LiveOne 2025 Q4 Earnings Misses Targets as Net Income Declines 310.5%

LiveOne (LVO) reported its fiscal 2025 Q4 earnings on July 15th, 2025. The company missed expectations, with a significant decline in revenue and a deeper net loss compared to the previous year. Looking ahead, LiveOne has provided guidance with a projected revenue range for fiscal year 2025, reflecting its strategic initiatives amidst challenging market conditions. The CEO remains optimistic about future growth despite the current setbacks, focusing on strengthening partnerships and improving operational efficiencies to enhance shareholder value.

Revenue

The total revenue for LiveOne decreased considerably by 37.6% to $19.29 million in Q4 2025, down from $30.90 million in Q4 2024.

Earnings/Net Income

LiveOne's earnings report revealed a deepening loss, with the company recording a loss of $0.11 per share in Q4 2025, compared to a loss of $0.03 per share in Q4 2024. The net loss widened to $-10.86 million in Q4 2025, marking a 310.5% increase from the $-2.65 million loss reported in Q4 2024. The earnings per share performance indicates a poor financial period for LiveOne.

Post-Earnings Price Action Review

The investment strategy of acquiring LiveOne shares when revenues miss expectations and holding them for 30 days resulted in a substantial negative return. The strategy experienced a loss of -71.84%, significantly underperforming the benchmark by 28.16%. Despite a maximum drawdown of 0% and a Sharpe ratio of -0.30, the approach exhibited high volatility and risk, ultimately leading to no maximum loss mitigation and signaling a precarious investment strategy during this period.

CEO Commentary

Robert Ellin, Chairman and CEO of LiveOne, expressed optimism regarding the company's growth trajectory, highlighting that the guidance for fiscal year 2025 reflects significant organic growth within the Audio Division. He emphasized the potential impact of upcoming B2B partnerships and initiatives centered around celebrity brands and music publishing, which could enhance revenues. Ellin noted the strategic focus on enhancing shareholder value through operational improvements and maintaining a strong market position, despite ongoing challenges in the industry.

Guidance

LiveOne projects consolidated revenue for fiscal year 2025 to be in the range of $130 million to $140 million, with an anticipated EBITDA of $20 million to $25 million. The company expects to add over 1 million subscribers and will expand its stock repurchase program to $10 million. Additionally, LiveOne is restructuring its merchandise business, expecting annual cost savings of $5 million to $10 million.

Additional News

LiveOne has been actively exploring strategic options following the sale of Napster for $207 million, which has prompted a strategic review to enhance shareholder value. The company continues to seek inbound M&A opportunities and has announced an underwritten public offering of shares of its common stock, managed by Lucid Capital Markets. This offering is part of a shelf registration statement filed with the SEC, aiming to leverage capital market opportunities to fund growth initiatives. Meanwhile, LiveOne's PodcastOne segment has shown promising growth, supported by new partnerships and increased advertising revenue, indicating potential for future expansion and diversification.