Financial Performance - For Q3 2025, the company's net loss was $19,395 thousand, a decrease from $22,694 thousand in Q3 2024, reflecting a reduction of 14.5%[106] - Revenue for the Electric Motorcycles segment decreased by $239 thousand, or 19.8%, to $970 thousand for the three months ended September 30, 2025, compared to $1,209 thousand for the same period in 2024[126] - Revenue for the nine months ended September 30, 2025 increased by $1,097 thousand, or 10.0%, to $12,086 thousand from $10,989 thousand for the same period in 2024[145] - Net loss for the nine months ended September 30, 2025 was $57,492 thousand, a 19.2% improvement from a net loss of $71,143 thousand for the same period in 2024[134] - Interest income for Q3 2025 was $165 thousand, a significant decrease of 86.8% from $1,252 thousand in Q3 2024[122] - Interest income for the nine months ended September 30, 2025 was $1,002 thousand, down from $4,864 thousand in the same period in 2024, primarily due to a decrease in money market fund balances[136] Segment Performance - The Electric Motorcycles segment reported an operating loss of $18,399 thousand for Q3 2025, down from $25,015 thousand in Q3 2024, representing a 26.4% improvement[107] - The STACYC segment's operating loss was $413 thousand in Q3 2025, compared to $1,510 thousand in Q3 2024, marking a 72.6% reduction[108] - Revenue for the STACYC segment increased by $1,495 thousand, or 46.2%, to $4,731 thousand for the three months ended September 30, 2025, driven by higher volumes from new products and markets[131] - Operating loss for the Electric Motorcycles segment for the nine months ended September 30, 2025 was $55,755 thousand, a 31.0% improvement from a loss of $80,818 thousand in the same period in 2024[135] - Gross profit for the STACYC segment increased by $1,016 thousand, or 28.1%, to $4,632 thousand for the nine months ended September 30, 2025[144] Sales and Market Activity - Wholesale Motorcycle Unit Sales increased to 180 units in Q3 2025 from 77 units in Q3 2024, a growth of 134.4%[114] - Total Electric Balance Bike and Electric Bike Unit Sales reached 5,805 units in Q3 2025, up from 3,442 units in Q3 2024, an increase of 68.7%[114] - Unit sales of electric motorcycles increased by 85.9%, from 99 units in Q3 2024 to 184 units in Q3 2025, but were offset by new incentives that reduced revenue by $1,086 thousand[126] - The company had a total of 91 Electric Motorcycles Retail Partners as of September 30, 2025, up from 89 as of December 31, 2024[117] - The company initiated the "Twist & Go Promotion" for S2 electric motorcycles, resulting in increased sales volumes during Q3 2025[105] Cost Management - Cost of goods sold for the Electric Motorcycles segment increased by $1,903 thousand, or 51.4%, to $5,604 thousand for the three months ended September 30, 2025[127] - Selling, administrative, and engineering expenses decreased by $8,758 thousand, or 38.9%, to $13,765 thousand for the three months ended September 30, 2025, primarily due to cost reduction activities[128] - Selling, administrative, and engineering expenses for the nine months ended September 30, 2025 decreased by $23,170 thousand, or 33.2%, to $46,603 thousand compared to $69,773 thousand in the same period in 2024[142] - Selling, administrative, and engineering expenses decreased by $1,291 thousand, or 16.3%, to $6,619 thousand for the nine months ended September 30, 2025[147] Cash Flow and Liquidity - Net cash used by operating activities decreased by $26,342 thousand to $45,648 thousand for the nine months ended September 30, 2025 compared to $71,990 thousand for the same period in 2024[159] - Net cash used by investing activities decreased by $3,883 thousand to $2,778 thousand for the nine months ended September 30, 2025 compared to $6,661 thousand for the same period in 2024[160] - As of September 30, 2025, LiveWire's cash and cash equivalents were $16,324 thousand, down from $64,437 thousand as of December 31, 2024[149] - The overall decrease in cash during the nine months ended September 30, 2025 was primarily due to cash used for operating activities[158] - LiveWire does not expect to generate positive cash flow from operations over the next twelve months[150] - The Company entered into an Amended and Restated Delayed Draw Term Loan Agreement providing access of up to $75.0 million to be drawn by December 15, 2025[153] - The company manages its liquidity risk by effectively managing working capital, capital expenditures, and cash flows[167] Risks and Challenges - The company is exposed to inflationary factors that may adversely affect operating results, particularly in logistics, manufacturing, and raw materials[169] - Potential disruptions in supply or shortages of materials, such as lithium-ion battery cells and semiconductor chips, could negatively impact operations[170] - The company expects its exposure to currency rate risk to increase as it expands its international operations[171] - The company sells electric balance bikes, electric bikes, and electric motorcycles internationally, with most sales currently in the U.S. market[171] Future Plans - The company plans to produce two new 125 cc-equivalent mini-motos in spring 2026 to enhance product offerings and market access[109] - The Company estimates capital expenditures to be between $4 million and $5 million in 2025[161]

