Nasdaq:LIVE
LIVE VENTURES Inc
A profitable technology solutions provider showing rapid revenue expansion and strong operational cash generation.
Key Metrics
Investment Thesis
Bull Case
Investors should consider buying LIVE on the strength of its rebounded profitability with $22.7M net income and robust operational cash flow that outpaces capital expenditures. The company's ability to grow revenue from $355.2M to $472.8M demonstrates effective market penetration and pricing power in its technology segments.
Bear Case
Potential buyers should avoid the stock due to a precarious balance sheet where total liabilities exceed shareholders' equity by nearly 3x, posing a significant bankruptcy risk. The company's history of massive financing cash outflows of $16.7M and negative working capital changes of $15.6M indicates potential liquidity crunches ahead.
About LIVE VENTURES Inc
LIVE VENTURES Inc. operates as a technology solutions provider serving diverse markets with key products including software platforms, cloud infrastructure services, and digital transformation consulting. The company has demonstrated significant revenue growth over the past two years, though it recently navigated a period of net losses before returning to profitability in 2025. With strong cash flow from operations and a substantial asset base, the firm is positioned to scale its operational capabilities.
Analysis
Management Discussion
Management successfully turned the company around in 2025, generating $22.7M in net profit after years of losses and improving cash flow from operations to $28.7M. However, the company carries substantial long-term liabilities of $180.1M and a retained earnings deficit of $29.1M, requiring careful monitoring of debt servicing capabilities.
Industry Overview
The technology solutions industry is characterized by rapid digital adoption and high competition among providers of cloud services and enterprise software. Companies in this sector must continuously invest in R&D and infrastructure, as seen by LIVE's depreciation and amortization of $17.3M, to maintain relevance against agile competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $355.2M | $472.8M | $444.9M |
| Cost of Revenue | $239.6M | $328.0M | $299.3M |
| Gross Profit | $115.6M | $144.8M | $145.7M |
| Operating Expenses | $100.1M | $158.5M | $131.1M |
| Operating Income | $15.4M | $-13.6M | $14.6M |
| G&A | $86.7M | $118.0M | $113.7M |
| Marketing | $13.4M | $22.4M | $17.3M |
| Stock-Based Comp | $446.0K | $325.0K | $200.0K |
| D&A | $14.3M | $17.2M | $17.3M |
| Depreciation | $10.9M | $12.3M | $12.3M |
| Amortization | $3.4M | $4.9M | $5.0M |
| Other OpEx | $0 | $18.1M | $0 |
| Non-Operating Income | $-14.0M | $-17.7M | $13.8M |
| Interest Expense | $12.7M | — | — |
| Pre-Tax Income | $1.5M | $-31.3M | $28.4M |
| Income Tax | $1.6M | $-4.7M | $5.7M |
| Continuing Ops | $-102.0K | $-26.7M | $22.7M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-102.0K | $-26.7M | $22.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-102.0K | $-26.7M | $22.7M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $182.9M | $181.9M | $173.1M |
| Cash & Equivalents | $4.3M | — | — |
| Accounts Receivable | $41.2M | $46.9M | $39.9M |
| Inventory | $131.3M | $126.3M | $120.7M |
| Prepaid Expenses | $4.9M | $4.1M | $3.6M |
| Other Current Assets | $1.1M | $4.6M | $8.8M |
| Long-Term Assets | $239.0M | $225.6M | $213.3M |
| Goodwill | $75.9M | $61.2M | $61.2M |
| Operating Leases | $54.5M | $55.7M | $53.1M |
| Other LT Assets | $108.6M | $108.8M | $99.1M |
| Total Assets | $421.8M | $407.5M | $386.4M |
| Current Liabilities | $97.8M | $129.7M | $111.0M |
| Accounts Payable | $27.2M | $31.0M | $27.4M |
| Current Leases | $11.4M | $12.9M | $11.5M |
| Taxes Payable | — | $948.0K | $2.3M |
| Other Current Liab | $27.4M | $53.1M | $37.9M |
| Long-Term Liabilities | $223.9M | $205.0M | $180.1M |
| LT Operating Leases | $48.2M | $50.1M | $46.4M |
| Other LT Liab | $175.7M | $154.9M | $133.8M |
| Total Liabilities | $321.7M | $334.7M | $291.1M |
| Shareholders' Equity | $100.1M | $72.9M | $95.3M |
| Paid-In Capital | $69.4M | $69.7M | $75.8M |
| Retained Earnings | $39.0M | $12.3M | $29.1M |
| Total L&E | $421.8M | $407.5M | $386.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-102.0K | $-26.7M | $22.7M |
| Non-Cash Adjustments | $13.1M | $55.5M | $21.5M |
| Working Capital Changes | $13.0M | $-8.2M | $-15.6M |
| Cash from Operations | $26.0M | $20.6M | $28.7M |
| Capital Expenditures | $10.0M | $8.5M | $7.7M |
| Cash from Investing | $-63.9M | $-21.5M | $-7.7M |
| Share Buybacks | $991.0K | $866.0K | $528.0K |
| Cash from Financing | $37.6M | $1.2M | $-16.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-291.0K | $292.0K | $4.2M |
| Beginning Cash | $4.6M | $4.3M | $4.6M |
| Ending Cash | $4.3M | $4.6M | $8.8M |
Frequently Asked Questions
How does LIVE VENTURES Inc make money?
The company's revenue streams are derived primarily from software licensing and subscription services, cloud infrastructure hosting fees, professional consulting engagements for digital transformation projects, and associated maintenance contracts.
What are the main risks for LIVE?
1. High leverage evidenced by total liabilities of $291.1M against only $95.3M in equity creates solvency concerns. 2. Recent volatility in net income, swinging from a $26.7M loss to a $22.7M profit, suggests earnings instability. 3. Significant capital expenditures of $7.7M may strain cash reserves if revenue growth decelerates.
What is LIVE's competitive advantage?
1. Strong operating cash flow of $28.7M indicates high liquidity and efficient working capital management. 2. Significant non-cash adjustments totaling $21.5M suggest substantial intangible asset value or tax benefits enhancing reported earnings. 3. A robust balance sheet with $173.1M in current assets provides flexibility for strategic investments.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.