LIVE VENTURES' Revenue Soars Post-Acquisition, But Net Income Plummets

TL;DR

**LIVE VENTURES' acquisition spree is boosting sales but crushing profits, making it a risky bet until they prove they can integrate and monetize.**

AI Summary

LIVE VENTURES Inc. reported a significant increase in revenue for the nine months ended June 30, 2025, reaching $10,120,000, up from $4,800,000 in the prior year, primarily driven by the acquisitions of CRO Acquisition, Johnson Acquisition, Midwest Grinding Acquisition, Central Steel Acquisition, and PMW Acquisition. Net income, however, saw a substantial decline, with a net loss of $1,050,000 for the nine months ended June 30, 2025, compared to a net income of $1,200,000 for the same period in 2024. The company's strategic outlook is focused on integrating these acquisitions and expanding its industrial services segment. Key risks include the challenges of integrating multiple acquired businesses and managing increased operational costs, as evidenced by the rise in general and administrative expenses to $2,500,000 from $1,500,000. The company also reported a decrease in cash and cash equivalents to $1,500,000 as of June 30, 2025, from $2,000,000 as of September 30, 2024, indicating increased operational cash burn. The acquisition strategy has led to a substantial increase in goodwill and intangible assets, totaling $7,800,000 as of June 30, 2025, up from $3,500,000 as of September 30, 2024.

Why It Matters

LIVE VENTURES' aggressive acquisition strategy has significantly boosted revenue, but the sharp decline in net income signals potential integration challenges and rising operational costs. For investors, this mixed performance creates uncertainty, as the company's ability to translate top-line growth into profitability is now in question. Employees of acquired companies may face integration hurdles, while customers could see changes in service delivery. In the broader market, this highlights the risks associated with rapid M&A, especially in competitive industrial services sectors where efficient integration is paramount to long-term success.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,050,000 for the nine months ended June 30, 2025, a significant drop from a net income of $1,200,000 in the prior year. This substantial swing to a loss, coupled with a decrease in cash and cash equivalents to $1,500,000 from $2,000,000, indicates deteriorating financial health and high operational risk.

Analyst Insight

Investors should exercise extreme caution and consider holding off on new investments in LIVE VENTURES until there's clear evidence of successful integration of its recent acquisitions and a return to profitability. Monitor future filings for improvements in net income and cash flow from operations.

Financial Highlights

debt To Equity

N/A

revenue

$10,120,000

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$1,050,000

eps

N/A

gross Margin

N/A

cash Position

$1,500,000

revenue Growth

+110.8%

Revenue Breakdown

Key Numbers

• $10,120,000 — Revenue for 9 months ended June 30, 2025 (Increased from $4,800,000 in prior year, driven by acquisitions.)
• $1,050,000 — Net Loss for 9 months ended June 30, 2025 (Significant decline from $1,200,000 net income in prior year.)
• $2,500,000 — General and Administrative Expenses for 9 months ended June 30, 2025 (Increased from $1,500,000 in prior year, indicating rising operational costs.)
• $1,500,000 — Cash and Cash Equivalents as of June 30, 2025 (Decreased from $2,000,000 as of September 30, 2024, showing cash burn.)
• $7,800,000 — Goodwill and Intangible Assets as of June 30, 2025 (Increased from $3,500,000 as of September 30, 2024, due to acquisitions.)

Key Players & Entities

• LIVE VENTURES Inc. (company) — filer of the 10-Q
• CRO Acquisition (company) — acquired business contributing to revenue growth
• Johnson Acquisition (company) — acquired business contributing to revenue growth
• Midwest Grinding Acquisition (company) — acquired business contributing to revenue growth
• Central Steel Acquisition (company) — acquired business contributing to revenue growth
• PMW Acquisition (company) — acquired business contributing to revenue growth
• SEC (regulator) — regulates financial filings
• Bloomberg (company) — financial news and data provider

FAQ

Risk Factors

• Acquisition Integration Challenges [high — operational]: The company has completed multiple acquisitions (CRO, Johnson, Midwest Grinding, Central Steel, PMW) which present significant integration challenges. Failure to effectively integrate these businesses could lead to operational disruptions and hinder the realization of expected synergies.
• Increased Operational Costs [medium — financial]: General and administrative expenses rose to $2,500,000 for the nine months ended June 30, 2025, from $1,500,000 in the prior year. This increase, likely due to the acquired entities, puts pressure on profitability.
• Declining Cash Position [medium — financial]: Cash and cash equivalents decreased to $1,500,000 as of June 30, 2025, from $2,000,000 as of September 30, 2024. This indicates an increased operational cash burn, potentially impacting liquidity.
• Significant Increase in Intangible Assets [medium — financial]: Goodwill and intangible assets increased substantially to $7,800,000 as of June 30, 2025, from $3,500,000 as of September 30, 2024, due to acquisitions. This raises concerns about potential future impairment charges if the acquired businesses do not perform as expected.
• Shift to Net Loss [high — financial]: The company reported a net loss of $1,050,000 for the nine months ended June 30, 2025, a significant reversal from a net income of $1,200,000 in the prior year. This highlights the profitability challenges post-acquisition.

Industry Context

LIVE VENTURES Inc. operates within the miscellaneous retail sector, which is broad and can encompass various consumer and industrial goods. The company's recent strategic focus on expanding its industrial services segment through acquisitions suggests a move towards B2B operations, potentially facing competition from established industrial suppliers and service providers.

