Sign in

You're signed outSign in or to get full access.

LI

LiveOne, Inc. (LVO)·Q4 2025 Earnings Summary

Executive Summary

  • Fiscal Q4 2025 revenue was $19.29M and Adjusted EBITDA was $1.59M; FY25 consolidated revenue was $114.4M while the Audio division posted record revenue of $108.9M and Adjusted EBITDA of $18.2M, surpassing guidance by $2.4M on consolidated revenue and by $2.9M and 51% on Audio Adjusted EBITDA, respectively .
  • Versus Wall Street consensus, Q4 revenue missed ($19.29M vs $22.26M*) while EPS loss appears smaller than expected (−$0.08 vs −$0.425*), reflecting a mixed headline setup; EBITDA missed consensus (−$1.72M actual vs −$0.67M*) as Street uses GAAP EBITDA, whereas the company focuses on non-GAAP Adjusted EBITDA .
  • Management emphasized cost reductions (~$40M annualized since Dec-2024) and financing flexibility (replaced a $7M line of credit with up to $27.5M facility post year-end), positioning for B2B growth and AI-driven efficiency .
  • Key catalysts: announced momentum in B2B deals ($44M contracted; Amazon $16.5M; another Fortune 50 $25M) and an expected August launch of the largest B2B partner to date (10x Tesla’s subscriber base), plus PodcastOne guidance raised to $55–$60M revenue and $3.5–$5M EBITDA .

What Went Well and What Went Wrong

What Went Well

  • “We’ve surpassed our guidance for revenues and adjusted EBITDA* for fiscal 2025” with Audio division record results: $108.9M revenue and $18.2M Adjusted EBITDA .
  • Aggressive cost actions: “cutting $40M in annualized costs since December 2024,” contributing to Adjusted EBITDA outperformance .
  • Strategic B2B traction: “over 5 B2B partnerships signed, over $50M of revenues,” including Amazon ($16.5M) and a Fortune 50 partner ($25M), validating enterprise demand .

What Went Wrong

  • Q4 revenue fell YoY due to Slacker reductions ($19.3M vs $30.9M), driving operating loss to −$8.25M and Adjusted EBITDA down to $1.59M .
  • GAAP EBITDA missed Street consensus (−$1.72M actual vs −$0.67M*), highlighting divergence between company’s non-GAAP “Adjusted EBITDA” focus and the Street’s GAAP frameworks .
  • Gross margin pressure expected as ad-supported Tesla users ramp before advertising fully monetizes; 90–120 day ad cycle delays revenue recognition on newly added ad-supported users .

Financial Results

Headline Metrics vs Prior Year and Prior Quarter

MetricQ4 2024Q3 2025Q4 2025
Revenue ($USD Millions)$30.90 $29.45 $19.29
Net Income (Loss) ($USD Millions)$(2.65) $(5.62) $(8.35)
EPS (basic & diluted) ($USD)$(0.03) $(0.06) $(0.08)
Operating Income (Loss) ($USD Millions)$(1.16) $(0.75) $(8.25)
Adjusted EBITDA ($USD Millions)$2.79 $1.54 $1.59

Segment Breakdown

Segment MetricQ3 2025Q4 2025
Audio Division Revenue ($USD Millions)$27.10 $18.20
Audio Division Adjusted EBITDA ($USD Millions)$3.60 $4.10
Other Operations Adjusted EBITDA ($USD Millions)$(0.50) $(1.00)
Corporate Adjusted EBITDA ($USD Millions)$(1.50) $(1.50)

Margins (SPGI/Capital IQ)

MetricQ4 2024Q3 2025Q4 2025
Gross Profit Margin %21.9%*21.6%*26.5%*
EBITDA Margin %0.90%*−0.36%*−8.94%*

Values retrieved from S&P Global.

KPIs

KPIQ3 2025Q4 2025 / FY Context
Subscribers + Ad-supported users800k Tesla subscribers including 475k+ ad-supported (Jan-2025) 1.45M+ total subscribers/ad-supported users; management cites 1.3M conversions out of ~2M Tesla cars
Advertising fill rate (Tesla)Early ramp; monetization cycles 90–120 days “Well over 50% fill rate” currently; target 75% with partner DAX
B2B contracted revenue$44M across 5+ deals Continued pipeline; August launch of largest partner (10x Tesla subscribers)
PodcastOne scaleTop 10 Podtrac in Jan 2025; ~5.2M U.S. uniques; ~16.2M global downloads PodcastOne guidance raised: $55–$60M revenue and $3.5–$5M EBITDA

