This has been a transformative 12 months for the company. As we came out of the loss of over $50 million of revenues with Tesla, we not only survived, but we thrived.
— Robert Ellin
03Detailed Report
LVO
Company LVO
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 7, 2026
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Executive Summary
LiveOne’s QQ2 2026 results reflect a company emerging from a significant revenue disruption caused by the Tesla relationship, with meaningful progress on cost structure and a deliberate pivot to B2B partnerships and AI-enabled monetization. Reported quarterly revenue of $18.8 million, with Audio contributing $18.2 million and adjusted EBITDA of $0.7 million, but GAAP consolidated EBITDA remained negative at approximately $1.0 million and net income was a substantial loss. Management underscores a transformational shift: aggressive cost reduction through AI, a broader B2B sales engine, and a robust content and live-event pipeline. The company highlighted strong ARPU growth (60% increase to above $5) and a substantial expansion in partner revenue, notably Amazon (> $20 million in a 3-year deal) and a Fortune 250 partner (~$26 million annualized run rate). Management projects a step-change in profitability and revenue growth driven by an expanding B2B pipeline (72 additional partnerships anticipated before year-end) and a target to scale to tens of millions of monthly paying subscribers, with an eye toward long‑term milestones such as >$100 million in revenue in the next few years and potential scale toward $1 billion in revenue over the longer term. The near-term concerns include negative stockholders’ equity, continued negative net income, and negative free cash flow; however, the balance sheet shows net cash on hand and limited debt, positioning the company to fund this growth trajectory if its B2B engine delivers as advertised.
Key Performance Indicators
Revenue
Decreasing
18.76M
QoQ: -2.32% | YoY: -43.28%
Gross Profit
Decreasing
2.45M
13.06% margin
QoQ: 2.85% | YoY: -62.97%
Operating Income
Decreasing
-4.57M
QoQ: -13.21% | YoY: -651.15%
Net Income
Decreasing
-9.30M
QoQ: -158.75% | YoY: -695.30%
EPS
Decreasing
-0.52
QoQ: -23.81% | YoY: -4 093.55%
Revenue Trend
Margin Analysis
Financial Highlights
Summary of principal metrics and directional changes:
- Revenue (Q2 FY2026): $18.8 million; YoY change: -43.28%; QoQ change: -2.32%
- Audio revenue: $18.2 million; Adjusted EBITDA (Audio): $0.7 million
- Consolidated adjusted EBITDA: -$1.0 million
- GAAP net income (loss): -$5.7 million; Net income margin (GAAP): negative; EPS (diluted): -$0.52
- Gross profit: $2.45 million; gross margin: 13.06%
- PodcastOne: Revenue $15.2 million; Adjusted EBITDA $1.1 million (record revenue for the period)
- Slacker: Revenue $3.1 million; Adjusted EBITDA -$0.4 million
- ARPU: Management notes ARPU uplift of approximately 60% to above $5 from prior ~$3
- Subscribers: Total paying subscribers around 250,000–275,000; en bloc free subs constitute the remainder; Tesla-related subscriber base showed material cannibalization yet retention improved via re-signings
- Cash flow: Net cash provided by operating activities -$3.21 million; Free cash flow -$3.03 million; Cash at end of period $11.75 million; Cash at beginning of period $11.92 million
- Balance sheet: Total assets $53.82 million; total liabilities $61.83 million; total stockholders’ equity negative at -$16.29 million; net debt is negative $11.22 million (cash exceeds debt); Goodwill $21.71 million; cash and equivalents $11.72 million
- Capital actions: Common stock issued ~$9.38 million; common stock repurchased $0.24 million
- Guidance: Management intends to issue formal guidance by year-end; the current narrative underscores a path to >$100 million revenue in the next several years via B2B expansion and scale in monthly paying subscribers.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
18.76M
-43.28%
-2.32%
Gross Profit
2.45M
-62.97%
2.85%
Operating Income
-4.57M
-651.15%
-13.21%
Net Income
-9.30M
-695.30%
-158.75%
EPS
-0.52
-4 093.55%
-23.81%
Key Financial Ratios
Management Insights Available for Members
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