LiveOne (NASDAQ:LVO) executives said the company’s fiscal third quarter marked an “inflection point,” highlighting lower costs, improved adjusted EBITDA, and what management described as an expanding pipeline of B2B partnerships as it works to scale the business.
Quarterly results and segment performance
For the fiscal third quarter ended December 31, 2025, CFO Ryan Carhart reported consolidated revenue of $20.3 million. The company posted consolidated adjusted EBITDA of positive $1.6 million for the quarter. On a GAAP basis, LiveOne reported a consolidated net loss of $4.1 million, or $0.37 per diluted share.
CEO Rob Ellin said LiveOne delivered more than $58 million in revenue for the first nine months of the fiscal year, including $20 million in Q3. He added that the audio division produced $52.2 million in nine-month revenue and over $3.7 million in adjusted EBITDA.
Cost reductions and restructuring
Ellin emphasized what he called permanent structural changes, including a sharp reduction in operating expenses and a significantly smaller workforce. He said operating expenses were reduced by more than 52% year-over-year and that the company streamlined its organization “with the help of AI” from 350 people to 88 team members.
In the Q&A session, Ellin told analysts that he expects cost discipline to continue. When asked about sustainability of expense levels, he said investors should model general and administrative expense at current levels “if not down,” and said he expects G&A to decline slightly next quarter. He gave a similar response regarding sales and marketing and said the trend reflects a broader reduction in operating expenses.
On other cost items, Ellin said depreciation and amortization should remain generally consistent and could rise slightly over the next year as the company codes new products for partnerships. He also said stock-based compensation should be at “similar levels” next quarter, with the potential to increase depending on how talent is brought onboard under equity plans.
Guidance and balance sheet updates
Ellin provided preliminary guidance for the first time, calling for $85 million to $95 million in revenue and $8 million to $10 million in adjusted EBITDA. He characterized the outlook as conservative and said the company is “scaling profitably” while working to close what he called the “earnings delivery gap.”
He also highlighted more than $125 million in net operating loss carryforwards, describing the NOLs as a source of potential long-term tax efficiency as the company moves toward profitability.
On the balance sheet, Ellin said the company recently paid off more than $2.5 million of debt and described ongoing efforts to strengthen capital flexibility. Later in the call, he said the company has paid off its junior debt and has begun paying down senior debt, adding that year-long subscriptions can provide upfront cash that may support buybacks and debt reduction.
Ellin also said the company is expanding its share repurchase program, noting approximately $6 million remained under its authorization.
B2B partnerships, white-label positioning, and pipeline
Management repeatedly pointed to B2B distribution deals as central to LiveOne’s strategy. Ellin said the company’s B2B pipeline is the largest in its history, up more than 30% over the last 120 days, with more than 100 active enterprise opportunities. He also cited partnerships across Amazon, Apple, Paramount, Pluto TV, Telly, DAX, and Tesla.
Ellin said LiveOne expects to launch three “major Fortune 500 partnerships” this year across a national retailer, a leading TV platform, and a major carrier, adding that two of those partners have more than 50 million monthly paying subscribers.
Addressing competitive dynamics, Ellin argued that large digital streaming platforms are unlikely to pursue white-label offerings because they “aren’t going to give up their brand,” and he positioned LiveOne as a nimble, lower-cost alternative. He described the company as “the Walmart of the music space,” citing pricing, flexibility, and an ability to white-label as differentiators.
He also offered examples of existing relationships, stating that the company’s Amazon deal has grown to more than $20 million and that another streaming partner—described as a Fortune 250 company—grew from $2 million to “well over $26 million and growing.”
Advertising, subscriber conversion, AI, and leadership changes
On monetization, Ellin said LiveOne is focused on converting more than 1 million free and ad-supported subscribers, including Tesla users, into higher-monetized tiers. He also discussed advertising for free subscribers and said the company partnered with DAX, which he called the world’s leading programmatic advertising company, and that LiveOne has “raised our offerings by over 30%” since starting the relationship a couple of months earlier.
Regarding timing for revenue contribution from large B2B partnerships, Carhart said one relationship is near a launch that will begin with a test phase and that the company is pushing it through the current quarter. He said management does not expect it to “really ramp until the following year.” When asked whether guidance includes revenue from that deal, Ellin responded, “Nickels and dimes,” and said the company is being cautious as launches proceed in real time.
Ellin also said LiveOne is seeing an acceleration in inbound M&A opportunities and that inbound calls are increasing. He said the company is disciplined in evaluating opportunities aimed at increasing shareholder value.
In addition, Ellin discussed expanding original IP, saying LiveOne has sold its fourth television series to a major streaming platform with “100% margin economics,” and that the company has more than 15 original projects in its pipeline.
Ellin said LiveOne is growing AI initiatives around behavioral audio data, personalization, monetization, and enterprise engagement. He also said the company is evolving its leadership structure and has begun a process to announce a new president, who would take on day-to-day operational responsibilities while Ellin focuses on B2B partnerships, M&A, and AI initiatives.
About LiveOne (NASDAQ:LVO)
LiveOne, Inc (NASDAQ: LVO) is a digital media and entertainment company specializing in live and on-demand music, podcasts and original content. The company provides streaming access to live concerts, festival performances and exclusive artist-driven programming through its digital platform and mobile applications. Its service offerings include ad-supported free tiers as well as premium subscription packages that deliver high-quality audio and video experiences for music fans worldwide.
The LiveOne platform aggregates a diverse range of content, including live concert streams, curated on-demand playlists, artist interviews and behind-the-scenes footage.
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