8-K: LiveWire Group Reports Record Q3 Sales, Cuts Losses

LiveWire Group, Inc. announced record-setting third quarter 2025 results, driven by strong STACYC revenue growth and reduced operating losses, despite updating its full-year operating loss guidance.

Summary

• Consolidated revenue increased by 28% to $5.7 million in Q3 2025 compared to $4.4 million in Q3 2024.
• Consolidated operating loss decreased by 29% to $18.8 million in Q3 2025 from $26.5 million in Q3 2024.
• Net loss decreased by 15% to $19.4 million in Q3 2025 from $22.7 million in Q3 2024.
• STACYC segment revenue grew 46% to $4.7 million, with unit sales up 69% to 5,805 units.
• Electric Motorcycles unit sales increased by 86% to 184 units, but revenue decreased by 20% to $1.0 million due to incentives.
• Reduced net cash used year-to-date during 2025 by $31.4 million, or 39%, versus the same period in 2024.
• Launched an At-The-Market (ATM) offering to raise up to $50 million in additional capital through share issuance.
• Updated full-year 2025 operating loss guidance to $72-$77 million from $59-$69 million.

Sentiment

Score: 6

Explanation: While LiveWire demonstrated strong revenue growth in its STACYC segment and significant reductions in operating losses for the quarter, the increased full-year operating loss guidance and the ongoing need for a capital raise temper the overall sentiment. The growth in STACYC and unit sales for Electric Motorcycles are positive, but the revenue decline in Electric Motorcycles due to incentives is a concern.

Positives

• Consolidated revenue increased by 28% to $5.7 million in Q3 2025, driven by increased unit sales in both Electric Motorcycles and STACYC segments.
• Consolidated operating loss decreased by 29% to $18.8 million in Q3 2025, a $7.7 million improvement from the prior year.
• Net loss decreased by 15% to $19.4 million in Q3 2025 compared to $22.7 million in the prior year.
• STACYC segment delivered 46% revenue growth, reaching $4.7 million, and a 73% reduction in operating loss to $0.4 million.
• STACYC unit sales increased by 69% to 5,805 units.
• Electric Motorcycles unit sales increased by 86% to 184 units.
• Reduced consolidated selling, administrative, and engineering expense by $9.1 million from Q3 2024 due to cost reduction initiatives.
• Reduced net cash used year-to-date during 2025 by $31.4 million, or 39%, versus the same period in 2024.
• Maintained the number one position in U.S. electric motorcycle retail sales in the 50+ horsepower on-road EV segment for September 2025.

Negatives

• Electric Motorcycles revenue decreased by 20% to $1.0 million in Q3 2025, despite increased unit sales, due to increased incentives.
• Full-year 2025 operating loss guidance was updated to $72-$77 million, an increase from the previous guidance of $59-$69 million.
• Determined not to move forward with a proposed work statement under the Joint Development Agreement with Harley-Davidson, Inc.
• Net cash and cash equivalents decreased from $64.437 million at December 31, 2024, to $16.324 million at September 30, 2025.
• The company continues to incur significant losses, with a net loss of $19.4 million for the quarter and $57.5 million year-to-date.

Risks

• History of losses and expectation to incur significant expenses and continuing losses for the foreseeable future.
• Harley-Davidson, Inc. (H-D) making decisions for its overall benefit that could negatively impact LiveWire's overall business.
• LiveWire's relationship with H-D and its impact on other business relationships.
• Limited operating history, the rollout of the business, and the timing of expected business milestones, including the ability to develop and manufacture electric vehicles of sufficient quality and appeal to customers on schedule and on a large scale.
• Ability to obtain funding for operations and manage costs.
• Future capital requirements and sources and uses of cash.
• Changes in strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, including the ability to effectively execute the company’s relocation and streamlined headcount plan within expected costs and time and to realize expected savings.
• Ability to manage and predict the impact that new or adjusted tariffs may have on the company's ability to sell products domestically and internationally, and the cost of raw materials and components.
• Retail partners being unwilling to participate in the go-to-market business model or their inability to establish or maintain relationships with customers for electric vehicles.
• Challenges faced as a pioneer in the highly-competitive and rapidly evolving electric vehicle industry.
• Operational and financial risks if LiveWire fails to effectively and appropriately separate its business from the H-D business.
• Ability to leverage contract manufacturers, including H-D and Kwang Yang Motor Co., Ltd. (KYMCO), to contract manufacture electric vehicles.
• Potential delays in the design, manufacture, financing, regulatory approval, launch, and delivery of electric vehicles.
• Building out the supply chain, including dependency on existing suppliers and ability to source suppliers, many of which are single-sourced or limited-source, for critical components such as batteries and semiconductor chips.
• Ability to rely on third-party and public charging networks.
• Ability to attract and retain key personnel.
• Business, expansion plans, and opportunities, including the ability to scale operations and manage future growth effectively.
• The effects on future business of competition, the pace and depth of electric vehicle adoption generally, and the ability to achieve planned competitive advantages.
• Business and H-D's business overlapping and being perceived as competitors.
• Inability to maintain a strong relationship with H-D or to resolve favorably any disputes that may arise.
• Dependency on H-D for a number of services, including services relating to quality and safety testing, which may require significant investment or increased costs if arrangements terminate.
• Any decision to electrify H-D products, or the products of any other company.
• Expectations regarding the ability to obtain and maintain intellectual property protection and not infringe on the rights of others.
• Potential harm caused by misappropriation of data and compromises in cybersecurity.
• Changes in laws, regulatory requirements, governmental incentives, and fuel and energy prices.
• The impact of health epidemics on the business.
• Litigation, regulatory proceedings, complaints, product liability claims, and/or adverse publicity.
• The possibility of being adversely affected by other economic, business, and/or competitive factors.

