Live Ventures Q3 2025 Earnings Call Highlights: Improved Performance Across All Segments, Cost-Saving Initiatives, and Revenue Decline

Live Ventures Inc reported Q3 2025 earnings with improved performance across all four operating segments. Revenue declined 9.2% to $112.5 million, primarily due to retail flooring and steel manufacturing segment declines. However, gross profit increased 3.4% to $38.3 million, and net income improved to $5.4 million. Targeted cost-saving initiatives resulted in significant savings, particularly in retail flooring. The company faces softness in new home construction and home refurbishment markets, and interest rates and economic volatility pose challenges.

Live Ventures Inc (Nasdaq: LIVE) reported its fiscal third-quarter 2025 financial results, revealing a mixed performance with revenue declining and operating income surging. The company reported a 9.2% decrease in revenue to $112.5 million, primarily due to declines in the retail flooring and steel manufacturing segments [1].

Despite the revenue decline, Live Ventures achieved a significant 607.6% increase in operating income to $8.0 million. Net income also surged to $5.4 million, up from a net loss of $2.9 million in the prior year. The company's gross margin expanded by 410 basis points to 34.0%, driven by strategic pricing initiatives and operational excellence programs [1].

Key segments performed well, with the Retail-Entertainment segment driving growth with 15.2% higher revenue and 74.0% improved operating income. The Flooring Manufacturing segment achieved the most dramatic margin improvement, with operating income increasing 122.8% despite a 5.7% revenue decline. The company's balance sheet remained solid, with stockholders' equity at $94.3 million [1].

Targeted cost-saving initiatives resulted in significant savings, particularly in the retail flooring segment. General and administrative expenses decreased by 12.6% due to cost reduction initiatives. Adjusted EBITDA more than doubled to $13.2 million, reflecting successful cost optimization initiatives [2].

Live Ventures maintained strong liquidity with $37.1 million in cash and credit availability while continuing its share repurchase program. The company faces continued softness in the new home construction and home refurbishment markets, impacting retail flooring and flooring manufacturing segments. Interest rates and economic volatility pose challenges, particularly affecting the housing market and consumer demand for big-ticket items [2].

During the earnings call, management stated that the company is open to all acquisition opportunities, focusing on bolt-on acquisitions where they have expertise. They are not currently considering the marijuana space due to federal legality issues. Management also mentioned that they are always looking at opportunities and do not wait for a specific cash amount before acquiring new companies [2].

References:
[1] https://www.ainvest.com/news/live-ventures-q3-revenue-yoy-112-5-mln-net-income-5-4-mln-2508/
[2] https://ca.finance.yahoo.com/news/live-ventures-inc-live-q3-030027631.html