LiveWire Group (LVWR) Q1 2026 earnings summary

Executive summary

• Q1 2026 global retail sales grew 8% year-over-year, led by a 14% increase in North America, despite a challenging consumer environment.

• Net loss for Q1 2026 was $18.1 million, an improvement from $19.3 million in Q1 2025, reflecting reduced operating losses in both Electric Motorcycles and STACYC segments.

• Revenue grew 86% year-over-year to $5.1 million, driven by higher unit sales in both segments, with electric motorcycle unit sales up 176% and STACYC unit sales up 101%.

• Dealer inventory was reduced by 22% year-over-year, improving alignment with retail demand and setting up for the main riding season.

• The new strategic plan, Back to the Bricks, focuses on restoring volume, expanding the portfolio, and strengthening dealer relationships.

Financial highlights

• Consolidated Q1 2026 revenue declined 12% year-over-year, mainly due to a 54% drop in HDFS revenue after transitioning to a capital-light model.

• Q1 consolidated operating income was $23 million, down from $160 million in Q1 2025.

• Q1 EPS was $0.22, compared to $1.07 in Q1 2025.

• HDMC revenue decreased 2% to $1.1 billion; gross profit margin fell to 25.3% from 29.1% year-over-year.

• LiveWire segment revenue rose 87% year-over-year, with operating loss improving by 11%.

• Q1 2026 consolidated revenue: $5.1 million, up from $2.7 million in Q1 2025.

• Consolidated operating loss: $17.7 million, improved from $20.7 million year-over-year.

• Net loss per share: $(0.09), unchanged from prior year.

• Cash and cash equivalents: $67.5 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: HDMC retail and wholesale units expected at 130,000–135,000.

• Tariff costs for 2026 forecasted at $75–$90 million, down from prior guidance.

• HDMC operating income expected between +$10 million and a loss of $40 million; HDFS operating income $45–$60 million; LiveWire operating loss $70–$80 million.

• Mid-single-digit retail unit growth targeted over the medium term, with EBITDA margin goal of 10–12%.

• Focus for 2026 is on launching S4 Honcho™ mini-motos, expanding the retail network, and achieving further cost savings.

• Management expects current resources to fund operations for at least the next twelve months but anticipates the need for additional capital to reach profitability.

• Full-year 2026 guidance reiterated; S4 Honcho production targeted for Spring 2026.