LiveOne (LVO) Q4 2026 Financial Results Summary
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LiveOne (LVO) Q4 2026: Revenue Decline, Adjusted EBITDA Improvement — Cautiously Optimistic
LiveOne (Nasdaq: LVO) reported its financial results for the fourth quarter of fiscal 2026, revealing a revenue of $18.9 million, which represents a decrease of $0.4 million or approximately -2% compared to $19.3 million in the same period last year. Despite the revenue decline, the company achieved a notable improvement in its Adjusted EBITDA, which rose to $0.3 million from a loss of $0.5 million in Q4 Fiscal 2025.
This quarter's performance can be viewed as a mixed bag for shareholders. While the revenue decline is disappointing, the significant improvement in Adjusted EBITDA indicates that the company is making strides in operational efficiency and cost management. The reduction in operating expenses by 52% year-over-year, largely due to AI-driven efficiencies and workforce streamlining, is a positive sign for future profitability.
Key Financial Metrics
- Q4 Fiscal 2026 Revenue: $18.9 million
- Q4 Fiscal 2025 Revenue: $19.3 million
- Year-over-Year Revenue Change: -$0.4 million or -2%
- Q4 Fiscal 2026 Adjusted EBITDA: $0.3 million
- Q4 Fiscal 2025 Adjusted EBITDA: -$0.5 million
- Year-over-Year Adjusted EBITDA Change: +$0.8 million
Operational Highlights
- The Audio Division generated $18.3 million in revenue during Q4 Fiscal 2026, contributing positively with an Adjusted EBITDA of $2.4 million.
- LiveOne has expanded its stock repurchase program by over $7 million, with approximately $5 million remaining, reflecting a commitment to enhancing shareholder value.
- The company has successfully reduced its workforce from 350 to 88 employees, which has significantly contributed to the reduction in operating expenses.
Fiscal 2027 Guidance
LiveOne has raised its guidance for fiscal 2027, projecting revenues between $85 million and $95 million, along with an expected Adjusted EBITDA of $8 million to $10 million, excluding corporate overhead. This upward revision in guidance demonstrates management's confidence in continued growth and operational improvements.
Shareholder Impact
The mixed results this quarter may leave shareholders feeling cautious. The revenue decline is concerning, but the improvement in Adjusted EBITDA and the aggressive cost-cutting measures taken by the company are encouraging. The expansion of the stock repurchase program also signals management's belief in the long-term value of the company, which could provide some reassurance to investors.
Forward-Looking Catalysts
Investors should keep an eye on the upcoming quarter for several key developments:
- The anticipated closing of a highly accretive acquisition, which could further enhance LiveOne's market position and growth potential.
- Continued progress in AI monetization initiatives, leveraging a vast library of audio and video assets.
- The impact of strengthened B2B partnerships with industry leaders such as AT&T, Vizio, Samsung, and LG, which could drive additional revenue growth.
In conclusion, while LiveOne's Q4 Fiscal 2026 results reflect some challenges, the company's strategic initiatives and improved operational metrics provide a cautiously optimistic outlook for shareholders as they look ahead to fiscal 2027.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share amounts)
Note: All amounts are in thousands.
| Three Months Ended March 31, 2026 | Year Ended March 31, 2026 | |
|---|---|---|
| Revenue | $18,900 | $77,100 |
| Operating expenses | ||
| Cost of sales | $15,000 | $64,800 |
| Product development | $840 | $4,040 |
| General and administrative | $6,600 | $20,600 |
| Impairment of intangible assets | $0 | $0 |
| Total operating expenses | $23,000 | $92,600 |
| Loss from operations | $(4,000) | $(15,000) |
| Other income (expense), net | $(1,000) | $(3,800) |
| Change in fair value of digital assets | $(834) | $(2,000) |
| Total other income (expense), net | $(2,000) | $(5,700) |
| Net loss before provision for income taxes | $(7,000) | $(21,000) |
| Provision (benefit) for income taxes | $(7,000) | $(21,000) |
| Net loss attributable to non-controlling interest | $185 | $(288) |
| Net loss attributable to LiveOne | $(7,000) | $(20,000) |
| Net loss per share | $(0.10) | $(1.91) |
Consolidated Balance Sheets (Unaudited)
(In thousands)
Note: All amounts are in thousands.
| March 31, 2026 | March 31, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $5,353 | $4,119 |
| Restricted cash | $30 | $30 |
| Accounts receivable, net | $8,437 | $8,299 |
| Inventories | $685 | $1,586 |
| Prepaid expense and other current assets | $2,273 | $1,212 |
| Total Current Assets | $16,778 | $15,246 |
| Property and equipment, net | $3,297 | $893 |
| Goodwill | $21,712 | $21,712 |
| Intangible assets, net | $1,916 | $2,569 |
| Digital assets | $2,943 | $0 |
| Other assets | $229 | $97 |
| Total Assets | $46,875 | $40,517 |
| Liabilities, Mezzanine Equity and Stockholders’ Deficit | ||
| Current Liabilities | ||
| Accounts payable and accrued liabilities | $27,759 | $25,180 |
| Accrued royalties | $3,475 | $5,490 |
| Notes payable, current portion | $0 | $623 |
| Senior secured revolving line of credit | $0 | $2,950 |
| Deferred revenue | $1,789 | $2,141 |
| Convertible note, current portion | $2,900 | $0 |
| Total Current Liabilities | $35,923 | $36,384 |
| Notes payable, net | $149 | $150 |
| Convertible note, noncurrent | $11,689 | $0 |
| Lease liabilities, noncurrent | $134 | $99 |
| Other long-term liabilities | $11,351 | $12,236 |
| Deferred income taxes | $61 | $60 |
| Total Liabilities | $59,307 | $48,929 |
| Stockholders’ Deficit | ||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; 8,438 and 14,002 shares issued and outstanding as of March 31, 2026 and 2025, respectively | $8,438 | $14,002 |
| Common stock, $0.001 par value; 500,000,000 shares authorized; 12,276,978 issued and outstanding as of March 31, 2026; 9,672,451 shares issued and outstanding as of March 31, 2025 | $12 | $10 |