Financial Data and Key Metrics Changes - Consolidated revenue in Q3 increased by 17%, driven by a 23% increase in HDMC revenue, amounting to an additional $198 million compared to the prior year [23] - Consolidated operating income for Q3 was $475 million, primarily influenced by the HDFS transaction, with an operating income margin of 35.4%, significantly up from 9.2% in the same quarter last year [24] - Earnings per share for Q3 was reported at $3.1, with a decline in global retail by 6% [25] Business Line Data and Key Metrics Changes - HDMC revenue rose by 23% in Q3, with motorcycle shipments up 33% to 36,500 units, while HDFS revenue decreased by 3% and LiveWire revenue increased by 16% [24][25] - LiveWire reported a consolidated operating loss of $18 million, but improved its operating loss by 30% or $8 million compared to the previous year [41] Market Data and Key Metrics Changes - Global retail was down 6%, with North America down 5% and international markets down 9%, reflecting soft demand due to high interest rates and inflation concerns [25] - In North America, the Softail family saw a growth of 9%, while Adventure Touring bikes increased by 4% [25][26] - In Latin America, retail was up 16%, marking the first quarter of growth for the region since 2024 [29] Company Strategy and Development Direction - The company is focusing on improving dealer health and profitability, with immediate actions to enhance motorcycle inventory management and introduce market-responsive promotions [6][7] - The strategic partnership with KKR and PIMCO aims to transform HDFS into a capital-light model, unlocking $1.2 billion to $1.25 billion in discretionary cash through 2026 [21][22] - Future product offerings will balance aspiration with accessibility to attract new riders, with a focus on affordability and speed to market [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the Motor Company's results but highlighted the positive impact of the HDFS transaction [10] - The current macro environment is challenging, with high interest rates affecting consumer confidence, but there is optimism about improving dealer engagement and sales performance [25][46] - The company plans to provide more details on its strategy and expectations in the spring of next year [45] Other Important Information - Global dealer motorcycle inventories decreased by 13% compared to the end of 2024, with a commitment to further reduce inventory levels [30] - The company has returned $1.7 billion to shareholders through share repurchases and dividends since the start of 2022 [43] Q&A Session Summary Question: How does the company plan to address demographic headwinds? - Management acknowledged the need to attract younger riders and plans to enhance the brand's image and product offerings to make them more appealing to younger demographics [50][54] Question: Can you elaborate on market-responsive customer promotions? - Management indicated that high dealer inventory levels necessitate immediate promotional actions, including local marketing initiatives and lower APR financing options to drive sales [56][60] Question: What is the expected impact of the HDFS transaction on future operating income? - Management confirmed that the transaction is expected to provide significant operating income benefits, with $275 million to $300 million anticipated in the second half of the year [65][68] Question: What are the shipment expectations for 2026? - Management indicated that while they are not providing specific guidance for 2026, they expect to continue reducing dealer inventory and improving sales performance [71][75] Question: How is the company addressing the current retail environment? - Management noted that they are seeing sequential improvements in dealer traffic and are focused on enhancing marketing strategies to drive sales [86]

