.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2010-12-13