LiveOne, Inc. LVO incurred a third-quarter fiscal 2025 GAAP loss of 6 cents per share compared with a loss of 3 cents a year ago.

The Zacks Consensus Estimate was pegged at a loss of 3 cents per share.

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Revenues decreased 5.8% year over year to $29.4 million and missed the consensus mark by 9.9%.

LiveOne, Inc. Price, Consensus and EPS Surprise

LiveOne, Inc. price-consensus-eps-surprise-chart | LiveOne, Inc. Quote

In the third quarter, LVO signed five new deals, adding more than $44 million in revenues. This includes a $25 million partnership with a Fortune 500 media conglomerate and a $16.5 million deal with Amazon.

LiveOne anticipates finalizing at least two more partnerships by the end of the year. It remains focused on B2B partnerships, and the pipeline remains strong, with more than 70 B2B partnerships in various stages of development, involving companies ranging from $1 billion to $1 trillion in valuation.

PodcastOne’s 72% stake is owned by LVO, which is why its financial results are consolidated under this company.

The Audio business, comprising Slacker Radio and PodcastOne, has achieved a historic milestone, generating $90 million in the past nine months in revenues for the first time in the company's history. This success was accompanied by $14.1 million in adjusted EBITDA over the past nine months. This remarkable performance highlights our ability to adapt, overcome challenges and thrive.

In January 2025, the total number of paid and monthly active ad-supported users surpassed 800,000.

In fiscal 2025, LiveOne surpassed 800,000 Tesla subscribers, including more than 475,000 ad-supported users, with an addition of more than 100,000 new subscribers.

Additionally, LVO is committed to its stock buyback program of $12 million. The company has $6.2 million left for repurchase under the existing buyback plan.

LVO’s Margin Performance Other Details

During the fiscal third quarter, adjusted non-GAAP EBITDA was 1.5 million, down 53.5%. The Audio Division's non-GAAP adjusted EBITDA reached $3.6 million, driven by an improved contribution margin along with lower operating expenses.

Operating loss during the quarter totaled $5.1 million compared with operating loss of $0.8 million in the prior-year quarter. The wider loss was primarily due to a decline in revenues from the Audio Division.

Capital expenditure during the quarter was nearly $0.9 million because of capitalized software costs, which form an integral part of the development of LiveOne’s integrated music player.

LVO Updates Outlook

For fiscal 2025, the company has revised its revenue guidance to $112-$120 million, down from the previous estimate of $120-$135 million. Similarly, the adjusted EBITDA forecast has been lowered to a range of $6-$10 million from the earlier projection of $8-$15 million.

Within the Audio Division, revenues are now expected to be between $106 million and $115 million, slightly reduced from the prior estimate of $110-$120 million. However, the adjusted EBITDA target for this segment remains unchanged at $12-$20 million.

LVO’s Zacks Rank

LiveOne currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 18.6% in the past year compared with the Zacks Audio Video Production industry’s growth of 32.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Performance of Other Firms in Consumer Discretionary Space

Sonos, Inc. SONO reported first-quarter fiscal 2025 non-GAAP earnings per share of 64 cents. It had registered earnings of 84 cents in the prior-year quarter. On a GAAP basis, the company reported earnings of 40 cents compared with 64 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at 36 cents per share.

In the past year, shares of SONO have lost 27.8%.

Dolby Laboratories, Inc. DLB reported first-quarter fiscal 2025 results, with non-GAAP earnings per share (EPS) of $1.14 compared with $1.01 reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 6.5%. Strong revenues and higher gross margins were primary growth drivers. Total revenues were $357 million, up from $315.6 million in the year-ago quarter and beat the Zacks Consensus Estimate by 3.1%. This uptick was driven by higher revenues across business segments.

In the past six months, shares of DLB have soared 16.4%.

GoPro, Inc. GPRO reported fourth-quarter 2024 non-GAAP loss per share of 9 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings per share of 3 cents in the year-ago quarter.

In the past six months, shares of GPRO have declined 39.2%.

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