LiveOne, Inc. (LVO) | Investment Case

1. Company Snapshot

1.a. Company Description

LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content.It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content.The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services.

In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels.Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content.The company was formerly known as LiveXLive Media, Inc.

and changed its name to LiveOne, Inc.in October 2021.LiveOne, Inc.

was incorporated in 2009 and is headquartered in Beverly Hills, California.

Show Full description

1.b. Last Insights on LVO

LiveOne's recent performance was negatively impacted by the announcement of its preliminary fiscal year 2025 financial results, which will be disclosed on June 18, 2025. The company's Audio Division achieved record earnings, with Adjusted EBITDA exceeding guidance by 51% at $18.2M, but this was not enough to offset the negative sentiment surrounding the upcoming earnings release. Additionally, the appointment of Steve Lehman as Vice Chairman and Steve McClurg as Chief Advisor to CEO Rob Ellin may have created uncertainty among investors, as their backgrounds and expertise may not be well understood by the market. Furthermore, the company's decision to stream BKFC Ice Wars' "Battle of the Border" USA vs. Canada Fight Night in over 200 countries may have raised concerns about the company's focus and priorities.

1.c. Company Highlights

Last Price	5.1
Change Percentage	4.29%
Open	4.97
Previous Close	4.89
Market Cap ( Millions)	59
Volume	51065
Year High	16
Year Low	3.92
M A 50	4.81
M A 200	6.34

FCF Yield	-18.10%
Dividend Yield	0.00%
ROE	180.41%
Debt / Equity	-3.13%
Net Debt / EBIDTA	58.14%
Price To Book	-3.03
Price Earnings Ratio	-1.73
Price To FCF	-5.52
Price To sales	0.68
EV / EBITDA	-2.47

2. LiveOne's Q2 Fiscal 2026 Earnings: A Resilient Performance Amidst Strategic Shifts

LiveOne reported a consolidated revenue of $18.8 million for the second quarter, with the Audio division generating $18.2 million in revenue and $0.7 million in adjusted EBITDA. The company's adjusted EBITDA margin stood at approximately 3.7%. The net loss for the quarter was $5.7 million, with an operating loss of $4.7 million. Earnings per share (EPS) came in at -$0.52, missing estimates of -$0.45. The company's gross margin for the first half of the year decreased to around 6.5% from 13% last year, primarily due to the change in the customer relationship with Tesla.

Publication Date: Nov -19

                                    📋 Highlights
                                    Cost-Cutting Measures:
                                                Reduced staff from 350 to 95 and cut costs from $22M to $6M via AI and tech efficiency.
Audio Division Performance:
                                                Generated $36.6M revenue and $1.1M adjusted EBITDA in Q2.
Podcast Revenue Growth:
                                                Podcast business grew to $15.2M in the quarter, with full-year guidance of $56–60M.
B2B Partnership Expansion:
                                                Amazon partnership increased to $20M, and $52M in total contractual B2B deals.
Q2 Financial Results:
                                                Consolidated revenue of $18.8M, net loss of $5.7M, and adjusted EBITDA of $0.7M.

                                

Operational Highlights and Business Updates

CEO Rob Ellin highlighted that the company has survived the loss of $50 million in revenue from Tesla and is now thriving, driven by the success of its Audio division and podcast business. The podcast business grew from $20 million in revenue to $15.2 million in the quarter, with expectations to reach $56-60 million this year. The company has also sold 3 podcasts to television and expects to sell additional shows. Furthermore, LiveOne has $52 million in contractual B2B deals, including a deal with Amazon that has increased from $16.5 million to over $20 million.

Cost Optimization and AI-Driven Efficiencies

The company has made significant strides in cost optimization, reducing staff from 350 to 95 and cutting costs from $22 million to $6 million by leveraging technology and AI. CFO Ryan Carhart mentioned that the company is expected to start seeing a recovery in gross margin towards the end of the year. The use of AI has also been instrumental in driving efficiencies across the platform, including in music channels and advertising.

Valuation and Outlook

LiveOne's current valuation metrics indicate a Price-to-Sales Ratio of 0.58 and an EV/EBITDA ratio of -2.04. Analysts estimate next year's revenue growth at -24.1%. Given the company's current financial performance and growth prospects, it is essential to assess whether the current valuation accurately reflects its future potential. The stock's current price may be factoring in some level of recovery, but the negative revenue growth estimate raises concerns about the company's ability to sustain its business momentum.

