Group 1 - LiveOne will introduce its B2B partners to shareholders and investors at Mar-a-Lago on December 17, 2025 [1] - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA [2] - The company focuses on delivering premium experiences and content worldwide through memberships and live and virtual events [2] Group 2 - LiveOne's subsidiaries include Slacker, PodcastOne, PPVOne, Custom Personalization Solutions, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [2] - The company operates an over-the-top application powered by Slacker, available on multiple platforms including iOS, Android, Roku, and others [2] - For more investor information, LiveOne provides resources on its investor relations website [2]

Core Insights - LiveOne has renewed its strategic partnership with Telly, enhancing its music and entertainment offerings through Telly's innovative platform [1][4] - The partnership aims to provide users with free access to millions of songs, leveraging Telly's built-in Harman Kardon soundbar for an immersive audio experience [3][4] Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, with a focus on delivering premium experiences through memberships and live events [6] - The company operates several subsidiaries, including Slacker Radio and PodcastOne, and is available on multiple platforms, including Tesla vehicles and various streaming services [6] Partnership Details - The partnership with Telly, originally launched in 2024, has resulted in a fully integrated dual-screen audio experience, allowing users to access music directly from Telly's Smart Home Screen [2][4] - LiveOne's usage on Telly has surged by over 200% in the past 90 days, with average listening sessions increasing significantly as households adopt the free audio service [3][7] User Engagement - The built-in Harman Kardon soundbar in Telly enhances user engagement, contributing to longer listening sessions and increased audience retention [3][7] - The collaboration is expected to drive further innovation in the audio experience for users in the coming years [4]

Core Insights - PodcastOne has secured a multi-year agreement with Clint Frazier for the exclusive distribution rights to his podcast "Life After the Show," marking the 19th addition to its network in 2025, bringing the total to 211 podcasts [1][6] Company Overview - PodcastOne is a leading podcast platform that offers a comprehensive solution in sales, marketing, public relations, production, and distribution, boasting over 3.9 billion total downloads and a community of 200 top podcasters [6] - The platform reaches over 1 billion monthly impressions across various channels, including YouTube, Spotify, Apple Podcasts, and iHeartRadio [6] Podcast Content - "Life After the Show" features weekly episodes where Frazier discusses current baseball issues, interviews former teammates and insiders, and shares his personal experiences post-major league career [2][4] - The podcast aims to provide unfiltered stories and insights from Frazier's time with the New York Yankees and his views on contemporary sports [2][3] Strategic Alignment - The partnership with Frazier aligns with PodcastOne's growth strategy to deliver authentic narratives from real individuals, enhancing its content diversity and listener engagement [3]