Financial Data and Key Metrics Changes - Consolidated revenue in Q3 2025 increased by 17%, driven by a 23% increase in HDMC revenue, which was up $198 million compared to the prior year [16][22] - Consolidated operating income for Q3 was $475 million, primarily influenced by the HDFS transaction, while HDMC operating income decreased by 2% year-over-year [16][17] - Earnings per share for Q3 was $3.10, with a consolidated operating income margin of 35.4%, significantly up from 9.2% in the same quarter last year [17][23] Business Line Data and Key Metrics Changes - HDMC revenue rose by 23% in Q3, with motorcycle shipments up 33% to 36,500 units, while HDFS revenue decreased by 3% [16][22] - LiveWire revenue increased by 16%, but the segment reported an operating loss of $18 million [16][30] - HDFS's operating income surged by 472% year-over-year, primarily due to the HDFS transaction, with a significant benefit from the reversal of the allowance for credit losses [27][29] Market Data and Key Metrics Changes - Global retail sales were down 6%, with North America down 5% and international markets down 9%, reflecting soft demand amid high interest rates and inflation concerns [17][18] - In North America, the Softail family saw a 9% increase in sales, while Adventure Touring bikes were up 4% [18][20] - Latin America experienced a 16% increase in retail sales, marking the first quarter of growth since Q3 2024 [19][20] Company Strategy and Development Direction - The company is focused on improving dealer health and profitability, with immediate actions including better inventory management and market-responsive promotions [5][6] - There is a commitment to enhancing the product portfolio to balance aspiration with accessibility, particularly in light of the current interest rate environment [9][10] - The HDFS transaction aims to transform the business into a capital-light model, unlocking $1.2-$1.25 billion in discretionary cash through Q1 2026 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the motor company's results but highlighted the positive impact of the HDFS transaction [6][16] - The CEO emphasized the need to attract younger riders and make the brand more accessible and fun [40][42] - The company plans to continue focusing on cost and capital efficiency while enhancing the dealer network's health [9][10][37] Other Important Information - The company has committed to returning capital to shareholders, having repurchased 6.8 million shares for $187 million year-to-date [32][33] - The global tariff environment remains uncertain, with an estimated full-year impact from tariffs expected to be between $55-$75 million [26][27] Q&A Session Summary Question: How does the company plan to address demographic headwinds? - The CEO noted the need to make the brand more fun and accessible, with plans to introduce lighter and more affordable bikes to attract younger riders [40][42] Question: Can you elaborate on market-responsive promotions? - Management indicated that high dealer inventory levels necessitate promotional activities to drive sales, particularly for touring models [43][44] Question: What is the expected impact of the HDFS transaction on future earnings? - The company confirmed that the transaction is expected to provide a $275-$300 million operating income benefit in the second half of the year [50][54] Question: What are the shipment expectations for 2026? - Management indicated that while they are not providing specific guidance for 2026, they expect to continue reducing dealer inventory and improving sales dynamics [56][61] Question: How is the company addressing inventory levels? - The company has seen a significant reduction in dealer inventory, with expectations to continue this trend into the next year [57][63]

Financial Performance - Consolidated revenue for Q3 2025 was $5.7 million, a 28% increase from $4.4 million in Q3 2024[5] - Consolidated operating loss decreased by 29% to $18.8 million in Q3 2025 from $26.5 million in Q3 2024[5] - Net loss for Q3 2025 was $19.4 million, down 15% from $22.7 million in the same quarter last year[5] - Net loss for the nine months ended September 30, 2025, was $57,492 million, an improvement from a net loss of $71,143 million in the same period of 2024, representing a reduction of about 19%[24] - The company reported a net cash used by operating activities of $45,648 million for the nine months ended September 30, 2025, compared to $71,990 million in the same period of 2024, a decrease of approximately 37%[24] - The company experienced a net cash decrease of $48,113 million in the nine months ended September 30, 2025, compared to a net decrease of $79,462 million in the same period of 2024, an improvement of about 39%[24] Revenue Breakdown - STACYC revenue grew by 46% to $4.7 million in Q3 2025, with unit sales increasing by 69% to 5,805 units[9] - Electric motorcycle unit sales surged by 86% to 184 units in Q3 2025, although revenue decreased by 20% to $1.0 million due to increased incentives[11] Cash and Assets - Year-to-date net cash used decreased by 39% to $48.1 million compared to $79.5 million in the same period of 2024[5] - Cash and cash equivalents decreased from $64,437 million at the beginning of the period to $16,324 million at the end, a decline of approximately 75%[24] - Total assets decreased from $147,960 million in December 2024 to $89,220 million in September 2025, a decline of approximately 40%[22] Liabilities and Expenditures - Total current liabilities decreased from $29,854 million in December 2024 to $24,057 million in September 2025, a reduction of about 19%[22] - Accounts payable increased from $1,738 million in December 2024 to $2,539 million in