Core Viewpoint - LiveOne has strategically invested in Bitcoin as part of its long-term treasury yield management strategy, reflecting the company's belief in the long-term potential of digital assets [1][4]. Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform, offering premium experiences and content globally through memberships and live and virtual events [2]. - The company's subsidiaries include Slacker, PodcastOne, PPVOne, Custom Personalization Solutions, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [2]. Investment Details - LiveOne has purchased a multimillion-dollar position in Bitcoin at an average price of $117,885 per coin [4]. - The company has committed up to $500 million to grow its Bitcoin holdings, leveraging ARCA's expertise to manage its Bitcoin yield strategy [4]. - Anchorage Digital is responsible for the secure custody and management of LiveOne's digital assets [4].

Financial Data and Key Metrics Changes - The company reported a strong balance sheet with over $20 million in cash after replacing a $7 million loan and closing a $10 million equity financing [7][8] - The company eliminated $14 million of short-term liabilities, including $2.5 million in the current quarter [8] - The average revenue per user (ARPU) increased from $3 to over $5, with expectations to reach closer to $7 in the future [29][30] Business Line Data and Key Metrics Changes - PodcastOne reported record revenues of $15 million for the quarter, with a run rate projected to exceed $60 million for the year [11] - The company has 75 additional B2B deals in progress, with significant partnerships expected to drive revenue growth [11] - The company converted 1.3 million out of 2 million Tesla subscribers to paying users, indicating a strong conversion rate [12][29] Market Data and Key Metrics Changes - The company anticipates $50 million in B2B revenues over the next twelve months, which includes both Slacker and PodcastOne [20][22] - The company is experiencing significant growth in ad revenue, with ad growth in Tesla cars increasing from 30% to 82% [12] Company Strategy and Development Direction - The company is focusing on B2B partnerships, including a major deal with a Fortune 500 company that could drive over 30 million paying subscribers [9][44] - The company is exploring M&A opportunities and has received multiple inbound calls regarding potential sales or partnerships [56][57] - The company is advancing its Web3 initiatives, including a Bitcoin yield strategy and NFT monetization [13][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering from past revenue losses and achieving substantial growth over the next three to five years, targeting 10 million subscribers and $500 million in revenues [17][82] - The management highlighted the excitement and energy within the team, emphasizing their commitment to overcoming challenges and capitalizing on new opportunities [84] Other Important Information - The company has launched a reality series that is expected to generate significant revenue, with a format similar to the Olympics [15][105] - The company is actively working on monetizing its extensive video content library, which is seen as a major growth opportunity [88][90] Q&A Session Summary Question: What is the annualized revenue of all currently signed partnerships? - The company expects $50 million in B2B revenues, which includes both Slacker and PodcastOne [20][22] Question: What does EBITDA look like with the recent staff reductions? - The company cannot provide specific EBITDA guidance but confirmed that staff cuts were made across the board, including at Slacker [23][24] Question: How many ad-supported users are there in addition to the 1.3 million Tesla subscribers? - The 1.3 million figure represents total conversions, with over 1.5 million total subscribers currently [29] Question: Can you elaborate on the new Fortune 500 B2B deal? - The deal involves a white label solution that will be marketed to over 30 million paying members [44][45] Question: What is the company's digital currency strategy? - The company is implementing a Bitcoin yield strategy and plans to increase its digital currency exposure [72][73] Question: When will the Q3 report be released? - The company is on track to file the report soon [108]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) LiveOne's Q1 Fiscal 2026 saw a significant revenue decline, increased losses, and negative Adjusted EBITDA, alongside strategic staff reductions and new B2B partnerships [Q1 Fiscal 2026 Financial Summary](index=1&type=section&id=Q1%20Fiscal%202026%20Financial%20Summary) LiveOne's Q1 Fiscal 2026 revenue decreased to **$19.2 million** from **$33.1 million** year-over-year, leading to an operating loss of **$4.0 million** and a net loss of **$3.9 million**, with Adjusted EBITDA turning negative at **($1.8) million** Q1 Fiscal 2026 Financial Summary (In thousands, except per share data) | | Three Months Ended June 30, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Revenue** | $19,207 | $33,078 | | **Operating loss** | $(4,034) | $(784) | | **Net loss** | $(3,864) | $(1,557) | | **Adjusted EBITDA*** | $(1,812) | $2,903 | | **Net loss per share** | $(0.04) | $(0.02) | [Key Business Highlights](index=1&type=section&id=Key%20Business%20Highlights) The company executed a **31% staff reduction**, secured major B2B partnerships including a **$16.5 million** Amazon deal, and raised **$10.2 million** in equity for Bitcoin and Web3 initiatives - Executed a **31% staff reduction**, decreasing employee count from 138 to 95[4](index=4&type=chunk) - Secured major B2B partnerships, including a 3-year, **$16.5 million** deal with Amazon via PodcastOne and a partnership with a Fortune 250 company projected to generate over **$26 million** in revenue[4](index=4&type=chunk) - Completed a **$10.2 million** equity raise to fund a Bitcoin yield strategy and other Web3 initiatives[4](index=4&type=chunk) - Subsidiary PodcastOne (PODC) reported a record **$15 million** in revenue for Q1 2026[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section details the drivers