LIVE

This article first appeared on GuruFocus. Revenue: Decreased 3.2% to $108.9 million, compared to $112.5 million in the prior year period. Gross Profit: Decreased 3.1% to $37.1 million, from $38.3 million in the prior year period. Gross Margin: Increased 10 basis points to 34.1%. Operating Income: Decreased 34% to $5.3 million, compared to $8 million in the prior year period. Net Loss: Approximately $1.1 million, or a loss of $0.34 per share, compared to net income of $5.4 million and diluted EPS of $1.24 in the prior year period. Adjusted EBITDA: Decreased 29.5% to $9.3 million, compared to $13.2 million in the prior year period. Retail Entertainment Segment Revenue: Increased 12.7% to $21.4 million, with operating income up 33.8% and adjusted EBITDA up 28.9%. Steel Manufacturing Segment Revenue: Increased 7.3% to $36.3 million, with operating income up 68.9% and adjusted EBITDA up 16.3%. Retail Flooring Segment Revenue: Decreased 29.4% to $21.4 million, due to continued headwinds in new home construction and home refurbishment markets. Flooring Manufacturing Segment Revenue: Increased 2.8% to $31.8 million. General and Administrative Expenses: Increased 5% to approximately $27.6 million. Sales and Marketing Expenses: Increased 5.4% to approximately $4.2 million. Interest Expense: Approximately $3.8 million, flat compared to the prior year period. Cash Availability: Approximately $39.8 million, consisting of $10.9 million cash on hand and $28.9 million available for borrowing under lines of credit. Warning! GuruFocus has detected 9 Warning Signs with LIVE. Is LIVE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Retail entertainment segment revenue grew 12.7% with operating income and adjusted EBITDA up 33.8% and 28.9%, respectively. Steel manufacturing segment revenue increased 7.3%, with operating income and adjusted EBITDA up 68.9% and 16.3%, respectively. Three of four operating segments delivered year-over-year revenue growth, demonstrating portfolio diversification. Gross margin improved by 10 basis points to 34.1%, reflecting better margins in retail flooring and steel manufacturing. Total cash availability remained solid at $39.8 million, with $9.5 million remaining under the share repurchase program. Total revenue decreased 3.2% to $108.9 million, driven by a $9 million decline in the retail flooring segment. Retail flooring segment revenue dropped 29.4% due to continued weakness in new home construction and home refurbishment markets. Operating income fell 34% to $5.3 million, impacted by lower gross profit and higher operating expenses. Net loss was $1.1 million, or $0.34 per share, compared to net income of $5.4 million in the prior year period. Adjusted EBITDA decreased 29.5% to $9.3 million, primarily due to lower revenue. Q: What were the key financial highlights for Live Ventures in the third quarter of fiscal year 2026? A: David Verret, CFO, reported that revenue decreased 3.2% to $108.9 million, primarily due to a $9 million decline in the retail flooring segment. This was partially offset by growth in other segments, including a 12.7% increase in retail entertainment revenue and a 7.3% increase in steel manufacturing revenue. The company posted a net loss of $1.1 million, or $0.34 per share, compared to net income of $5.4 million in the prior year period, which had benefited from one-time gains. Q: Can you elaborate on the performance of the retail entertainment and steel manufacturing segments? A: David Verret, CFO, highlighted that the retail entertainment segment saw revenue grow 12.7% to $21.4 million, with operating income and adjusted EBITDA up 33.8% and 28.9%, respectively, driven by strong consumer demand across all product lines. The steel manufacturing segment's revenue increased 7.3% to $36.3 million, with operating income and adjusted EBITDA up 68.9% and 16.3%, respectively, due to higher sales volumes in fabricated, hardened ware, tool, and die businesses. Q: What is driving the continued weakness in the retail flooring segment? A: David Verret, CFO, explained that the retail flooring segment's revenue decreased 29.4% to $21.4 million, driven by lower retail and contractor sales due to persistent headwinds in the new home construction and home refurbishment markets. This segment's softness weighed on the company's overall operating performance for the quarter. Q: How did the company's profitability metrics fare during the quarter? A: David Verret, CFO, noted that gross profit decreased 3.1% to $37.1 million, but gross margin improved by 10 basis points to 34.1%, reflecting better margins in the retail flooring and steel manufacturing segments. Operating income decreased 34% to $5.3 million due to lower gross profit and higher operating expenses, while