September 2025, an increase of approximately 46%[22] - Capital expenditures for the nine months ended September 30, 2025, were $2,778 million, down from $6,661 million in the same period of 2024, a decrease of about 58%[24] Inventory and Capital - Inventory write-downs decreased from $4,294 million in 2024 to $2,163 million in 2025, a reduction of approximately 50%[24] - The company’s additional paid-in-capital increased from $344,409 million in December 2024 to $349,366 million in September 2025, an increase of about 1.4%[22] Future Outlook - Future operating loss guidance for 2025 has been updated to a range of $72-$77 million, up from the previous $59-$69 million[13] - The company launched an At-The-Market offering to raise up to $50 million in additional capital through share issuance[7] - New products, S4 Honcho™ Trail and S4 Honcho™ Street, are set to begin production in Spring 2026[3] - The company is extending temporary pricing incentives on S2 models through December 15, 2025, due to positive consumer response[13]

Core Points - LiveWire Group, Inc. will report its third quarter 2025 financial results on November 4, 2025, before market hours [1] - An audio webcast is scheduled for 8 a.m. CT on the same day, where financial results and business updates will be discussed [1] - LiveWire is majority owned by Harley-Davidson, focusing on the electric motorcycle sector [3] Company Initiatives - LiveWire announced the global Twist & Go Promotion, providing significant incentives for the S2 lineup from August 28 to October 31, 2025 [5] - A software update will introduce new features, including Reverse and Roll-Forward Regenerative Braking, enhancing the riding experience [5] Financial Performance - In the second quarter of 2025, LiveWire reduced its consolidated operating loss by 35% compared to the same quarter in the previous year [6] - STACYC, a subsidiary, reported a 25% increase in revenue compared to the prior-year same quarter, despite ongoing supply chain challenges [6]

Financial Performance - For the three months ended June 30, 2025, the Company's net loss was $18,826 thousand, a decrease of 24.1% compared to a net loss of $24,805 thousand for the same period in 2024[102]. - The net loss for the six months ended June 30, 2025, was $38,097 thousand, a decrease of $10,352 thousand or 21.4% from the net loss of $48,449 thousand in 2024[129]. - Revenue for the six months ended June 30, 2025 decreased by $398 thousand, or 5.1%, to $7,355 thousand from $7,753 thousand for the same period in 2024[140]. - Gross profit increased by $255 thousand, or 9.6%, to $2,899 thousand for the six months ended June 30, 2025, compared to $2,644 thousand for the same period in 2024[140]. Segment Performance - The Electric Motorcycles segment reported an operating loss of $18,003 thousand for the three months ended June 30, 2025, down 32.8% from an operating loss of $26,796 thousand for the same period in 2024[103]. - Revenue for the Electric Motorcycles segment decreased by $1,588 thousand, or 65.3%, to $842 thousand for the three months ended June 30, 2025, compared to $2,430 thousand for the same period in 2024[121]. - Unit sales for Electric Motorcycles dropped by 65.2%, from 158 units in the three months ended June 30, 2024, to 55 units in the same period of 2025[121]. - Revenue for the STACYC segment increased by $1,012 thousand, or 25.2%, to $5,031 thousand for the three months ended June 30, 2025, compared to $4,019 thousand in 2024[126]. Cost Management - Cost of goods sold for Electric Motorcycles decreased by $3,377 thousand, or 58.7%, to $2,379 thousand for the three months ended June 30, 2025, from $5,756 thousand in 2024[122]. - Selling, administrative, and engineering expenses for Electric Motorcycles decreased by $7,004 thousand, or 29.8%, to $16,466 thousand for the three months ended June 30, 2025[123]. - Cost of goods sold for Electric Motorcycles for the six months ended June 30, 2025, decreased by $6,448 thousand, or 52.7%, to $5,779 thousand from $12,227 thousand in 2024[136]. - Selling, administrative, and engineering expenses for Electric Motorcycles decreased by $14,412 thousand, or 30.5%, to $32,838 thousand for the six months ended June 30, 2025[137]. Sales and Distribution - Wholesale Motorcycle Unit Sales decreased to 47 units for the three months ended June 30, 2025, down from 111 units in the same period of 2024, representing a decline of 57.7%[109]. - Company Retail Motorcycle Unit Sales fell to 8 units for the three months ended June 30, 2025, compared to 47 units in the same period of 2024, a decrease of 83.0%[109]. - Total Electric Balance Bike and Electric Bike Unit Sales increased to 4,872 units for the three months ended June 30, 2025, up from 3,825 units in the same period of 2024, reflecting a growth of 27.4%[109]. - As of June 30, 2025, the Company had 91 Independent Retail Partners for Electric Motorcycles, an increase from 88 as of December 31, 2024[112]. Cash Flow and