behind the Q1 Fiscal 2026 revenue decline and its impact on operating loss and Adjusted EBITDA [Detailed Quarterly Results Discussion](index=2&type=section&id=Detailed%20Quarterly%20Results%20Discussion) Q1 Fiscal 2026 revenue declined to **$19.2 million** due to Slacker revenue reductions, resulting in an operating loss of **$4.0 million** and a **$4.7 million** decrease in Adjusted EBITDA to **($1.8) million** - Q1 Fiscal 2026 revenue was **$19.2 million**, a decrease from **$33.1 million** in the prior year, primarily due to reductions in Slacker revenues[5](index=5&type=chunk) - Operating loss for the quarter was **($4.0) million**, compared to a **($0.8) million** loss in Q1 Fiscal 2025, largely resulting from the decrease in Slacker revenue[5](index=5&type=chunk) - Adjusted EBITDA was **($1.8) million**, a decrease of **$4.7 million** from **$2.9 million** in the prior-year quarter, with the Audio Division also impacted by the decline in Slacker revenues[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents LiveOne's consolidated statements of operations and balance sheets, along with reconciliations of non-GAAP financial measures [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) LiveOne reported Q1 Fiscal 2026 revenue of **$19.2 million**, total operating expenses of **$23.2 million**, and a loss from operations of **$4.0 million**, with a net loss attributable to LiveOne of **$3.6 million** or **($0.04)** per share Consolidated Statements of Operations (In thousands, except per share) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $19,207 | $33,078 | | **Total operating expenses** | $23,241 | $33,862 | | **Loss from operations** | $(4,034) | $(784) | | **Net loss** | $(3,864) | $(1,557) | | **Net loss attributed to LiveOne** | $(3,593) | $(1,945) | | **Net loss per share** | $(0.04) | $(0.02) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$48.9 million**, total liabilities **$61.0 million**, and total stockholders' deficit **$12.1 million**, with cash and cash equivalents significantly increasing to **$11.9 million** Consolidated Balance Sheets (In thousands) | | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $11,891 | $4,119 | | **Total Current Assets** | $22,946 | $15,246 | | **Total Assets** | $48,940 | $40,517 | | **Total Current Liabilities** | $33,956 | $36,384 | | **Total Liabilities** | $61,032 | $48,929 | | **Total equity (deficit)** | $(12,092) | $(8,412) | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP metrics, showing Q1 FY2026 Adjusted EBITDA at **($1.8) million** (down from **$2.9 million**) and Contribution Margin at **$3.4 million** (down from **$8.3 million**) [Adjusted EBITDA Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q1 FY2026 was **($1,812) thousand**, a significant decrease from **$2,903 thousand** in the prior year, largely due to a swing in Slacker operations Adjusted EBITDA Reconciliation (In thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Loss** | $(3,864) | $(1,557) | | **Total Adjusted EBITDA*** | **$(1,812)** | **$2,903** | | *By Segment:* | | | | Operations – PodcastOne | $580 | $(316) | | Operations – Slacker | $(191) | $5,425 | | Operations – Other | $(715) | $(628) | | Corporate | $(1,486) | $(1,578) | [Contribution Margin Reconciliation](index=8&type=section&id=Contribution%20Margin%20Reconciliation) Q1 FY2026 Contribution Margin was **$3,425 thousand**, a substantial decrease from **$8,343 thousand** year-over-year, reflecting a lower Gross Profit Contribution Margin Reconciliation (In thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $19,207 | $33,078 | | **Gross Profit** | $2,170 | $7,216 | | **Contribution Margin*** | **$3,425** | **$8,343** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides details on the conference call, explanations of non-GAAP measures, forward-looking statements, and a company overview [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) LiveOne scheduled a conference call and webcast for August 13, 2025, at 10:00 AM ET to discuss Q1 Fiscal 2026 financial results, with dial-in and webcast details provided Conference Call Information | | Details | | :--- | :--- | | **Date** | Wednesday, August 13, 2025 | | **Time** | 10:00 AM Eastern Time (7:00 AM Pacific Time) | | **Webcast Link** | Provided in the report | | **Dial-in** | (800) 715-9871 | | **Conference Code** | 2892444 | [About Non-GAAP Financial Measures](index=4&type=section&id=About%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Contribution Margin and Adjusted EBITDA to assess segment performance, acknowledging their limitations as supplements to GAAP results - The company uses non-GAAP measures, Contribution Margin and Adjusted EBITDA, to evaluate the performance of its operating segments[11](index=11&type=chunk)[12](index=12&type=chunk) - Adjusted EBITDA is defined as earnings excluding interest, taxes, depreciation, amortization, and other specific non-recurring or non-cash items like stock-based compensation and acquisition-related costs[13](index=13&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section includes forward-looking statements subject to risks and uncertainties, cautioning that actual results may differ materially from expectations, with further details in SEC filings - The press release contains "forward-looking statements" that involve risks and uncertainties, which may cause actual results to differ materially from expectations[9](index=9&type=chunk) - Key risks include reliance on its largest OEM customer, ability to consummate proposed transactions, ability to continue as a going concern, and risks related to digital assets[9](index=9&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) LiveOne is a Los Angeles-based creator-first music, entertainment, and technology platform operating through subsidiaries like Slacker and PodcastOne, delivering content via memberships and events - LiveOne is a creator-first music, entertainment, and technology platform based in Los Angeles[8](index=8&type=chunk) - Its key subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, and others[8](index=8&type=chunk)