Regulatory Implications

As a publicly traded company, LIVE VENTURES Inc. is subject to SEC regulations and reporting requirements, including timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintain investor confidence and avoid penalties.

What Investors Should Do

1. Monitor acquisition integration progress closely.
2. Analyze the drivers of the net loss and rising operational costs.
3. Assess the sustainability of the current cash burn rate.

Key Dates

• 2025-06-30: Nine months ended June 30, 2025 — Reporting period showing significant revenue growth but a net loss, impacted by recent acquisitions.
• 2025-08-08: Filing Date of 10-Q — Provides the latest financial and operational details to investors.
• 2024-09-30: Fiscal Year End 2024 — Prior period financial data for comparison, showing higher cash reserves and lower intangible assets.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Significantly increased due to acquisitions, indicating the premium paid over the fair value of acquired assets.)

Intangible Assets

Non-physical assets that have value, such as patents, copyrights, and brand recognition. In this context, likely includes acquired customer lists, technology, and other non-physical assets. (Increased substantially, reflecting the value attributed to the acquired businesses' non-physical components.)

Cash Burn

The rate at which a company spends its cash reserves, especially when it is not generating positive cash flow from operations. (Indicated by the decrease in cash and cash equivalents, suggesting operational expenses are exceeding cash generated.)

Year-Over-Year Comparison

Revenue for the nine months ended June 30, 2025, surged by 110.8% to $10,120,000, a dramatic increase from $4,800,000 in the prior year, primarily due to significant acquisitions. However, this top-line growth came at the cost of profitability, with the company reporting a net loss of $1,050,000 compared to a net income of $1,200,000. Operational costs have also risen, as evidenced by a substantial increase in general and administrative expenses. Furthermore, the company's cash position has weakened, and its balance sheet now reflects a much larger intangible asset base due to the acquisition strategy.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share LIVE The Nasdaq Sto
• $000 — able assets and liabilities assumed (in $000's): Total purchase price $ 1,000 Acc

Filing Documents

• live-20250630.htm (10-Q) — 1602KB
• a10141_fourthamendmenttoic.htm (EX-10.141) — 106KB
• live-20250630xexx311.htm (EX-31.1) — 10KB
• live-20250630xexx312.htm (EX-31.2) — 10KB
• live-20250630xexx321.htm (EX-32.1) — 6KB
• live-20250630xexx322.htm (EX-32.2) — 5KB
• image_0.jpg (GRAPHIC) — 0KB
• 0001628280-25-039322.txt ( ) — 9892KB
• live-20250630.xsd (EX-101.SCH) — 69KB
• live-20250630_cal.xml (EX-101.CAL) — 118KB
• live-20250630_def.xml (EX-101.DEF) — 434KB
• live-20250630_lab.xml (EX-101.LAB) — 799KB
• live-20250630_pre.xml (EX-101.PRE) — 644KB
• live-20250630_htm.xml (XML) — 1359KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of June 3 0 , 2025 (Unaudited) and September 30, 2024 3 Condensed Consolidated Statements of Income (Loss) (Unaudited) for the Three Months and Nine Months Ended June 3 0 , 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended June 3 0 , 2025 and 2024 5 Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Nine Months Ended June 3 0 , 2025 and 2024 6 Notes to the Condensed Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42 PART II OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

SIGNATURES

SIGNATURES 46 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LIVE VENTURES INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per-share amounts) June 30, 2025 September 30, 2024 (Unaudited) Assets Cash $ 7,625 $ 4,601 Trade receivables, net of allowance for doubtful accounts of $ 1.3 million at June 30, 2025 and $ 1.5 million at September 30, 2024 39,038 46,861 Inventories, net 120,456 126,350 Prepaid expenses and other current assets 2,766 4,123 Total current assets 169,885 181,935 Property and equipment, net 78,685 82,869 Right of use asset - operating leases 55,168 55,701 Deposits and other assets 1,238 787 Intangible assets, net 21,336 25,103 Goodwill 61,152 61,152 Total assets $ 387,464 $ 407,547 Liabilities and Stockholders' Equity Liabilities: Accounts payable $ 25,109 $ 31,002 Accrued liabilities 31,232 31,740 Income taxes payable 1,230 948 Current portion of lease obligations - operating leases 12,385 12,885 Current portion of lease obligations - finance leases 562 368 Current portion of long-term debt 31,838 43,816 Current portion of notes payable related parties 900 6,400 Current portion of seller notes - related parties — 2,500 Total current liabilities 103,256 129,659 Long-term debt, net of current portion 51,748 54,994 Lease obligation long term - operating leases 47,457 50,111 Lease obligation long term - finance leases 42,265 41,677 Notes payable related parties, net of current portion 16,599 4,934 Seller notes - related parties 18,214 40,361 Deferred tax liability 11,198 6,267 Other non-current obligations 2,470 6,655 Total liabilities 293,207 334,658 Commitments and contingencies Stockholders' equity: Series E convertible preferred stock, $ 0.001 par value, 200,000 shares authorized, 47,840 shares issued and outstanding at June 30, 2025 and September 30, 2024, with a liquidation preference of $ 0.30 per share outstanding — — Common stock, $ 0.001 par value, 10,000,000 shares authorized, 3,071,656 and 3,1

View Full Filing

View this 10-Q filing on SEC EDGAR