Live Ventures Reports Fiscal Third Quarter 2025 Financial Results
LAS VEGAS, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (NASDAQ:LIVE) ("Live Ventures" or the "Company"), a diversified holding company, today announced financial results for its fiscal third quarter 2025 ended June 30, 2025.
Fiscal Third Quarter 2025 Key Highlights:
Revenue was $112.5 million, compared to $123.9 million in the prior-year period
Gross margin expanded to 34.0%, compared to 29.9% in the prior-year period, representing a 410 basis point improvement
Operating income increased $6.9 million, or 607.6%, to $8.0 million, compared to $1.1 million in the prior-year period
Net income increased $8.2 million to $5.4 million, and diluted earnings per share ("EPS") were $1.24, compared to the prior-year period net loss of $2.9 million and diluted loss per share of $0.91. Net income for the third quarter of fiscal year 2025 includes one-time gains of $2.8 million, and the third quarter of fiscal year 2024 includes a one-time loss of $0.3 million
Adjusted EBITDA¹ more than doubled, increasing $7.1 million, or 115.4%, to $13.2 million, compared to $6.1 million in the prior-year period
The Company repurchased 12,695 shares of the Company's common stock at an average price of $8.83 per share
Total assets of $387.5 million and stockholders' equity of $94.3 million as of June 30, 2025
Approximately $37.1 million of cash and availability under the Company's credit facilities as of June 30, 2025
"All four of our operating segments delivered improved performance in the third quarter of fiscal year 2025, with each reporting higher operating income and operating margin compared to the prior-year period. These positive trends were achieved despite ongoing softness in the new home construction and home refurbishment markets, which continue to pressure the Retail-Flooring and Flooring Manufacturing segments, where decreased consumer demand has impacted revenues," commented David Verret, Chief Financial Officer of Live Ventures.
"We delivered exceptional operational performance this quarter, with all four operating segments achieving improved operating income and margins compared to the prior year. Our gross margins expanded by over 400 basis points to 34%, demonstrating the effectiveness of our strategic pricing initiatives and operational excellence programs. These results validate our disciplined approach to cost management and operational optimization across our diversified portfolio," commented Jon Isaac, President and Chief Executive Officer of Live Ventures.
"The strength of our operational execution is evident in these results - despite revenue headwinds, we more than doubled our Adjusted EBITDA from $6.1 million to $13.2 million, demonstrating our ability to drive significant margin expansion and cost optimization. Our operating cash flow increased 58% to $21.9 million for the nine months, providing us with excellent financial flexibility to pursue strategic growth opportunities. We've successfully proven our ability to enhance profitability and generate strong cash flows even in challenging market conditions," continued Isaac.
¹ Adjusted EBITDA is a non-GAAP measure. A reconciliation of the non-GAAP measures is included below.
Third Quarter Fiscal Year 2025 Financial Summary (in thousands except per share amounts)
For the three months ended June 30,
2025
2024
% Change
Revenue
$
112,530
$
123,878
-9.2
%
Operating income
$
8,003
$
1,131
607.6
%
Net income (loss)
$
5,388
$
(2,855
)
N/A
Diluted earnings (loss) per share
$
1.24
$
(0.91
)
N/A
Adjusted EBITDA¹
$
13,188
$
6,123
115.4
%
Revenue decreased approximately $11.3 million, or 9.2%, to approximately $112.5 million for the quarter ended June 30, 2025, compared to approximately $123.9 million in the prior-year period. The decrease is primarily attributable to the Retail-Flooring and Steel Manufacturing segments, which decreased by approximately $12.0 million.
Operating income increased approximately $6.9 million or 607.6%, to approximately $8.0 million for the quarter ended June 30, 2025, compared to approximately $1.1 million in the prior-year period. The increase in operating income was primarily driven by increased revenue in the Retail-Entertainment segment and lower compensation, marketing, and legal expenses, reflecting targeted cost reduction initiatives implemented in the Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing segments.
For the quarter ended June 30, 2025, net income increased $8.2 million to $5.4 million, and diluted EPS was $1.24, compared to a net loss of $2.9 million and diluted loss per share of $0.91 in the prior-year period. The increase in net income is the result of the improvement in the gross and operating margins during the current quarter, as well as lower interest expense. In addition, net income for the third quarter of fiscal year 2025 includes a $1.5 million gain on Employee Retention Credits and a $1.3 million gain on the settlement of a holdback liability related to Precision Industries, Inc. ("Precision Marshall"). The net loss for the three months ended June 30, 2024, includes a $0.3 million loss from the disposition of certain Johnson stores.
