LiveOne(LVO) - 2026 Q1 - Quarterly Results

Financial and Operational Highlights 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 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 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] - 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] - Completed a $10.2 million equity raise to fund a Bitcoin yield strategy and other Web3 initiatives[4] - Subsidiary PodcastOne (PODC) reported a record $15 million in revenue for Q1 2026[4] Financial Performance Analysis 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 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] - 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] - 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] Financial Statements This section presents LiveOne's consolidated statements of operations and balance sheets, along with reconciliations of non-GAAP financial measures Consolidated Statements of Operations 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 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 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 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 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 This section provides details on the conference call, explanations of non-GAAP measures, forward-looking statements, and a company overview Conference Call Information 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 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][12] - 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] Forward-Looking Statements 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] - 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] Company Overview 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] - Its key subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, and others[8]