Reduced headcount from 350 to 84, including 12+% this quarterEliminated ~$14M in liabilities, repaying $3M of debt and converting $11M+ into equity at $7.50 per share, aligning musicians, podcasters, and key talent as major shareholders while strengthening the balance sheet LOS ANGELES, Feb. 25, 2026 (GLOBE NEWSWIRE) -- LiveOne, Inc. (Nasdaq: LVO), a creator-first music, entertainment and technology platform, today announced continued execution of its strategic cost-reduction initiatives expected to strengt ...

Core Insights - LiveOne has launched its award-winning app on VIZIO smart TVs, providing users with free 24/7 access to its music service [1][2] - The app enhances LiveOne's distribution, reaching over 1.3 billion monthly active users across various platforms [4] Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, focusing on delivering premium experiences through memberships and live events [2] - The company operates several subsidiaries, including Slacker, PodcastOne, and LiveXLive, and offers its services across multiple devices and platforms [2] Product Features - The LiveOne app allows users to listen to hundreds of curated music stations across more than 30 genres and create custom stations based on their preferences [5] - Users receive personalized recommendations for music and podcasts, access popular podcast shows, and can watch live streaming performances and interviews [5] - The app also offers curated video content and subscription tiers that provide additional features such as ad-free listening and offline playback [5] Strategic Partnerships - LiveOne anticipates forming at least two additional Fortune 250 B2B partnerships by the end of the year, further expanding its market reach [4]

LiveOne (LVO) closed the last trading session at $5.2, gaining 21.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $11.5 indicates a 121.2% upside potential.The average comprises four short-term price targets ranging from a low of $10.00 to a high of $14.00, with a standard deviation of $1.91. While the lowest estimate indicates an increase of 92.3% from the current price level, ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: LiveOne (LVO) Stock Analysis - LiveOne (LVO) has shown a price increase of 20.6% over the past four weeks, indicating growing investor interest [4] - LVO has gained 8.4% over the past 12 weeks and has a beta of 1.64, suggesting it moves 64% more than the market [5] - LVO has a Momentum Score of A, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - LVO is trading at a Price-to-Sales ratio of 0.74, suggesting it is undervalued at 74 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides LVO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may present additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]

Revenue Performance - For the nine months ended December 31, 2025, revenue was $58.2 million, a decrease from $95.1 million in the same period of 2024, representing a decline of 38.8%[166]. - For the three months ended December 31, 2025, revenue was $20.3 million, down from $29.4 million in the same period of 2024, a decrease of 30.9%[176]. - Total revenue decreased by $9.2 million, or 31%, to $20.3 million for the three months ended December 31, 2025, compared to $29.4 million for the same period in 2024[179]. - Total revenue for the nine months ended December 31, 2025, was $58.2 million, a decrease of $36.9 million, or 39%, from $95.1 million in the same period of 2024[215]. - Membership revenue dropped by $43.3 million, or 82%, to $9.3 million for the nine months ended December 31, 2025, primarily due to changes in terms with the largest OEM customer[215]. - Advertising revenue increased by $7.8 million, or 20%, to $46.0 million for the nine months ended December 31, 2025, compared to $38.2 million for the same period in 2024[217]. Customer Concentration - The largest OEM customer accounted for 43% of revenue in 2025, down from 71% in 2024, with revenue from this customer decreasing from $49.1 million to $4.4 million[166]. - Membership services revenue fell by $11.4 million, or 80%, to $2.9 million, primarily due to changes in terms with the largest OEM customer[180][181]. - Slacker operations revenue decreased by $11.6 million, or 81%, to $2.8 million, primarily due to changes in terms with the largest OEM customer[202]. - Audio Group - Slacker revenue decreased by $43.4 million, or 82%, to $9.2 million for the nine months ended December 31, 2025, primarily due to a change in terms with the largest OEM customer[236]. Operating Expenses - Total operating expenses for the three months ended December 31, 2025, were $22.2 million, down from $34.6 million in 2024, a reduction of 35.9%[176]. - Total operating expenses decreased by $33.6 million, or 33%, to $68.8 million for the nine months ended December 31, 2025, from $102.4 million in the same period of 2024[212]. - Total operating expenses decreased by $6.5 million, or 53%, to $5.8 million, primarily due to reductions in sales and marketing, product development, and general administrative expenses[188]. - General and administrative expenses decreased by $3.0 million, or 18%, to $14.0 million for the nine months ended December 31, 2025, compared to $17.0 million for the same period in 2024[226]. Profitability and Loss - The net loss for the three months ended December 31, 2025, was $4.1 million, compared to a net loss of $5.6 million in the same period of 2024, indicating an improvement of 26.7%[177]. - Net loss increased to $4.1 million, or 20% of