LiveOne, Inc. (NASDAQ: LVO) released preliminary guidance for the third quarter of fiscal 2026, projecting year‑to‑date revenue of $57.9 million and third‑quarter revenue of $19.9 million. The company also forecast adjusted EBITDA of $1.0 million for the quarter, a key profitability metric that reflects the impact of its recent cost‑cutting and AI‑driven efficiencies.
The guidance represents a 200% quarter‑over‑quarter jump in adjusted EBITDA, moving from a negative $1.0 million in Q2 fiscal 2026 to a positive $1.0 million in Q3. Revenue is expected to be roughly 3.2% above analyst consensus of $19.285 million, driven by continued growth in LiveOne’s core Audio and PodcastOne segments. In Q2, Audio generated $18.2 million in revenue with $0.7 million in adjusted EBITDA, while PodcastOne posted $15.2 million in revenue and $1.1 million in adjusted EBITDA. The Q3 guidance reflects a similar mix, suggesting that the company’s B2B partnerships with platforms such as Amazon, YouTube, Spotify, Apple, and Paramount are sustaining demand.
LiveOne’s cost‑control program has accelerated, with operating expenses down 52% year‑over‑year and a targeted 34% headcount reduction driven by AI‑enabled automation. These measures have helped the company offset the loss of a $50 million annual revenue stream that ended with the termination of its Tesla white‑label arrangement in December 2024. Management notes that the direct‑to‑consumer channel opened by the Tesla exit is beginning to generate incremental revenue, while the company continues to monetize its newly acquired customer data across B2B channels.
CEO Robert Ellin said the quarter “reflects disciplined execution of our strategy and meaningful progress in streamlining our cost structure.” He added that LiveOne remains focused on operating efficiency and building a scalable platform that positions the company for sustained long‑term growth. The guidance signals confidence that the company can maintain a positive EBITDA trajectory while navigating the post‑Tesla business model shift.
Analysts had expected Q3 fiscal 2026 revenue of $19.285 million and an EPS of ($0.45). LiveOne’s revenue guidance of $19.9 million represents a beat of $0.615 million, or roughly 3.2%, while the positive adjusted EBITDA marks a turnaround from the prior quarter’s loss. The guidance underscores the company’s belief that its cost‑cutting and AI initiatives will continue to improve profitability, even as it expands B2B partnerships and explores new revenue streams.
The preliminary outlook provides the first forward‑looking financial snapshot since the last earnings release, offering a clearer view of LiveOne’s near‑term performance and its ability to navigate the post‑Tesla business model shift. The company’s focus on operational efficiency, AI‑driven cost reductions, and B2B growth positions it to recover from the revenue loss and pursue a path toward sustainable profitability.
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