Revenue Performance - For the six months ended September 30, 2025, the company reported revenue of $38.0 million, a decrease from $65.7 million in the same period of 2024[163]. - Revenue from the OEM customer was $3.1 million in the first half of 2025, significantly down from $36.0 million in the same period of 2024[163]. - Revenue decreased by 42% to $18.8 million for the three months ended September 30, 2025, compared to $32.6 million in the same period of 2024[181]. - Total revenue for the six months ended September 30, 2025, was $37.97 million, a decrease of 42% compared to $65.67 million for the same period in 2024[216]. - Membership revenue decreased by $31.9 million, or 83%, to $6.4 million for the six months ended September 30, 2025, compared to $38.3 million for the same period in 2024[216]. - Advertising revenue increased by $4.9 million, or 19%, to $30.3 million for the six months ended September 30, 2025, compared to $25.4 million for the same period in 2024[218]. - Revenue for the Audio Group - PodcastOne operations increased by $4.8 million, or 19%, to $30.2 million for the six months ended September 30, 2025, compared to $25.3 million in 2024[234]. - Revenue for the Audio Group - Slacker operations decreased by $31.8 million, or 83%, to $6.5 million for the six months ended September 30, 2025, primarily due to a change in terms with the largest OEM customer[240]. - Revenue for the three months ended September 30, 2025, was $18,762 thousand, a decrease of 42.7% from $32,594 thousand in 2024[256]. Customer Concentration - The company's largest OEM customer accounted for 45% of revenue in the first half of 2025, down from 73% in the same period of 2024[163]. - Membership services revenue fell by 84% to $3.1 million, down from $19.5 million, primarily due to changes in terms with the largest OEM customer[182][183]. - Revenue decreased by $16.5 million, or 84%, during the three months ended September 30, 2025, primarily due to a change in terms with the largest OEM customer[203]. Operating Expenses and Profitability - Total operating expenses decreased by 31% to $23.3 million, down from $34.0 million, with significant reductions in cost of sales and other operating expenses[180]. - Total operating expenses for the six months ended September 30, 2025, were $46.57 million, a decrease of 31% compared to $67.86 million for the same period in 2024[213]. - Net loss attributable to LiveOne was $5.5 million, compared to a loss of $1.9 million in the prior year, resulting in a net loss per share of $0.52[179]. - Net loss attributed to LiveOne for the six months ended September 30, 2025, was $9.14 million, compared to a net loss of $3.03 million for the same period in 2024[214]. - Operating income decreased by $4.9 million, or 105%, for the three months ended September 30, 2025, driven by the decrease in revenue[204]. - Adjusted EBITDA decreased by $6.2 million, or 107%, to $(0.4) million for the three months ended September 30, 2025, compared to $5.8 million for the same period in 2024[205]. - Adjusted EBITDA increased by 369% to $1.1 million for the Audio Group, reflecting improved revenue and reduced operating expenses[201]. - Adjusted EBITDA for the Audio Group - PodcastOne operations increased by $2.4 million, or 335%, to $1.7 million for the six months ended September 30, 2025, compared to a loss of $0.7 million in 2024[238]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents, including restricted cash, totaling $11.8 million, primarily invested in Bitcoin and U.S. banking institutions[257]. - The company has a convertible note balance of $15.2 million and a Capchase Loan of $0.5 million as of September 30, 2025[257]. - The company completed a public offering on July 17, 2025, raising approximately $9.5 million to fund digital asset acquisitions and working capital[165]. - For the six months ended September 30, 2025, net cash used in operating activities was $6.3 million, primarily due to a net loss of $9.6 million[273]. - Net cash used in investing activities for the six months ended September 30, 2025, was $6.8 million, largely due to the purchase of equipment and crypto digital assets totaling $5.0 million[275]. - For the six months ended September 30, 2025, net cash provided by financing activities was $20.7 million, driven by $15.2 million from convertible debt and $9.4 million from common stock offerings, offset by $3.0 million repayment on the line of credit, $0.2 million repayment of the Capchase Loan, and $0.6 million for share repurchase[277]. - The company has the ability to raise up to $150 million in cash from the sale of equity, debt, and other financial instruments under a new universal shelf Registration Statement filed with the SEC[270]. Strategic Initiatives - The company plans to invest significantly in product development and technology solutions over the next 12 to 24 months to enhance its service offerings[171]. - The company aims to convert OEM drivers to direct subscribers of the LiveOne app, which is expected to create a meaningful revenue opportunity[173]. - The company announced a digital asset treasury strategy of up to $500 million, including a bitcoin yield treasury strategy, following a public offering on July 16, 2025[257]. - Future growth will rely on expanding international operations in regions such as Europe, Asia Pacific, and Latin America, incurring significant upfront expenses[177]. Compliance and Going Concern - As of September 30, 2025, the company had a working capital deficiency of $13.1 million, raising substantial doubt about its ability to continue as a going concern[258]. - The company entered into a new Business Loan Agreement on January 28, 2025, reducing the principal amount outstanding to $3.75 million and extending the maturity date to November 20, 2025[261]. - The company borrowed $1.7 million under a Loan and Security Agreement with Capchase Inc. in August 2023, with a 9% interest rate and monthly amortization payments of approximately $73,100[262]. - As of September 30, 2025, the company was in compliance with the Capchase Loan and the Initial Debentures[279].