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue ($USD Millions)FY25$112–$120 Actual $114.4 Beat guidance midpoint
Consolidated Adjusted EBITDA ($USD Millions)FY25$6–$10 Actual $8.92 In range
Audio Division Revenue ($USD Millions)FY25$106–$115 Actual $108.9 Beat by $2.9M
Audio Division Adjusted EBITDA ($USD Millions)FY25$12–$20 Actual $18.2 At high end; +51% vs recent reaffirmation
PodcastOne Revenue ($USD Millions)FY26 (segment)N/A$55–$60 (raised on call) Raised
PodcastOne Adjusted EBITDA ($USD Millions)FY26 (segment)N/A$3.5–$5 (raised on call) Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY25)Previous Mentions (Q3 FY25)Current Period (Q4 FY25)Trend
AI/Tech initiativesHighlighted efficiency; +25 new AI-hosted stations Ramp ad-supported model; 90–120 day ad cycle AI used to cut Slacker staff by one-third; reduce costs; accelerate conversion Positive execution; scaling
Tesla partnershipRenewed terms; price increases launched 800k Tesla subs; ad-supported launch; conversion data collection 50%+ ad fill rate; 1.3M/2M car conversion; branding in-car Strong engagement; monetization ramp
B2B pipelineGuidance maintained; membership growth $44M contracted; 5 deals closed; 70+ pipeline Largest B2B partner launch in Aug; 10x Tesla subscribers Accelerating pipeline
Cost reductionsNoted operating expense moderation $11M restructuring savings $40M annualized cost cuts since Dec-2024 Significant opex relief
Financing/liquidityCash $11.05M; buybacks ongoing Cash $10.9M; paid down EastWest; buybacks JGB facility up to $27.5M; largest cash position potential Improved flexibility
Web3/Crypto contentN/AEarly initiatives discussed Crypto podcast network; advisory bench expansion Building new content vertical

Management Commentary

  • “We’ve surpassed our guidance for revenues and adjusted EBITDA* for fiscal 2025.” — Robert Ellin, CEO .
  • “We just raised our [PodcastOne] guidance to $55–$60M with $3.5–$5M of EBITDA.” — Robert Ellin .
  • “A partner…has come back in with a credit facility of up to $27.5M giving us… the biggest cash position we’ll ever have.” — Robert Ellin on JGB facility .
  • “Our fill rate on our Tesla users is over 50%… we think 50% inventory will go to 75% very quickly.” — Robert Ellin .
  • “We’ve cut one third of our staff at Slacker Radio… over $40M in total costs.” — Robert Ellin .

Q&A Highlights

  • Advertising monetization timeline: Management expects ad monetization to scale over 90–120 days; already seeing ads in Tesla, aiming toward ~$3/month ad-supported ARPU and higher on paid over 6–9 months .
  • Tesla conversion and ARPU: Over 1.5M users with 250k+ paid subscribers; pushing subscription conversion via AI, with price elasticity opportunity vs historically low ARPU ($3–$5 baseline) .
  • Largest B2B partner: Signed and targeted for August launch; expected to exceed Tesla’s scale by 10x, though details undisclosed .
  • Filing timing: 10-K expected “early next week,” pending auditor wrap-up .

Estimates Context

MetricQ4 2025 ConsensusQ4 2025 ActualResult
Revenue ($USD Millions)$22.26*$19.29 Miss
EPS (Primary) ($USD)−$0.425*−$0.08 Beat
EBITDA ($USD Millions)−$0.67*−$1.72 Miss

Values retrieved from S&P Global. Note: Company emphasizes non-GAAP Adjusted EBITDA ($1.59M in Q4) vs GAAP EBITDA used by consensus, contributing to apparent variance .

Key Takeaways for Investors

  • FY25 execution outperformed internal guidance on Audio division profitability, supported by substantial cost reductions; however, Q4 headline revenue missed consensus amid Slacker revenue reset .
  • The pivot to ad-supported and direct-billed subscriptions in Tesla is gaining traction (50%+ ad fill; 1.3M conversions), with conversion and pricing initiatives likely to lift ARPU over time .
  • B2B distribution is emerging as the primary growth vector (Amazon, Fortune 50, and a larger August partner), providing scale beyond prior auto/OEM channels .
  • Financing flexibility via JGB facility and ongoing buybacks improve strategic optionality while management explores M&A and spin-related paths to enhance value .
  • Near-term modeling should reflect: lower Slacker revenue, rising ad-supported monetization through H2, and PodcastOne guidance raises; Adjusted EBITDA should benefit from $40M+ structural cost cuts .
  • Key watch items next quarter: August B2B launch KPIs, ad monetization pace, subscription conversion rates, and any price actions impacting ARPU and churn .
  • Given mixed headline vs consensus, stock reaction may hinge on visibility into B2B economics and evidence that ad-supported flows translate into paid subscriber growth .