Executive Summary

Q2 FY26 revenue was $18.8M, down 42% YoY and down ~2% QoQ; adjusted EBITDA was -$1.0M and GAAP net loss per share was -$0.52 . Versus S&P Global consensus, revenue missed by ~5%* while Primary EPS modestly beat*.
PodcastOne posted record quarterly revenue of $15.2M and adjusted EBITDA of $1.1M; Audio Division delivered $18.2M revenue and $0.7M adjusted EBITDA .
Management expanded B2B contracted revenues to >$52M, lifted the Amazon partnership to a $20M+ annual run-rate, and increased a Fortune 250 partner to a $26M+ revenue run-rate . AI-driven actions reduced quarterly operating expenses from ~$22M to ~$6M and cut headcount from 350 to 95 .
Guidance: PodcastOne FY26 revenue raised/affirmed to $56–$60M and adjusted EBITDA to $4.5–$6M; company-level guidance expected around year-end .

What Went Well and What Went Wrong

What Went Well

PodcastOne strength: Record $15.2M quarterly revenue and $1.1M adjusted EBITDA; FY26 guidance increased to $56–$60M revenue and $4.5–$6M adjusted EBITDA . CEO: “We have just announced record-breaking revenues…expect to do $56–$60 million this year and $4.5–$6 million of EBITDA” .
B2B momentum: 7 major B2B deals signed; >$52M contracted revenues; Amazon expanded to $20M+ annual run-rate; Fortune 250 partner at $26M+ run-rate . CEO: “We have now expanded our partnership with Amazon…to over $20 million…Fortune 250 partner…$26 million plus a year run rate” .
AI-driven efficiency and conversion strategy: OpEx down to ~$6M from ~$22M; ARPU up ~60% to >$5; Premium conversions +22%+ . CEO: “We embraced AI…cut our staff…from 350…to 95. We have cut our costs down from $22 million down to $6 million” .

What Went Wrong

Slacker revenue decline weighed on results: YoY revenue fell from $32.6M to $18.8M; operating loss widened to -$4.6M; adjusted EBITDA fell to -$1.0M, driven primarily by reductions in Slacker revenues .
Gross margin compression: First-half gross margin dropped vs prior year due to Tesla relationship change and lower Slacker volume, partially offset by higher PodcastOne margins .
Consensus miss on revenue and EBITDA*: Q2 FY26 revenue missed S&P consensus by ~$0.9M*; EBITDA loss was deeper than consensus (-$4.28M actual vs -$1.15M est), reflecting lower Slacker scale and elevated cost of sales mix .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q2 FY25	Q1 FY26	Q2 FY26
Revenue ($USD Millions)	$32.594	$19.207	$18.762
Operating Loss ($USD Millions)	$(1.400)	$(4.034)	$(4.568)
Net Loss ($USD Millions)	$(2.317)	$(3.864)	$(5.684)
Net Loss per Share (EPS, $)	$(0.24)	$(0.04)	$(0.52)
Adjusted EBITDA ($USD Millions, non-GAAP)	$2.885	$(1.812)	$(1.017)

Notes: All figures company-reported; adjusted EBITDA is non-GAAP .

Margins (calculated from reported figures)

Metric	Q2 FY25	Q1 FY26	Q2 FY26
Gross Profit ($USD Millions)	$7.385	$2.170	$1.905
Gross Margin (%)	22.6% (calc. from revenue/cost of sales)	11.3% (calc.)	10.2% (calc.)
Adjusted EBITDA Margin (%)	8.9% (calc.)	-9.4% (calc.)	-5.4% (calc.)

Segment Performance (Q2 FY26)

Segment	Revenue ($USD Millions)	Adjusted EBITDA ($USD Millions)
Audio Division	$18.2	$0.7
PodcastOne	$15.2	$1.1
Slacker	$3.1	$(0.4)
Other Operations	—	$(0.3)
Corporate	—	$(1.4)

KPIs and Operating Metrics

KPI	Q2 FY26	Context
Paid Subscribers (Slacker)	250k–275k	Free Tesla ad-supported users surpassed 1M
ARPU	>$5; +60% YoY	AI-driven marketing and conversions
Premium Conversion Lift	+22%+	AI-driven campaigns
B2B Contracted Revenue	>$52M	7 deals over past 12 months
Amazon Partnership Run-Rate	$20M+ annual	Expanded from $16.5M/3-year deal
Fortune 250 Partner Run-Rate	$26M+	Increased partner contribution
Buyback Capacity	$5M+ remaining	Share repurchases ongoing
PodcastOne Share Purchases	584k shares at ~$1.81 avg; 347,305 in Q2 at $1.67	Accretive stake building

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
PodcastOne Revenue ($USD Millions)	FY26	Not disclosed previously	$56–$60	Raised/Initiated
PodcastOne Adjusted EBITDA ($USD Millions)	FY26	Not disclosed previously	$4.5–$6	Raised/Initiated
LiveOne Consolidated Guidance	FY26	N/A	To be provided around year-end	N/A

