GAIA, INC

Previous wording

Revenues, net. Revenues increased $2.5 million, or 12%, to $23.8 million during the three months ended March 31, 2025, compared to $21.3 million during the three months ended March 31, 2024. This was primarily driven by an increase in member count as well as improvements in Average Revenue Per User (“ARPU”) due to the increase in prices.

Current wording

Revenues, net. Revenues increased $2.7 million, or 12%, to $24.6 million during the three months ended June 30, 2025, compared to $21.9 million during the three months ended June 30, 2024. This was primarily driven by an increase in member count as well as improvements in Average Revenue Per User (“ARPU”) due to the increase in prices.

Previous wording

Selling and operating expenses. Selling and operating expenses increased $2.6 million, or 14.9%, to $20.0 million during the three months ended March 31, 2025, compared to $17.4 million for the three months ended March 31, 2024, driven primarily by an increase in marketing expense. As a percentage of net revenues, selling and operating expenses increased to 84.0% for the three months ended March 31, 2025 compared to 81.7% for the three months ended March 31, 2024.

Current wording

Selling and operating expenses. Selling and operating expenses increased $2.1 million, or 11.4%, to $20.6 million during the three months ended June 30, 2025, compared to $18.5 million for the three months ended June 30, 2024, driven primarily by an increase in marketing expense. As a percentage of net revenues, selling and operating expenses decreased to 83.8% for the three months ended June 30, 2025 compared to 84.5% for the three months ended June 30, 2024.

Previous wording

Corporate, general and administration expenses. Corporate, general and administration expenses increased $0.3 million, or 18.8% to $1.9 million for three months ended March 31, 2025 from $1.6 million for three months ended March 31, 2024. As a percentage of net revenues, these expenses increased to 8.0% for the three months ended March 31, 2025 from 7.6% for the three months ended March 31, 2024.

Current wording

Corporate, general and administration expenses. Corporate, general and administration expenses increased $0.9 million to $2.9 million for three months ended June 30, 2025 from $2.0 million for three months ended June 30, 2024. As a percentage of net revenues, these expenses increased to 11.8% for the three months ended June 30, 2025 from 9.1% for the three months ended June 30, 2024.

Previous wording

Cost of revenues. Cost of revenues decreased $0.2 million or 6.5% to $2.9 million during the three months ended March 31, 2025, compared to $3.1 million during the three months ended March 31, 2024, which primarily relates to the increase in revenues and revenue mix, offset by a one-time adjustment in royalty expense. Gross profit margin increased during the three months ended March 31, 2025 to 87.7% from 85.3% for the three months ended March 31, 2024 primarily due to improvements in ARPU and the one-time adjustment in royalty expense.

Current wording

Cost of revenues. Cost of revenues decreased $0.3 million or 4.6% to $6.2 million during the six months ended June 30, 2025, compared to $6.5 million during the six months ended June 30, 2024, which primarily relates to the increase in revenues and revenue mix, offset by a one-time adjustment in royalty expense. Gross profit margin increased during the six months ended June 30, 2025, to 87.2% from 84.9% for the six months ended June 30, 2024 primarily due to improvements in ARPU and the one-time adjustment in royalty expense.

Previous wording

Our budgeted content and capital expenditures for the remainder of 2025 are expected to be between $11.0 million to $13.0 million which we intend to fund with cash flows generated from operations. These planned expenditures will be predominately utilized to expand our content library and build out the capabilities of our digital platforms. The planned expenditures are discretionary and, with our in-house production capabilities, we have the ability to scale expenditures based on the available cash flows from operations. We began to generate positive cash flows from operations in 2020 and have continued to generate cash flows from operations since. We expect to continue generating positive cash flows from operations during the remainder of 2025. We generated approximately $1.3 million in cash flows from operations during the three months ended March 31, 2025. As of March 31, 2025, our cash balance was $13.1 million.

Current wording

Our budgeted content and capital expenditures for the remainder of 2025 are expected to be between $11.0 million to $13.0 million which we intend to fund with cash flows generated from operations. These planned expenditures will be predominately utilized to expand our content library and build out the capabilities of our digital platforms. The planned expenditures are discretionary and, with our in-house production capabilities, we have the ability to scale expenditures based on the available cash flows from operations. We began to generate positive cash flows from operations in 2020 and have continued to generate cash flows from operations since. We expect to continue generating positive cash flows from operations during the remainder of 2025. We generated approximately 3.6 million in cash flows from operations during the six months ended June 30, 2025. As of June 30, 2025, our cash balance was $13.9 million.

Previous wording

Operating activities. Cash flows provided by operations decreased approximately $4.6 million during the first three months of 2025 compared to the same period in 2024. The decrease was primarily driven by changes in earnings, timing of working capital, and other liabilities, which consisted of $4.0 million in equity financing that was used to fund the Igniton License Purchase in April 2024.

Current wording

Operating activities. Cash flows provided by operations increased approximately $4.4 million during the three months ended June 30, 2025 compared to the same period in 2024. The increase was driven by changes in earnings, timing of working capital primarily from receiving the employee retention tax credit of approximately $1.7 million, and changes in other liabilities.

Previous wording

Financing activities. Cash flows provided by financing activities increased $7.0 million compared to the same period in 2024 primarily due to proceeds from the issuance of common stock.

Current wording

Financing activities. Cash flows provided by financing activities increased $0.6 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to proceeds from the issuance of common stock of $7.0 million compared to funding the subsidiary technology license purchase from an equity financing through Igniton of $6.4 million, net during the three months ended June 30, 2024.