Entertainment platform LiveOne, with a market capitalization of $151.5 million, has been sustaining losses in the past fiscal year, as reported by Simply Wall St after reviewing the opinions of industry analysts. They forecast that the company will achieve its first profit in the fiscal year 2026, which begins on April 1, 2025. Despite the predictions, LiveOne’s stock prices fell during trading on June 21 and continued to decline in pre-market trading on Monday.
Details
LiveOne is about to reach a breakeven point, writes Simply Wall St in a review about the company published on June 21. Simply Wall St experts studied the opinions of five industry analysts. They agree that the fiscal year 2025 (from April 1, 2024, to March 31, 2025) will be the last year LiveOne incurs a loss. In the fiscal year 2026, the company is expected to make a profit of $3.5 million.
To become profitable by that date, according to Simply Wall St’s calculations, LiveOne’s revenue must grow by 101%. To put this in perspective, in the fiscal year 2024 (which ended on March 31), LiveOne’s revenue increased by 19% to $118.4 million. For the fiscal year 2025, the company expects to report $140–155 million in revenue, as stated in the fiscal year 2024 report, indicating an annual growth rate of 18–31%.
High growth rates are not uncommon for companies in a development phase, writes Simply Wall St. However, at the moment, LiveOne’s debt-to-equity ratio stands at 124%, whereas the company’s analysts note that it should not exceed 40%.
Stock price reaction
On Friday, June 21, LiveOne’s shares fell by 3% on Nasdaq, dropping to $1.59 per share. In pre-market trading on Monday, they continued to decline by 3.1% to $1.54.
According to MarketWatch, five analysts are tracking the company. Their recommendation is to buy, with a price target of $4.8, indicating a potential upside of 204% from the closing price on June 21.
Simply Wall St analysts believe that the fair value of LiveOne’s shares is $11.06, which indicates a potential upside of nearly 600%.
About LiveOne
LiveOne is a music, entertainment, and technology platform operating on a subscription model for music, sports, and entertainment. The company arranges online meetings with celebrities, broadcasts music festivals and sports competitions, and offers subscriptions to an ad-free music library.
In the middle of May, Zacks analysts named LiveOne among three stocks worth keeping an eye on in the audio and video industry as they might benefit from current industry trends.
