LiveWire Group (LVWR) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year, with intentional actions to reduce elevated dealer inventory impacting shipments and margins, especially in North America, but early signs of improved dealer profitability and retail sales emerged late in the quarter.

• Achieved record-setting fourth quarter with 22,286 units sold in 2025, a 16% increase year-over-year, and maintained the #1 position in U.S. electric motorcycle on-road retail sales.

• Leadership focused on restoring dealer relationships, improving inventory management, sharpening customer focus, and enhancing financial flexibility, with a reset strategy to be announced in May 2026.

• Dealer inventory was reduced by 17% globally, exceeding the 10% target, positioning the business for a more stable 2026.

• Expanded market share to 70% in the U.S. electric motorcycle 50+ horsepower on-road EV segment and entered five new European markets.

Financial highlights

• Q4 2025 consolidated revenue down 28% year-over-year; HDMC revenue down 10%, HDFS revenue down 59%.

• Consolidated revenue for 2025 was $25.7 million, down 4% year-over-year, while consolidated revenue units rose 16%.

• Q4 consolidated operating loss of $361 million, compared to a $193 million loss in Q4 2024.

• Consolidated operating loss for 2025 decreased by 32% to $75.5 million; net loss decreased by 20% to $75.1 million.

• Operating cash flow for 2025 was $569 million, down from $1.064 billion in 2024.

Outlook and guidance

• 2026 is viewed as a transition year, with margins expected to remain under pressure due to production running below wholesale and higher tariffs.

• HDMC retail and wholesale units for 2026 expected at 130,000–135,000, with a one-to-one relationship between retail and wholesale.

• Tariff costs forecasted at $75–$105 million in 2026, up from $67 million in 2025.

• HDFS operating income for 2026 guided to $45–$60 million, with long-term run rate expected to triple as the balance sheet rebuilds.

• LiveWire forecasted to have an operating loss of $70–$80 million in 2026.