Live Ventures Incorporated reported fiscal 2025 results that marked a sharp turnaround in profitability. Revenue fell 5.9% to $444.9 million from $472.8 million in 2024, while adjusted EBITDA rose 36.3% to $33.4 million. Operating income swung to a positive $14.6 million from an operating loss of $13.6 million the prior year, and net income reached $22.7 million, reversing a $26.7 million loss. Diluted earnings per share were $4.93.
The revenue decline was driven primarily by weakness in the company’s core flooring businesses. Retail‑Flooring revenue dropped 10.7% as demand for new home construction and home refurbishment softened, and Flooring Manufacturing revenue fell 8.5% amid similar market softness. Steel Manufacturing revenue also slipped, while the Retail‑Entertainment segment grew 9.1% thanks to strong demand for vintage and collectible media, partially offsetting the overall decline.
Profitability improvement was largely a result of disciplined cost management and one‑time gains. A $22.8 million gain from restructuring the Flooring Liquidators seller note and a $2.1 million gain from Employee Retention Credits boosted net income. Gross margin expanded to 32.7% from 30.6% year‑over‑year, reflecting pricing power and a shift toward higher‑margin product mix in the Flooring Manufacturing segment. These factors enabled the company to convert a revenue loss into a substantial operating profit and a positive net income.
Chief Financial Officer David Verret highlighted the company’s operational progress, noting that the $10.2 million increase in operating income represented a 231.7% improvement from the prior year, excluding a $18.1 million goodwill impairment recorded in 2024. He acknowledged that softness in the housing market continues to weigh on the Retail‑Flooring and Flooring Manufacturing segments, but emphasized the company’s focus on cost discipline and strategic pricing adjustments.
The results signal a successful turnaround in profitability, but also underscore ongoing challenges in the flooring business lines. While the company has restored positive operating income and net earnings, sustained revenue growth will require addressing the headwinds in the housing market and further strengthening the Retail‑Flooring and Flooring Manufacturing segments. The company’s emphasis on cost control, pricing strategy, and strategic acquisitions positions it to maintain profitability while navigating the current market environment.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.