revenue, compared to a net loss of $5.6 million, or 19% of revenue, in the prior year[197]. - For the nine months ended December 31, 2025, the company incurred a net loss of $13.7 million and cash used in operating activities was $8.5 million, with a working capital deficiency of $18.1 million[253]. - Adjusted EBITDA increased by $3.5 million, or 516%, to $2.8 million, attributed to increased revenue and reduced talent-based expenses[200]. - Adjusted EBITDA for the three months ended December 31, 2025, was $(4,106) thousand, compared to $(5,638) thousand for the same period in 2024, indicating an improvement[249]. - Adjusted EBITDA loss decreased by $0.4 million, or 76%, to $(0.1) million for the three months ended December 31, 2025, compared to $(0.5) million for the same period in 2024[208]. Strategic Initiatives - The company plans to expand internationally into Europe, Asia Pacific, and Latin America, incurring significant upfront expenses associated with these growth opportunities[175]. - The company aims to convert OEM drivers to direct subscribers of the LiveOne app, which is seen as a significant growth opportunity[171]. - The company expects to continue investing significantly in product development and technology solutions over the next 12 to 24 months to address growth opportunities[170]. - The company expects to make additional strategic acquisitions to grow its business and implement its digital asset treasury strategy, which may require significant investments[263]. Cash and Financing - As of December 31, 2025, the company had cash and cash equivalents, including restricted cash, totaling $8.6 million, primarily invested in Bitcoin[252]. - The company has a convertible note balance of $14.9 million and a Capchase Loan and SBA loan balance of $0.1 million each as of December 31, 2025[252]. - The company completed a public offering on July 17, 2025, raising approximately $9.5 million for cryptocurrency acquisitions and its digital asset treasury strategy[262]. - For the nine months ended December 31, 2025, net cash provided by financing activities was $20.5 million, primarily from $15.2 million in convertible debt and $9.4 million from a common stock offering[272]. - The company entered into a Business Loan Agreement on September 8, 2023, converting its revolving credit facility into an asset-backed loan with a borrowing capacity based on the Borrowing Base[256]. - Cash used in investing activities for the nine months ended December 31, 2025, was $7.5 million, primarily due to the purchase of equipment ($2.5 million) and crypto digital assets ($5.0 million)[270]. Market and Risk - The company did not provide quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[275].

Core Viewpoint - LiveOne is positioned for significant growth in the music, entertainment, and technology sectors, supported by strategic partnerships and operational efficiencies [1][3][4]. Financial Performance - Industrial Alliance Securities has set a price target of $12 for LiveOne, indicating a potential 50% increase from the current stock price of $4.80 [2][6]. - LiveOne anticipates generating over $57.9 million in revenue for the fiscal year to date, with $19.9 million expected from the third quarter alone [2][6]. - The company projects an adjusted EBITDA of over $1 million for the third quarter, reflecting a 200% increase quarter-over-quarter [3][6]. Partnerships and Growth Strategy - LiveOne's growth is driven by B2B partnerships, with plans to launch three new partnerships with Fortune 500 companies by year-end [3]. - The company has over 100 potential partnerships in the pipeline, which could further enhance revenue [3]. Operational Efficiency - LiveOne has achieved a 52% year-over-year reduction in operating expenses and plans to reduce headcount by 34% by year-end, saving between $4 million and $5 million [4]. - The company has paid off $2.5 million of its debt, improving its financial position [4]. Market Position - Despite a recent decrease of 3.13% in stock price, LiveOne's market capitalization is approximately $55.06 million, with a trading volume of 236,202 shares [5]. - The stock has fluctuated between a high of $10.65 and a low of $3.70 over the past year, indicating volatility [5].

Financial Results Announcement - LiveOne, Inc. announced preliminary financial results for the fiscal quarter and nine months ended December 31, 2025[5]. - The financial results are still being finalized and are subject to change, indicating that the estimates are preliminary and unaudited[6]. - The press release containing these results is based on currently available information as of February 5, 2026[6]. - The independent registered public accounting firm, Macias Gini & O'Connell LLP, has not audited or reviewed the preliminary financial information[7]. - The company emphasizes that these estimates should not be viewed as a substitute for full financial statements prepared in accordance with generally accepted accounting principles[6]. Compliance and Reporting - The company is required to comply with the Securities Exchange Act of 1934 for its reporting obligations[9]. - The press release is attached as Exhibit 99.1 and is not deemed "filed" under the Exchange Act[8]. - The report was signed by Ryan Carhart, Chief Financial Officer, on February 5, 2026[14]. - The company is classified as an emerging growth company under the Securities Act[4]. Forward-Looking Statements - The report includes forward-looking statements that may be affected by various risk factors[6].