Adjusted EBITDA¹ for the quarter ended June 30, 2025, was approximately $13.2 million, an increase of approximately $7.1 million, or 115.4%, compared to approximately $6.1 million in the prior-year period. The increase in Adjusted EBITDA¹ is primarily due to the improved operating performance during the third quarter of 2025, reflecting targeted cost reduction initiatives across the Company.
As of June 30, 2025, the Company had total cash availability of $37.1 million, consisting of cash on hand of $7.6 million and availability under its various lines of credit of $29.5 million.
Third Quarter Fiscal Year 2025 Segment Results (in thousands)
For the three months ended June 30,
2025
2024
% Change
Revenue
Retail - Entertainment
$
19,017
$
16,503
15.2
%
Retail - Flooring
30,373
36,981
-17.9
%
Flooring Manufacturing
29,487
31,264
-5.7
%
Steel Manufacturing
33,645
39,047
-13.8
%
Corporate & Other
8
83
-90.4
%
Total Revenue
$
112,530
$
123,878
-9.2
%
For the three months ended June 30,
2025
2024
% Change
Operating Income (loss)
Retail - Entertainment
$
2,318
$
1,332
74.0
%
Retail - Flooring
(733
)
(1,498
)
51.1
%
Flooring Manufacturing
4,135
1,856
122.8
%
Steel Manufacturing
2,277
1,370
66.2
%
Corporate & Other
6
(1,929
)
N/A
Total Operating Income
$
8,003
$
1,131
607.6
%
For the three months ended June 30,
2025
2024
% Change
Adjusted EBITDA¹
Retail - Entertainment
$
2,573
$
1,575
63.4
%
Retail - Flooring
590
(258
)
N/A
Flooring Manufacturing
4,960
2,797
77.3
%
Steel Manufacturing
4,271
3,102
37.7
%
Corporate & Other
794
(1,093
)
N/A
Total Adjusted EBITDA¹
$
13,188
$
6,123
115.4
%
Adjusted EBITDA¹ as a percentage of revenue
Retail - Entertainment
13.5
%
9.5
%
Retail - Flooring
1.9
%
-0.7
%
Flooring Manufacturing
16.8
%
8.9
%
Steel Manufacturing
12.7
%
7.9
%
Corporate & Other
N/A
N/A
Total Adjusted EBITDA¹
11.7
%
4.9
%
as a percentage of revenue
Retail, Entertainment
The Retail-Entertainment segment revenue for the quarter ended June 30, 2025, was approximately $19.0 million, an increase of approximately $2.5 million, or 15.2%, compared to approximately $16.5 million in the prior-year period. Revenue increased primarily due to changes in product mix toward new products, which typically have higher selling prices. The increase in the sales of new products with lower margins contributed to a slight decrease in gross margin to 57.5% for the quarter ended June 30, 2025, compared to 57.9% for the prior-year period. Operating income for the quarter ended June 30, 2025, was approximately $2.3 million, compared to approximately $1.3 million in the prior-year period.
Retail, Flooring
The Retail-Flooring segment revenue for the quarter ended June 30, 2025, was approximately $30.4 million, a decrease of approximately $6.6 million, or 17.9%, compared to approximately $37.0 million in the prior-year period. The decrease in revenue was primarily attributable to the disposition of certain Johnson stores in May 2024, as well as decreased demand due to broader economic conditions. Gross margin for the quarter ended June 30, 2025, was 35.5%, compared to 36.6% for the prior-year period. The decrease in gross margin was primarily driven by a change in the product mix. Operating loss for the quarter ended June 30, 2025, was approximately $0.7 million, compared to an operating loss of approximately $1.5 million in the prior-year period. The decrease in operating loss is attributable to lower general and administrative expenses and sales and marketing expenses as a result of targeted cost reduction initiatives.