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 fiscal 2026 was $18.8 million, with a net loss of $5.7 million or $0.52 per diluted share [14][12] - The audio division generated $18.2 million in revenue and adjusted EBITDA of $0.7 million [14] - Adjusted EBITDA for the consolidated entity was negative $1 million [14] Business Line Data and Key Metrics Changes - PodcastOne subsidiary achieved record revenue of $15.2 million and adjusted EBITDA of $1.1 million [14][15] - Slacker subsidiary reported revenue of $3.1 million with an adjusted EBITDA loss of $0.4 million [14] Market Data and Key Metrics Changes - The company has converted over 60% of the 2 million Tesla cars, resulting in nearly 1 million free cars re-subscribing [6][12] - The average revenue per user (ARPU) increased by 60%, reaching over $5 compared to the previous $3 [8] Company Strategy and Development Direction - The company is focusing on B2B partnerships, having closed its seventh deal and expanded its partnership with Amazon from $16.5 million to over $20 million [6][10] - The company anticipates significant growth in the audio industry, with expectations of reaching over $100 million in revenues again [13][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for substantial revenue growth driven by B2B deals and partnerships [11][17] - The company is leveraging AI to enhance marketing strategies and improve subscriber conversion rates [8][49] Other Important Information - The company has cut its workforce from 350 to 95, significantly reducing costs from $22 million to $6 million [6][10] - The launch of LiveOne Africa is expected to tap into a market projected to surpass the U.S. market in the coming years [10] Q&A Session Summary Question: Details on the B2B partner with 30 million subscribers - Management indicated that the initial launch was successful and similar to the Tesla relaunch, with expectations for further details by year-end [20][21] Question: Incremental revenue from the $52 million B2B revenue - Management stated that the $52 million is not included in the current revenue and guidance will be provided before year-end [21][22] Question: Premium versus paid subscribers for Slacker - The total paid subscribers are between 250,000-275,000, with ongoing efforts to convert free subscribers [23][25] Question: Gross margin recovery expectations - The decrease in gross margin is attributed to changes in customer relationships and volume from Slacker, with expectations for improvement in future quarters [29][30] Question: Stock-based compensation impact on costs - Stock-based compensation has increased in cost of sales compared to the previous year, with a shift in categories noted [34][36] Question: Continued growth expectations for PodcastOne - Management confirmed expectations for continued growth in the PodcastOne subsidiary, with an increase in guidance [39][41]

Core Insights - LiveOne (LVO) reported a quarterly loss of $0.52 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.45, and a significant increase from a loss of $0.20 per share a year ago [1] - The company's revenues for the quarter ended September 2025 were $18.76 million, slightly surpassing the Zacks Consensus Estimate by 0.01%, but down from $32.59 million year-over-year [2] - LiveOne's stock has declined approximately 66.5% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Financial Performance - Over the last four quarters, LiveOne has exceeded consensus EPS estimates twice [2] - The current consensus EPS estimate for the upcoming quarter is -$0.35 on revenues of $22.4 million, and for the current fiscal year, it is -$1.60 on revenues of $84.28 million [7] Market Outlook - The company's earnings outlook is critical for assessing future stock performance, with recent estimate revisions trending unfavorably, resulting in a Zacks Rank 4 (Sell) [6] - The Audio Video Production industry, to which LiveOne belongs, is currently in the top 35% of Zacks industries, indicating a relatively strong position within the market [8] Comparisons with Peers - Dolby Laboratories (DLB), another company in the same industry, is expected to report quarterly earnings of $0.70 per share, reflecting a year-over-year decline of 13.6% [9] - Dolby's anticipated revenues for the upcoming quarter are $305.38 million, which is a slight increase of 0.2% from the previous year [10]

