Executive Summary
LiveOne delivered a mixed QQ1 2025 performance anchored by its Audio Division, with consolidated revenue of $33.1 million, driven by Slacker Radio and PodcastOne. Slacker posted a record $18.7 million in revenue and $5.4 million of adjusted EBITDA, while PodcastOne generated $13.2 million in revenue but posted an adjusted EBITDA loss of $0.3 million. The quarter underscored the company’s heavy reliance on high-growth but capital-intensive content strategies as it continues to scale B2B partnerships and IP monetization while facing elevated G&A and content acquisition costs. Management remains focused on accelerating partnerships and global expansion, supported by a replenished balance sheet and an ongoing stock repurchase program, signaling confidence in long‑term value creation despite a near-term profitability mix shift.
Management provided forward-looking guidance for the Audio Division: expected annual revenue of $130–$140 million with adjusted EBITDA of $20–$25 million for calendar year 2025. This implies a substantial ramp from the June quarter’s trajectory if the pipeline converts as anticipated. The company emphasizes the competitive advantage of owning IP and a creator-first model, aiming to translate content into broader platforms and live-event monetization as catalysts for sustainable growth. Investors should note that near-term profitability remains pressured by upfront content costs and public-company costs, but the visibility into multi-year B2B contracts and IP monetization offers a meaningful path to enhanced cash flow and earnings leverage over time.
Key Performance Indicators
QoQ: 47.63% | YoY:-138.43%
QoQ: 40.17% | YoY:-126.99%
QoQ: 43.89% | YoY:-110.17%
Key Insights
Revenue and Growth: Consolidated revenue of $33.1 million in Q1 fiscal 2025, up YoY by 19.1% and QoQ by 7.1% (per earnings metrics).
Gross Profit and Margin: Gross profit $6.616 million with a gross margin of 20.0% (0.2000). YoY gross profit declined ~19.4% while QoQ gross profit rose ~8.1%.
Profitability: Operating loss of $0.608 million and operating margin of -1.84%. EBITDA was $0.763 million (EBITDA margin ~2.3%). Net income was -$1.169 million with a net margin of -3.53%. EPS was -$0.0124 o...
Financial Highlights
Revenue and Growth: Consolidated revenue of $33.1 million in Q1 fiscal 2025, up YoY by 19.1% and QoQ by 7.1% (per earnings metrics).
Gross Profit and Margin: Gross profit $6.616 million with a gross margin of 20.0% (0.2000). YoY gross profit declined ~19.4% while QoQ gross profit rose ~8.1%.
Profitability: Operating loss of $0.608 million and operating margin of -1.84%. EBITDA was $0.763 million (EBITDA margin ~2.3%). Net income was -$1.169 million with a net margin of -3.53%. EPS was -$0.0124 on 94.42 million diluted shares.
Cash Flow and Capital Allocation: Operating cash flow of $1.342 million; free cash flow $0.606 million. Net change in cash was -$0.822 million; cash at period-end $6.32 million. The company maintained a stock repurchase program, buying ~4.4 million shares to date with ~$6.3 million remaining under the program.
