LiveOne (LVO) Q3 2025 earnings summary

Executive summary

• Achieved record nine-month revenue of $95.1 million, up 9% year-over-year, but Q3 revenue declined 6% to $29.4 million due to changes with the largest OEM customer; significant growth in the audio business and PodcastOne, with five major B2B deals adding $44 million in contracted revenue.

• Renewed and amended partnership with Tesla, now requiring direct subscriber conversion, resulting in 800,000+ new users since December and representing 40% of Tesla's North American car base.

• PodcastOne expanded to a top 10 network, signed a three-year $15 million minimum guarantee deal with ART19 (Amazon), and achieved record revenues with positive EBITDA guidance.

• Net loss for Q3 was $5.6 million, compared to $2.2 million in the prior year; nine-month net loss was $9.5 million, improved from $10.7 million YoY.

• Initiated a $12 million stock buyback program, with $6.2 million remaining, and acquired PodcastOne shares.

Financial highlights

• Audio business revenues exceeded $90 million for the first time, with $14.1 million in adjusted EBITDA for the nine-month period; Q3 Audio revenue was $27.1 million, down 1% YoY.

• Adjusted EBITDA for nine months was $7.3 million (down from $8.2 million YoY); Q3 Adjusted EBITDA was $1.5 million (down from $3.3 million YoY).

• Cash and cash equivalents were $10.9 million as of December 31, 2024, after debt repayment and share acquisition.

• Cost savings from restructurings totaled $11 million.

• Working capital deficiency stood at $18.1 million as of December 31, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance updated to $112 million–$120 million; Adjusted EBITDA guidance $6 million–$10 million.

• Audio Division revenue guidance $106 million–$115 million; Adjusted EBITDA $12 million–$20 million.

• Expectation to close at least two more B2B partnerships by year-end, with a robust pipeline of over 70 deals in development.

• Anticipates significant revenue and market presence growth, with the Tesla partnership seen as a multi-billion-dollar opportunity.

• Plans to raise subscription prices over the next 12 months, leveraging improved data and industry pricing trends.