Gaia, Inc.

Good afternoon. Welcome to Gaia's fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Joining us today from Gaia are Yurka Risavi, Kirsten Medvedich, Yurka Risavi, Chairman, Kirsten Medvedich, CEO, and Ned Preston, CFO. After the speaker's presentation, there will be a question and answer session. Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions, including but not limited to statements of expectations, future events, or future financial performance. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. Although we believe these expectations are reasonable, Gaia management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of Gaia's latest annual report on Form 10-K filed with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the time and date of this broadcast, March 2, 2026. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on Gaia's investor relations website at ir.gaia.com. At this time, I'd like to turn the call over to Gaia's chairman, Yurko Risavi. Please go ahead.

Good afternoon, everyone. Our first quarter was a good one. Our revenue increased to $25.5 million. with a gross margin of 87.6, which was above 87.1 average for the year. Free cash flow increased 1.1 million to 1.7 million, and our member count reached first time over 900,000. Revenue for the year grew 11% to 99 million, driven by increased member count and higher ARPU. Gross margin for the year improved 100 basis point to 87.1 from 86.1. Our gross profit per employee increased to 827,000 from 730,000 during last year. Our free cash flow grew 2.2 million to 4.9 million. Our cash position end of the year improved to 13.5 million from 5.9 million a year ago. And Kirsten will now speak about business.

Thank you, Jurka. Good afternoon, everyone. The past quarter marked an important milestone in Gaia's evolution as we continue building on our strong SVOD foundation while advancing toward a more integrated AI platform. We delivered a strong fourth quarter, growing revenue to 25.5 million and exiting the year at an annualized run rate of approximately 100 million. Subscriber growth for the quarter remains solid, adding 20,000 members. For the year, we generated approximately $5 million in free cash flow and operating efficiency continued to improve with gross profit per employee increasing to $825,000 up from $730,000 last year. With disciplined management of operating expenses, we see a clear path to profitability in 2026. Now, before moving forward, I would like to briefly address a leadership update. In January, James Colquhoun's contract reached its conclusion and we have transitioned his responsibilities to our new Chief Operating Officer, Yonathan Nuta. Yon previously spent over five years in executive leadership roles at Gaia from 2016 to 2021 before rejoining the company. He also served as Chief Product Officer at Babylon and Fabric bringing additional operational and product leadership experience to Gaia. With the leadership transition complete, we are focused on execution and building momentum across the business. Moving forward, our direct channel remains central to our progress. Approximately two-thirds of our direct members have been with Gaia for more than one year, and that percentage continues to increase. That level of loyalty speaks to the strength of our community and supports long-term lifetime value expansion. With continued investment in AI and community, the direct platform delivers a differentiated experience, driving double retention and approximately double the revenue per member compared to third-party distribution. This directly shapes our distribution strategy. Third-party platforms simply do not support the AI and community capabilities that defined the next phase of GAIA, and as a result, we are intentionally concentrating our capital and innovation focus on our direct platform. Subscriber growth remains important. However, as this strategy progresses, beginning this quarter, we will no longer report total subscriber count as a primary metric. As our business matures, we believe revenue growth, free cash flow, lifetime value, and earnings provide a clear reflection of the health of our model consistent with broader SVOD industry trends. Importantly, this strategic focus is translating into financial performance, and we expect to achieve profitability in the fourth quarter this year. With high gross margins and continued operating discipline, incremental revenue is increasingly flowing through to the bottom line, positioning Gaia for sustained profitability and long-term value creation. This year, we will continue to integrate AI across the business. AI is now embedded across major functions, from our code base to content production and creative workflows, improving speed, scalability, and efficiency. This is reflected in our continued improvement in gross profit per employee. Late last year, we launched a beta version of our AI guide to direct members, generating more than two million prompts in its first 60 days. Early engagement data showed deeper session activity and increased repeat usage following interaction with the feature. Although still early, these trends reinforce our view that combining purpose-built AI with our predominantly exclusive content library enhances the direct member experience. As rollout expands, we are extending AI-driven capabilities, including personalized onboarding, intelligent recommendations, enhanced search, and contextual guidance, further strengthening the engagement and long-term value member. Given the strength of our direct member relationships and engagement trends, we are implementing a price increase that begins this quarter and will roll out progressively throughout the year. We are approaching this thoughtfully, and churn patterns are tracking favorably relative to the prior price increase. In closing, 2026 represents an important year for Gaia. We're entering it from a position of financial strength, strong performance, and a clear commitment to our members. We're staying focused on the steady progress as we build a stronger company for the long term. Now over to Ned for the financial details.