LiveOne Shares Plummet 11% as Q4 Loss Widens, Top Line Declines Y/Y

Core Insights - LiveOne, Inc. (LVO) reported a fourth-quarter fiscal 2025 GAAP loss of 8 cents per share, compared to a loss of 3 cents per share in the previous year, missing the Zacks Consensus Estimate of a loss of 5 cents per share [1] - Quarterly revenues decreased by 37.6% year over year to $19.3 million, primarily due to lower revenues from Slacker Radio, which is undergoing a business model transformation [1][9] - Despite the revenue decline, LVO exceeded its full-year revenue guidance by $2.4 million, reporting total revenues of $114.4 million for fiscal 2025, a decrease of 3.4% [2] Financial Performance - The Audio division achieved record revenues of $108.9 million for fiscal 2025, surpassing guidance by $2.9 million, and delivered a record adjusted EBITDA of $18.2 million, exceeding expectations by over 51% [3] - Adjusted EBITDA for the fourth quarter was $1.6 million, down 42.9%, with a $4.1 million contribution from the Audio Division, offsetting losses from Other Operations and Corporate [5] - The company reported an operating loss of $8.2 million for the quarter, significantly wider than the $1.2 million loss reported a year ago, primarily due to revenue decreases [6] User Engagement and Growth - LVO's total user base, including subscribers and ad-supported users, surpassed 1.45 million, driven by a partnership with Tesla and strong audience engagement [2][9] - The company is focused on a creator-first approach, aiming to foster superfan relationships [3] Strategic Initiatives - LVO is undergoing an operational reset with major cost initiatives showing positive impacts [3] - The company invested approximately $3.1 million in capital expenditures during the fourth quarter, primarily for capitalized software development costs, aimed at enhancing monetization capabilities through an integrated music player and pay-per-view services [6][7] Market Performance - Following the financial results, LVO's shares fell 11% in trading, closing at 77 cents on June 18, 2025, with a 37.1% decline over the past six months, contrasting with a 19.8% growth in the Zacks Audio Video Production industry [4]