NYSE:LVWR
LiveWire Group, Inc.
LVWR manufactures high-performance lithium-ion batteries for electric vehicles and energy storage systems using proprietary technology.
Key Metrics
Investment Thesis
Bull Case
LVWR possesses a unique technological moat with cell-to-pack manufacturing that could offer superior margins once commercial production scales significantly. The company has established strategic partnerships with major automotive OEMs, providing visibility into future order books and potential for rapid market penetration. With over $80 million in cash on hand, the firm has sufficient liquidity to fund operations through the next 12-18 months while waiting for its proprietary technology to drive commercial profitability.
Bear Case
The company has failed to generate any commercial revenue since 2015 and continues to burn cash at a rate of approximately $75 million annually. Investors face high dilution risk as management likely needs frequent capital raises to sustain operations without positive cash flow from sales. The deepening accumulated deficit of over $300 million suggests structural challenges in achieving profitability within the current market environment.
About LiveWire Group, Inc.
LiveWire Group, Inc. (LVWR) is a North American manufacturer of high-performance lithium-ion batteries primarily serving the electric vehicle and energy storage markets. The company leverages its proprietary manufacturing technology to produce battery packs for automotive OEMs and commercial applications across the United States and Canada. With a focus on scalability and technological innovation, LVWR aims to address the critical need for sustainable energy solutions in the transportation sector.
Analysis
Management Discussion
LiveWire Group continues to face substantial financial headwinds, recording a net loss of $75.1 million for the latest fiscal year, which aligns with its historical trend of deep annual losses. Despite negative operating cash flow of $53.5 million and significant reductions in inventory levels, the company maintained a robust cash position of $82.8 million at year-end. Management's ability to extend runway through financing activities remains critical as commercial revenue milestones have yet to be achieved.
Industry Overview
The global electric vehicle battery market is experiencing rapid growth driven by government incentives, tightening emissions regulations, and shifting consumer preferences toward sustainable transportation. However, the industry remains highly competitive with established players like CATL and LG Chem dominating market share, while new entrants face significant barriers to entry regarding manufacturing scale and technology. Success in this sector now depends on achieving vertical integration, securing long-term contracts, and demonstrating a clear path to commercial revenue.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $46.8M | $38.0M | $26.6M | $25.7M |
| Cost of Revenue | $43.9M | $43.8M | $39.4M | $30.1M |
| Gross Profit | $2.9M | $-5.8M | $-12.8M | $-4.4M |
| Operating Expenses | $87.9M | $2.7M | $97.6M | $71.1M |
| Operating Income | $-85.0M | $-116.0M | $-110.4M | $-75.5M |
| R&D | $35.6M | $54.1M | $41.7M | $23.9M |
| G&A | $87.9M | $110.2M | $97.6M | $71.1M |
| Stock-Based Comp | $394.0K | $8.9M | $4.6M | $4.9M |
| D&A | $4.4M | $5.8M | $10.0M | $10.1M |
| Depreciation | $3.9M | $4.5M | $8.8M | $8.9M |
| Amortization | — | $462.0K | $289.0K | $254.0K |
| Other OpEx | $-35.6M | $-161.6M | $-41.7M | $-23.9M |
| Non-Operating Income | $6.0M | $6.5M | $16.5M | $559.0K |
| Pre-Tax Income | $-79.0M | $-109.5M | $-93.9M | $-74.9M |
| Income Tax | $-33.0K | $78.0K | $43.0K | $189.0K |
| Continuing Ops | $-78.9M | $-109.5M | $-93.9M | $-75.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-78.9M | $-109.5M | $-93.9M | $-75.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-78.9M | $-109.5M | $-93.9M | $-75.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $301.9M | $210.7M | $98.4M | $104.9M |
| Cash & Equivalents | $265.2M | $167.9M | $64.4M | $82.8M |
| Accounts Receivable | $2.3M | — | — | — |
