One-glance verdict
Within fair range
$1.41 our estimate vs market $1.30
Wall Street consensus: $3.88 (173.9% higher than our fair-value estimate)
8% below our estimate
Fundamentals snapshot
Gaia, Inc.
GAIA · NGM · Communication Services · Entertainment
Current price
$1.30
52-week range
$1.16 - $6.39
Market cap
$33.05M
Balance sheet
Distressed
-10.93x Concerning
Net debt $9.11M. 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 2080.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -0.3% to -13.8% over 3 years.
- Risk Insider ownership is only 14.4% (peer median: 24.7%).
What this company does
Gaia, Inc.
Gaia is a video subscription service, much like a Netflix for people interested in yoga, spirituality, and alternative health. Most of its money comes from recurring revenue (predictable income from customers who pay regularly for access), which means its business focuses on keeping its niche group of subscribers paying for its specialized content. This model provides the company with a steady and predictable stream of income.
How the company got here
Founded in 1988, Gaia started out selling yoga equipment and exercise videos through the mail. Over the years, it grew by acquiring other companies and eventually launched a streaming service in 2011. A major turning point came in 2016 when the company sold its yoga equipment and brand name, focusing entirely on its subscription video service. This new focus was on media related to wellness, spirituality, and alternative viewpoints.
What it actually does
Gaia is a subscription-based streaming service, much like Netflix, but with a very specific focus. For a monthly fee, users get access to a large library of original and licensed films, documentaries, and classes. The content centers on topics like yoga, meditation, healthy eating, and alternative perspectives on history and science. You can watch Gaia on most internet-connected devices, such as your TV, computer, or smartphone.
Streaming Subscription
This is the main way Gaia makes money, and it represents the entire business. Customers pay a recurring monthly or annual fee to access Gaia's library of video content without commercials. The company produces a lot of its own exclusive content, which helps attract and keep subscribers. This single source of revenue (the money a company receives from its business activities) means the company's success is directly tied to growing and retaining its subscriber base.
What management is betting on now
The company's current strategy is focused on attracting and retaining high-quality, long-term subscribers rather than just rapid growth. They are also concentrating on expanding their global audience by offering content in different languages. Additionally, Gaia is investing in technology, such as using artificial intelligence (AI) to recommend content to users and improving the overall streaming experience. Management has also mentioned a focus on achieving positive free cash flow (the cash left over after paying for operating expenses and capital expenditures, which are investments in the business's long-term assets like buildings and equipment).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-952.00K
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
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
Revenue
$22.16M
Net income
$-1.50M
Diluted EPS
-0.05
Operating cash flow
$409.00K
Free cash flow
$-952.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.41 vs current price $1.30
Wall Street consensus is the average analyst price target: $3.88 (173.9% higher than our fair-value estimate).
Our most-likely fair value is $1.41 a share — about 8.8% away from today's price of $1.30, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $9.1M. Interest coverage -10.9x.
Net debt
$9.11M
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 $14.38M 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 2080.6% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -0.3% to -13.8% over 3 years.
-
Insider ownership is only 14.4% (peer median: 24.7%).
-
Return on equity was -6.8% last year — the company lost money on shareholders' equity.
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)
—
Forward P/E
-3.38x
P/B
0.39x
P/S
0.34x
EV/EBITDA
50.44x
PEG ratio
1.23x
Profitability
How much profit each dollar creates
Gross margin
86.3%
Operating margin
-13.8%
Net margin
-6.1%
ROE
-6.8%
ROA
-2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
0.41x
Quick ratio
0.30x
Total debt
$14.38M
Total cash
$5.27M
Growth
How the business has been compounding
Revenue TTM
$98.12M
Revenue 5Y CAGR
-51.2%
EPS TTM
-0.24
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-1.79M
Free CF TTM
$-377.00K
FCF margin
-0.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2010-12-13