adjusted EBITDA fell 29.5% to $9.3 million. Q: What is the company's current liquidity position and capital allocation strategy? A: David Verret, CFO, stated that the company ended the quarter with total cash availability of approximately $39.8 million, including $10.9 million in cash and $28.9 million available under credit lines. He also mentioned that the company has approximately $9.5 million remaining under its $10 million share repurchase program, which it may utilize from time to time as part of its capital allocation strategy. Q: Were there any significant one-time items affecting the comparison to the prior year period? A: David Verret, CFO, clarified that the prior year period's results benefited from a $1.5 million gain on employee retention credits and a $1.3 million gain on the settlement of a holdback liability related to Precision Marshall. These one-time gains contributed to the higher net income and EPS in the prior year quarter, making the current year's comparison less favorable. Q: How did general and administrative and sales and marketing expenses change? A: David Verret, CFO, reported that general and administrative expenses increased 5% to approximately $27.6 million, driven by higher compensation and professional fees in the retail entertainment, flooring manufacturing, and corporate segments. Sales and marketing expenses also increased 5.4% to approximately $4.2 million, primarily due to higher spending in the retail flooring and retail entertainment segments. Q: What is the company's outlook for the remainder of the fiscal year? A: David Verret, CFO, expressed confidence in the resilience of the company's diversified operating portfolio. While navigating challenging conditions in the retail flooring segment, management remains focused on initiatives to improve performance across all operating segments and drive sustainable long-term value creation. He thanked participants and looked forward to discussing results on the year-end call. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LAS VEGAS, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) (“Live Ventures” or the “Company”), a diversified holding company, today announced financial results for its fiscal third quarter ended June 30, 2026. Fiscal Third Quarter 2026 Key Highlights: Revenue was $108.9 million, compared to $112.5 million in the prior-year period, with year-over-year revenue growth in three of the Company’s four operating segments Gross margin expanded approximately 10 basis points to 34.1%, compared to 34.0% in the prior-year period Operating income was $5.3 million, compared to operating income of $8.0 million in the prior-year period Net loss was $1.1 million and loss per share was $0.34, compared to net income of $5.4 million and diluted earnings per share (“EPS”) of $1.24 in the prior-year period Adjusted EBITDA¹ was $9.3 million, compared to $13.2 million in the prior-year period Total assets were $385.8 million and stockholders’ equity was $91.9 million as of June 30, 2026 Approximately $39.8 million in cash and availability under the Company’s credit facilities as of June 30, 2026 The Company has approximately $9.5 million remaining available under its $10 million share repurchase program “For the third quarter, our Retail-Entertainment and Steel Manufacturing segments posted revenue growth, improved operating income, and higher Adjusted EBITDA¹. The Retail-Entertainment segment’s revenue grew 13%, while operating income and Adjusted EBITDA¹ increased 34% and 29%, respectively. The Steel Manufacturing segment’s revenue increased 7%, with operating income and Adjusted EBITDA¹ up 69% and 16%, respectively. 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. ¹ Adjusted EBITDA is a non-GAAP measure. A reconciliation of the non-GAAP measures is included below. Revenue decreased approximately $3.6 million, or 3.2%, to $108.9 million for the quarter ended June 30, 2026, compared to $112.5 million in the prior-year period. Revenue decreased primarily due to a decline of approximately $9.0 million in the Retail-Flooring segment, partially offset by increases of approximately $2.4 million in the Retail-Entertainment segment, $1.8 million in the Steel Manufacturing segment, and $1.1 million in the Flooring Manufacturing segment. Gross profit decreased approximately $1.2 million, or 3.1%, to $37.1 million for the quarter ended June 30, 2026, compared to $38.3 million in the prior-year period. The decline was driven primarily by lower revenue in the Retail-Flooring segment. Gross margin increased approximately 10 basis points to 34.1%, compared to 34.0% in the prior-year period, reflecting improved margins in the Retail-Flooring and Steel Manufacturing segments. Operating income decreased approximately $2.7 million, or 34.0%, to $5.3 million for the quarter ended June 30, 2026, compared to $8.0 million in the prior-year period. The decrease was driven primarily by lower gross profit of $1.2 million and increased compensation and professional fees in the Retail-Entertainment, Flooring Manufacturing, and Corporate segments. These increases were partially offset by lower general and administrative expenses in the Retail-Flooring and Steel Manufacturing segments. For the quarter ended June 30, 2026, net loss was approximately $1.1 million, and loss per share was $0.34, compared to net income of approximately $5.4 million and diluted EPS of $1.24 in the prior-year period. The prior-year period results benefited from a $1.5 million gain on Employee Retention Credits and a $1.3 million gain on the settlement of a holdback liability related to Precision Marshall. Adjusted EBITDA¹ for the quarter ended June 30, 2026, was approximately $9.3 million, a decrease of $3.9 million, or 29.5%, compared to $13.2 million in the prior-year period. The decrease in Adjusted EBITDA¹ was primarily due to the decrease in revenue. As of June 30, 2026, the Company had total cash availability of approximately $39.8 million, consisting of $10.9 million in cash on hand and $28.9 million available for borrowing under its various lines of credit. Third Quarter Fiscal Year 2026 Segment Results (in thousands) Retail – Entertainment Retail-Entertainment segment revenue for the quarter ended June 30, 2026 was $21.4 million, an increase of approximately $2.4 million, or 12.7%, compared to $19.0 million in the prior-year period. Revenue growth was driven by strong consumer demand across all product lines. Gross margin was unchanged at 57.4%. Operating income for the quarter ended June 30, 2026 was $3.1 million compared to $2.3 million in the prior-year period. The increase in operating income was primarily driven by the segment's revenue growth. Retail – Flooring Retail-Flooring segment revenue for the quarter ended June 30, 2026 was $21.4 million, a decrease of approximately $9.0 million, or 29.4%, compared to $30.4 million in the prior-year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new-home construction and home-refurbishment markets. Gross margin increased to 37.1%, compared to 35.5% in the prior-year period, reflecting a more favorable sales mix. Operating loss for the quarter ended June 30, 2026 was $3.2 million, compared to an operating loss of $0.7 million in the prior-year period. The increase in operating loss was driven primarily by lower revenue, partially offset by lower general and administrative expenses resulting from cost-reduction initiatives. Flooring Manufacturing Flooring Manufacturing segment revenue for the quarter ended June 30, 2026 was $31.8 million, an increase of approximately $0.8 million, or 2.8%, compared to $31.0 million in the prior-year period. Flooring Manufacturing segment revenue, net of intercompany eliminations, increased approximately $1.1 million compared to the prior-year period. Gross margin decreased to 25.8%, compared to 27.6% in the prior-year period, primarily due to increased raw material and other input costs. Operating income for the quarter ended June 30, 2026 was $2.5 million, compared to $2.7 million for the prior-year period. The decrease was primarily driven by reduced gross margins, partially offset by lower operating expenses resulting from cost reduction initiatives. Steel Manufacturing Steel Manufacturing segment revenue for the quarter ended June 30, 2026 was $36.3 million, an increase of approximately $2.5 million, or 7.3%, compared to $33.8 million in the prior-year period. The increase was primarily driven by higher sales volumes in the fabricated, hardened wear, and tool and die businesses, partially offset by lower revenue in the metal forming, assembly, and finishing solutions business. Steel Manufacturing segment revenue, net of intercompany eliminations, increased approximately $1.8 million compared to the prior-year period. Gross margin was 24.6%, compared to 23.0% in the prior-year period, reflecting a more favorable sales mix. Operating income was $3.9 million for the quarter ended June 30, 2026 compared to operating income of $2.3 million in the prior-year period. The increase was primarily driven by improved gross profit and lower operating expenses resulting from cost reduction initiatives. Corporate and Other Corporate and Other segment operating loss for the quarter ended June 30, 2026 was $0.9 million compared to operating income of $8,000 in the prior-year period. The change in operating loss is due to the reallocation of certain costs in the prior-year period. Revenue decreased approximately $10.7 million, or 3.2%, to $320.4 million for the