LiveWire Group’s Q1 2025 Results: Cost Cuts Offset Revenue Slump Amid Strategic Shifts
15min read LiveWire Group, Inc. has reported its first-quarter 2025 financial results, revealing a complex mix of challenges and progress. While revenue fell sharply across both its motorcycle and STACYC segments, the company’s aggressive cost-cutting measures and strategic market expansions offer a glimmer of hope for long-term stability. However, the path ahead remains fraught with execution risks and macroeconomic headwinds.
The Financial Reality: Revenue Declines, but Costs Are Tamed
LiveWire’s consolidated revenue dropped to $2.74 million in Q1 2025, a 23% decline from the same period in 2024. The slide reflects steep drops in both segments:
- Electric Motorcycles: Revenue fell 66% to $0.4 million, with unit sales plummeting 72% to just 33 motorcycles.
- STACYC: Revenue dropped 38% to $2.3 million as supply chain disruptions and weaker distributor sales dragged on performance.
Ask Aime: "LiveWire's Q1 2025 financial results reveal a double-digit decline in revenue across both Electric Motorcycles and STACYC segments, with a 23% drop overall. How does this impact long-term stability?"
Despite the top-line struggles, LiveWire’s operational discipline shone through. Consolidated operating losses narrowed by $9.7 million year-over-year to $20.7 million, driven by a $7.8 million reduction in selling, administrative, and engineering expenses. Cost-cutting measures, including headcount reductions and relocating its LiveWire Labs to Milwaukee, contributed to a 32% decline in net cash used in operations.
Segment Analysis: Where the Pain Lies—and Potential Hides
Electric Motorcycles
The motorcycle segment’s revenue collapse stems from weak demand and a shift in product mix. While LiveWire’s flagship models like the S2 Alpinista were launched globally, unit sales remain anemic. The segment’s operating loss improved by $9.6 million, largely due to expense controls rather than sales growth.
STACYC
The electric balance bike and e-bike division saw revenue fall 38%, with supply chain delays and weaker distributor sales exacerbating the decline. However, LiveWire’s focus on trimming marketing spend and optimizing operations reduced the segment’s operating loss by $0.1 million to $1.3 million.
Strategic Moves: Expanding Markets and Products
Amid the revenue slump, LiveWire has leaned into geographic and product diversification:
- New Markets: The company entered four European markets—Poland, Portugal, Finland, and Belgium—in Q1, signaling a push to capitalize on growing EV demand in the region.
- Product Launches: The LiveWire S2 Alpinista, a premium electric motorcycle, and the STACYC pedal-assist model for teens and adults debuted globally. 
- Fleet Sales: Securing its first institutional customer, the St. Cloud Police Department, marks progress in tapping B2B markets—a critical growth area for EV manufacturers.
Risks and Challenges: Supply Chains, Parent Company Dependency, and Volatile Demand
LiveWire’s progress is clouded by significant risks:
- Supply Chain Delays: STACYC’s revenue drop was partly due to disruptions, highlighting vulnerabilities in global logistics.
- Harley-Davidson’s Struggles: As LiveWire’s parent company, Harley’s own 23% revenue decline in Q1 2025 raises concerns about financial support and operational independence.
- Macroeconomic Uncertainty: Weak consumer spending and EV market saturation risks have forced LiveWire to withdraw its unit sales guidance, focusing instead on cost targets.
Ask Aime: How is LiveWire Group's financial performance shaping up post-first quarter results?
Guidance: Aiming for an Operating Loss Below $60M in 2025
LiveWire has revised its annual operating loss target to below $60 million, down from the prior $70–80 million range. This reflects confidence in its cost-control measures but underscores the lack of revenue momentum. Management emphasized that strategic focus on expense management and market expansion will be key to bridging the gap between current performance and long-term goals.
Conclusion: A Fragile Path to Growth
LiveWire Group’s Q1 results paint a picture of a company balancing between cost discipline and revenue stagnation. While the $18.2 million reduction in cash used and narrowed operating losses are positives, the 72% drop in motorcycle sales and supply chain hurdles are red flags.
Investors must weigh two critical questions:
1. Can LiveWire’s cost cuts and market expansions offset its top-line weakness? The $60 million operating loss target is achievable if cost discipline holds, but revenue growth remains elusive.
2. Is the EV market mature enough to sustain LiveWire’s niche positioning? With competitors like Tesla (TSLA) and Zero Motorcycles dominating, LiveWire’s premium strategy must deliver differentiation.
For now, the stock appears cautiously optimistic—a 32% improvement in net loss to $19.3 million from $23.6 million in 2024 suggests progress, but the path to profitability is long. LiveWire’s future hinges on executing its strategic bets: expanding into new markets, delivering on product launches, and resolving supply chain bottlenecks. Without meaningful revenue turnaround, the company risks becoming a costly experiment for Harley-Davidson.
In a sector where scale and volume matter, LiveWire’s small footprint (e.g., 33 motorcycles sold in Q1) underscores the stakes. Investors should monitor not just cost trends but unit sales recovery and market share gains in Europe. Until then, LiveWire’s story remains one of survival, not dominance.
