LiveOne reported second‑quarter 2026 revenue of $18.8 million, a 42% decline from the $32.6 million earned in the same period last year. The drop is largely attributable to a sharp contraction in Slacker revenue, which fell 55% YoY, underscoring the company’s vulnerability to its legacy streaming business.
Operating loss widened to $4.6 million from $1.4 million a year earlier, while adjusted EBITDA turned negative at $1.0 million versus $2.9 million a year ago. The audio division contributed $0.7 million in adjusted EBITDA, but other operations and corporate segments posted losses of $0.3 million and $1.4 million respectively, reflecting the impact of higher operating expenses despite AI‑driven cost reductions that cut quarterly operating expenses from $22 million to $6 million and staff from 350 to 95.
LiveOne’s earnings per share were $‑0.52, missing the consensus estimate of $‑0.45. The miss is driven by the combination of a steep revenue decline and the company’s ongoing transition to a leaner, AI‑powered model, which has yet to fully offset the loss of high‑margin legacy revenue streams.
Comparing to the preceding quarter, revenue fell from $19.2 million in Q1 2026 to $18.8 million in Q2, operating loss increased from $4.0 million to $4.6 million, and adjusted EBITDA deteriorated from $‑1.8 million to $‑1.0 million, indicating a gradual acceleration of the company’s cost‑control challenges.
LiveOne did not issue new guidance for the remainder of the fiscal year. The absence of updated forecasts suggests management is cautious amid the ongoing revenue decline and the need to stabilize the company’s financial footing.
CEO Robert Ellin said, “LiveOne’s second‑quarter results highlight the power of focus, efficiency, and innovation. AI‑driven cost reductions and strong B2B growth have made LiveOne leaner, smarter, and positioned for sustained shareholder value.” The statement signals a continued emphasis on B2B partnerships and AI‑enabled efficiencies as the company seeks to rebuild revenue momentum.
The results illustrate a company in transition: aggressive cost cuts have reduced operating expenses, but the loss of Slacker revenue and the need to invest in AI infrastructure have widened losses. The EPS miss and revenue decline highlight the short‑term headwinds, while the focus on B2B growth and AI efficiencies points to a longer‑term strategy aimed at restoring profitability.
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