nine months ended June 30, 2026, compared to $331.1 million in the prior-year period. Revenue decreased primarily due to a decline of approximately $22.6 million in the Retail-Flooring segment, partially offset by increases of approximately $7.5 million in the Retail-Entertainment segment, $2.3 million in the Flooring Manufacturing segment, and $2.1 million in the Steel Manufacturing segment. Gross profit decreased approximately $1.8 million, or 1.6%, to approximately $107.0 million for the nine months ended June 30, 2026, compared to $108.8 million in the prior-year period, primarily due to lower revenue in the Retail-Flooring segment. Gross margin increased 50 basis points to 33.4%, compared to 32.9% in the prior-year period, reflecting improved operating efficiencies in the Flooring Manufacturing and Steel Manufacturing segments, as well as a more favorable revenue mix, as the higher-margin Retail-Entertainment segment represented a larger share of consolidated revenue. Operating income decreased approximately $4.2 million, or 38.1%, to approximately $6.7 million for the nine months ended June 30, 2026, compared to $10.9 million in the prior-year period. The decrease was primarily due to a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment in the second quarter of fiscal year 2026. For the nine months ended June 30, 2026, net loss was approximately $3.6 million, and loss per share was $1.16, compared to net income of approximately $21.7 million and diluted EPS of $4.97 in the prior-year period. The net loss for the nine months ended June 30, 2026, includes a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment and a $1.4 million gain on Employee Retention Credits in the Retail-Flooring segment, both in the second quarter of fiscal year 2026. The prior-year period benefited from a $1.8 million gain on Employee Retention Credits and a $1.2 million gain on the settlement of a holdback liability related to Precision Marshall. In addition, fiscal year 2025 year-to-date net income included a $22.8 million gain related to the modification of the Flooring Liquidators’ seller note, an approximately $2.8 million gain related to the settlement of the earnout liability from the Precision Metal Works, Inc. (“PMW”) acquisition, and an approximately $0.7 million gain from the settlement of PMW seller notes. Adjusted EBITDA¹ for the nine months ended June 30, 2026, was approximately $23.0 million, a decrease of $2.4 million, or 9.5%, compared to $25.4 million in the prior-year period. The decrease is primarily due to the decrease in revenue. Nine Months FY 2026 Segment Results (in thousands) Retail – Entertainment Retail-Entertainment segment revenue for the nine months ended June 30, 2026 was $66.3 million, an increase of approximately $7.5 million, or 12.8%, compared to $58.8 million in the prior-year period. The increase was driven by strong consumer demand across all product lines. Gross margin for the nine months ended June 30, 2026 was 57.6%, essentially flat compared to 57.7% in the prior-year period. Operating income for the nine months ended June 30, 2026 was $11.1 million compared to $8.2 million in the prior-year period. The increase in operating income was primarily driven by the segment's revenue growth. Retail – Flooring Retail-Flooring segment revenue for the nine months ended June 30, 2026 was $67.0 million, a decrease of approximately $22.6 million, or 25.2%, compared to $89.5 million in the prior-year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new-home construction and home-refurbishment markets. Gross margin for the nine months ended June 30, 2026 was 34.4%, compared to 35.7% in the prior-year period. The decline in gross margin was primarily due to a less favorable overall product mix. Operating loss for the nine months ended June 30, 2026 was $11.5 million, compared to an operating loss of $5.6 million in the prior-year period. The increase in operating loss was driven primarily by lower revenue, partially offset by reduced operating expenses resulting from cost-reduction initiatives. Flooring Manufacturing Flooring Manufacturing segment revenue for the nine months ended June 30, 2026 was $91.0 million, a decrease of approximately $0.6 million, or 0.7%, compared to $91.6 million in the prior-year period. The decline reflected lower intercompany sales to the Retail-Flooring segment as demand in the new-home construction and home-refurbishment markets remained soft. Flooring Manufacturing segment revenue, net of intercompany eliminations, increased approximately $2.3 million compared to the prior‑year period. Gross margin for the nine months ended June 30, 2026 increased to 25.9% from 25.2% in the prior‑year period, primarily due to improved manufacturing efficiency. