LiveWire Group (LVWR) Financials

LiveWire Group (NYSE: LVWR) has been experiencing persistent net losses over the last several quarters, with Q1 2025 continuing the trend of negative profitability. The consolidated net income for Q1 2025 was a loss of approximately $19.27 million, a slight improvement compared to previous quarters but still significant in magnitude. This follows a pattern of quarterly losses ranging from roughly $19 million to over $33 million since early 2023.

The company's revenue has shown variability without clear consistent growth. In Q1 2025, operating revenue was about $2.74 million, which is lower than some prior quarters (e.g., Q4 2024 revenue was $10.76 million). Gross profit has been negative in recent quarters, showing that the cost of revenue has exceeded the sales generated, indicating challenges in operational efficiency or pricing power.

Operating expenses, particularly selling, general & administrative expenses, have remained high (above $18 million in Q1 2025), which further pressures profitability. The losses before taxes are deep, with Q1 2025 showing an operating income loss of approximately $20.67 million.

On the balance sheet, cash and equivalents have decreased considerably over time, from $236 million in Q1 2023 down to about $46 million in Q1 2025. This shrinkage in liquidity could create operational constraints if the trend continues. Inventories have remained high, suggesting that the company may have some inventory build-up or slower sales. Total equity has also declined over this period, from approximately $287 million in early 2023 to just under $97.2 million in early 2025, reflecting accumulated losses.

Cash flow statements indicate that LiveWire continues to burn cash from operations, with negative net cash from continuing operating activities in the range of $17 million to $29 million per quarter, contributing to the decline in cash reserves. Capital expenditures remain relatively moderate but consistent, as the company invests in property, plant, and equipment. Repurchases of common equity have occurred on a smaller scale, and financing activities vary but do not suggest significant new capital infusions in the most recent periods.

• Despite losses, there is some other income and interest income contributing positively to net income, offsetting part of operating losses.
• The company maintains substantial assets in inventories and property, plant, and equipment, which may support future production capacity and sales.
• Cash and equivalents are still at a moderate level ($46 million as of Q1 2025), which may provide some runway, although the decreasing trend is concerning.
• Weighted average basic and diluted shares outstanding have remained stable around 203 million shares, indicating no significant recent dilution.
• Consistent quarterly losses have led to a significant decline in retained earnings and total equity, lowering shareholder value.
• Operating revenues have declined notably in Q1 2025 compared to prior quarters, increasing pressure on profitability.
• Negative gross profit margins indicate that the cost to generate revenue exceeds the sales price, signaling operational or pricing challenges.
• Selling, general, and administrative expenses are high compared to revenues, pressuring operating margins.
• Cash flow from operating activities remains heavily negative, rapidly reducing liquidity and increasing financial risk.
• Inventories remain elevated, which may indicate slow-moving stock or inefficiencies in sales or supply chain management.