Flooring Manufacturing
The Flooring Manufacturing segment revenue for the quarter ended June 30, 2025, was approximately $29.5 million, a decrease of approximately $1.8 million, or 5.7%, compared to approximately $31.3 million in the prior-year period. The decrease in revenue was primarily due to reduced consumer demand, as a result of the ongoing weakness in the housing market and uncertainty about the current economic outlook. Gross margin was 29.9% for the quarter ended June 30, 2025, compared to 24.7% for the prior-year period. The increase in gross margin was primarily due to changes in product mix. Operating income for the quarter ended June 30, 2025, was approximately $4.1 million, compared to approximately $1.9 million in the prior-year period. The improvement in operating income is attributable to lower general and administrative expenses and sales and marketing expenses.
Steel Manufacturing
The Steel Manufacturing segment revenue for the quarter ended June 30, 2025, was approximately $33.6 million, a decrease of approximately $5.4 million, or 13.8%, compared to approximately $39.0 million in the prior-year period. The decline was primarily driven by lower sales volumes at certain business units, partially offset by incremental revenue of $5.0 million at Central Steel Fabricators, LLC ("Central Steel"), which was acquired in May 2024. Gross margin was 23.1% for the quarter ended June 30, 2025, compared to 15.8% for the prior-year period. The increase in gross margin was primarily due to strategic price increases as well as the acquisition of Central Steel, which has historically generated higher margins. Operating income for the quarter ended June 30, 2025, was approximately $2.3 million, compared to approximately $1.4 million in the prior-year period.
Corporate and Other
The Corporate and Other segment operating income for the quarter ended June 30, 2025, was approximately $6,000 compared to an operating loss of $1.9 million in the prior-year period. The change in operating income is due to the reallocation of certain costs from the Corporate holding company level to the segment level, along with a reduction in expenses as compared to the prior-year period.
Nine Months Fiscal Year 2025 Financial Summary (in thousands except per share amounts)
For the nine months ended June 30,
2025
2024
% Change
Revenue
$
331,051
$
360,097
-8.1
%
Operating income
$
10,857
$
3,834
183.2
%
Net income (loss)
$
21,746
$
(6,818
)
N/A
Diluted earnings (loss) per share
$
4.97
$
(2.16
)
N/A
Adjusted EBITDA¹
$
25,379
$
19,275
31.7
%
Revenue decreased approximately $29.0 million, or 8.1%, to approximately $331.1 million for the nine months ended June 30, 2025, compared to revenue of approximately $360.1 million in the prior-year period. The decrease is attributable to the Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing segments, which decreased by approximately $33.7 million in the aggregate, partially offset by an increase of approximately $4.8 million in the Retail-Entertainment segment.
Operating income increased approximately 183.2% to approximately $10.9 million for the nine months ended June 30, 2025, compared with operating income of approximately $3.8 million in the prior-year period. The increase in operating income was primarily driven by increased revenue in the Retail-Entertainment segment and by lower compensation, marketing, and legal expenses, reflecting targeted cost reduction initiatives implemented primarily in the Steel Manufacturing and Flooring Manufacturing segments.
For the nine months ended June 30, 2025, net income was approximately $21.7 million, and diluted EPS was $4.97, compared with a net loss of approximately $6.8 million and diluted loss per share of $2.16 in the prior-year period. The increase in net income is attributable to improved operating income for the nine months ended June 30, 2025. The increase in net income also includes a $1.8 million gain on Employee Retention Credits and a $1.2 million gain on the settlement of a holdback liability related to Precision Marshall, both in the third quarter of fiscal year 2025. In addition, fiscal year 2025 year-to-date net income includes a $22.8 million gain on the modification of the Flooring Liquidators seller note in the second quarter of fiscal year 2025, and in the first quarter of fiscal year 2025 a $2.8 million gain on the settlement of the earnout liability related to the Precision Metal Works, Inc. ("PMW") acquisition, and a $0.7 million gain on the settlement of the PMW seller notes. The net loss for the nine months ended June 30, 2024, includes a $0.3 million loss from the disposition of certain Johnson stores.
Adjusted EBITDA¹ for the nine months ended June 30, 2025, was approximately $25.4 million, an increase of approximately $6.1 million, or 31.7%, compared to $19.3 million in the prior-year period. The increase in Adjusted EBITDA¹ is primarily due to the improved operating performance during the nine months ended June 30, 2025, reflecting the targeted cost reduction initiatives across the Company.
Nine Months Fiscal Year 2025 Segment Results (in thousands)
For the nine months ended June 30,