Balance Sheet and Leverage: Cash and cash equivalents around $6.17 million; total current assets $25.61 million; total assets $64.63 million. Total liabilities ~$58.02 million with long-term debt of ~$0.60 million and short-term debt of ~$7.69 million; retained earnings deeply negative (~$240.8 million). Net debt approx. $2.13 million after cash and equivalents. Inventory and intangible assets contribute to a substantial asset base, including goodwill and intangibles totaling ~$34.7 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.08M |
19.13% |
7.05% |
| Gross Profit |
6.62M |
-19.36% |
8.14% |
| Operating Income |
-608.00K |
-138.43% |
47.63% |
| Net Income |
-1.17M |
-126.99% |
40.17% |
| EPS |
-0.01 |
-110.17% |
43.89% |
Key Financial Ratios
operatingProfitMargin
-1.84%
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$0.01
dividendPayoutRatio
-43.5%
priceEarningsRatio
-29.88
Management Commentary
Strategy and Growth Initiatives
- Management emphasizes a creator-first model and a multi-platform content strategy: “our Audio Division comprising of Slacker Radio and PodcastOne, we reached incredible milestones in Q1 of fiscal 2025.” (Rob Ellin)
- Record quarterly performance in audio with Slacker revenue of $18.7M and EBITDA of $5.4M; PodcastOne revenue of $13.2M but an EBITDA loss of $0.3M, highlighting the investment phase of growth initiatives. “Slacker posted record revenue for Q1 of $18.7 million and adjusted EBITDA of $5.4 million. PodcastOne posted record revenue of $13.2 million and -- with an adjusted EBITDA loss of $300,000.” (Aaron Sullivan)
- Short- to mid-term acceleration through B2B partnerships: management cites a $24 million deal contributing to near-term revenue ramp and a pipeline with 63 potential partnerships; goal to build a team to lead “over 10 people” in B2B across verticals. “Based on a huge success signing five major additional partnerships including the $24 million partnership… which is adding about $2 million of revenues a month, we've expanded our B2B team from one to six professionals.” (Rob Ellin)
- Global expansion and IP monetization: CEO notes global opportunities with carriers, retailers, auto, and other verticals; 25–28% of traffic is overseas, with plans to monetize overseas. “We have opportunities with carriers around the globe… long-term partnerships and expansion of where our content can live.” (Rob Ellin)
- IP-driven monetization and live events: selling IP rights (e.g., Vigilante, Varnamtown) and live events strategy as scalable revenue streams; the team highlights the potential for future IP-driven profits with minimal additional cost.
Operations and Financial Discipline
- Content costs and G&A costs are higher than initially anticipated due to upfront signing costs and public-company compliance; management notes elevated stock-based compensation and public company costs as partially responsible for the G&A uptick. “Content acquisition costs have been a little bit higher than we anticipated… there’s additional G&A, just as it relates to PodcastOne… two drivers to that.” (Aaron Sullivan)
- Management remains focused on efficient marketing and broad distribution to maximize audience reach, leveraging owned technology to convert traffic into revenue. “The beauty of our content costs… under $3,000 per hour versus traditional high-cost content” (Rob Ellin)
- Event-driven and IP monetization strategy reinforced by ongoing stock repurchase activity; the company reaffirmed commitment to shareholder value through buybacks. “We’re expanding our stock buyback again to $12 million… purchased over 4.4 million shares.” (Rob Ellin)
“record breaking $31.9 million in revenues and $5.1 million in adjusted EBITDA.”
— Rob Ellin
“our goal is to get 10 million subscribers. And 10 million subscribers, we’ll be doing $0.5 billion in revenues and $150 million in EBITDA.”
— Rob Ellin
Forward Guidance
Outlook and Assessment of Achievability
- Audio Division guidance for calendar 2025: revenue target of $130–$140 million with adjusted EBITDA of $20–$25 million. This represents a material expansion from the QQ1 2025 quarterly trajectory and reflects the impact of the ongoing B2B partnerships, scale-up of the B2B team, and IP monetization.
- Near-term pacing relies on the ramp of the $24 million B2B deal and expansion of partnerships across automakers, carriers, retail, hospitality, and other verticals. Management has signaled that additional partnerships will be announced in the coming weeks and expects multiple deals to close through the year, with more to follow.
- Risks to the outlook include: (1) execution risk in converting 63 in-pipeline opportunities into revenue, (2) concentration risk around large partnerships and potential renegotiation of terms in a challenging advertising market, (3) continued elevated costs related to public-company reporting and content acquisition as scale accelerates, (4) potential macro ad spend volatility impacting sponsorship and advertising revenue,
- Industry context supports a creator-first, vertically integrated model but requires disciplined capital allocation and continued IP monetization to translate audience growth into sustained profitability. Monitoring factors for investors: progression of the $24M deal, cadence of new signed partnerships, overseas monetization progress (especially BEYOND U.S. markets), and the trajectory of PodcastOne’s profitable scale alongside Slacker’s growth.
- Key factors to watch: quarterly progression of Slacker vs PodcastOne revenue and EBITDA, the pace of cost normalization as content acquisitions mature, the effectiveness of marketing spend in driving new memberships, and the evolution of the IP monetization program (e.g., two IP assets already monetized with more expected).