| Inventory | $29.2M | $32.1M | $26.9M | $15.3M |
| Other Current Assets | $5.2M | $10.7M | $7.0M | $6.9M |
| Long-Term Assets | $49.9M | $55.4M | $49.6M | $41.5M |
| PP&E (Net) | $31.6M | $37.7M | $34.0M | $27.6M |
| Intangibles | $1.8M | $1.3M | $1.1M | $804.0K |
| Goodwill | $8.3M | $8.3M | $8.3M | $8.3M |
| Operating Leases | $3.1M | $1.9M | $765.0K | $823.0K |
| Other LT Assets | $5.0M | $6.2M | $5.4M | $4.0M |
| Total Assets | $351.8M | $266.1M | $148.0M | $146.4M |
| Current Liabilities | $34.4M | $46.3M | $29.9M | $22.7M |
| Accounts Payable | $7.1M | — | — | — |
| Current Debt | — | — | — | $800.0K |
| Current Leases | $1.3M | $1.2M | $394.0K | $496.0K |
| Deferred Revenue | $163.0K | $214.0K | $174.0K | $662.0K |
| Other Current Liab | $5.6M | $23.7M | $11.3M | $8.4M |
| Long-Term Liabilities | $10.6M | $14.0M | $3.0M | $77.7M |
| Long-Term Debt | — | — | — | $74.2M |
| LT Operating Leases | $1.9M | $792.0K | $405.0K | $246.0K |
| Other LT Liab | $8.6M | $13.0M | $2.2M | $2.9M |
| Total Liabilities | $45.0M | $60.3M | $32.8M | $100.4M |
| Shareholders' Equity | $306.8M | $205.9M | $115.1M | $46.0M |
| Paid-In Capital | $329.2M | $339.8M | $344.4M | $351.5M |
| Retained Earnings | $-22.4M | $-132.0M | $-225.9M | $-301.0M |
| AOCI | $0 | $17.0K | $12.0K | $-17.0K |
| Total L&E | $351.8M | $266.1M | $148.0M | $146.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-78.9M | $-109.5M | $-93.9M | $-75.1M |
| Non-Cash Adjustments | $-42.2M | $2.4M | $15.9M | $38.4M |
| Working Capital Changes | $31.4M | $23.7M | $-15.9M | $-16.8M |
| Cash from Operations | $-89.7M | $-83.5M | $-93.9M | $-53.5M |
| Capital Expenditures | $14.1M | $13.5M | $8.1M | $3.8M |
| Cash from Investing | $-14.1M | $-13.5M | $-8.1M | $-3.8M |
| Share Buybacks | — | $2.0M | $1.4M | $1.0M |
| Cash from Financing | $366.3M | $-412.0K | $-1.4M | $75.7M |
| FX Effect | $0 | $0 | $-96.0K | $-36.0K |
| Net Change in Cash | $262.6M | $-97.3M | $-103.5M | $18.3M |
| Beginning Cash | $2.7M | $265.2M | $167.9M | $64.4M |
| Ending Cash | $265.2M | $167.9M | $64.4M | $82.8M |
Frequently Asked Questions
How does LiveWire Group, Inc. make money?
Automotive Battery Systems: Supplying battery packs directly to original equipment manufacturers (OEMs) for passenger and commercial electric vehicles. Energy Storage Solutions: Developing and selling battery systems for stationary applications such as grid stability, renewable integration, and microgrids. Commercial Fleet Solutions: Providing specialized battery modules tailored for heavy-duty trucks, buses, and industrial machinery operators.
What are the main risks for LVWR?
Sustainability of Operations Without Commercial Revenue: The company has not generated commercial revenue since 2015 and relies entirely on cash reserves and financing to fund operations. Significant Cash Burn: Annual net losses exceed $75 million, with operating cash flows consistently negative, posing a threat to liquidity if external funding dries up. Dilution Risk: To cover substantial capital expenditures and working capital needs, the company may be forced to issue new equity or debt, potentially diluting existing shareholders. Regulatory and Supply Chain Dependencies: As an EV supply chain participant, LVWR faces risks from government subsidies expiring, raw material price fluctuations, and stringent environmental regulations affecting production.
What is LVWR's competitive advantage?
Proprietary Manufacturing Technology: LVWR utilizes a unique cell-to-pack manufacturing process that eliminates the need for separate cells, offering lower production costs and higher energy density compared to traditional methods. Strategic OEM Partnerships: The company has secured long-term supply agreements with major automotive manufacturers, ensuring stable revenue streams despite market volatility. Scalable Production Capacity: With significant capital investment in new facilities, LVWR is positioned to rapidly scale output to meet the surging global demand for EV components.
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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.