Executive Summary

Q2 2025 revenue was $5.873M, down 9% YoY; consolidated operating loss improved to $(18.264)M versus $(28.165)M in Q2 2024; diluted EPS was $(0.09) versus $(0.12) prior year . STACYC drove the quarter: revenue +25% YoY to $5.0M and operating loss narrowed to $(0.3)M; Electric Motorcycles revenue fell 65% YoY to $0.8M on 55 units, but segment operating loss improved materially to $(18.0)M .
Cost actions are taking hold: selling, administrative and engineering (“SA&E”) expense fell $7.6M YoY, helping reduce consolidated operating loss by 35% YoY (press release), while the call cited a ~34% improvement (minor discrepancy likely due to rounding) .
Guidance: unit outlook withheld; operating loss updated to $59–$69M for FY25 (from “below $60M” targeted in Q1 and $70–$80M in Q4) due to ongoing negotiations under the Joint Development Agreement with Harley-Davidson, Inc. .
Product roadmap catalyst: management confirmed plans to launch production versions of two “mini” concept EV models showcased in July; formal launch targeted for EICMA in November, aligning LiveWire to lower-priced, higher-volume segments given the changed EV incentive environment .

What Went Well and What Went Wrong

What Went Well

SA&E expense down $7.6M YoY; consolidated operating loss decreased by $9.9M YoY, reflecting 2024 cost-actions (streamlined headcount, lower people costs, spending, and relocation of LiveWire Labs to Milwaukee) .
STACYC momentum: revenue +25% YoY to $5.0M; units up 27% YoY to 4,872; advertising and marketing cuts helped narrow segment operating loss to $(0.3)M .
Strategic pivot and product pipeline: “We are thrilled with the positive feedback… on the two prototype models… lower-priced, smaller models” (Karim Donnez, CEO), with Q2 confirming intent to launch production versions to address evolving customer expectations and broader EV adoption trends .

What Went Wrong

Electric Motorcycles demand remained weak: units declined 65% YoY to 55; segment revenue fell 65% YoY to $0.8M; macro uncertainty and lack of incentives weighed on early-stage EV products, per management .
Interest income decreased $1.3M YoY and change in fair value of outstanding warrants was a $2.7M YoY drag, contributing to a net loss of $(18.826)M (vs $(24.805)M prior year) despite operating improvements .
Cash declined to $29.316M at quarter end (from $46.222M in Q1 and $64.437M at YE 2024), with YTD net cash used $(35.121)M vs $(54.893)M prior year — an improvement but still a tight liquidity posture .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$10.761	$2.743	$5.873
Operating Loss ($USD Millions)	$(25.244)	$(20.666)	$(18.264)
Net Loss ($USD Millions)	$(22.782)	$(19.271)	$(18.826)
Diluted EPS ($USD)	$(0.11)	$(0.09)	$(0.09)
Cost of Goods Sold ($USD Millions)	$16.115	$4.911	$5.324
SA&E Expense ($USD Millions)	$19.890	$18.498	$18.813
Gross Profit ($USD Millions)	$(5.354) (Rev 10.761 ; COGS 16.115 )	$(2.168) (Rev 2.743 ; COGS 4.911 )	$0.549 (Rev 5.873 ; COGS 5.324 )
Gross Margin %	(−49.8%) (Rev 10.761 ; COGS 16.115 )	(−79.1%) (Rev 2.743 ; COGS 4.911 )	9.4% (Rev 5.873 ; COGS 5.324 )
Operating Loss Margin %	(−234.7%) (OpLoss 25.244 ; Rev 10.761 )	(−753.2%) (OpLoss 20.666 ; Rev 2.743 )	(−311.0%) (OpLoss 18.264 ; Rev 5.873 )
Consensus Revenue ($USD Millions)	N/A*	N/A*	N/A*
Consensus EPS ($USD)	N/A*	N/A*	N/A*

*Values retrieved from S&P Global; consensus data unavailable (no estimates returned) via GetEstimates.

Segment breakdown

Segment Metric	Q4 2024	Q1 2025	Q2 2025
STACYC Units	8,350	1,970	4,872
STACYC Revenue ($USD Millions)	$7.3	$2.3	$5.0
STACYC Operating Income (Loss) ($USD Millions)	$(0.6)	$(1.3)	$(0.3)
Electric Motorcycles Units	236	33	55
Electric Motorcycles Revenue ($USD Millions)	$3.5	$0.4	$0.8
Electric Motorcycles Operating Income (Loss) ($USD Millions)	$(24.7)	$(19.4)	$(18.0)

KPIs and liquidity

KPI	Q4 2024	Q1 2025	Q2 2025
Cash and Cash Equivalents ($USD Millions, end of period)	$64.437	$46.222	$29.316
Net Cash Used by Operating Activities ($USD Millions)	$(93.859) FY 2024	$(17.490) Q1 2025	$(32.367) H1 2025
Change in Fair Value of Warrant Liabilities ($USD Millions)	$1.639 Q4 2024	$0.905 Q1 2025	$(0.905) Q2 2025
Weighted Avg Shares (Millions)	203.301	203.480	203.589