3. NewsRoom

LiveOne, Inc. (LVO) Q2 2026 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

LiveOne (LVO) Reports Q2 Loss, Beats Revenue Estimates

Nov -12

Source: zacks.com

LiveOne (Nasdaq: LVO) Reports $38M Six-Month Revenue and $36.6M Audio Division Revenue with Over $1.1M Adjusted EBITDA*

Nov -12

Source: globenewswire.com

LiveOne (Nasdaq: LVO) to Announce Its Second Quarter Fiscal Year 2026 Financial Results and Host Investor Webcast on November 12, 2025, at 10:00 am Eastern Time (7:00 am Pacific Time)

Nov -06

Source: globenewswire.com

LiveOne (Nasdaq: LVO) Accelerates Revenue Growth with Intuizi AI, Driving Tesla Subscriber Conversions

Nov -03

Source: globenewswire.com

LiveOne (Nasdaq: LVO) to Launch Subsidiary LiveOneAfrica in Partnership with Virtuosity Music Group

Oct -20

Source: globenewswire.com

LiveOne (Nasdaq: LVO) Regains Compliance with Nasdaq Listing Requirements

Oct -14

Source: globenewswire.com

LiveOne (NASDAQ: LVO) Partners With METAvivor to Fund Metastatic Breast Cancer Research, Live Streaming #LightUpMBC Live on October 13, 2025

Oct -09

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.54%)

6. Segments

Audio

Expected Growth: 18.3%

LiveOne's 18.3% growth in audio segment is driven by increasing demand for live and on-demand audio content, expansion of its podcasting business, and strategic partnerships with top artists and music festivals. Additionally, the company's focus on improving user experience, investing in technology, and expanding its sales and marketing efforts have contributed to its rapid growth.

Media

Expected Growth: 12.43%

LiveOne's 12.43% growth in Media segment is driven by increasing demand for live and virtual events, expansion of its podcasting business, and strategic partnerships. Additionally, the company's focus on original content creation, social media presence, and targeted advertising have contributed to its growth.

7. Detailed Products

LiveOne Streaming

A live streaming platform that allows artists and creators to broadcast live video content to a global audience.

Slacker Radio

A music streaming service that offers personalized radio stations and playlists.

LiveOne Podcasting

A podcast hosting and distribution platform that allows creators to publish, promote, and monetize their podcasts.

LiveOne Studios

A production and post-production studio that offers video and audio production services for live events and on-demand content.

LiveOne Ticketing

A ticketing platform that allows event organizers to sell tickets to live events and concerts.

8. LiveOne, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

LiveOne, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the music and entertainment industry.

Bargaining Power Of Customers

LiveOne, Inc. has a diverse customer base, and no single customer has significant bargaining power, reducing the bargaining power of customers.

Bargaining Power Of Suppliers

LiveOne, Inc. relies on a network of suppliers, including artists, promoters, and venues, which gives them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The music and entertainment industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to LiveOne, Inc.'s market share.

Intensity Of Rivalry

The music and entertainment industry is highly competitive, with many established players, leading to intense rivalry among companies, including LiveOne, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	75.96%
Debt Cost	12.69%
Equity Weight	24.04%
Equity Cost	12.69%
WACC	12.69%
Leverage	315.94%

11. Quality Control: LiveOne, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Sinclair Broadcast Group

A-Score: 5.4/10

Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Sphere Entertainment

A-Score: 4.3/10

Value: 7.7

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

LiveOne

A-Score: 3.8/10

Value: 9.6

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

29.76%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.69%

LiveOne, Inc. - US53814X1028

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LVO

1.c. Company Highlights

Cheaper

Strong Momentum

Average Growth

Earnings Miss

Revenues Beats

Higher Growth

Medium Volatility

Average Yield

More Volatile

Revenues Miss

Weak Momentum

Stable Momentum

Earnings Beats

2. LiveOne's Q2 Fiscal 2026 Earnings: A Resilient Performance Amidst Strategic Shifts

Operational Highlights and Business Updates

Cost Optimization and AI-Driven Efficiencies

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.54%)

6. Segments

Audio

Expected Growth: 18.3%

Media

Expected Growth: 12.43%

7. Detailed Products

LiveOne Streaming

Slacker Radio

LiveOne Podcasting

LiveOne Studios

LiveOne Ticketing

8. LiveOne, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: LiveOne, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.1$

Current Price

5.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA