LiveWire Group (LVWR) Financials

LiveWire Group, Inc. (NYSE: LVWR) has experienced persistent operating losses and negative net income over the last several quarters, reflecting ongoing challenges in profitability. The company’s revenues have fluctuated but remain substantially below their operating costs, resulting in continued operating losses each quarter.

Revenue and Profitability Trends:

• Consistent quarterly net losses ranging from approximately -$19 million in Q1 2025 to as much as -$41 million in mid-2023, indicating ongoing unprofitability.
• Negative gross profit in recent quarters, for example, -$2.17 million in Q1 2025 and worse in previous quarters, due to operating costs exceeding revenues.
• High and increasing selling, general & administrative (SG&A) expenses, peaking around $29 to $31 million in some quarters, heavily impacting operating earnings.
• Total revenue varied, with notable peaks around $15 million in Q4 2023 and lows near $2.7 million in Q1 2025, but revenues have not shown strong growth to offset costs.

Cash Flow and Liquidity:

• Operating cash flows remain strongly negative each quarter, with Q1 2025 showing net cash used in operating activities of about -$17.5 million, reflecting ongoing cash burn.
• Capital expenditures (purchase of property, plant & equipment) are substantial quarterly, typically around $0.6 to $4.6 million, contributing to negative investing cash flows.
• Free cash flow remains negative due to persistent operating cash burn and capital spending.
• Despite losses, the company maintains a solid cash position of approximately $46.2 million at the end of Q1 2025, down from $236 million at the end of Q1 2023, showing planned cash depletion.

Balance Sheet and Capital Structure:

• Total assets remain robust, supported by significant current assets including cash & equivalents and inventories, measured at $128.3 million total assets as of Q1 2025.
• Consistent liabilities around $31 million at Q1 2025, with a balanced current liability structure; no troubling spikes in short-term liabilities.
• Strongly negative retained earnings of about -$245 million as of Q1 2025, reflecting accumulated losses over time.
• Total equity stands at approximately $97.2 million at Q1 2025, down from $288 million at Q1 2023, aligned with net losses reducing shareholder equity.
• Repurchases of common stock occur but remain low relative to cash burn, approximately $0.25 million in Q1 2025, unlikely to fully offset dilution concerns.

Summary: LiveWire Group has faced ongoing financial pressures shown by continuing net losses and negative operating cash flows. Although the company holds a fair cash reserve, the depletion trend combined with persistent losses raises concern regarding long-term sustainability without material revenue growth or cost reduction. Investors should watch for signs of improving operating margins and cash flow management in future quarters.