GAIA Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-10T22:50:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release 3671961, quarterly report 3671962) | financials=earnings release only | transcript=available and complete (call 2026-08-10 20:30Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / consolidated net revenues | $23.330m | $24.600m | Miss −$1.270m | −5.2% |
| EPS / GAAP diluted | $(0.12) | $(0.1275) | Beat +$0.0075 | +5.9% |
- Consensus scorecard, bulleted equivalent:
- Revenue / consolidated net revenues: Quartr actual $23.330m against API Ninjas consensus $24.600m - Miss −$1.270m, −5.2%.
- EPS / GAAP diluted: Quartr actual $(0.12) against API Ninjas consensus $(0.1275) - Beat +$0.0075, +5.9%.
Reported results and guidance
| Metric ($000s except per share) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenues, net | $23,330 | $24,632 | −5.3% |
| Cost of revenues | $3,421 | $3,285 | +4.1% |
| Gross profit | $19,909 | $21,347 | −6.7% |
| Gross margin | 85.3% | 86.7% | −140 bps |
| Selling and operating | $21,599 | $20,634 | +4.7% |
| Corporate, general and administration | $1,526 | $2,909 | −47.5% |
| Total operating expenses | $23,125 | $23,543 | −1.8% |
| Loss from operations | $(3,216) | $(2,196) | wider loss |
| Interest and other income, net | $(30) | $124 | to an expense |
| Loss before income taxes | $(3,246) | $(2,072) | wider loss |
| Income tax (benefit) expense | $(7) | $1 | to a benefit |
| Loss from continuing operations | $(3,239) | $(2,073) | wider loss |
| Gain from discontinued operations | - | $26 | none this year |
| Net loss | $(3,239) | $(2,047) | wider loss |
| Net loss attributable to noncontrolling interests | $(210) | $(246) | −14.6% |
| Net loss attributable to common shareholders | $(3,029) | $(1,801) | wider loss |
| EPS, basic and diluted | $(0.12) | $(0.07) | wider loss |
| Weighted-average shares, basic and diluted | 24,962 | 25,022 | −0.2% |
- Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): revenues, net $23,330k vs $24,632k (−5.3%); cost of revenues $3,421k vs $3,285k (+4.1%); gross profit $19,909k vs $21,347k (−6.7%) at an 85.3% vs 86.7% margin; selling and operating $21,599k vs $20,634k (+4.7%); corporate, general and administration $1,526k vs $2,909k (−47.5%); total operating expenses $23,125k vs $23,543k (−1.8%); loss from operations $(3,216)k vs $(2,196)k; interest and other income, net $(30)k vs $124k; loss before income taxes $(3,246)k vs $(2,072)k; income tax benefit $(7)k vs expense of $1k; loss from continuing operations $(3,239)k vs $(2,073)k; no gain from discontinued operations vs $26k; net loss $(3,239)k vs $(2,047)k; net loss attributable to noncontrolling interests $(210)k vs $(246)k; net loss attributable to common shareholders $(3,029)k vs $(1,801)k; basic and diluted EPS $(0.12) vs $(0.07); weighted-average basic and diluted shares 24,962k vs 25,022k.
| Six-month item ($000s except per share) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Revenues, net | $47,643 | $48,472 | −1.7% |
| Cost of revenues | $6,828 | $6,220 | +9.8% |
| Gross profit | $40,815 | $42,252 | −3.4% |
| Selling and operating | $41,600 | $40,656 | +2.3% |
| Corporate, general and administration | $3,859 | $4,806 | −19.7% |
| Total operating expenses | $45,459 | $45,462 | −0.0% |
| Loss from operations | $(4,644) | $(3,210) | wider loss |
| Net loss | $(4,685) | $(3,266) | wider loss |
| Net loss attributable to common shareholders | $(4,284) | $(2,815) | wider loss |
| EPS, basic and diluted | $(0.17) | $(0.11) | wider loss |
- Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): revenues, net $47,643k vs $48,472k (−1.7%); cost of revenues $6,828k vs $6,220k (+9.8%); gross profit $40,815k vs $42,252k (−3.4%); selling and operating $41,600k vs $40,656k (+2.3%); corporate, general and administration $3,859k vs $4,806k (−19.7%); total operating expenses $45,459k vs $45,462k, essentially flat; loss from operations $(4,644)k vs $(3,210)k; net loss $(4,685)k vs $(3,266)k; net loss attributable to common shareholders $(4,284)k vs $(2,815)k; basic and diluted EPS $(0.17) vs $(0.11).
