LiveOne, Inc.

Thank you for standing by. Welcome to LIB1 Q2 fiscal 2026 financial results and business update conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to goodbye your question, please press the star one again. Thank you. I would now like to turn the conference over to Ryan Carhart, Chief Financial Officer. You may begin.

Thank you. Good morning and welcome to Live One's Business Update and Financial Results conference call for the company's fiscal second quarter ended September 30th, 2025. Presenting on today's call with me is Rob Ellen, CEO and Chairman of Live One. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2025 and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor relations website. The company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, November 12, 2025. And, except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the investor relations section shortly following the conclusion of the call. Additionally, it is the property of the company, and any redistribution, transmission, or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne CEO, Rob Ellen.

Thank you, Ryan. And welcome, everybody, and thank you for joining us. This has been a transformative 12 months for the company. As we came out of the loss of over $50 million of revenues with Tesla, we not only survived, but we thrived. As you look at the numbers today, the highlights are going to be is how this team and how this company has utilized technology and being a talent-first platform to again prove that we can get back to EBITDA positive numbers. With that loss of $50 million in revenues, we're excited to tell you that we finished the quarter with $36 million a little over 36 million, 36.6 million in our audio division with $1.1 million of adjusted EBITDA. How did we do that? The first thing we did is we leveraged technology. We embraced AI. We embraced the ability to use AI to be able to cut our staff and cut it from 350 people to 95. We've cut our costs down from 22 million down to 6 million. And with that, We now have aggressively moved on our B2B plan to move to partnerships that the history of this company has been built on like Kessler. And with that, I'm excited to say we closed our seventh deal. We have now expanded our partnership with Amazon from 16 and a half million dollars in a three year deal to over 20 million. That's all based on traffic and audience continue to grow massively. Our Fortune 250 partner increased from $2 million originally to $12 to now $26 million plus a year run rate. Going back to Tesla, we converted over 60% of the total cars out there, which was $2 million. We now have almost a million free cars, both paid and free. One million of those free cars are now, those cars have now re-signed back up guy of where we finally now have data and information, those consumers, and now the ability to try to convert those. And now using an AI marketing strategy, we aggressively converting those and generating real cash every day and continue to grow that number of subscribers and see. A really exciting opportunity now to convert into those million. If we can convert 10%, we'll add another hundred thousand paid subscribers. If we can convert 20%, the numbers start to skyrocket. We have 72 additional B2B partnerships and fully expect to announce multiple additional ones before year end. Utilizing AI, we've increased our ARPUs by 60%. We're starting to see a $5 plus ARPU versus the $3 that we had previously. Our podcast business. Our podcast business has grown. We bought the company doing $20 million in revenues, losing five. We've just announced record-breaking revenues, over $15 million for the quarter, and announced that we expect to do $56 to $60 million this year and $4.5 to $6 million of EBITDA. That's a $6 to $8 million swing from last year. We've aggressively taken our podcasts, and now taking our True Crime podcast, which we have a slate of over 12, that we've now brought that to market to the streaming networks, and we've sold three podcasts to television now. What does that mean for the company? It means hundreds of thousands of dollars in option money day one, and it could be millions to tens of millions of dollars in the very near future as those get greenlit. We've now sold the show to CBS, to Peacock, to Fox, to Paramount, and we fully expect to sell additional shows. We have our first giant upcoming live event. Our last major live event goes back to the days of COVID, which was called Social Gloves. That event did over $20 million and over $4 million of EBITDA. On December 11th, we are going to launch Reality Olympics. Reality Olympics will be at LFC Stadium the BMO Stadium, and be launched with YouTube committing over a billion impressions to the event. We just announced our launch of our subsidiary, Live One Africa, with a commitment from Virtuoso Music to raise over $20 million to a market that will be bigger than the U.S. market in the next couple of years. Our buyback continues. We continue to buy back both stocks. We've now bought back over $6 million of stock in LIDE 1. We will continue to buy back stocks. For everyone that remembers, we sold $10 million of stock at $7.5 only three months ago, two and a half months ago. We'll continue to buy that as well as you will see management and board members doing the same. As we look at the future, we see the highlight films. of these B2B deals, providing a massive opportunity for the company. Current Amazon deal, we see it just continue to grow. It's a highlight film as more podcasters, the more traffic we drive, the bigger those revenues are going to be. As we launch our next major project, over 30 million monthly paying subscribers, we will talk about this in great detail over the next couple of weeks and expect to launch this year If you think about the Tesla numbers, we had 2 million subscribers, 2 million cars, right? And we've now converted 60% of them. If you have 30 million, if you just convert a couple of percentage, we're going to start to really generate very serious subscriber growth, ARCA growth, as well as revenue growth. With that, I'm proud of my team. They've survived Tesla's loss of the revenues and come out of it stronger than ever. For those of you there, if you remember when COVID hit, we went from 38 million in revenues, we'd lost all of our live business, and somehow the following year, we did well over $100 million in revenues. I see telltale signs that with the current B2B pipeline, the current B2B deals have already been announced, which are over $50 million in contractual deals, actually $52 million in contractual deals as they continue to grow. I see telltale signs that this company is well on its way to, again, be well over $100 million. And with that, we will continue to buy back stock. And I want to thank everybody and appreciate everybody's support and open up the floor to Ryan to talk about the numbers. Thanks, Ryan.