Executive Summary
LiveOne delivered a solid QQ2 2025 top-line result with quarterly revenue of $32.6 million and a six-month revenue run-rate of $65.7 million, marking a 14% year-over-year quarterly increase and a 17% year-over-year six-month growth. The company reported a GAAP net loss of approximately $1.86 million in the quarter, but adjusted EBITDA remained positive, underscoring meaningful operating leverage once licensing and platform costs are appropriately accounted for. A key driver of the narrative is LiveOne’s expansion beyond core audio streaming into a multi-vertical growth engine spanning automotive, consumer hardware and software ecosystems, retail, hospitality, airlines/travel, loyalty programs, and financial services.
Management highlighted a transformative Tesla partnership that provides near-term branding and cross-sell opportunities (LiveOne branding on Tesla dashboards and continued monthly fees for existing cars), coupled with a broader auto OEM cadence under discussion with eight major automakers. The PodcastOne and Slacker businesses continue to deliver scale, with a run-rate trajectory toward $100 million within ~24 months, supported by a robust podcast pipeline (roughly 100 titles in development, 49 added in the last year) and licensing-driven publishing upside that management characterizes as an expanding cash flow contributor. Cash flow from operations was strong at $5.77 million in the quarter, and LiveOne ended the period with about $11.1 million of cash and a net cash position of approximately $2.93 million after debt netting. The balance sheet remains capital-light but exhibits negative shareholders’ equity driven by accumulated losses over time, alongside sizeable goodwill/intangible assets tied to acquisitions. The company reiterates an aggressive buyback stance and remains focused on converting Tesla and other B2B opportunities into tangible revenue streams in the near term.
Key Performance Indicators
QoQ: -130.26% | YoY:44.33%
QoQ: -59.02% | YoY:71.48%
QoQ: -91.94% | YoY:68.14%
Key Insights
Revenue: Q2 2025 revenue of $32.6 million; 6-month revenue of $65.7 million (YoY growth +14% for the quarter; +17% for the six months).
Gross Profit and Margin: Gross profit of $7.534 million with a gross margin of 23.11% for the quarter (gross margin aligned with streaming/media models that rely on licensing and content costs).
Operating and Net Income: GAAP operating income of -$1.40 million and a GAAP net income of -$1.86 million for Q2, yielding operating and net margins of approximately -...
Financial Highlights
Revenue: Q2 2025 revenue of $32.6 million; 6-month revenue of $65.7 million (YoY growth +14% for the quarter; +17% for the six months).
Gross Profit and Margin: Gross profit of $7.534 million with a gross margin of 23.11% for the quarter (gross margin aligned with streaming/media models that rely on licensing and content costs).
Operating and Net Income: GAAP operating income of -$1.40 million and a GAAP net income of -$1.86 million for Q2, yielding operating and net margins of approximately -4.3% and -5.7%, respectively. Adjusted EBITDA was positive, with management noting $2.9 million for the quarter and $5.8 million for the six-month period (transcript guidance) and $6.6 million for the six months (headline numbers cited on the call).
EPS: Basic/diluted EPS of -$0.0238 for the quarter.
Cash Flow and Liquidity: Net cash provided by operating activities of $5.772 million; free cash flow of $5.183 million; cash at end of period $11.083 million; net debt of -$2.927 million (net cash).
Liquidity Ratios: Current ratio 0.565, quick ratio 0.532, cash ratio 0.216, reflecting a liquidity profile that prioritizes operational cash generation and the flexibility of a modest debt load.
Subscriber Metrics: Total members (~4 million) include a portion subject to contractual disputes for which revenue is not recognized, per management commentary.
Commentary Alignment: The company reiterates a multi-year growth thesis anchored in Tesla and other auto OEM partnerships, a rapidly expanding podcast network, and a publishing/licensing engine that could progressively unlock higher-margin cash flows. The near-term driver is subscriber conversions and B2B deal execution, with a longer-horizon earnings trajectory dependent on monetizing cross-sell opportunities and scale across verticals.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
32.59M |
14.25% |
-1.46% |
| Gross Profit |
7.53M |
0.07% |
13.88% |
| Operating Income |
-1.40M |
44.33% |
-130.26% |
| Net Income |
-1.86M |
71.48% |
-59.02% |
| EPS |
-0.02 |
68.14% |
-91.94% |
Key Financial Ratios
operatingProfitMargin
-4.3%
operatingCashFlowPerShare
$0.06
freeCashFlowPerShare
$0.05
priceEarningsRatio
-12.08
Management Commentary
Tesla and Auto OEMs strategy: Rob Ellin outlined a broadened, non-exclusive approach with eight major automakers and emphasized that Tesla’s extended agreement provides permanent branding and direct access to Tesla customers for cross-selling and upselling beyond in-car usage. He described Tesla as a launching pad for multi-device, cross-platform opportunities (podcasting, e-books, live streaming, pay-per-view) and highlighted a market-validated per-sub value potential (hypothesized range of $200–$1,000 per sub). Quote: "We extended our contract through May of 2026 under new terms... beachfront property... to have that ability to convert these customers." and "One big B2B deal can take you there tomorrow." (Rob Ellin).
