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LiveOne, Inc. (LVO)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue was $19.207M, down 42% year over year and slightly down sequentially; it missed consensus revenue of $21.044M by ~$1.84M, while EPS of -$0.04 materially beat consensus EPS of -$0.30, driven by cost actions and mix shift away from Slacker . Revenue Consensus Mean $21.044M*, Primary EPS Consensus Mean -$0.30*.
  • Management highlighted balance-sheet repair (elimination of $14.1M short-term liabilities YoY; staff reduced 31% to 95) and B2B momentum (Amazon $16.5M 3-year deal; Fortune 250 streaming network $26M+; pipeline of ~75 B2B deals), setting up H2 ramp .
  • PodcastOne delivered a record $15M Q1 revenue; Audio Division Adjusted EBITDA was positive $0.4M despite Slacker softness; consolidated Adjusted EBITDA was -$1.812M as Slacker pressure outweighed savings .
  • Near-term catalysts: a white-label launch with a 30M+ paying-subscriber partner, accelerating Tesla conversion via ads/AI, and a “Reality Olympics” live event (Dec 11, LAFC’s BMO Stadium) .

Note: Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • B2B acceleration: “We have the strongest balance sheet… and now move to the really exciting side of the B2B partnerships… biggest launch in the history of the company… 30+ million paying subscribers” .
  • PodcastOne strength: “PodcastOne… doing $15,000,000 for the quarter” with fiscal guidance later reiterated at $56–60M revenue and $4.5–6M Adjusted EBITDA for FY26 .
  • Cost discipline and AI leverage: Staff cut 31% (138→95) and AI used to curate 500 music channels with fewer hosts; fill rate and ARPU improved, supporting conversion initiatives .

What Went Wrong

  • Slacker revenue decline drove consolidated revenue down 42% YoY and widened operating loss to -$4.034M; Adjusted EBITDA fell to -$1.812M from +$2.903M YoY .
  • Sequential revenue was roughly flat but profitability deteriorated vs Q4 (Adjusted EBITDA +$1.592M in Q4 vs -$1.812M in Q1) as Slacker declines outpaced cost reductions .
  • No consolidated guidance provided; management deferred formal outlook pending B2B ramp and conversion trajectory, increasing near-term uncertainty for forecasting .

Financial Results

Core P&L vs Prior Year and Prior Quarter

Metric ($USD)Q1 FY25 (oldest)Q4 FY25Q1 FY26 (newest)
Revenue ($USD Millions)$33.078 $19.288 $19.207
Operating Income (Loss) ($USD Millions)-$0.784 -$8.249 -$4.034
Net Income (Loss) ($USD Millions)-$1.557 -$8.348 -$3.864
Diluted EPS ($USD)-$0.02 -$0.08 -$0.04
Adjusted EBITDA ($USD Millions)$2.903 $1.592 -$1.812

Actual vs Wall Street Consensus (S&P Global)

MetricQ1 FY26 ActualQ1 FY26 Consensus*
Revenue ($USD)$19,207,000 $21,044,000*
Primary EPS ($USD)-$0.04 -$0.30*

Note: Values marked with * are retrieved from S&P Global.

Margins (derived from reported figures)

MetricQ1 FY25Q4 FY25Q1 FY26
Gross Profit ($USD Millions)$7.216 $5.110 $2.170
Gross Profit Margin (%)21.8% (GP/Rev from )26.5% (GP/Rev from )11.3% (GP/Rev from )

Segment Breakdown (Q1 FY26)

Segment Metric ($USD Millions)Q1 FY26
PodcastOne Revenue$15.0
Audio Division Adjusted EBITDA$0.4
Other Operations Adjusted EBITDA-$0.7
Corporate Adjusted EBITDA-$1.5
Consolidated Adjusted EBITDA-$1.812

