[Management View]
Gaia management emphasized a strategic focus on integrating AI-driven engagement and member retention within its direct-to-consumer platform, while reducing dependency on lower-value third-party channels. Ignition is projected to contribute meaningfully to revenue with a high-margin profile, with full annual run rates anticipated in 2026. The company is investing in community platform development and increased proprietary content as key growth initiatives.

[Outlook]
Gaia expects low double-digit annual growth rates for the current and next year, driven by ARPU increases and positive free cash flow. A $2 subscription price increase is planned for mid-April 2026, despite potential churn impacts. The company will prioritize growth in higher-ARPU direct members.

[Financial Performance]
Revenue for Q3 2025 was $25 million, a 14% YoY increase. Gross margin improved to 86.4% from 86.1% in the prior-year quarter. The member count reached 883,000, with a $2 price increase contributing to revenue growth but affecting member growth. Free cash flow was $900,000, marking the seventh consecutive quarter of positive free cash flow.

[Q&A Highlights]
Question 1: What was the churn number during the quarter, and how does it compare historically?
Answer: Churn increased due to the price hike, with about half of the price increase lost to churn. The company views this positively and plans another price increase next year. Specific churn numbers are not used as they vary by company.

Question 2: How does the AI offer change the core subscription model?
Answer: The AI offer, still in beta, is expected to increase ARPU and decrease churn by providing a conversational experience that connects members with the right content, measured as engagement.

Question 3: Did Ignition see significant growth on the Gaia marketplace?
Answer: Ignition was launched on the Gaia marketplace post-Labor Day, with $300 in sales over three weeks. Full revenue impact is expected next year.

Question 4: Is there a plan for another subscription price increase?
Answer: A $2 price increase is planned for mid-April 2026.

Question 5: How will AI features affect marketing and subscriber growth?
Answer: Marketing will focus on sustainable member growth rather than short-term volume, with a shift towards higher-value direct members due to higher churn and lower revenue on third-party platforms.

Question 6: Will content spend increase with improved curation tools?
Answer: Content spend will increase by 23% from the prior year, with a focus on engagement, community, and AI.

Question 7: What is the expected revenue from Ignition, and its impact on gross margin?
Answer: Ignition is expected to reach a $3 million annual run rate, with a gross margin of 82%, slightly below Gaia's 86%.

Question 8: How will AI be monetized?
Answer: AI will enhance member engagement and retention, supporting price increases and acting as a proprietary search tool for Gaia's content.

[Sentiment Analysis]
Analysts showed interest in the company's strategic focus on AI and direct channels, with management confident in their growth plans and pricing strategy.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------|---------|
| Revenue | $25M | $22M |
| Gross Margin | 86.4% | 86.1% |
| Member Count | 883,000 | 880,000 |
| Free Cash Flow | $900K | N/A |
| Net Loss | $1.2M | $1.2M |

[Risks and Concerns]
Potential risks include increased churn from price hikes and challenges in advertising efficiencies on third-party platforms. The focus on direct channels may impact growth in third-party member acquisition.

[Final Takeaway]
Gaia is strategically focusing on AI integration and direct channel growth to drive revenue and engagement. Despite potential churn from planned price increases, the company is confident in its ability to enhance ARPU and maintain positive cash flow. The investment in proprietary content and community platforms positions Gaia for sustainable long-term growth, with Ignition expected to contribute significantly to future revenue.