LiveOne, Inc.

Thank you for standing by. Welcome, everyone, to the LiveONE Inc. Third Quarter Fiscal 2026 Financial Results and Business Update. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the call over to Ryan Corhart, Chief Financial Officer. You may begin, sir.

Thank you. Good morning and welcome to Live One's business update and financial results conference call for the company's fiscal third quarter ended December 31st, 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 31st, 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, contain time-sensitive information and reflects management's view as of the day of this call, February 12th, 2026. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of the 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 a 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 Live One CEO, Rob Ellen.

Good morning, everyone, and thank you for joining us. This order marks a clear inflection point for our company. We delivered over $58 million in revenues for the nine months, including $20 million in Q3. Most important, expanding our adjusted EBITDA and structurally transforming the business. Operating expenses reduced by over 52% year-over-year. Our organization was streamlined with the help of AI, from 350 people to 88 team members. We strengthened our balance sheet, reduced our debt, expanded our capital flexibility. We've just paid off over $2.5 million of debt. These were permanent structural improvements designed to create a scalable margin-expanding platform. Over the past several years, we navigated COVID shutdowns, the collapse in media and Minecraft valuations, the loss of key partnerships, and a disruption in the automotive channel. Many companies in our sector did not survive. We did, and we emerged leaner, more disciplined, and positioned for the next major growth cycle. Our audio division generated 52.2 million in nine-month revenue and over 3.7 million adjusted EBITDA, again, showcasing those cost savings and the use of AI to materially change the staffing of this company. including $18.6 million in revenue and $2.6 million of EBITDA in Q3 alone. Looking ahead, I'll eliminate fiscal guidance for the first time we are putting out $85 to $95 million in revenues and $8 to $10 million in adjusted EBITDA. We're scaling profitably and closing the earnings delivery gap as we move forward towards year end. Very important to know we have over 125 million in net operating loss carry forwards. As we move towards profitability at the end of the year, these NOLs represent significant long-term shareholder value and tax efficiencies as we grow earnings. Industry valuation dynamics are improving. We're trading at 60% of revenues. The industry is trading over three times revenues. The private sector in both podcasting and audio as a whole is trading over 3.7 times, and there are multiple transactions in the last 120 days at well above five times revenues. Strategic buyers understand the value of recurring engagement, monetization, leverage, and behavioral data. As fundamentals have normalized, valuation frameworks are starting to adjust. Our B2B pipeline is now the largest in company history, up over 30% in the last 120 days, with over 100 active enterprise opportunities with billion to trillion dollar companies. We are expanding our partnerships across Amazon, Apple, Paramount, Pluto TV, Tele, DAX, and Tesla. This year, we expect to launch three major Fortune 500 partnerships across a national retailer, a leading TV platform, and a major carrier. Two of those partners alone have over 50 million monthly paying subscribers. These are scaled recurring enterprise relationships designed to materially expand margins and enterprise value. At the same time, we're executing a focused strategy to convert more than 1 million free and ad-supported subscribers, including our Tesla users, into highly monetized tiers. That conversion opportunity alone represents meaningful incremental revenue in EBITDA. We are also seeing a sharp acceleration in inbound M&A opportunities as the market stabilizes and valuation is normalized. Strategic combinations are becoming increasingly attractive. Inbound calls continue to increase dramatically. We are disciplined in evaluating opportunities and to look at all opportunities that will increase shareholder value dramatically. We continue to expand our original IP. We have now sold our fourth television series to a major streaming platform with 100% margin economics. The costs are already built in into rolling out our podcast. And when they sell to the streaming networks, we are immediately taking in cash flow earnings. Owning intellectual properties creates long-term asset value and high margin revenue streams. We are focused on building and controlling premium content that can travel across audio, video, streaming, and live formats. We now have over 15 million original projects in the pipeline and growing. Live experience, you're also returning a major growth sector. Prior to COVID, live events represented 50% of our revenues. That market is re-accelerating. As you watch Ari Emanuel raise over $2 billion, you watch many partners in that space growing dramatically and capital being raised. our creative community, brand relationships, and audience scale position, and us to dramatically expand live shows across podcasts, music, and live events. And we've increasingly focused on owning our own products, not just distribution of content and products, but actually ownership. with a database exceeding 65 million consumers and billions of impressions and downloads across our platforms. We have the ability to test, launch, scale proprietary products directly to our community. That level of owned audience and data provides a powerful testing engine and distribution channel, enabling us to drive our own product margins and recurring revenue streams. The structural shift is happening across All of the major media businesses. Netflix is entering the podcast business. TikTok is expanding aggressively into audio. Audio remains the stickiest behavior in media. No one turns off their music subscription. Music listening generates powerful behavioral data. Time of day patterns, mood cycles, frequency, and engagement depth. That data becomes fundamentally important. and training materially for sophisticated AI models. AI is not a feature. It's an infrastructure. Our AI partnerships are growing, and initiatives are focused on leveraging behavioral audio data, enhancing personalization, optimizing modernization, and powering enterprise engagement. That is why B2B demand is accelerating. That is why the pipeline is exploding. To fully capitalize on this opportunity, we are evolving our leadership structure. We have started the process and will shortly announce a new president, an accomplished operating executive, Evgen, who has built and scaled and sold billion-dollar public companies and brings deep public market expertise to our team. This leader will also assume day-to-day operational roles, allowing me to dedicate 100% of my time to B2B partnerships, M&A activity and accelerating, most important, our AI initiatives and pursuing strategic growth opportunities. It's a proactive decision aligned with scale and opportunity and the fact that the restructuring has now been complete and it's now time to really focus our energy on top line growth and bottom line EBITDA numbers. Finally, our capital allocation reflects our confidence. We believe our company is materially undervalued, trading at less than one times revenues, well below the 3.7 industry trading today. Our NOLs of over 125 million and improving industry multiples. As a result, we are expanding our share repurchase program with approximately $6 million remaining under the authorization. We are investing in growth. We are investing in ourselves. We are no longer rebuilding. We are accelerating. Revenue is scaling. EBITDA is exploding. The earnings gap is closing. B2B partnerships are growing. AI initiatives are advancing. Live experiences are returning. Own products are launching. M&A opportunities and increasing industry valuations are normalizing. And capital is being returned through disciplined buybacks. We survived disruption, we rebuilt the foundation, and we're now positioned at the intersection of audio, enterprise distribution, behavioral data, AI, IT ownership, and scalable monetization. The next chapter is disciplined, margin-expanding growth. I want to thank everyone for their support and appreciate your time today, and I look forward to any questions. At this point, I'm going to hand it off to Ryan Kihart, our CFO, who's done an exceptional job of delivering on these numbers. Thank you.