KPIs

KPIQ1 FY25Q4 FY25Q1 FY26
Tesla Conversions (users)——1,300,000
ARPU (paying subscribers)—~$3 (legacy reference) ~$5
Tesla Ad Growth / Fill Rate—“50%+ fill rate” 30%→82% ad growth
Staff Count——138→95 (-31%)
Cash & Equivalents ($USD)—$4.119M $11.891M
Short-term Liabilities Eliminated YoY——$14.1M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
PodcastOne RevenueFY26$55–60M (Q4 FY25 call) $56–60M (Q2 FY26 PR) Maintained (raised lower bound)
PodcastOne Adjusted EBITDAFY26$3.5–5.0M (Q4 FY25 call) $4.5–6.0M (Q2 FY26 PR) Raised
LVO Consolidated GuidanceFY26None providedNone providedNo formal guidance (management indicated forthcoming)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25)Current Period (Q1 FY26)Trend
AI efficiencyCut 1/3 Slacker staff; 500 channels curated with fewer hosts; ad fill 50%+ AI-driven curation enabling lower staffing; pushing conversions via ads/hosts Strengthening
B2B partnershipsAmazon $16.5M; Fortune 50 ~$25M; 5+ B2B, ~$50M run-rate; 75 pipeline Fortune 250 at $26M+ run-rate; 30M+ subscriber white-label launch imminent; ~75 pipeline Expanding
Tesla platform1.5M+ total users, 250k+ paid; brand presence and data control 1.3M converted; ARPU moving from $3 to $5; ads to drive conversion to paid Recovery with monetization
Web3/cryptoBuilding podcast network; tokenization optionality $10M equity raise for Bitcoin yield strategy; crypto advisory board additions Scaling
Live events—“Reality Olympics” event announced for Dec 11 (BMO Stadium) New growth vector
TV/streaming3 podcasts to TV in pipeline “Varnamtown,” “Vigilante,” “Opportunist” sold; ~$1M upfront; awaiting greenlights Progressing
Balance sheetReplaced EastWest with JGB; buybacks “Strongest balance sheet” claim vs 8-K cash; staff cuts; liabilities reduced Improved, with noted discrepancy

Management Commentary

  • “We have the strongest balance sheet that we’ve had in many years with over $20,000,000 in cash… eliminated $14,000,000 of short term liabilities… reduced staff by 31%” . Note: Q1 balance sheet shows cash & equivalents of $11.891M, indicating timing and financing effects between the call and reporting .
  • “Our Amazon deal… a $16,500,000 three year deal… Fortune 250 streaming network… well over $26,000,000 and increasing” .
  • “We have just with… DAX… grown from 30% to 82% ad growth in Tesla cars. We have also increased our ARPU from $3 to $5” .
  • “We expect $50,000,000 in B2B revenues over a twelve month period… you’ll start to see that really click in the third and fourth quarter” .
  • “Upcoming ‘Reality Olympics’… some of the biggest reality stars… significant NFT component… no additional cost to us” .

Q&A Highlights

  • B2B scope and timing: Management reiterated ~$50M B2B revenue over the next 12 months, with heavier contribution beginning late Q3 and Q4; the 30M+ paid-subscriber white-label partner is structured “powered by LiveOne” with opt-in simplicity .
  • Cost actions and AI: Cuts are “across the board,” including Slacker; AI enables comparable curation with smaller staff; more cost savings expected .
  • Tesla monetization: 1.3M conversions from ~2M cars; paying ARPU ~$5; ad-supported yields $0.50–$0.60 per user; conversion target of 20–30% over 12–24 months .
  • Digital assets strategy: $10M Bitcoin yield strategy via managed account targeting 12–15% returns; positioning for NFTs/tokenization of content; specifics to be announced imminently .
  • TV/streaming pipeline: Three shows sold with ~$1M upfront; potential episodic and back-end revenue with zero incremental cost; awaiting greenlights .

Estimates Context

  • Q1 FY26 revenue missed consensus ($19.207M vs $21.044M*), reflecting Slacker declines; EPS beat materially (-$0.04 vs -$0.30*) as cost measures flowed through . Revenue Consensus Mean $21.044M*, Primary EPS Consensus Mean -$0.30*.
  • Q2 FY26 actuals later showed revenue $18.762M and EPS -$0.3946 vs consensus $19.6775M and -$0.40*, broadly in line/slight miss on revenue and near-consensus EPS, suggesting estimate models are absorbing slower Slacker but not fully factoring B2B ramp yet [GetEstimates Q2 data]*.
  • Directionally, Street models may need to lower near-term consolidated revenue while raising PodcastOne and B2B contribution assumptions into H2 on observed run-rates and pipeline disclosures .

Note: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term print was mixed: revenue miss vs consensus but a significant EPS beat; the setup into H2 hinges on B2B activations and Tesla conversion uplift .
  • PodcastOne is a relative bright spot, with record Q1 and raised FY26 EBITDA guidance; consider it as a stabilizer within the audio portfolio .
  • Execution focus: Slacker declines remain the primary headwind; monitor sequential gross margin improvement and contribution margin as B2B and ads scale .
  • Balance sheet risk moderating: short-term liabilities reduced and financing renewed; however, reconcile management’s cash commentary with reported cash levels and watch digital asset treasury disclosures for volatility exposure .
  • Conversion math matters: ad-supported monetization is small per user, so conversion rates (20–30% target over 12–24 months) are critical to restoring ARPU and margins .
  • Catalysts: 30M+ white-label launch, Amazon/Fortune 250 run-rate expansion, “Reality Olympics” event, TV show greenlights; these can re-rate revenue visibility .
  • Risk factors: Slacker customer concentration, guidance gaps, legal/crypto regulatory uncertainties; position sizing should reflect event path and execution timelines .