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating Loss ($USD Millions)	FY 2025	$70–$80M (Q4 2024)	Below $60M (Q1 2025 target)	Lowered
Operating Loss ($USD Millions)	FY 2025	Below $60M (Q1 2025 target)	$59–$69M (Q2 2025)	Raised upper end; refined to range
Electric Motorcycle Revenue Units	FY 2025	1,000–1,500 units (Q4 2024)	Guidance withdrawn (Q1 2025)	Withdrawn
Electric Motorcycle Revenue Units	FY 2025	Guidance withdrawn (Q1 2025)	No units guidance (Q2 2025)	Maintained withdrawn stance

Rationale: the Q2 operating loss range reflects “ongoing negotiations related to a proposed project work statement under the Joint Development Agreement with Harley-Davidson, Inc.” and persistent market/macro uncertainty for units guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
EV adoption & incentives	Management highlighted headwinds: later EV adoption, lack of incentives, slower charging buildout; HOG limiting further LiveWire funding beyond $100M LOC; LiveWire targeting op loss ~$59M and cash burn ~$49M for FY25 (Q1) .	Persistent pressure; LiveWire units down; macro/lack of incentives cited as weighing on discretionary EV demand .	Unchanged headwind; pivot to lower-priced segments underway.
Cost control/productivity	2024 cost actions lowered SA&E; LiveWire operating loss down vs 2023 (Q4) .	SA&E −$7.6M YoY; consolidated op loss −35% YoY; CFO/CEO emphasize continued cost discipline .	Improving.
Product roadmap	S2 platform extensions; KYMCO maxi-scooter collaboration; Europe go-to-market updates (Q4) .	Confirmed production versions of two “mini” EV concepts; align with lightweight/urban mobility; launch target EICMA .	Accelerating shift to entry-level EV segments.
Supply chain	STACYC Q1 delays in product availability; mix impact (Q1) .	STACYC grew despite continued supply chain delays; reduced ad/marketing spend aided margins .	Incremental improvement; still constrained.
Tariffs/macro	HOG withdrew 2025 guidance; detailed mitigation actions; U.S.-centric manufacturing, 75% U.S. sourcing; tariff impact ranges (Q1) .	Macro/tariff volatility continued to affect broader network; LiveWire demand affected by lack of incentives .	Ongoing volatility.
Regional trends	Entered Spain/Italy (Q4); opened 4 new EU countries (Q1) .	Entered Norway; contracting additional EU dealers .	Network expansion continues.

Management Commentary

“During the second quarter, we continued our focus on what can be controlled, reducing consolidated operating loss by 35 percent compared to the prior-year same quarter… While Electric Motorcycle revenue decreased… we remained the #1 electric motorcycle retailer in the US 50+ horsepower on road EV segment” — Karim Donnez, CEO .
“LiveWire delivered a 34% improvement in consolidated operating loss compared to Q2 2024… intends to launch production versions of its two latest concept models… aligning with evolving customer expectations and broader EV adoption trends” — Jochen Zeitz .
“Due to ongoing… negotiations… under the Joint Development Agreement with Harley-Davidson, Inc., we are updating… Operating Loss to $59–$69 million” — Company press release .

Q&A Highlights

Demand and units: LiveWire sold 55 units in Q2 (158 prior year); management reiterated that lack of incentives and macro uncertainty weigh on early-stage EV demand; FY25 LiveWire operating loss expected $59–$69M .
Capital support: Harley-Davidson reiterated no additional LiveWire investments beyond the existing $100M LOC; LiveWire is pursuing significant cost savings and BOM reductions to reach a sustainable model with available funds (Q1) .
Strategy clarity: Pivot to “mini” production models confirmed; launch targeted at EICMA; aim to address lightweight/urban-friendly mobility to match demand and affordability trends .

Estimates Context

S&P Global consensus coverage for LVWR Q2 2025 was not available; no EPS or revenue consensus was returned, preventing a formal beat/miss assessment versus Street expectations. Values retrieved from S&P Global.*
*Values retrieved from S&P Global.

Key Takeaways for Investors

Cost discipline is working: SA&E down $7.6M YoY, driving a 35% YoY reduction in operating loss; continued focus on controllables should support further cash burn moderation .
Mix shift executing: STACYC delivered +25% revenue and narrower losses despite supply constraints; Electric Motorcycles losses improved with materially lower SG&A/engineering spend .
Demand remains fragile: Electric Motorcycles units remain low, reflecting macro uncertainty and the absence of EV incentives; near-term revenue visibility limited as unit guidance remains withdrawn .
Product catalyst: confirmed production launch of two “mini” EVs targeting lower price points and broader addressable market; formal unveiling at EICMA could be an inflection for narrative and channel engagement .
Liquidity tighter but improving YTD cash burn: cash fell to $29.316M; H1 net cash used improved vs prior year; execution on cost actions is critical to bridge to product launches .
Guidance reset: operating loss guidance evolved from $70–$80M (Q4) to “below $60M” (Q1) and now $59–$69M (Q2) due to JDA project scope—watch for resolution and its impact on FY25 expenses .
Discrepancy note: Press release cites 35% operating loss improvement; the call referenced 34%—interpret as rounding/definition variance, but directionally consistent .

LiveWire Group, Inc. (LVWR)·Q2 2025 Earnings Summary