Company Overview
LiveOne, Inc. operates as a digital media company focused on the acquisition, distribution, and monetization of live music events, Internet radio, podcasting, vodcasting, music-related membership services, and streaming and video content. The company functions within the Communication Services sector, specifically the Entertainment industry, positioning it as a participant in the growing digital audio and media consumption landscape. As of the latest available data, the entity manages a market capitalization of $55.55M and employs 113 individuals to support its operations. The annual revenue generated by the business stands at $77.51M, which provides context for the company's scale relative to its market cap, indicating a small-cap status where revenue per employee is significantly high compared to larger enterprise-level media firms.
Financial Health
The company reported a revenue of $77.51M over the trailing twelve months, yet this top-line figure masks a net income loss of $24,683,000, revealing a cost structure where expenses substantially exceed gross earnings. EBITDA for the period was recorded at $-11,425,000, further highlighting the operational challenges in converting revenue into positive cash earnings before interest, taxes, depreciation, and amortization. The company generated negative free cash flow of $-7,925,500, indicating that its cash outflows from operations and investing activities exceeded its cash inflows, which limits financial flexibility and liquidity for expansion or debt servicing. Margin analysis shows a gross margin of 26.7%, an operating margin of -9.6%, and a profit margin of -30.5%, suggesting that while the company retains a portion of revenue after direct costs, significant overhead expenses erode profitability at the operating and net levels. Regarding liquidity, the company holds $8.62M in cash against $15.44M in debt, resulting in a current ratio of 0.54, which indicates that short-term assets are insufficient to cover short-term liabilities without additional financing or asset sales. Return on Equity is listed as N/A, while Return on Assets stands at -15.7%, metrics that collectively reveal that the management team has not yet been effective at generating positive returns on the capital employed in the business.
Valuation Assessment
The valuation metrics for LiveOne, Inc. reflect its unprofitable status, with a trailing P/E ratio of N/A and a forward P/E of -95.40, implying that the market is pricing the stock based on future earnings expectations that are currently negative or undefined due to the lack of recent profitability. The price-to-book ratio is reported as -2.04, indicating that the market values the company at a negative multiple of its book value, a scenario typical for distressed or loss-making entities where assets may not cover liabilities. Alternative valuation measures include a price-to-sales ratio of 0.72 and an EV/EBITDA of -6.91, which suggest that investors are valuing the stock primarily on its revenue generation capabilities rather than earnings power. The stock has traded between a 52-week high of $9.80 and a 52-week low of $3.70; without a specific current share price provided in the data, the valuation range demonstrates a wide band of volatility typical for small-cap entertainment stocks. The beta value is 1.65, meaning the stock is expected to exhibit significantly higher price volatility than the broader market, moving roughly 65% more than the market index during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is recorded at -31.2%, while earnings growth is N/A, indicating that the company is contracting in terms of sales volume and has not yet achieved a stage where earnings are growing faster or slower than revenue due to the absence of positive earnings. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests its limited earnings or retains cash reserves into growth initiatives rather than distributing income to shareholders. This reinvestment strategy is necessitated by the negative net income and negative free cash flow, forcing the company to rely on internal cash reserves or external financing to fund operations and potential expansion. The overall growth and income profile is characterized by a contraction in revenue and a complete absence of dividend income, reflecting a phase of business restructuring or market adjustment within the digital media sector.