LiveWire (US:LVWR)2025-11-10 21:22Financial 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]