LiveOne (LVO) Q3 2025 earnings summary

Executive summary

• Achieved record nine-month revenue of $95.1 million, up 9% year-over-year, with Q3 revenue of $29.4 million, down 6% from the prior year, primarily due to changes in the largest OEM customer agreement.

• Audio business surpassed $90 million in nine-month revenue and $14.1 million in adjusted EBITDA, while PodcastOne expanded to a top 10 network and signed a $15 million minimum guarantee deal with ART19.

• Signed five new B2B partnership deals in the last 90 days, adding $44 million in contracted revenue, including major agreements with a Fortune 500 media conglomerate and Amazon.

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

• Net loss for Q3 was $5.2 million to $5.6 million, with a working capital deficiency of $18.1 million and ongoing strategic review with J.P. Morgan.

Financial highlights

• Nine-month revenue reached $95.1 million (+9% YoY); Q3 revenue was $29.4 million (-6% YoY); nine-month adjusted EBITDA was $7.3 million, with Q3 adjusted EBITDA at $1.5 million.

• Net loss for the quarter was $5.2–$5.6 million, and for nine months was $8.3–$9.5 million, both improved from prior year periods.

• Cash and cash equivalents were $10.9 million as of December 31, 2024.

• Cost of sales for the quarter was $22.3 million, down 4% year-over-year.

• Cost savings from restructurings totaled $11 million.

Outlook and guidance

• Fiscal 2025 revenue guidance updated to $112–$120 million, with adjusted EBITDA guidance of $6–$10 million.

• Audio Division revenue guidance is $106–$115 million, with adjusted EBITDA of $12–$20 million.

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

• Management projects potential to become a multi-billion-dollar business within 24–36 months if B2B deal momentum continues.

• Future growth depends on successful OEM user conversion and expansion of podcast and advertising revenue.