Tue, May 6, 9:19 PM (6 days ago)
**LiveWire Group, Inc. (LVWR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,743,000 (down 44.9% YoY from $4,978,000). - **Operating Loss:** $20,666,000 (down 32.1% YoY from $30,422,000). - **Net Loss:** $19,271,000 (down 18.5% YoY from $23,644,000). - **Cash Flow:** Net cash used by operating activities was $17,490,000 (down 23.7% YoY from $22,926,000). - **Cash Position:** $46,222,000 (down 28.3% YoY from $64,437,000). **Segment Performance:** - **Electric Motorcycles:** Revenue down 66.3% YoY to $419,000. Operating loss improved by 33.3% YoY to $19,353,000. - **STACYC:** Revenue down 37.8% YoY to $2,324,000. Operating loss improved by 7.2% YoY to $1,313,000. **Trends and Uncertainties:** - **Cost Reduction:** Significant cost reduction activities in 2024, including headcount reductions and service fee reductions. - **Market Conditions:** Economic environment and product mix impacted unit sales and revenue. - **Supply Chain:** Supply chain issues affected product availability and shipment volumes. - **Tariffs and Trade:** Potential trade barriers and tariffs could impact operations and financial results. - **Warrant Liabilities:** Changes in fair value of warrant liabilities affected net loss. **Future Operations and Impact:** - **Focus Areas:** Cost improvements, new electric motorcycle models, and product innovation. - **Liquidity:** Management believes current cash on hand and available funds under the Convertible Term Loan will meet obligations for at least the next twelve months. - **Capital Expenditures:** Estimated to be between $5,000,000 and $10,000,000 in 2025. - **Market Expansion:** Plans to grow international presence and distribution capabilities. **Key Metrics:** - **Wholesale Motorcycle Unit Sales:** 32 units (down from 74 units YoY). - **Company Retail Motorcycle Unit Sales:** 1 unit (down from 43 units YoY). - **Total Retail Motorcycle Unit Sales:** 69 units (down from 171 units YoY). - **Electric Balance Bike and Electric Bike Unit Sales:** 1,970 units (down from 2,932 units YoY). **Risk Factors:** - **Trade Policy:** Changes in U.S. or international trade policy could adversely affect business. - **Supply Chain:** Disruptions or shortages of materials could negatively impact operations. - **Market Competition:** Highly competitive and rapidly-evolving electric vehicle industry poses challenges. - **Regulatory Environment:** Changes in laws, regulatory requirements, and fuel prices could impact operations. **Conclusion:** LiveWire Group, Inc. faced significant revenue declines and operating losses in Q1 2025, driven by market conditions, supply chain issues, and economic factors. The company is focusing on cost reduction, product innovation, and market expansion to improve financial performance and liquidity. Management remains optimistic about the company's long-term prospects despite current challenges.