LiveWire Group (LVWR) Q2 2025 earnings summary

Executive summary

• Entered strategic partnerships with KKR and PIMCO for HDFS, selling a minority equity stake at 1.75x post-transaction book value, unlocking $1.25 billion in cash for the parent company and reducing leverage.

• Net loss for Q2 2025 was $18.8 million, a 24% improvement compared to Q2 2024, driven by cost reductions and lower operating expenses.

• HDFS will retain 1/3 of new consumer loans, with partners purchasing 2/3 of future retail loan originations at a premium for five years, boosting HDFS ROE to the high 20s.

• No negative impact expected for customers or dealers; HDFS will continue to originate and service loans transparently.

• Cost reduction initiatives, including headcount reductions and relocation of LiveWire Labs, contributed to improved operating results.

Financial highlights

• Q2 consolidated revenue declined 19% year-over-year, primarily due to planned reduction in motorcycle shipments and soft demand.

• Q2 2025 consolidated revenue was $5.9 million, down 9% year-over-year; STACYC segment revenue grew 25% while Electric Motorcycle sales fell 65%.

• Q2 consolidated operating income was $112 million; HDMC operating income down 69%, HDFS down 2%, LiveWire segment loss at $19 million.

• Net loss per share for Q2 2025 was $0.09, compared to $0.12 in Q2 2024.

• Cash and cash equivalents at June 30, 2025, were $29.3 million, down from $64.4 million at year-end 2024.

Outlook and guidance

• Withholding full-year 2025 financial outlook for HDMC and HDI due to ongoing global tariff uncertainty.

• HDFS expected to deliver $525–$550 million operating income for 2025.

• Updated full-year operating loss guidance to $59–$69 million due to ongoing market volatility and project negotiations.

• Management expects capital expenditures between $5M and $10M in 2025.

• Expecting positive retail sales in North America for the second half of 2025, supported by improved trends and easier comps.