LiveOne, Inc.

Good morning and thank you for standing by. Welcome to Live One's fiscal year 2027 first quarter and the June 30th, 2026 financial results and business update conference call. During today's call, all participants will be in a listen-only mode. Following the presentation, the conference will be opened for questions. Presenting on today's call is Rob Ellin, CEO and Chairman of Live One, and Craig Christensen, Interim CFO 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 and 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 vary 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 would 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, August 12, 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. Thank you.

Good afternoon, everyone, and thank you for joining us. This was one of the most important and strongest quarters in the history of Live One. We delivered $19.3 million in revenues and $18.6 million of audio revenues at a record $6.3 million of adjusted EBITDA. Our podcast delivered record revenues over $16.2 million at $1.6 million of adjusted EBITDA. But maybe just as importantly, we increased our cash position by $3.3 million, increased our stockholders' equity by $7 million, and eliminated $5 million of liabilities for the quarter. We've now completed $7 million of our $12 million of stock repurchase program and fully are prepared to continue to grow that and buy more and more stock at these low prices. We also acquired 150,000 shares of Podcast One and paid off all of the junior debt at Podcast One. Our focus is simple. Grow revenues, grow EBITDA, generate cash, strengthen the balance sheet, and create shareholder value. And for the first time, I believe, we see a very clear path to the next level of scale. Our B2B pipeline is stronger than it ever has been. We now have partnership and opportunities with over $10 trillion worth of companies across the world. We have signed major retail agreements with a four-year agreement with one of the biggest retailers in the world. We are very close on a second retailer. And for the first time ever, we have partnered with Netflix and their 700 million global members. Our relationships continue to grow across Apple, Amazon, Alphabet, AT&T, Samsung, LG, Vizio, and many of the most important, largest companies in the world. We are also seeing very meaningful expansion with our existing partners, Amazon representing over 20 million, and Paramount has now passed and on its way to over $27 million in revenues. This continues to demonstrate the accelerating opportunity across our major global distribution partners. Based on the momentum we're seeing, we believe there is a clear path to over $250 million in revenues over the next three years. And importantly, this growth is happening against a dramatically leaner cost structure. We've cut our staff down from 350 people at a high to now around 80 and we are not just simply rebuilding revenues. We are building a much more profitable, scalable live one with the potential for dramatically increasing EBITDA and cashflow. Our M&A pipeline is the strongest it's ever been with over $400 million of potential deals in the pipeline. We are evaluating carefully acquisitions mergers across our businesses while continuing to receive Substantial inbound interest from strategic and financial buyers looking to acquire individual live one subsidiaries, assets, or potentially the entire company. That gives us tremendous optionality. We can buy, merge, partner, or monetize assets depending on which path creates the greatest value for our shareholders. Podcast one is another critical part of our flywheel. We believe audio and video belong together. We are watching a transformative move in the industry as you see Netflix enter in a very strong way into podcasting and you see the likes of Fox buying up many podcast networks as well as OpenAI paying 13 and a half times revenues for a podcast network. This is the second round of acquisitions where there was over 10 billion of them in the first round and I fully expect there'll be a larger scale acquisition mode happening in the overall industry. It is very strong belief that you're gonna see every streaming network, including the Apples, the Amazons and the Alphabets of the world or the YouTubes of the world, acquiring podcast networks. We've also now officially sold our podcast, Barnumtown, to a major streaming partner and we're hoping for a green light on that in the very near future. This adds to our Podcast One IP of podcasts that can turn into television or films and dramatically increases our opportunity of generating substantial cash flow from these. AI adds another major layer across our audio and video content data and intellectual properties. We have over 250,000 hours The most important message I want investors to take away from this Live One Flywheel is robust, is working, and is accelerating. More partners create more distribution, more distribution creates bigger audiences, more audience creates more revenues, and more content creates more IP. The more IP creates more opportunities across streaming, television, AI licensing, commerce, and M&A. And then there is the valuation. The industry companies are trading at about 3.7 times revenues while LiveOne is trading at about 65% of revenues. We believe this represents an extraordinary valuation disconnect. As we execute, grow revenues, expand EBITDA, generate cash, and strengthen the balance sheet, we believe there's a significant opportunity to close that gap. After more than 30 years of building media and technology companies to over $10 billion worth of companies, I believe this is the strongest and most powerful collection of assets and opportunities I've ever assembled. I've been through this journey with many companies where stock has had its difficult times and then rebounds in a very extraordinary way. We watched this with Digital Turbine dropping to almost $40 million and then five years later trading to a $12 billion valuation. I believe LiveOne has today more assets, more revenue streams, and more ways to win. Now it comes down to final execution. The flywheel is accelerating and we see a very strong sign of hitting over $100 million in revenues in the very near future. With that, I want to hand it off to Craig, our CFO, who's done an amazing job and look forward to finalizing our call at the end. Thank you, Craig.

Thanks, Rob. I'll spend a few minutes just providing a brief overview of the results for our first quarter. Consolidated revenue for the three months ended June 30, 2026 was 19.4 million with positive adjusted EBITDA of 4.3 million. Our audio division posted revenue for Q1 of 18.6 million and adjusted EBITDA of 6.3 million. The biggest driver of adjusted EBITDA was our slacker business with stock for service deals that covered certain past liabilities as well as credit for future services. On the U.S. GAAP basis for the first quarter, Live One posted a consolidated net loss of $3.1 million or negative $0.23 per basic and diluted share. This compares to net loss of $3.9 million or negative $0.40 per basic and diluted share in the same quarter last year. At the operating level, our Podcast One business reported record revenue $16.1 million and adjusted EBITDA of $1.6 million. Our slacker business posted Q1 revenue of $2.5 million and adjusted EBITDA of $4.7 million. This was primarily driven by stock for service deals and the elimination of certain past liabilities. So overall, we see strong momentum in the first half of fiscal 27, led by the continued growth of Podcast One. And as Rob mentioned, we have several strategic opportunities gaining traction, which we believe can support the continued growth and create long-term value. So Rob, I'll turn it back over to you.