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 - Revenue for Q1 2026 was $15 million, a 14% increase from $13.1 million in the same quarter last year [12] - Operating loss decreased to $1.05 million from $1.4 million year-over-year, primarily due to lower amortization [12] - Net loss improved to $1.05 million or $0.04 per share, compared to a net loss of $1.4 million or $0.06 per share in the prior year [13] - Adjusted EBITDA turned positive at $600,000, compared to a negative $300,000 in the same quarter last year [13] - The company ended the quarter with zero debt and $1.9 million in cash and cash equivalents [13] Business Line Data and Key Metrics Changes - PodcastOne launched 14 new podcasts, increasing the total to 206 active shows [10] - Video views surged by 218% year-over-year across multiple platforms, indicating strong audience engagement [10] Market Data and Key Metrics Changes - PodcastOne ranked as a top 10 US podcast publisher for the eighth consecutive month, with a monthly unique US audience of 5.4 million and 20.3 million downloads and streams as of July 2025 [8] - The podcast advertising market is projected to see over $2.4 billion in investments this year, highlighting the industry's growth potential [7] Company Strategy and Development Direction - PodcastOne aims to leverage its vertically integrated model to drive long-term value for creators, advertisers, and shareholders [7] - The company is expanding its video production and distribution efforts to enhance audience engagement [11] - PodcastOne is actively exploring M&A opportunities, particularly in acquiring talent and podcast platforms [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about building on momentum with high-profile initiatives and events planned for the upcoming months [15] - The company expects full-year revenues to be between $56 million and $60 million, representing at least an 8% increase from the previous fiscal year [14] - Adjusted EBITDA for the full year is anticipated to be between $3 million and $5 million [14] Other Important Information - PodcastOne has upgraded its order management system to improve operational efficiency and sales processes [17] - The company is focused on compelling content, strategic monetization, and maintaining trusted relationships with talent and advertisers [17] Q&A Session Summary Question: How does the growth in video views translate into revenue? - Management indicated that current contracts consider both audio and video views, allowing for higher rates per spot due to increased video viewership [21][22] Question: What is the current M&A environment for platforms? - Management noted that the platform side is dominated by a few major players, but there are still interesting opportunities for acquisition [26][29] Question: What factors could drive revenue to the high end of guidance? - Acquiring a company with good revenues could push the numbers higher, while not acquiring would keep it at the lower end [33] Question: How is stock-based compensation affecting cost of sales? - Management confirmed that stock-based compensation is being used to reduce cash payments, which is part of their strategy to manage costs [39][40] Question: How do consumers interact with video podcasts compared to audio-only? - Management noted that video consumption is significant, with many viewers engaging with content actively, while others may listen passively [49][50]