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $20.3 million for Q3 fiscal 2026, with total revenues for the nine months reaching over $58 million [4][13] - Adjusted EBITDA for Q3 was $2.6 million, contributing to a positive consolidated adjusted EBITDA of $1.6 million for the second quarter [13] - The company posted a net loss of $4.1 million or 37 cents per diluted share for Q3 [13] Business Line Data and Key Metrics Changes - The audio division generated $18.6 million in revenue for Q3 and $52.2 million for the nine-month period, with an Adjusted EBITDA of $2.6 million for Q3 [5][13] - PodcastOne subsidiary achieved record revenue of $15.9 million and adjusted EBITDA of $2.8 million [13][14] - Slacker subsidiary reported Q3 revenue of $2.8 million with an adjusted EBITDA of negative $0.1 million [13] Market Data and Key Metrics Changes - The company has over $125 million in net operating loss carryforwards, which represent significant long-term shareholder value and tax efficiencies [5][6] - Industry valuation dynamics are improving, with the company trading at 60% of revenues compared to the industry average of over 3x revenues [6] Company Strategy and Development Direction - The company is focused on expanding partnerships with major players like Amazon, Apple, and Tesla, aiming to launch three significant Fortune 500 partnerships [7][9] - A strategy is in place to convert over 1 million free and ad-supported subscribers into paid tiers, representing potential incremental revenue [7] - The company is also expanding its original IP, having sold its fourth television series to a major streaming platform [8] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the company has emerged leaner and more disciplined after navigating various challenges, positioning itself for the next growth cycle [4][5] - The preliminary fiscal guidance for the upcoming year is set at $85 million to $95 million in revenues and $8 million to $10 million in Adjusted EBITDA [5][40] - Management expressed confidence in the company's undervaluation and the potential for significant growth driven by B2B partnerships and AI initiatives [11][12] Other Important Information - The company has streamlined its workforce from 350 to 88 members, resulting in a reduction of operating expenses by over 52% year-over-year [4] - The company is actively exploring M&A opportunities as the market stabilizes and valuations normalize [7][11] Q&A Session Summary Question: On the B2B business, can you elaborate on customization and options for customers? - Management stated that the company is uniquely positioned in the B2B space, leveraging AI for customization and offering competitive pricing [17][20] Question: What is the competitive landscape for content provision? - Management indicated that while some competition exists, the company's unique service offerings and flexibility provide a competitive advantage [29][31] Question: What is the potential for advertising revenue from Slacker's non-subscription customers? - Management noted that they are actively increasing advertising offerings and expect to convert free subscribers into paid subscriptions over time [24][26] Question: When will the 10-Qs be released? - The CFO confirmed that the 10-Qs for both LiveOne and PodcastOne would be released the following day [47] Question: How sustainable are current cost levels? - The CFO indicated that G&A and sales and marketing costs are expected to decrease further in the upcoming quarters [49][50] Question: What is the timing for revenue from the 30 million subscriber deal? - Management mentioned that revenue from this deal is expected to ramp up in the following year, with some initial revenue potentially coming in this quarter [61][63]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $20.3 million for Q3 fiscal 2026, with a total of over $58 million in revenue for the nine months ending December 31, 2025 [4][14] - Adjusted EBITDA for Q3 was $2.6 million, contributing to a total of over $3.7 million for the audio division in the nine-month period [5][14] - The company posted a net loss of $4.1 million or 37 cents per diluted share for Q3 fiscal 2026 [14] Business Line Data and Key Metrics Changes - The audio division generated $52.2 million in revenue over nine months, with Q3 revenue of $18.6 million [5][14] - PodcastOne subsidiary achieved record revenue of $15.9 million and adjusted EBITDA of $2.8 million in Q3 [14][15] - Slacker subsidiary reported Q3 revenue of $2.8 million with an adjusted EBITDA of negative $0.1 million [14] Market Data and Key Metrics Changes - The company is trading at 60% of revenues, while the industry is trading over 3x revenues, indicating a significant undervaluation [6] - The B2B pipeline has grown over 30% in the last 120 days, with over 100 active enterprise opportunities [6][7] Company Strategy and Development Direction - The company is focused on expanding partnerships with major players like Amazon, Apple, and Tesla, aiming to launch three significant Fortune 500 partnerships [7][8] - A strategic shift towards owning intellectual properties and original content is underway, with over 15 original projects in the pipeline [8][9] - The company is evolving its leadership structure to enhance focus on B2B partnerships and AI initiatives [11][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for