LiveOne, Inc.

Good morning, and thank you for standing by. Welcome to Live One's fiscal fourth quarter and full year-ended March 31, 2026 Financial Results and Business Update conference call. During today's call, all participants will be in listen-only mode. Following the presentation, the conference will be opened for questions. Presenting on today's call is Rob Ellen, CEO and Chairman of LiveONE, and Craig Christiansen, Interim CFO of LiveONE. 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, 2026, 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, June 24, 2026. And except as required by law, the company does not undertake any obligation to update or revise this information after today's call. I'd like to highlight to all participants that this call is being recorded. The company will make 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 this 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's CEO, Rob Ellen.

Good morning, everyone, and thank you for joining. This has been a transformational year for LiveOne. I want to start by applauding my team at LiveOne, at PodcastOne, at Slacker, and our merch business. Each of those subsidiaries have fought through this year and battled and turned this around. LiveOne reported this morning $77 million in revenues. Our audio business, $73 million, $73.5 million, and $6.1 million in EBITDA. This is hugely transformative for the company. It's been a tough battle. In 30 plus years of running public companies, we lost our major customer, Tesla, lost $65 million out of $75 million in revenues. We took punches from our debt holders, our banks, our investors in a brutal market. At one point, it felt like the Nick game. I'm wearing my Nick hat today as this was comeback time for Live One. But our teams rallied and did not quit. As you look at our podcast business, Kit Gray showed up as our Jalen Brunson. He took that business and has now grown it from the time I acquired it from 17 million. This year, we did $61 million with $6.3 million in EBITDA. When we acquired the business, it was losing $6.5 million a year. That's a $12 million swing in EBITDA. And as you look at this first quarter, We've just raised our guidance and raised our guidance to $78 to $85 million, right, with $8 to $10 million of EBITDA. And we're already doing close to $2 million of EBITDA for the quarter. So you're on an $8 million run rate off the slowest quarter. At LiveOne, we survived our banks pulling out. We replaced them. We have now paid down all of our junior debt. We have now converted over $15 million of equity at $7.5 a share. And we have cleansed our balance sheet dramatically. Now's the time for everyone who's fought through this year to start to see this business turn and go back in the direction where we started. We traded for almost five years between $40 to $100 a share. We went through a tough period of time during COVID. We came out strong in the never. We've gone through a tough period of time with Tesla, and we're coming out strong in the never. Our B2B lineup is growing dynamically across many verticals. As you look at the past announcements, these have just come out in this quarter, this current quarter. We've announced partnerships with Vizio, which is part of Walmart. We've announced partnerships with Samsung. We've announced partnerships now with AT&T. AT&T will now reach over 70 million people and growing. And as you continue to add these to our current lineup of B2B deals, we also added LG to the lineup. If you take the combination of just those alone is hundreds of millions of monthly eyeballs. As you now look up forward, we expect to announce our next major partnership with a retailer with over 15 million monthly subscribers. We've already talked about going through phase one and the success of it and success of the signups that came at almost 46% way higher than we could have dreamed. When you look at the Tesla partnership, there were only 2 million cars. Consumers had to sign up for $10 a month. And somehow we ran from when we acquired the company, we acquired Slacker Radio doing $200,000 a month to doing $65, $70 million a year and growing. We have now started to replace that. Part of that replacement came with a really exciting partnership with Amazon, now over $20 million. that it was paramount. When it first started, it started at Pluto TV. It started as a $2 million deal. It's now over $26 million. We continue to grow these. We see telltale signs that these partnerships will all look similar, that if you just can convert a half a percent to 1% of their total audiences, we could be looking at hundreds of millions of dollars in the next two years and a billion dollars over the next five years. We could be more excited about where the business is going, and we wanted to show the street our hand. So we rallied back, and what did we do? We bought back a substantial amount of additional stock. We now said we bought over $7 million stock in the free market, and that we have $5 million additional to acquire. We also bought a substantial amount of podcasts, one stock back. And if the company is going to continue to trade at these discounts, we are going to continue to acquire. We're going to continue to buy back as well as you will see me personally buying a sizable position back in the company. I bought as high as $60 a share, and I certainly will continue to buy down at these low levels. With that, again, I want to thank my management team for successfully surviving a uniquely, uniquely difficult period of time and for coming out of it stronger than ever. We feel like these B2B deals are starting to build momentum. We have over 100 in the pipeline right now. Everything from hotels to airlines, things to streaming networks, to audio companies, carriers, auto companies. And we see the telltale sign that these will continue to grow. With that, I want to pass this over to Craig and give him an opportunity. Craig has joined us on an interim basis, but hopefully for long term. He's done just an amazing job of harboring the ship and getting the 10Qs and 10Ks done and brings a very prolific background as CFO, as well as real serious experience and M&A doing over 20 acquisitions in his last company. So, Craig, take over from here, and then I'll jump back in and finalize everything.

Thank you. All right. Thank you, Rob, and thanks for that intro. I'll just spend a few minutes here providing a brief overview of our results for the fourth quarter, and then I'll cover the full fiscal year. Some of these numbers Rob commented on, but the consolidated revenue for the fourth quarter was $18.9 million, with positive adjusted EBITDA of $300,000. Our audio division revenue for the fourth quarter was $18.3 million with adjusted EBITDA of $2.4 million. On a US GAAP basis, consolidated net loss was $7.6 million or negative $0.65 per basic and diluted share in the fourth quarter of fiscal 26. Our Podcast One subsidiary produced Q4 revenue of $15.7 million and adjusted EBITDA of $1.9 million. Our Slacker subsidiary produced Q4 revenue of $2.6 million and adjusted EBITDA of $600,000. For the full year, our revenue for fiscal 26, as Rob mentioned, was $77.1 million, adjusted EBITDA of negative $900,000. Our audio division produced full year revenue of $73.5 million and adjusted EBITDA of $6.1 million. So down at the operating level, Slacker reported full year revenue of $11.8 million and adjusted EBITDA of negative $200,000. Our Podcast One subsidiary produced record full-year revenue of $61.7 million and $6.3 million in adjusted EBITDA. So as Rob mentioned, I mean, we're very pleased to report strong continued growth at our Podcast One subsidiary. We expect that to continue throughout the year. We're advancing several strategic partnerships from our business development pipeline that we believe have potential to drive long-term growth and value creation. Now in fiscal 27, we believe the company is well positioned for transformational growth, new B2B partnerships, and potential M&A transactions. So Rob, that's all I got. Back over to you.