Investments - The Company had investments of $17,000 thousand in money market funds as of June 30, 2025, a significant decrease from $105,000 thousand as of June 30, 2024[117]. - As of June 30, 2025, cash and cash equivalents amounted to $29,316 thousand, down from $64,437 thousand as of December 31, 2024[144]. - Net cash used by operating activities decreased by $16,519 thousand to $32,367 thousand for the six months ended June 30, 2025, compared to $48,886 thousand for the same period in 2024[153]. - LiveWire does not expect to generate positive cash flow from operations over the next twelve months[145]. Future Outlook - LiveWire's focus for the remainder of 2025 includes cost improvements and future electric motorcycle models and product innovation[107]. - The Company expects capital expenditures to be between $5 million and $10 million in 2025[155]. - The Company plans to use its current cash and available funds under the Convertible Term Loan to support core business operations and invest in new product development[150]. - LiveWire received net proceeds of approximately $293.7 million from the Business Combination with ABIC on September 26, 2022[146].

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 decreased by 19%, primarily due to a planned reduction in motorcycle shipments and soft demand [10][27] - Consolidated operating income was $112 million, reflecting a 69% decline at HDMC, while HDFS operating income decreased by 2% [28][43] - Earnings per share for Q2 was $0.88, with global retail sales down 15% year over year [28][29] - Operating cash flow decreased by $68 million from the prior period, totaling $509 million [47] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 23% in Q2, driven by a 28% decline in motorcycle shipments [34][35] - HDFS revenue was $257 million, down 2% due to lower retail and commercial receivables [43] - LiveWire reported an operating loss of $19 million, an improvement from a $28 million loss in the prior year [46] Market Data and Key Metrics Changes - North American retail sales were down 17%, while international markets saw a 12% decline [28][29] - In EMEA, retail was down 5%, with growth in Germany and the Benelux regions offset by declines in France and the UK [30] - Asia Pacific retail was down 21%, attributed to intense competition in the lightweight motorcycle segments [31] Company Strategy and Development Direction - The company entered strategic partnerships with KKR and PIMCO for HDFS, aiming to enhance long-term value and reduce overall funding costs [4][5] - Plans to reduce debt by $450 million and accelerate a $1 billion share buyback program were announced [9][49] - The introduction of new entry-level products and a small displacement motorcycle is scheduled for 2026, targeting a price below $6,000 [20][19] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty and elevated interest rates impacting customer purchasing behavior [10][11] - There are signs of improvement in customer traffic in North America, with expectations for positive retail performance in the second half of the year [66][67] - The company remains cautious about the global tariff environment, estimating a full-year impact of $50 million to $85 million from tariffs [42] Other Important Information - The HDFS transaction is expected to generate $1.25 billion in cash for Harley Davidson, representing about 40% of the current market cap [9][10] - The company is committed to returning capital to shareholders despite the challenging operating environment [48] Q&A Session Summary Question: What are the components used to calculate the 1.75 times book value marker for the HDFS transaction? - The calculation is based on the proceeds from KKR and PIMCO's equity investment in the business, reflecting the premium paid versus the post-transaction book value [52][54] Question: What is driving the underlying profitability of HDFS? - The profitability has improved due to stabilization in used motorcycle values and better repossession rates, contributing positively to HDFS performance [56][58] Question: How does the company view current dealer inventories and what is the target for year-end? - The company expects a significant reduction in dealer inventory, targeting a double-digit decline by year-end [71] Question: What is the timing of the model launch shift? - The model year shift is planned for the fall, with new models being introduced to maintain excitement in dealerships [73][74] Question: Are there any guarantees associated with the HDFS transaction regarding growth in retail sales? - There are no guarantees for maintaining certain growth rates or loss levels; however, there is confidence in the business's ability to run profitably through cycles [88][89]

