LiveOne Reports $77.1 Million Revenue for Fiscal Year 2026, Down 33% from Prior Year

LiveOne, Inc. reported a revenue of $77.1 million for the fiscal year ended March 31, 2026, a decrease of 33% from $114.4 million in the prior fiscal year. This decline was primarily driven by a significant drop in paid user services revenue, which fell by 79% to $12.0 million. This decrease is attributed to changes in the company's arrangement with its largest original equipment manufacturer (OEM) customer, effective December 1, 2024, which resulted in the OEM no longer subsidizing products for some customers. Conversely, advertising revenue saw an increase of 18% to $61.6 million, largely due to growth in PodcastOne's advertising operations and an increase in barter revenue. Merchandising revenue decreased by 31% to $3.6 million, reflecting reduced demand from retail partners and direct-to-consumer sales.

The company experienced a net loss of $21.3 million for the fiscal year ended March 31, 2026, compared to a net loss of $20.4 million in the prior year. Operating expenses decreased by 30% to $92.6 million, primarily due to reductions in cost of sales, sales and marketing, product development, and amortization of intangible assets. A significant factor in the reduced operating expenses was the absence of an $11.7 million impairment charge for fixed assets, intangible assets, and goodwill that was recorded in the prior fiscal year. Total other expense, net, increased by 130% to $5.7 million, largely due to a $2.1 million increase from the change in fair value of digital assets and a $0.4 million increase in interest expense related to new convertible debentures.

In terms of strategic and operational developments, LiveOne announced an amended relationship with its largest OEM customer, effective December 1, 2024. Under this new arrangement, the OEM no longer subsidizes products for some customers, but LiveOne now offers these OEM customer vehicles in North America the opportunity to convert to direct subscribers of the LiveOne music app. This direct subscription allows users to access LiveOne's services across all their devices, and the LiveOne music streaming icon is expected to remain in the OEM customer's dashboard in perpetuity. The company also purchased approximately 43.15 Bitcoins for $5.0 million as part of its cryptocurrency treasury reserve strategy, which was authorized up to $500 million.

Looking ahead, LiveOne's future revenue and operating growth are expected to rely heavily on its ability to cost-effectively grow its user base, develop innovative music services, provide attractive content, and secure sponsorships for advertising and e-commerce. The company plans to expand its services by adding more content in various formats, extending distribution to pay television, OTT, and social channels, and deploying new services for user merchandise and live music event ticket sales. The company also anticipates improving its Contribution Margins, Adjusted EBITDA, and Adjusted EBITDA Margins in the near and long term. However, the company's ability to continue as a going concern is dependent on its ability to execute its strategy and raise additional funds through equity and/or debt securities, as it has a history of losses and a working capital deficiency.