8-K: Live Ventures Reports Q3 2026 Results: Revenue Down, Net Loss Widens

Live Ventures Incorporated announced its fiscal third quarter 2026 financial results, reporting a decrease in revenue and a net loss, contrasting with a profitable prior-year period.

Summary

• Live Ventures reported revenue of $108.9 million for the fiscal third quarter ended June 30, 2026, a decrease of 3.2% from $112.5 million in the prior-year period.
• Gross margin slightly improved to 34.1% from 34.0% year-over-year.
• Operating income decreased significantly by 34.0% to $5.3 million, down from $8.0 million in the prior year.
• The company reported a net loss of $1.1 million, or $0.34 per share, compared to a net income of $5.4 million, or $1.24 per diluted share, in the prior-year period.
• Adjusted EBITDA declined by 29.5% to $9.3 million from $13.2 million year-over-year.
• Total assets were $385.8 million and stockholders' equity was $91.9 million as of June 30, 2026.
• Cash and availability under credit facilities totaled approximately $39.8 million as of June 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to a significant year-over-year decline in net income and operating income, despite revenue growth in some segments. The overall financial performance has weakened considerably.

Positives

• Revenue growth was achieved in three of the company's four operating segments: Retail-Entertainment (up 12.7%), Flooring Manufacturing (up 2.8%), and Steel Manufacturing (up 7.3%).
• Gross margin expanded slightly by 10 basis points to 34.1%.
• The Retail-Entertainment segment saw a 13% revenue increase, with operating income up 34% and Adjusted EBITDA up 29%.
• The Steel Manufacturing segment's revenue increased by 7%, with operating income up 69% and Adjusted EBITDA up 16%.
• The company has approximately $9.5 million remaining under its $10 million share repurchase program.
• Cash on hand and available under credit facilities was approximately $39.8 million as of June 30, 2026.

Negatives

• Overall revenue decreased by 3.2% to $108.9 million.
• Operating income fell by 34.0% to $5.3 million.
• The company reported a net loss of $1.1 million, a significant reversal from a net income of $5.4 million in the prior year.
• Loss per share was $0.34, compared to diluted EPS of $1.24 in the prior year.
• Adjusted EBITDA decreased by 29.5% to $9.3 million.
• The Retail-Flooring segment experienced a significant revenue decline of 29.4% ($9.0 million).
• The Retail-Flooring segment reported an operating loss of $3.2 million, an increase from a $0.7 million loss in the prior year.
• The nine-month period ended June 30, 2026, shows a net loss of $3.6 million, compared to a net income of $21.7 million in the prior year.

Risks

• Continued weakness in the Retail-Flooring segment due to softness in the new-home construction and home-refurbishment markets.
• The company's performance is subject to the cyclical nature of the industries it operates in.
• Potential future challenges in navigating market conditions and driving sustainable value creation.

Future Outlook

The company remains focused on initiatives to improve performance across its operating segments and drive sustainable value creation over the long term, while navigating challenging conditions in the Retail-Flooring segment.

Management Comments

• "These results were partially offset by continued weakness in the Retail-Flooring segment, where softness in the new-home construction and home-refurbishment markets weighed on operating performance," said David Verret, Chief Financial Officer of Live Ventures.
• "Our third-quarter performance demonstrates the resilience of our diversified operating portfolio. While we continue to navigate challenging conditions in our Retail-Flooring segment, our Retail-Entertainment and Steel Manufacturing segments delivered solid growth and improved profitability. We remain focused on initiatives to improve performance across our operating segments and drive sustainable value creation over the long term," commented Jon Isaac, President and Chief Executive Officer of Live Ventures.

Industry Context

StockSavvy.ai notes that the weakness in the Retail-Flooring segment aligns with broader industry trends affected by the slowdown in new-home construction and home refurbishment markets. However, the strength in Retail-Entertainment and Steel Manufacturing segments indicates resilience and potential diversification benefits for Live Ventures.

Stakeholder Impact

• Shareholders may be concerned by the net loss and decreased profitability, potentially impacting stock valuation.
• Employees in the Retail-Flooring segment may face uncertainty due to the segment's weakness and increased operating loss.
• Suppliers to the Retail-Flooring segment may experience reduced order volumes.

Next Steps

• Continue to focus on initiatives to improve performance across operating segments.
• Drive sustainable value creation over the long term.

Key Dates

Recommendation

The company shows resilience in certain segments (Retail-Entertainment, Steel Manufacturing) with revenue and profit growth, but the overall decline in revenue, significant drop in net income, and widening loss in the key Retail-Flooring segment present considerable headwinds. The mixed performance warrants a cautious 'hold' rating pending signs of sustained improvement across all segments and a recovery in the flooring market.

Keywords

Live Ventures, Financial Results, Quarterly Report, Revenue, Net Loss, Adjusted EBITDA, Retail-Entertainment, Steel Manufacturing