LiveWire Group 2025 Q1 Earnings Misses Targets with Net Income Narrowing by 18.5%

LiveWire Group (LVWR) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company experienced a significant revenue decline, down 44.9% to $2.74 million compared to $4.98 million in 2024 Q1. Despite ongoing losses, LiveWire's net loss narrowed to $19.27 million, showcasing an 18.5% improvement over the previous year. The company withdrew its previous units guidance due to market volatility, targeting an operating loss below $60 million, an improvement from its earlier guidance of $70 to $80 million.

Revenue
LiveWire Group’s revenue for fiscal 2025 Q1 was marked by a notable decline. The electric motorcycles segment generated $419,000, while electric balance bikes contributed $1.68 million. The STACYC segment was a standout, delivering $2.32 million. Parts, accessories, and apparel saw revenues of $279,000 and $645,000 respectively, cumulatively leading to a total net revenue of $2.74 million.

Earnings/Net Income
LiveWire Group reported a reduction in net loss to $19.27 million for 2025 Q1, showing an 18.5% improvement from the $23.64 million net loss of 2024 Q1. Earnings per share improved from a loss of $0.12 to a loss of $0.09 per share, marking a 25% improvement, though the EPS remains below expectations.

Price Action
The stock price of LiveWire Group has seen a sharp decline, dropping 9.45% during the latest trading day, 39.79% over the past week, and 42.21% month-to-date.

Post-Earnings Price Action Review
The investment strategy of acquiring LiveWire Group shares following a revenue decrease and holding for 30 days resulted in modest returns of 3.34%, which fell significantly short of the benchmark's 46.42% return. The strategy demonstrated a compound annual growth rate (CAGR) of 0.75%, accompanied by a maximum drawdown of -8.48% and a Sharpe ratio of 0.11, indicating a higher risk profile compared to the benchmark with limited gains.

CEO Commentary
“Recognizing the heavyweight 2-wheel EV market remains limited in size for now, we remain focused on what we can control. Expenses are down by over 30% compared to the prior year same quarter with continued efforts to optimize. We opened four new countries in Europe and introduced LiveWire S2 Alpinista globally, as well as the first pedal assist STACYC product for teens and adults looking to join the ride. We also secured our first fleet customers: thank you Police Department of St Cloud, Florida for your trust and business,” said Karim Donnez, CEO, LiveWire.

Guidance
Due to ongoing market volatility and evolving macroeconomic conditions, the current level of uncertainty limits our ability to provide updated units projections with the necessary level of precision and reliability; thus, we have chosen to withdraw our previously issued units guidance at this time. We are, however, now targeting an Operating Loss below $60 million, down from the previously issued guidance of $70 to $80 million.

Additional News
LiveWire Group has been actively expanding its presence, recently unveiling dedicated patrol versions of its S2 Del Mar and Alpinista models designed specifically for law enforcement and security use. The company also announced a strategic partnership with KYMCO to expand its S2 portfolio, focusing on the development of an electric maxi-scooter project. Furthermore, LiveWire engaged in an exclusive collaboration with LA-based streetwear brand Anti Social Social Club, releasing a unique one-of-one S2 Del Mar electric motorcycle.