LiveOne (LVO) Q2 2025 earnings summary

Executive summary

• Q2 revenue reached $32.6 million, up 14% year-over-year, with six-month revenue at $65.7 million and strong growth in audio and podcast segments.

• Net loss for Q2 narrowed to between $1.9 million and $2.7 million, with improved operating results and adjusted EBITDA of $2.9 million.

• Paid membership base grew 27% year-over-year, reaching 3.1 million paid members and 4 million total members as of September 30, 2024.

• Amended Tesla relationship shifts to a direct subscription model effective December 2024, introducing new growth opportunities and risks.

• Cash and equivalents at quarter-end were $11.1 million, up from $7 million at March 31, 2024.

Financial highlights

• Q2 consolidated revenue: $32.6 million (+14% YoY); six-month revenue: $65.7 million (+17% YoY).

• Q2 adjusted EBITDA: $2.9 million; Q2 net loss per share improved to $(0.02) from $(0.09) prior year.

• Gross margin for Q2 was 22.7%–25%, consistent with prior year.

• Cash and equivalents at quarter-end: $11.1 million; working capital deficit: $22.3 million.

• Contribution margin for Q2 was $8.1 million, up slightly from $8.0 million prior year.

Outlook and guidance

• Fiscal 2025 consolidated revenue guidance maintained at $120 million–$135 million; Adjusted EBITDA guidance at $8 million–$15 million.

• Audio Division revenue guidance held at $110 million–$120 million; Adjusted EBITDA at $12 million–$20 million.

• Expect to announce at least two major B2B deals before year-end and two more before fiscal year-end (March 31).

• Management expects a short-term revenue dip as Tesla subscribers convert, with a clearer picture by mid-January.

• Continued investment in product development and technology to support growth.