Gaia, Inc. (GAIA, Financial) is on track to become a member of the Russell 2000 Index, with this change expected to take effect following the opening of the U.S. markets on June 30, 2025. This inclusion is part of the broader reconstitution of the Russell indexes for 2025. Being added to the Russell 2000 is often seen as a positive development, providing increased visibility and potential for enhanced investment interest in the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Gaia Inc (GAIA, Financial) is $8.13 with a high estimate of $10.00 and a low estimate of $7.00. The average target implies an upside of 73.61% from the current price of $4.68. More detailed estimate data can be found on the Gaia Inc (GAIA) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Gaia Inc's (GAIA, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gaia Inc (GAIA, Financial) in one year is $3.57, suggesting a downside of 23.72% from the current price of $4.68. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gaia Inc (GAIA) Summary page.
GAIA Key Business Developments
Release Date: May 12, 2025
- Revenue: $23.8 million, up 12% year-over-year.
- Gross Profit: $20.9 million, a 15% increase from the previous year.
- Gross Margin: Improved to 87.8%, up from 85.4% in the prior year.
- EPS: Net loss of $0.04 per share, an improvement of $0.01 from the previous year.
- Operating Cash Flow: $1.3 million for the quarter.
- Free Cash Flow: $0.7 million for the quarter.
- Cash Balance: $13.1 million at quarter end.
- Member Count: Grew to 867,000 members.
- Annualized Gross Profit per Employee: Increased to over $800,000, up from $680,000 a year ago.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gaia Inc (GAIA, Financial) reported a 12% increase in revenue and a 15% increase in gross profit for Q1 2025.
- The company's gross margin improved to 87.8%, up from 85.4% in the previous year.
- Member count grew to 867,000, with a focus on high lifetime value members.
- Gaia Inc (GAIA) is embracing an AI-first strategy, with plans to launch a conscious AI companion by early 2026.
- The company successfully raised $8 million in a stock offering, which is being allocated to AI development and community initiatives.
Negative Points
- Marketplace revenue was lower than expected, leading to a 1% revenue miss in Q1.
- A U.S. Level 3 travel advisory for Egypt impacted the company's marketplace performance.
- Q2 is expected to be softer than anticipated due to marketplace challenges.
- The company reported a net loss of $0.04 per share, despite improvements in EPS.
- The transition of the CEO role may introduce uncertainties in leadership dynamics.