transformational growth, citing a strong B2B pipeline and improving industry dynamics [15][40] - The company anticipates reaching profitability by the end of the fiscal year, leveraging over $125 million in net operating loss carryforwards for tax efficiencies [5][6] - Management highlighted the importance of AI in enhancing personalization and optimizing monetization, driving B2B demand [10][73] Other Important Information - The company has reduced operating expenses by over 52% year-over-year and streamlined its workforce from 350 to 88 employees [4][5] - A share repurchase program is being expanded, reflecting confidence in the company's undervaluation [12] Q&A Session Summary Question: On the B2B business, can you elaborate on customization and options for customers? - Management noted that the company is uniquely positioned in the B2B space, leveraging AI for customization and offering competitive pricing [18][20] Question: What is the competitive landscape for content provision? - Management indicated that while some competition exists, the company's unique service offerings and flexibility provide a significant advantage [31][32] Question: How is the advertising revenue for Slacker's non-subscription customers progressing? - Management highlighted a robust advertising business across audio platforms and noted a partnership with DAX to enhance advertising offerings [25][26] Question: What is the timing for the 30 million subscriber deal? - Management stated that the deal is signed and expected to ramp up in the following year, with some revenue potentially starting this quarter [59][61] Question: What is the expected impact of Tesla user conversions on revenue? - Management confirmed that the conversion from ad-supported to paid subscriptions is expected to contribute significantly to revenue growth [67][68]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $20.3 million for Q3 fiscal 2026, with a total of $58 million in revenue for the nine months [15][4] - Adjusted EBITDA for Q3 was $2.6 million, with a consolidated adjusted EBITDA of $1.6 million for the second quarter [15][4] - The company posted a net loss of $4.1 million or 37 cents per diluted share for Q3 [15] Business Line Data and Key Metrics Changes - The audio division generated $18.6 million in revenue and $2.6 million in adjusted EBITDA for Q3 [15] - PodcastOne subsidiary achieved record revenue of $15.9 million and adjusted EBITDA of $2.8 million [15][16] - Slacker subsidiary reported Q3 revenue of $2.8 million with an adjusted EBITDA of negative $0.1 million [15] Market Data and Key Metrics Changes - The company is trading at 60% of revenues, while the industry is trading over 3x revenues [6] - The private sector in podcasting and audio is trading over 3.7x, with transactions above 5x revenues in the last 120 days [6] Company Strategy and Development Direction - The company aims to scale profitably and close the earnings delivery gap, with preliminary fiscal guidance of $85 million to $95 million in revenues and $8 million to $10 million in adjusted EBITDA for the next fiscal year [5][6] - The focus is on expanding partnerships with major companies like Amazon, Apple, and Tesla, and converting over 1 million free and ad-supported subscribers into paid tiers [8][9] - The company is also investing in original IP, with over 15 projects in the pipeline, and plans to expand live experiences, which previously accounted for 50% of revenues [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for transformational growth, highlighting the importance of AI and behavioral data in driving future opportunities [16][11] - The company is focused on leveraging its $125 million net operating loss carryforwards for long-term shareholder value and tax efficiencies [5][6] - Management noted that the current B2B deals and upcoming partnerships could represent significant growth opportunities, with expectations of substantial revenue increases [41][76] Other Important Information - The company has streamlined its workforce from 350 to 88 members, reducing operating expenses by over 52% year-over-year [4] - The company has paid off over $2.5 million of debt, strengthening its balance sheet and capital flexibility [4][5] Q&A Session Summary Question: On the B2B business and customization - Management explained that the B2B deals are customized and that the company is leveraging AI to enhance service delivery, making it difficult for competitors to replicate [19][20] Question: Advertising revenue potential for Slacker - Management indicated that the advertising business is robust and that partnerships with programmatic advertising companies are expected to drive revenue growth from free subscribers [26][27] Question: Competitive landscape for content provision - Management stated that while some competition exists, the company's unique service offerings and flexibility provide a competitive advantage [31][32] Question: Timing and revenue from the 30 million subscriber deal - Management confirmed that the deal is signed and expected to ramp up in the following year, with conservative revenue estimates included in the guidance [36][62] Question: Conversion rates from Tesla users - Management highlighted a significant conversion rate from Tesla users and expressed optimism about future revenue growth from this segment [70]