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]