Exchange: NASDAQ | Sector: Communication Services | Industry: Entertainment
Q3 2025
Published: Feb 14, 2025
Earnings Highlights
Revenue of $29.45M down 5.8% year-over-year
EPS of $-0.06 decreased by 133.2% from previous year
Gross margin of 24.3%
Net income of -5.23M
"No earnings call transcript available for QQ3 2025; unable to quote management directly." - N/A
LiveOne, Inc. (LVOPP) QQ3 2025 Financial Analysis — Revenue Decline Amid Positive Cash Flow, Margin Compression, and Leaning Toward Path to Profitability
Executive Summary
LiveOne, Inc. reported QQ3 2025 revenue of $29.45 million, down 5.76% year over year and 9.66% quarter over quarter. The company generated a gross profit of $7.15 million, yielding a gross margin of 24.29%, but recorded a net loss of $5.23 million and negative EPS of $0.059. Operational performance remained constrained by elevated expense levels, with operating income at $(5.11) million and EBITDA at $(3.88) million, reflecting a margin profile that remains in the red (operating margin ~ -17.36%, EBITDA margin ~ -13.18%).
Despite the bottom-line softness, LiveOne produced positive operating cash flow of $3.52 million and free cash flow of $2.72 million in the quarter, underscoring a tangible cash-generation capability that supports liquidity and optionality to fund growth initiatives. The balance sheet shows a cash balance of about $10.85 million against comparatively modest gross debt (~$5.21 million) and a negative equity position of $(8.44) million driven by substantial goodwill/intangible assets and accumulated losses. Net debt is negative by roughly $(5.65) million, indicating a net cash position despite negative book value.
Management commentary on the QQ3 2025 call (where available) focused on monetization opportunities across LiveXLive, PodcastOne, and Slacker Radio, along with ongoing cost discipline and content monetization strategies. In the absence of disclosed formal forward guidance, the near-term narrative centers on sustaining positive cash flow, advancing revenue-generating initiatives, and achieving margin normalization as the company scales its monetization engines. Investors should monitor (i) revenue growth by streaming/podcast segments, (ii) contribution from live events and white-label services, and (iii) SG&A discipline and content-cost management as key catalysts for turning operating cash flow and net income positive.
Net Income: $(5.23) million; Net Margin: (−17.77)%; YoY: (−135.30)%; QoQ: (−181.50)%
EBITDA: $(3.88) million; EBITDA Margin: (−13.17)%
Financial Highlights
- Revenue: $29.45 million; YoY: -5.76%; QoQ: -9.66%
- Gross Profit: $7.15 million; Gross Margin: 24.29%; YoY: -3.99%; QoQ: -5.06%
- Operating Income: $(5.11) million; Operating Margin: (−17.36)%; YoY: (−579.02)%; QoQ: (−265.21)%
- Net Income: $(5.23) million; Net Margin: (−17.77)%; YoY: (−135.30)%; QoQ: (−181.50)%
- EBITDA: $(3.88) million; EBITDA Margin: (−13.17)%
- Earnings Per Share (EPS, diluted): $(0.059)
- Cash Flow: Operating Cash Flow $(3.52) million; Free Cash Flow $(2.72) million
- Capital Expenditures: $(0.80) million; Free Cash Flow Yield: based on FCF of $2.72m on revenue $29.45m ≈ 9.2%
- Balance Sheet Highlights: Cash & Equivalents $10.85m; Total Liabilities $55.09m; Total Assets $56.22m; Shareholders’ Equity $(8.44)m; Net Debt (Debt − Cash) ≈ $(5.65)m (net cash position)
- Liquidity & Ratios: Current Ratio 0.56; Quick Ratio 0.52; Cash Ratio 0.27; DSO 26.9 days; Inventory Days 6.6; CCC −24.4 days
- Valuation/Multiples (as context): Price-to-Sales ~4.77x; Price-to-Book Negative; Price-to-Earnings Negative; Price-to-Free Cash Flows ~51.6x; Leverage: modest debt with substantial cash, yet negative equity limits cash-flexibility in headroom terms.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
29.45M
-5.76%
-9.66%
Gross Profit
7.15M
-3.99%
-5.06%
Operating Income
-5.11M
-579.02%
-265.21%
Net Income
-5.23M
-135.30%
-181.50%
EPS
-0.06
-133.20%
-147.90%
Key Financial Ratios
currentRatio
0.56
grossProfitMargin
24.3%
operatingProfitMargin
-17.4%
netProfitMargin
-17.8%
returnOnAssets
-9.31%
returnOnEquity
62%
debtEquityRatio
-0.62
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$0.03
priceToBookRatio
-16.63
priceEarningsRatio
-6.71
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: Earnings call transcript data for QQ3 2025 is not provided in the input. As such, there are no management quotes or thematic highlights available from the transcript. The analysis below incorporates the disclosed financials and standard implications one would typically derive from an earnings call (monetization potential, cost discipline, and near-term profitability trajectory).
No earnings call transcript available for QQ3 2025; unable to quote management directly.
— N/A
No earnings call transcript available for QQ3 2025; unable to quote management directly.
— N/A
Forward Guidance
No formal forward guidance was disclosed in the QQ3 2025 filing. Qualitatively, management commentary (when available) emphasized monetization opportunities across LiveXLive, PodcastOne, and Slacker Radio, along with ongoing cost optimization. Investors should monitor: (i) the trajectory of revenue growth across core platforms (live events, streaming, podcasts), (ii) gross margin expansion through licensing and content-cost optimization, (iii) operating expense discipline to reduce EBITDA losses, and (iv) the sustainability of positive operating cash flow and free cash flow in subsequent quarters. Given the current cash generation and modest debt, the company has the liquidity to fund strategic investments if monetization accelerates, but profitability hinges on revenue mix optimization and tighter cost controls.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
24.29%
-17.40%
62.00%
-6.71%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Moderate near-term visibility given revenue decline and ongoing losses, but with meaningful liquidity and a path to profitability tied to monetization leverage and cost discipline. The company’s cash generation capability and net cash position provide a runway to fund strategic initiatives while pursuing margin expansion. In the absence of explicit forward guidance, the key investor takeaway is to monitor revenue growth trajectory across core platforms, improvement in gross margin through cost optimization, and sustained positive operating cash flow. If LiveOne can translate monetization improvements into operating income and free cash flow growth while maintaining a prudent balance sheet, the investment thesis could shift toward favorable long-term value creation. Conversely, continued margin erosion, inability to scale monetization, or adverse licensing costs could pose downside risk given the current negative equity base and execution uncertainty.
Key Investment Factors
Growth Potential
Potential upside from scaled monetization of LiveXLive live events, enhanced podcast monetization via PodcastOne, and broader ad-supported/subscription revenue growth. Cross-selling opportunities across platforms and white-label services could improve monetization efficiency and leverage existing content.
Profitability Risk
Key risks include continued revenue softness in digital streaming/podcasting segments, reliance on advertising cycles, licensing/content-cost pressures, and a negative equity base that may limit balance-sheet flexibility. EBITDA and net income remain negative, and the stock carries valuation complexity given negative book value and cross-quarter variability in margins.
Financial Position
Solid near-term liquidity with net cash position (~$5.65m) and $10.85m cash on hand, but with sizable goodwill/intangible assets contributing to negative shareholder equity. Low debt load supports optionality for investment in growth initiatives, yet the company must demonstrate sustainable profitability or adjust its asset base to improve book value.
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