LiveOne Reports 31% Revenue Decline and Increased Net Losses for Third Quarter

LiveOne, Inc. reported its financial results for the three and nine months ended December 31, 2025, revealing a significant decline in revenue and an increase in net losses compared to the previous fiscal period. The company generated $20.3 million in revenue for the third quarter, down 31% from $29.4 million in the same quarter of 2024. For the nine-month period, revenue totaled $58.2 million, a decrease of 39% from $95.1 million year-over-year. The net loss for the third quarter was $4.1 million, compared to a loss of $5.6 million in the prior year, while the nine-month net loss increased to $13.7 million from $9.5 million.

The company's operating expenses also saw a decline, totaling $22.2 million for the third quarter, down from $34.6 million in the same period last year. This reduction was primarily driven by lower costs of sales, which decreased to $16.5 million from $22.3 million, and a reduction in general and administrative expenses. However, the company reported a loss from operations of $2.0 million for the quarter, an improvement from the $5.1 million loss in the prior year. The decrease in revenue was attributed to lower membership services and merchandising revenue, which fell sharply as the company continues to navigate a challenging market environment.

In terms of strategic developments, LiveOne executed a 1-for-10 reverse stock split effective September 26, 2025, aimed at increasing the per-share price of its common stock. The company also reported a significant increase in cash and cash equivalents, which rose to $8.6 million from $4.1 million at the end of the previous fiscal year. This increase was bolstered by financing activities, including proceeds from a common stock offering that generated approximately $9.4 million. The company’s total assets increased to $52.3 million, up from $40.5 million, while total liabilities also rose to $62.8 million from $48.9 million.

LiveOne's operational metrics indicate a decline in customer engagement, with membership services revenue dropping to $2.9 million for the third quarter, down from $14.3 million in the same quarter of 2024. The company reported that two customers accounted for 41% of its consolidated revenues for the quarter, highlighting a reliance on a limited customer base. The company’s employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, LiveOne expressed concerns regarding its ability to continue as a going concern, citing a working capital deficiency of $18.1 million as of December 31, 2025. The company plans to pursue additional financing to support its operations and growth strategy, including a new universal shelf registration statement that allows for raising up to $150 million. However, management acknowledged that uncertain market conditions may limit access to capital and impact operational performance. The company remains focused on executing its growth strategy while managing its financial obligations and operational challenges.