Core Insights - LiveOne reported a significant decline in revenue for Q1 Fiscal 2026, totaling $19.2 million compared to $33.1 million in Q1 Fiscal 2025, primarily due to reductions in Slacker revenues [2][3] - The company experienced an operating loss of $4.0 million in Q1 Fiscal 2026, worsening from a loss of $0.8 million in the same quarter the previous year [3] - Adjusted EBITDA for Q1 Fiscal 2026 was reported at ($1.8) million, a decrease of $4.7 million from $2.9 million in Q1 Fiscal 2025 [4] Financial Performance - Revenue for Q1 Fiscal 2026 was $19,207,000, down from $33,078,000 in Q1 Fiscal 2025 [20] - Operating loss increased to ($4,034,000) from ($784,000) year-over-year [20] - Net loss for Q1 Fiscal 2026 was ($3,864,000), compared to ($1,557,000) in the prior year [20] Operational Highlights - The company underwent a 31% staff reduction, decreasing from 138 to 95 employees [6] - LiveOne expanded its B2B partnerships, including a $16.5 million deal with Amazon via PodcastOne and a revenue partnership with a Fortune 250 Streaming Network [6] - The company launched a significant live event, a reality Olympics series, building on the success of Social Gloves, which generated $27 million in revenue [6] Strategic Initiatives - LiveOne completed a $10.2 million equity raise aimed at Bitcoin yield strategy and Web3 initiatives [6] - The company added key personnel to its Web3 team to monetize over 10,000 hours of video content through digital assets [6] - LiveOne continues to explore merger and acquisition opportunities, including the potential sale of a subsidiary [6]

Core Viewpoint - LiveOne plans to announce its operating and financial results for Q1 Fiscal 2026 on August 13, 2025, and will host an investor webcast to discuss these results [1] Group 1: Company Overview - LiveOne is headquartered in Los Angeles, CA, and is recognized as a creator-first music, entertainment, and technology platform [2] - The company focuses on delivering premium experiences and content globally through memberships and live and virtual events [2] - LiveOne's subsidiaries include Slacker, PodcastOne, PPVOne, Custom Personalization Solutions, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [2] Group 2: Upcoming Financial Announcement - The earnings conference call for Q1 Fiscal Year 2026 is scheduled for August 13, 2025, at 10:00 AM Eastern Time [1] - The call can be accessed via a webcast link and a dial-in number provided in the announcement [1]