PodcastOne and Slacker scale; pipeline and M&A momentum: Ellin cited a run rate increase from $20 million to $50 million and a robust podcast pipeline (100 titles in development; 8 podcast networks in M&A pipeline; 185 podcasts, with 50 more in the next 24 months). He also noted ownership of 73% of PodcastOne and a pathway toward $100 million in revenue over the next 24 months. Quote: "PodcastOne success continues. We’ve grown from $20 million to a run rate of $50 million over the past 4 years" and "We now own over 73% of the company." (Rob Ellin).
Celebrity brands and publishing upside: LiveOne is expanding celebrity brands and publishing with 7–10 celebrity pods per year and publishing growth of over 300%. The company announced live streaming pay-per-view events for SuperDuperKyle and highlighted ownership of 50% of publishing for Kyle’s album, with potential for broader cross-sell through live events and coffee products. Quote: "our publishing business grew over 300%" and "we own 50% of the publishing" (Rob Ellin).
Operational execution, cost discipline, and optionality: Ellin emphasized ongoing stock repurchases (almost 4.5 million shares year-to-date) and a shipshape balance sheet with debt converted (all debt converted previously). He highlighted the 70% licensing share of music revenues as a lever for margin improvement upon subscriber conversions. Quote: "we have bought back almost 4.5 million shares of stock... no debt" and "almost 70% of those revenues go to the music industry" (Rob Ellin).
Q&A tone on guidance and visibility: Management signaled visibility on conversions and cross-sell potential into mid- to late December, with more clarity expected in the January update, and reiterated plans to announce multiple B2B deals by year-end and into FY2025 Q4.
We extended our contract through May of 2026 under new terms... beachfront property, when you think back to Sirius or XM Radio, they spend billions of dollars getting to this point to have that ability to convert these customers.
— Rob Ellin
One big B2B deal can take you there tomorrow.
— Rob Ellin
Forward Guidance
Management Guidance and Industry Context:
- Near-term milestones: at least 2 major B2B deals expected to be announced before year-end 2024 and at least 2 more before March 31, 2025, as part of a broader 8-auto OEM dialogue and a growing B2B pipeline.
- Tesla relationship as a strategic lever: the extended 12-year relationship with Tesla provides permanent in-car branding, the ability to market across devices, and a platform to upsell beyond a $3/month base sub into media products (podcasting, live streaming, pay-per-view, e-books).
- Multi-vertical monetization: 8 identified verticals (automotive, carriers, hardware, retail, hospitality, airlines/travel, loyalty programs, credit card companies) present a diversified growth path beyond core audio.
- Podcasting and publishing upside: PodcastOne and Slacker are expanding with 100+ podcasts in the pipeline, ~49 new podcasts over the last 12 months, and potential TV/film adaptations for more than 10 titles; publishing growth cited as over 300% with a potential for significant EBITDA expansion as catalog monetizes.
- Financial discipline and liquidity: positive quarterly operating cash flow and free cash flow generation in QQ2 2025; net cash position supports near-term growth investments, though equity remains negative due to historical losses. Monitor: (i) Tesla and other OEM subscriber conversions and their effect on ARPU; (ii) progression of B2B deal cadence; (iii) container costs from licensing/commercialization activities; (iv) retention of Auto OEM and enterprise customers; (v) working capital dynamics as subscriber growth accelerates.
- Achievability assessment: Given the 60+ opportunities in the B2B pipeline, a $24 million first streaming deal already in place, and the broader cross-sell opportunities described, a path to $100 million revenue within 24 months is plausible if conversion rates and deal cadence meet plan; however, execution risk remains in the form of onboarding large automotive customers, integrating cross-sell streams, and maintaining favorable licensing economics as growth scales.
- Key factors for investors to monitor: Tesla conversion rates and long-term auto OEM deals; progression of the 8 verticals and associated revenue mix; annualized adjusted EBITDA trajectory; the sustainability of current working capital improvements; stock buyback cadence and its effect on per-share metrics; and the ability to monetize publishing catalog and celebrity brands without incremental cost burdens.