Live Ventures Inc

Live Ventures Inc exhibits a capital structure with a debt-to-equity ratio of 2.0, indicating a significant reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.74, suggesting it can cover its short-term obligations, but its cash and equivalents of $4.49 million are insufficient to offset its long-term debt of $191.78 million. The price-to-book ratio of 0.33 implies that the company's market value is trading at a discount to its book value, which may reflect market skepticism about its asset quality or future earnings potential.

Profitability metrics reveal a challenging operating environment for Live Ventures Inc. The company reported a net loss of $3.28 million and an operating loss of $0.84 million, with a return on equity of -3.42% and a return on assets of -0.76%. These figures fall below the typical performance of companies in the Investment Holding Companies industry, which generally maintain positive returns on equity and assets. The negative net income and operating income suggest that the company is not currently generating sufficient returns from its investments or operations to cover its costs.

Live Ventures Inc does not disclose specific revenue segments in its financial reporting, but its business model is centered on investment activities, which are inherently subject to market volatility and asset performance. The company's geographic exposure is not explicitly detailed, but as a U.S.-based investment holding company, it is likely concentrated in North American markets. This concentration may expose the company to regional economic downturns or regulatory changes that could impact its investment portfolio.

The company's growth trajectory appears to be constrained, as evidenced by its negative operating and net income. The analyst estimate for revenue is $444.94 million, which is significantly higher than the reported revenue of $118.63 million, suggesting a potential for growth if the company can improve its operational performance. However, the company's free cash flow of -$0.799 million and capital expenditure of -$3.373 million indicate that it is not generating sufficient cash to fund its operations or investments without external financing.

Risk factors for Live Ventures Inc include its high debt-to-equity ratio and negative net cash position, which could limit its financial flexibility and increase its vulnerability to interest rate fluctuations and credit risk. The company's dilution risk is currently assessed as low, but its reliance on debt financing and potential need for additional capital could increase this risk in the future. The risk assessment also highlights the importance of monitoring the company's liquidity position, as its current ratio, while above 1, may not be sufficient to sustain operations if cash flow from investments declines.

Recent events, including the company's financial performance and analyst estimates, suggest that Live Ventures Inc is in a period of transition. The discrepancy between the reported revenue and the analyst estimate indicates that the company may be in the process of restructuring or expanding its investment portfolio. However, the lack of detailed segment or geographic reporting makes it difficult to assess the specific drivers of this potential growth.

Free cash flow surged 270.7% year-over-year to $32.4 million in fiscal 2025, demonstrating strong operational cash generation.

Operating income improved by 226.0% year-over-year to $17.2 million in fiscal 2025, signaling a significant recovery in core profitability.

Net income turned positive at $22.7 million in fiscal 2025, reversing the previous year's loss of $26.7 million.

Long-term debt decreased to $158.6 million in fiscal 2025 from $195.1 million in fiscal 2024, indicating active deleveraging efforts.

Gross profit reached $145.7 million in fiscal 2025, maintaining robust top-line efficiency despite a slight revenue decline.

The company carries high leverage with a debt-to-equity ratio of 3.05, posing significant credit risk according to risk flags.

Return on equity stands at -3.42%, placing the company in the bottom quartile compared to its investment holding cohort.

Cash conversion ratio of -0.65 ranks in the bottom quartile of the cohort, suggesting inefficient translation of earnings to cash.

Revenue $112.7M; Operating income -$17.5M.

• ▍Revenue $112.7M
• ▍Operating income -$17.5M
• ▍Net margin -17.6%

Revenue $123.9M; Operating income $1.1M.

• ▍Revenue $123.9M
• ▍Operating income $1.1M
• ▍Net margin -2.3%

Revenue $118.6M; Operating income -$838.0k.

• ▍Revenue $118.6M
• ▍Operating income -$838.0k
• ▍Net margin -2.8%

Revenue $444.9M, −5,9% YoY; Operating income +226,0% YoY.

• ▍Revenue $444.9M, −5,9% YoY
• ▍Operating income +226,0% YoY
• ▍Net income +185,2% YoY
• ▍Free cash flow +270,7% YoY
• ▍Net margin 5.1%

Revenue $472.8M, +33,1% YoY; Operating income −182,7% YoY.

• ▍Revenue $472.8M, +33,1% YoY
• ▍Operating income −182,7% YoY
• ▍Net income −26 061,8% YoY
• ▍Free cash flow −551,8% YoY
• ▍Net margin -5.6%

Revenue $355.2M, +23,8% YoY; Operating income −55,6% YoY.

• ▍Revenue $355.2M, +23,8% YoY
• ▍Operating income −55,6% YoY
• ▍Net income −100,4% YoY
• ▍Free cash flow −78,8% YoY
• ▍Net margin -0.0%

Revenue $286.9M, +5,1% YoY; Operating income −14,9% YoY.

• ▍Revenue $286.9M, +5,1% YoY
• ▍Operating income −14,9% YoY
• ▍Net income −20,7% YoY
• ▍Free cash flow −25,1% YoY
• ▍Net margin 8.6%

Revenue $273.0M; Operating income $43.7M.

• ▍Revenue $273.0M
• ▍Operating income $43.7M
• ▍Net margin 11.4%