| Cash flow ($000s) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Net cash (used in) provided by operating activities | $(5,379) | $2,284 | $(3,886) | $3,582 |
| Net cash used in investing activities | $(2,282) | $(1,404) | $(4,136) | $(2,434) |
| Net cash (used in) provided by financing activities | $(165) | $(46) | $(246) | $6,916 |
| Net change in cash and cash equivalents | $(7,826) | $834 | $(8,268) | $8,064 |
- Cash flow, bulleted equivalent: quarterly operating cash flow of $(5,379)k against $2,284k a year earlier and six-month operating cash flow of $(3,886)k against $3,582k; quarterly investing outflow $(2,282)k vs $(1,404)k and six-month $(4,136)k vs $(2,434)k; quarterly financing outflow $(165)k vs $(46)k and six-month $(246)k vs an inflow of $6,916k; quarterly net change in cash $(7,826)k vs $834k and six-month $(8,268)k vs $8,064k.
| Balance sheet ($000s) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $5,272 | $13,540 |
| Total current assets | $14,625 | $22,504 |
| Media library, net | $39,274 | $39,133 |
| Total assets | $147,691 | $154,649 |
| Deferred revenue | $18,094 | $18,502 |
| Total current liabilities | $35,508 | $37,963 |
| Total liabilities | $49,641 | $52,519 |
| Accumulated deficit | $(99,206) | $(94,922) |
| Total equity | $98,050 | $102,130 |
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Balance sheet, bulleted equivalent (June 30, 2026 vs December 31, 2025): cash and cash equivalents $5,272k vs $13,540k; total current assets $14,625k vs $22,504k; media library, net $39,274k vs $39,133k; total assets $147,691k vs $154,649k; deferred revenue $18,094k vs $18,502k; total current liabilities $35,508k vs $37,963k; total liabilities $49,641k vs $52,519k; accumulated deficit $(99,206)k vs $(94,922)k; total equity $98,050k vs $102,130k.
-
Guidance: the release contains no revenue, margin or earnings guidance. The only forward statement is management's stated focus on "returning to positive free cash flow in the fourth quarter," which is not accompanied by a numeric target.
Key bullish aspects
- GAAP diluted EPS of $(0.12) beat the API Ninjas consensus of $(0.1275) by $0.0075, or 5.9%, so the loss was marginally smaller than expected even though revenue fell short.
- Corporate, general and administration expense fell 47.5% to $1,526k from $2,909k, and management states it has "moved quickly to bring costs back in line." Total operating expenses declined 1.8% year over year despite the revenue decline.
- Gross margin of 85.3% remains high in absolute terms, and management attributes the 140 basis point decline to lower revenue rather than to rising content costs, noting content-related costs remained relatively consistent.
- Annualized gross profit per employee rose to $819,000, which management presents as evidence of improving operating efficiency.
- The revenue decline is characterized by management as a deliberate trade-off: a shift away from discounting and toward direct, higher-ARPU member acquisition, prioritizing member base quality over near-term results.
- The company retains a fully available $10 million line of credit against a $5.272m cash balance, and total liabilities fell to $49,641k from $52,519k over the six months.
- Management states it is focused on returning to positive free cash flow in the fourth quarter.
Key bearish aspects
- Revenue of $23.330m missed the API Ninjas consensus of $24.600m by $1.270m, or 5.2%, and fell 5.3% year over year. International revenue alone decreased $1.6 million, more than the total decline, implying domestic revenue grew modestly.
- The net loss attributable to common shareholders widened to $(3,029)k from $(1,801)k, and loss per share widened to $(0.12) from $(0.07). Over six months the loss per share widened to $(0.17) from $(0.11).
- Loss from operations widened to $(3,216)k from $(2,196)k despite lower total operating expenses, because gross profit fell $1,438k.
- Selling and operating expense rose 4.7% to $21,599k while revenue fell 5.3%; that single line is now 92.6% of revenue. Management cites increased advertising costs as a pressure on the top line.