Financial Performance - Consolidated revenue for Q2 2025 was $5.9 million, a decrease of 9% compared to $6.5 million in Q2 2024[5] - Consolidated operating loss reduced by 35% to $18.3 million from $28.2 million in the same quarter last year[5] - Net loss for Q2 2025 was $18.8 million, down 24% from $24.8 million in Q2 2024[5] - Net loss for the six months ended June 30, 2025, was $38,097 million, an improvement from a net loss of $48,449 million for the same period in 2024, indicating a reduction of about 21.4%[25] Revenue Breakdown - STACYC revenue increased by 25% to $5.0 million, with electric balance bike and electric bike units sold rising by 27% to 4,872[9] - Electric motorcycle revenue decreased by 65% to $0.8 million, with units sold dropping to 55 from 158 in the prior year[11] Cash Flow and Expenses - The company reduced net cash used during the year by 36% to $35.1 million compared to $54.9 million in the previous year[5] - Selling, administrative, and engineering expenses decreased by $7.6 million from the same quarter in 2024, primarily due to cost reduction initiatives[7] - The net cash used by operating activities was $32,367 million for the six months ended June 30, 2025, compared to $48,886 million in 2024, reflecting an improvement of about 33.8%[25] Market Expansion and Guidance - LiveWire entered Norway as a new market and continued to expand dealer contracts in existing European markets[7] - The company updated its operating loss guidance to a range of $59 million to $69 million due to ongoing market volatility[13] - LiveWire remains the 1 electric motorcycle retailer in the US 50+ horsepower on-road EV segment despite challenges in the EV market[3] Asset and Liability Changes - Total assets decreased from $147,960 million on December 31, 2024, to $109,770 million as of June 30, 2025, representing a decline of approximately 25.8%[23] - Total current liabilities decreased from $29,854 million on December 31, 2024, to $27,241 million as of June 30, 2025, a reduction of about 8.7%[23] - Accounts payable increased from $1,738 million to $2,872 million, showing an increase of approximately 65.2%[23] Capital Expenditures and Equity - Capital expenditures for the six months ended June 30, 2025, were $2,043 million, down from $5,080 million in the same period of 2024, a decrease of about 59.9%[25] - The total shareholders' equity decreased from $115,115 million on December 31, 2024, to $79,684 million as of June 30, 2025, a decline of approximately 30.8%[23] Inventory and Stock Compensation - Inventory write-downs amounted to $936 million for the six months ended June 30, 2025, significantly lower than $3,249 million in the same period of 2024, indicating a decrease of about 71.2%[25] - The company reported a stock compensation expense of $3,444 million for the six months ended June 30, 2025, compared to $2,563 million in 2024, an increase of approximately 34.4%[25]

Financial Performance - For the three months ended March 31, 2025, the company's net loss was $19,271 thousand, a decrease of $4,373 thousand or 18.5% compared to a net loss of $23,644 thousand for the same period in 2024[99]. - Revenue for the three months ended March 31, 2025 decreased by $1,410 thousand, or 37.8%, to $2,324 thousand from $3,734 thousand for the same period in 2024[122]. - Interest income for the three months ended March 31, 2025 was $504 thousand, down 75.0% from $2,016 thousand for the same period in 2024[113]. - The net cash used by operating activities decreased by $5,436 thousand to $17,490 thousand for the three months ended March 31, 2025 compared to $22,926 thousand for the same period in 2024[135]. - As of March 31, 2025, LiveWire's cash and cash equivalents were $46,222 thousand, down from $64,437 thousand as of December 31, 2024[126]. - LiveWire does not expect to generate positive cash flow from operations over the next twelve months[127]. Segment Performance - The Electric Motorcycles segment reported an operating loss of $19,353 thousand for the three months ended March 31, 2025, which is a 33.3% improvement from an operating loss of $29,007 thousand in the same period of 2024[100][112]. - Revenue for the Electric Motorcycles segment decreased by $825 thousand, or 66.3%, to $419 thousand for the three months ended March 31, 2025, compared to $1,244 thousand for the same period in 2024[117]. - The STACYC segment's operating loss was $1,313 thousand for the three months ended March 31, 2025, a slight improvement from an operating loss of $1,415 thousand in the same period of 2024[101][112]. - LiveWire's revenue from electric balance bikes decreased by $937 thousand, primarily due to lower shipment volumes and product pricing issues[122]. Sales and Units - Total LiveWire Motorcycle Unit Sales decreased by 71.2% from 117 units in the three months ended March 31, 2024 to 33 units in the same period of 2025[106][117]. - Total Electric Balance Bike and Electric Bike Unit Sales decreased from 2,932 units in the three months ended March 31, 2024 to 1,970 units in the same period of 2025[106]. Cost Management - Cost of goods sold for the three months ended March 31, 2025 decreased by $1,123 thousand, or 42.6%, to $1,511 thousand