Revenue Performance - Q2 Fiscal 2026 revenue was $18.8 million, down from $32.6 million in the same period last year, primarily due to reductions in Slacker revenues[7] - Revenue for the three months ended September 30, 2025, was $18,762 million, a decrease from $32,594 million in the same period of 2024, representing a decline of approximately 42.4%[29] - Total revenue for the six months ended September 30, 2025, was $37,969 million, down from $65,672 million in the same period of 2024, a decrease of about 42.2%[29] Profitability and Losses - Operating loss for Q2 Fiscal 2026 was $4.6 million, compared to a loss of $1.4 million in Q2 Fiscal 2025[7] - Adjusted EBITDA for Q2 Fiscal 2026 was ($1.0) million, a decrease of $3.9 million from $2.9 million in Q2 Fiscal 2025[8] - Net loss for the three months ended September 30, 2025, was $5,684 million, compared to a net loss of $2,317 million for the same period in 2024, indicating an increase in losses of 145.5%[21] - The net loss per share for the three months ended September 30, 2025, was $0.52, compared to $0.24 for the same period in 2024, reflecting a deterioration of 116.7%[21] Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2025, were $23,330 million, down from $33,994 million in the prior year, a reduction of 31.5%[21] - Cost of sales for the three months ended September 30, 2025, was $16,166 million, compared to $24,518 million in the same period of 2024, a reduction of approximately 34.1%[29] - Depreciation expense added back for the six months ended September 30, 2025, was $26 million, down from $76 million in the same period of 2024, indicating a decrease of approximately 65.8%[29] Cash and Assets - Cash and cash equivalents increased to $11,724 million as of September 30, 2025, compared to $4,119 million as of March 31, 2025, reflecting a growth of 184.5%[23] - Total assets as of September 30, 2025, were $53,820 million, up from $40,517 million as of March 31, 2025, representing an increase of 32.6%[23] Shareholder Information - The company reported a weighted average of 11,170,612 common shares outstanding for the three months ended September 30, 2025, compared to 9,465,818 shares in the same period of 2024, an increase of 24.5%[21] Liabilities and Deficits - Total liabilities as of September 30, 2025, were $61,829 million, up from $48,929 million as of March 31, 2025, an increase of 26.4%[23] - The company’s accumulated deficit increased to $275,001 million as of September 30, 2025, from $265,119 million as of March 31, 2025, indicating a rise of 3.4%[23] Strategic Initiatives - PodcastOne Fiscal 2026 guidance projects revenue between $56 million and $60 million, with Adjusted EBITDA of $4.5 million to $6 million[5] - AI-driven marketing initiatives increased average revenue per user (ARPU) by 60% and boosted premium conversions by over 22%[5] - LiveOne closed 7 major B2B deals over the past 12 months, resulting in contracted revenues exceeding $52 million[5] - The partnership with Amazon expanded from a $16.5 million three-year deal to a $20 million+ annual run rate[5] - LiveOne plans to launch a new B2B partnership targeting over 30 million monthly paying subscribers[5] - The company is actively evaluating M&A opportunities, including a potential subsidiary sale[5] Operational Efficiency - The company continues to focus on improving operational efficiency and exploring new market opportunities to enhance future performance[29]

Core Insights - LiveOne reported significant reductions in operating expenses and staff, leveraging AI efficiencies to decrease quarterly operating expenses from $22 million to $6 million and reduce staff from 350 to 95 [1][4]. Financial Highlights - For Q2 Fiscal 2026, LiveOne's revenue was $18.8 million, down from $32.6 million in Q2 Fiscal 2025, primarily due to reductions in Slacker revenues [5][8]. - The operating loss for Q2 Fiscal 2026 was $4.6 million compared to a loss of $1.4 million in the same period last year [5][8]. - Net loss for Q2 Fiscal 2026 was $5.7 million, compared to a net loss of $2.3 million in Q2 Fiscal 2025 [5][8]. - Adjusted EBITDA for Q2 Fiscal 2026 was ($1.0 million), a decrease of $3.9 million from $2.9 million in Q2 Fiscal 2025 [9]. Strategic & Operational Highlights - The Audio Division generated over $18 million in revenue for Q2 Fiscal 2026, maintaining a positive segment Adjusted EBITDA of $0.7 million [7]. - LiveOne closed 7 major B2B deals over the past 12 months, increasing contracted revenues to over $52 million [7]. - The partnership with Amazon expanded from a $16.5 million three-year deal to a $20 million+ annual run rate [7]. - Plans to launch a new B2B partnership targeting 30 million+ monthly paying subscribers are underway [7]. - AI-driven marketing efforts increased Average Revenue Per User (ARPU) by 60% and boosted Premium conversions by over 22% [7]. - LiveOne is actively evaluating M&A opportunities, including a potential subsidiary sale [7].

Core Points - PodcastOne will host a conference call to discuss its Q2 Fiscal 2026 operating and financial results on November 11, 2025 [1] - The call will be led by PodcastOne President Kit Gray and CFO Ryan Carhart, followed by a Q&A session [1] Company Overview - PodcastOne is a leading podcast platform providing a comprehensive solution in sales, marketing, public relations, production, and distribution [3] - The platform has achieved over 3.9 billion total downloads and has a community of 200 top podcasters [3] - PodcastOne's distribution network reaches over 1 billion monthly impressions across various channels, including YouTube, Spotify, Apple Podcasts, and iHeartRadio [3]

Core Points - LiveOne plans to announce its operating and financial results for Q2 Fiscal 2026 on November 12, 2025 [1] - The earnings conference call will take place at 10:00 AM Eastern Time [2] - LiveOne is a music, entertainment, and technology platform focused on delivering premium experiences and content worldwide [3] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates various subsidiaries including Slacker and PodcastOne [3] - The platform is available on multiple devices and applications, enhancing accessibility for users [3] - LiveOne emphasizes a creator-first approach, aiming to provide premium livestreams and original content [3]