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY25 and Q1 FY26)	Current Period (Q2 FY26)	Trend
AI/Technology Initiatives	Staff reduced to 95; ARPU uplift; DAX ads; equity raise tied to Bitcoin strategy	AI cut OpEx to ~$6M; ARPU >$5; Premium conversions +22%+; programmatic ads with DAX; deploying Intuzi for conversion	Scaling efficiency and monetization
B2B Partnerships	Amazon $16.5M/3-year; Fortune 250 streaming; planning launch with 30M+ subscriber partner	>$52M contracted; Amazon now $20M+ annual run-rate; Fortune 250 $26M+; 72 deals in pipeline; 30M+ subscriber partner launch expected	Accelerating deal flow and scale
Tesla/Slacker Conversion	50%+ car conversions; ad ramp via DAX	60% of 2M cars converted (free ad-supported); new ads to drive paid conversion 10–20% target	Converting free to paid underway
Gross Margin/Mix	Higher margins last year due to Tesla volume	Lower gross margin from reduced Slacker volume; PodcastOne margin offset	Margin pressure from mix
Content/Media Expansion	Sold three TV shows; major live event planned	Sold three podcasts to TV; Reality Olympics event set for Dec 11 (YouTube 1B impressions)	Cross-media monetization
International Expansion	N/A	Launching LiveOne Africa with Virtuosity Music; targeting 100M+ subs and >$500M revenues	Strategic geographic expansion

Management Commentary

CEO on transformation: “We embraced AI…cut our staff…from 350 people to 95. We have cut our costs down from $22 million down to $6 million” .
CEO on B2B trajectory: “We have now expanded our partnership with Amazon…to over $20 million…[and]…a Fortune 250 partner…$26 million plus a year run rate” .
CFO on segment performance: “Audio division posted revenue…$18.2 million and adjusted EBITDA of $0.7 million…PodcastOne…$15.2 million…$1.1 million…Slacker…$3.1 million…adjusted EBITDA loss of $0.4 million” .
CEO on future deals: “We have 72 additional B2B partnerships, and fully expect to announce multiple additional ones before year-end” .
CEO on strategic vision: “You can easily see this company in the next five years doing a billion dollars of revenues with zero cost to marketing” .

Q&A Highlights

30M+ subscriber partner: Initial launch “was spectacular”; not included in the $52M contracted B2B; guidance to be discussed around year-end .
B2B revenue incrementality: Details to come with consolidated guidance; ramp expected late Q3/Q4 .
Slacker paid vs free: Paid subs 250k–275k; ~1M ad-supported (free) Tesla users targeted for conversion .
Conversion mechanics: AI partner algorithm being optimized; targeting 5–10% lift; aggressive move to programmatic ads to push free-to-paid .
Gross margin drivers: Lower margins due to change in Tesla relationship and reduced Slacker volume; PodcastOne margin improvement partially offsets .
G&A outlook: Some one-time items; expect G&A lower in Q3 and Q4 vs Q2 .

Estimates Context

Metric	Q4 FY25	Q1 FY26	Q2 FY26
Revenue Consensus ($USD)	$22.2555M*	$21.0440M*	$19.6775M*
Revenue Actual ($USD)	$19.2880M*	$19.2070M*	$18.7620M*
Primary EPS Consensus (USD)	-0.4250*	-0.3000*	-0.4000*
Primary EPS Actual (USD)	-0.4250*	-0.3000*	-0.3946*
EBITDA Consensus ($USD)	-$0.668M*	$0.019M*	-$1.147M*
EBITDA Actual ($USD)	-$1.724M*	-$3.745M*	-$4.278M*

Notes: Values with asterisk retrieved from S&P Global. Company-reported Q2 FY26 revenue cited . Company-reported EPS (-$0.52) and adjusted EBITDA (-$1.017M) differ from S&P’s “Primary EPS” and EBITDA definitions; adjusted EBITDA is non-GAAP .

Key comparison takeaways:

Revenue missed consensus in Q2 FY26 by ~$0.92M (~4.7%); Primary EPS modestly beat by ~$0.0054.
EBITDA loss was deeper than expected, highlighting the impact of lower Slacker volumes and cost-of-sales mix* .

Key Takeaways for Investors

Near-term: Expect continued strength at PodcastOne with raised FY26 guidance and ongoing show signings; this, plus Amazon run-rate expansion, anchors revenue while Slacker conversion ramps .
B2B catalysts: Additional announcements likely by year-end; >$52M contracted and a 30M+ subscriber partner provide visible deal flow and potential upside to FY26 trajectory .
Conversion strategy: Programmatic ads and AI-driven campaigns targeting free Tesla users should lift ARPU and paid subs; watch conversion pace and cash collections in Q3/Q4 .
Margin watch: Gross margin pressured by Slacker mix; PodcastOne margin gains partially offset; monitor mix shift and COGS dynamics as B2B ramps .
Balance sheet and buybacks: $5M+ remaining buyback authorization and ongoing repurchases of PodcastOne shares suggest capital allocation focus; monitor liquidity and debt covenants .
Event and media monetization: December “Reality Olympics” and TV deals from podcasts add diversified revenue streams; execution and profitability of live events matter .
Guidance inflection: Company-level guidance expected around year-end; track whether B2B and conversion traction translate into consolidated improvements and estimate revisions .

Additional data sources and cross-references:

Q2 FY26 8-K earnings press release and financials ; GlobeNewswire press release -.
Q2 FY26 earnings call transcript (prepared remarks and Q&A) - -.
Q1 FY26 8-K earnings press release -.
Preliminary FY25 update .
S&P Global consensus and actuals for revenue, EPS, and EBITDA*.

LiveOne, Inc. (LVO)·Q2 2026 Earnings Summary