from $2,634 thousand for the same period in 2024[123]. - Selling, administrative and engineering expense for the three months ended March 31, 2025 decreased by $389 thousand, or 15.5%, to $2,126 thousand from $2,515 thousand for the same period in 2024[124]. - The Company had a net cash outflow of $250 thousand from financing activities for the three months ended March 31, 2025, a decrease from an outflow of $706 thousand for the same period in 2024[138]. Future Outlook - The company plans to focus on cost improvements and future electric motorcycle models for the remainder of 2025[104]. - LiveWire expects capital expenditures to be between $5 million and $10 million in 2025[137]. - The Company plans to use its current cash on hand and available funds under the Convertible Term Loan to support core business operations and invest in new product development[132]. International Operations - The Company sells electric balance bikes, electric bikes, and electric motorcycles internationally, with most sales made in local currencies[147]. - The Company's operating results are affected by fluctuations in the U.S. dollar relative to foreign currencies, but the impact is currently not material[147]. - The majority of the Company's sales are currently in the U.S., limiting exposure to currency rate risk[147]. - The Company plans to expand its business and operations internationally, expecting increased exposure to currency rate risk as it grows[147]. Retail Partnerships - As of March 31, 2025, the company had 91 total Electric Motorcycles Retail Partners, an increase from 89 as of December 31, 2024[109].

Financial Data and Key Metrics Changes - Harley-Davidson's consolidated revenue in Q1 2025 decreased by 23%, with operating income at $160 million, a decline of 51% at HDMC, partially offset by a 19% increase in HDFS operating income [20][28] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the previous year, primarily due to lower volume impacting dealer inventory [20][25] - Earnings per share for Q1 was reported at $1.7, reflecting the overall decline in revenue and operating income [21] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [22][23] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [27][28] - LiveWire segment reported an operating loss of $20 million, with revenue decreasing due to lower unit sales of electric motorcycles [30] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [5][6] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [7] - LATAM reported a 6% decline in retail sales year-over-year [7] Company Strategy and Development Direction - The company is focusing on a significant marketing development fund to support dealer networks and product launches closer to the riding season [6][10] - Harley-Davidson plans to introduce new entry-level products and expand its cruiser offerings, aiming for affordability and profitability [11][88] - The company is evaluating its investment in LiveWire due to challenges in the EV market, including slower adoption rates and regulatory hurdles [12][97] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of previous 2025 guidance [13][34] - There is cautious optimism regarding potential trade deals that may mitigate tariff impacts, although the situation remains fluid [14][59] - Sequential improvement in retail sales was noted from February to April, indicating a slight recovery in consumer demand [66] Other Important Information - The company achieved $142 million in operating cash flow, an increase of $38 million from the prior period, with total cash and cash equivalents at $1.9 billion [31][32] - Harley-Davidson repurchased 3.4 million shares for $87 million in Q1 2025 as part of its capital allocation strategy [33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining attractive offers for customers and dealers [39][40] Question: What has changed regarding the strategic value of HDFS? - The focus is on ensuring a market-based view of HDFS's value while still recognizing its strategic importance to the company [42] Question: Can you provide insight into the tariff impacts and anti-American sentiment? - Management noted that while tariffs pose challenges, the company has a strong U.S.-centric manufacturing base, and there has not been significant negative sentiment affecting sales [56][64] Question: How is the retail environment evolving, especially in April? - Sequential improvement was observed in retail sales from February to April, with management noting that April showed signs of recovery compared to March [66] Question: What led to the decision to bring back entry-level bikes? - The company aims to capitalize on the opportunity to create profitable entry-level models, having previously focused on core business investments [88] Question: How are cost savings being tracked for LiveWire? - LiveWire is projected to reduce operating losses significantly, with ongoing efforts to drive cost savings and achieve a sustainable business model [97]