LiveWire Group (LVWR) Q3 2025 earnings summary

Executive summary

• Leadership focused on strengthening the dealer network, inventory management, and launching market-responsive promotions to address challenging macroeconomic conditions and soft demand, especially in North America and EMEA.

• The HDFS transaction with KKR and PIMCO was completed, transforming HDFS into a capital-light, de-risked model and unlocking significant discretionary cash for the parent company.

• Net loss for Q3 2025 was $19.4M, a 14.5% improvement year-over-year, with operating losses narrowing in both Electric Motorcycles and STACYC segments due to cost reductions and improved sales mix.

• Achieved record-setting quarter, maintaining #1 U.S. market share in 50+ hp electric motorcycles, with consolidated revenue up 28% year-over-year.

• Cash and cash equivalents declined to $16.3M as of September 30, 2025, from $64.4M at year-end 2024.

Financial highlights

• Consolidated Q3 revenue rose 17% year-over-year, driven by a 23% increase at HDMC; HDFS revenue fell 3%, while LiveWire revenue grew 16%.

• Q3 2025 consolidated revenue was $5.7M, up 28% from $4.4M in Q3 2024; Q3 net loss was $19.4M, improved 15% year-over-year.

• Q3 EPS was $3.10; global retail sales declined 6% year-over-year, with North America down 5% and international markets down 9%.

• HDMC gross margin for Q3 was 26.4%, down from 30.1% last year, impacted by tariffs and unfavorable operating leverage.

• HDFS operating income surged 472% year-over-year, mainly due to a $301 million benefit from the reversal of credit loss allowances.

Outlook and guidance

• Full-year 2025 financial outlook for HDMC and HDI remains withheld due to ongoing global tariff uncertainty.

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

• Full-year 2025 operating loss guidance updated to $72–$77M due to extended pricing incentives and strategic changes.

• Inventory reduction will continue, with further dealer inventory decreases targeted for year-end and into 2026.

• Planned production of two new 125cc-equivalent mini-motos in spring 2026 to expand market reach.