Core Insights - LiveOne has appointed Andy Vick to its Web3/Crypto Advisory Board to enhance revenue through tokenization and blockchain opportunities [1] - The company has generated $3 million in profits from NFTs related to Social Gloves, indicating a successful venture into the NFT space [1][4] - LiveOne operates a creator-first platform that includes over 200 podcasters and more than 10,000 hours of video content [1] Company Overview - LiveOne is headquartered in Los Angeles, CA, and is publicly traded on NASDAQ under the ticker LVO [2] - The company focuses on delivering premium music, entertainment, and technology experiences through memberships and live/virtual events [2] - LiveOne's subsidiaries include Slacker, PodcastOne, PPVOne, and others, providing a diverse range of services [2] Leadership and Expertise - Andy Vick brings over 15 years of leadership experience in media, technology, AI, VR/AR, and blockchain, having co-founded multiple NFT and Web3 projects that generated over $100 million in primary sales [4] - Vick's previous achievements include designing NFTs for Social Gloves and founding a top 5 blockchain-enabled video game [4]

Core Insights - LiveOne's executive producer Kiri Gerbs has significantly contributed to the success of Russ's latest album, which debuted at 1 on the Billboard Indie Chart and reached 10 on the Billboard 200, marking Russ's highest charting release since 2018 [1][2] - Russ is recognized as the first rapper to debut at 1 on the Billboard Indie Chart, with his discography accumulating over 10 billion streams [2] - The collaboration between Kiri Gerbs and Russ is noted for its innovative artistry and deep resonance with fans [2][3] Company Overview - LiveOne is an award-winning, creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, focused on delivering premium experiences and content worldwide [4] - The company operates various subsidiaries, including Slacker, PodcastOne, and LiveXLive, and offers services through multiple platforms such as iOS, Android, Roku, and Spotify [4] Future Commitment - LiveOne expresses its commitment to supporting visionary artists like Russ and executives like Kiri Gerbs, aiming to redefine the music landscape and achieve unprecedented success [3]

Core Insights - LiveOne has announced a strategic partnership with Arca to co-manage its expanding cryptocurrency treasury portfolio, indicating a focus on enhancing its financial strategy through cryptocurrency investments [1][2]. Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, offering premium experiences and content through memberships and live and virtual events [3]. - The company operates several subsidiaries, including Slacker, PodcastOne, and LiveXLive, and provides services across various platforms such as iOS, Android, Roku, and more [3]. Strategic Focus - The partnership with Arca aims to execute a multi-coin strategy that is expected to generate high yield returns, showcasing the company's commitment to leveraging cryptocurrency for financial growth [2].

Core Viewpoint - LiveOne is expanding its crypto asset treasury strategy with an initial investment of $10 million dedicated to a Bitcoin yield strategy, supported by a board-approved authorization of up to $500 million to enhance shareholder value and innovation in the digital asset space [1][2]. Group 1: Financial Offering - The company has priced its public offering of 11,833,334 shares of common stock at $0.75 per share, expected to generate gross proceeds of approximately $8.9 million before expenses [1]. - The offering is set to close on or about July 17, 2025, subject to customary closing conditions, and includes a 45-day option for the underwriter to purchase an additional 1,775,000 shares [3]. Group 2: Strategic Intent - The initial $10 million investment in the Bitcoin yield strategy reflects the company's confidence in the long-term potential of crypto assets to drive innovation and enhance shareholder value [2]. - The board's approval for a treasury authorization of up to $500 million indicates a significant commitment to integrating digital assets into the company's business model [2]. Group 3: Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, with a focus on delivering premium experiences through memberships and live events [6]. - The company's subsidiaries include Slacker, PodcastOne, and others, indicating a diverse portfolio aimed at enhancing its market presence [6].

Core Insights - LiveOne announced that certain investors have converted their preferred stock into common stock at a price of $1.50 per share, indicating strong investor confidence in the company's future [1][2] - CEO Robert Ellin expressed gratitude towards Harvest Funds and No Street Capital for their decision, highlighting that this move strengthens the company's capital structure and aligns interests with shareholders [2] Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, focusing on delivering premium experiences and content globally through memberships and live and virtual events [3] - The company's subsidiaries include Slacker, PodcastOne, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind, and it is accessible on various platforms including iOS, Android, Roku, and more [3]