Future Outlook

LiveWire is advancing its strategic expansion with the S4 Honcho Trail and S4 Honcho Street models, targeting production to start in Spring 2026. The company has extended temporary pricing incentives on its S2 models through December 15, 2025, due to positive consumer reaction. However, due to ongoing market volatility and evolving macroeconomic conditions, unit projections guidance is not being provided at this time. The full-year 2025 operating loss guidance has been updated to $72-$77 million, reflecting the impact of incentives and the decision not to proceed with a proposed work statement under the Joint Development Agreement with Harley-Davidson, Inc.

Management Comments

• "The LiveWire team worked diligently through the quarter to increase market share and maintain our number one position in U.S. electric motorcycle retail sales in the 50+ horsepower on-road EV segment by delivering a company record-setting quarter." Karim Donnez, CEO
• "STACYC delivered 46% revenue growth, contributing to a 28% increase in consolidated revenue compared to the same quarter prior year." Karim Donnez, CEO
• "Continued focus on cost control reduced consolidated operating loss by 29% from the prior year." Karim Donnez, CEO
• "We're also advancing our strategic expansion to attract new riders with the S4 Honcho Trail and S4 Honcho Street currently on display at EICMA in Milan. With production targeted to start in Spring '26, we can't wait to see these products hit the roads next year." Karim Donnez, CEO

Industry Context

LiveWire operates in the rapidly evolving electric vehicle (EV) industry, specifically targeting the electric motorcycle and balance bike segments. Its continued leadership in the U.S. 50+ horsepower on-road EV segment highlights its competitive position, while the expansion into new models like the S4 Honcho Trail and Street indicates a strategy to broaden its market appeal and attract new riders. The decision to offer pricing incentives reflects the competitive nature of the market and the need to stimulate demand amidst evolving macroeconomic conditions. The company's relationship with Harley-Davidson, Inc. remains a significant factor, influencing both strategic decisions and operational dependencies.

Comparison to Industry Standards

• NA

Related Party Transactions

• Accounts receivable from related party decreased from $399 thousand (Dec 31, 2024) to $2 thousand (Sept 30, 2025).
• Accounts payable to related party decreased from $9,762 thousand (Dec 31, 2024) to $7,485 thousand (Sept 30, 2025).
• Decision not to move forward with a proposed work statement under the Joint Development Agreement with Harley-Davidson, Inc.
• Harley-Davidson, Inc. is LiveWire's majority shareholder and a contract manufacturer.

Stakeholder Impact

• Shareholders: Potential dilution from the ATM offering, but also a path to secure additional capital. Improved Q3 operating results but increased full-year loss guidance.
• Customers: Benefit from extended pricing incentives on S2 models and anticipation of new S4 Honcho models in Spring 2026.
• Employees: Cost reduction initiatives, including decreases in people costs, may impact employees.
• Harley-Davidson, Inc.: The decision not to proceed with a work statement under the Joint Development Agreement could alter the nature of their collaboration.

Next Steps

• Continue strategic expansion with S4 Honcho Trail and S4 Honcho Street models.
• Target production start for S4 Honcho Trail and S4 Honcho Street in Spring 2026.
• Maintain temporary pricing incentives on S2 models through December 15, 2025.
• Participate in the Harley-Davidson, Inc. audio webcast to share financial results, business developments, and outlook updates.

Key Dates

Recommendation

While LiveWire demonstrated strong revenue growth in its STACYC segment and significant reductions in operating losses for the quarter, the updated full-year operating loss guidance, which is substantially worse than previous estimates, and the ongoing need for capital raise through an ATM offering, indicate continued financial challenges. The reliance on incentives to drive Electric Motorcycle unit sales also suggests underlying demand issues at current pricing. The long-term potential with new product launches is positive, but current financial performance and strategic adjustments warrant a cautious 'hold' position until there's clearer evidence of sustainable profitability and reduced cash burn.

Keywords

Electric Motorcycles, STACYC, EV, Motorcycle Industry, Financial Results, Q3 2025, LiveWire Group, LVWR, Harley-Davidson, Electric Bikes, Capital Raise, Operating Loss, Revenue Growth