- Operating cash flow swung to $(5,379)k in the quarter from $2,284k a year earlier, and to $(3,886)k from $3,582k over six months. The CFO attributes $2.4 million of the quarterly swing to the seasonality of annual member renewals, which leaves roughly $3.0 million of the year-over-year deterioration attributed to lower revenue and higher marketing costs.
- Cash and cash equivalents fell to $5,272k from $13,540k at December 31, 2025, a 61.1% decline over six months, against a $10 million credit line that is undrawn but finite.
- Deferred revenue declined to $18,094k from $18,502k, so the forward-billed balance shrank alongside reported revenue.
- Total equity fell to $98,050k from $102,130k and the accumulated deficit grew to $(99,206)k.
- The release contains no guidance of any kind, and the one forward statement is a qualitative free-cash-flow aim rather than a numeric target.
Key uncertainties
- The release gives no member or subscriber count, no ARPU figure, and no churn data, so the claim that the revenue decline reflects an intentional shift toward higher-quality members cannot be assessed from this document.
- International revenue fell $1.6 million but the release does not state the international revenue base, growth rate, or which regions drove the decline.
- Management targets a return to positive free cash flow in the fourth quarter without stating the assumed revenue level, marketing spend, or renewal seasonality that would deliver it.
- The 47.5% drop in corporate, general and administration expense is not explained in the release, so whether it reflects a sustainable cost reduction or a one-time or comparison effect is unknown.
- Increased advertising costs are cited as a pressure but are not quantified, and selling and operating expense is not broken out between marketing and other operating costs.
- The release does not describe the AI-powered features or new content initiatives management credits with driving daily engagement, nor their cost or revenue contribution.
- With $5.272m of cash and a $10 million undrawn facility against a $(5,379)k quarterly operating outflow, the number of quarters of runway depends on the fourth-quarter cash flow inflection, which the release does not support with figures.
- Media library, net rose slightly to $39,274k while investing outflows nearly doubled over six months to $(4,136)k; the release does not break investing spend between content and other capital expenditure.
Market context
- API Ninjas price snapshot for GAIA: $1.90 on NASDAQ, volume 47,208, snapshot timestamp 2026-08-10T21:01:03Z. That is after the 20:00Z US close and after the 20:11Z release, so it reflects the regular session and at most the earliest post-release trading. It is not a complete after-hours reaction to this release, and the volume figure is a session total rather than a reaction measure.
- The release was published at approximately 2026-08-10T20:11Z per the Quartr source PDF timestamp, ahead of the 20:30Z call, which the release schedules for 4:30 p.m. Eastern time.
Source limitations
- Every displayed actual comes from Quartr earnings release document 3671961 (5 pages, read in full). Quartr standardized financials were not used for this report.
- API Ninjas supplied only the consensus estimates. Its row for GAIA dated 2026-08-10 carries fiscal_year 2026 and fiscal_quarter 2, which agrees with the Quartr fiscal period of Q2 2026, so the fiscal-period match is by populated API fields rather than by the date-only path. The row carried no actual revenue or EPS.
- EPS basis: the company publishes no adjusted or non-GAAP per-share measure in this release, so GAAP basic and diluted EPS, which are identical at $(0.12), is the basis shown. The provider's historical actual series was checked against company-reported figures for Q2 2025: provider actual EPS $(0.07) equals the company's reported $(0.07), and provider actual revenue of $24,632,000 equals the company's $24,632k, confirming both series sit on the company's reported basis.
- The prior-year revenue of $24,632k and the consensus estimate of $24,600k are close but distinct figures; the release's narrative rounds both to "$24.6 million," and the scorecard uses the precise estimate.
- The condensed consolidated statements of operations and cash flows are presented in the release in a merged four-column layout covering quarter and six-month periods. Column assignment was verified by footing: quarterly revenue $23,330k plus the prior quarter reconciles to the six-month $47,643k figure, and each subtotal foots within its own column.
- Page 3 of the release repeats the forward-looking statements text from page 2 verbatim; no figures appear on it.
- The release states quarterly operating cash flow of $(5.4) million in the CFO's narrative and $(5,379)k in the cash flow statement; the statement figure is used.
- The price snapshot in Market context is a single API Ninjas quote taken shortly after the release; it is not an intraday series and cannot support any statement about the size of the market's reaction.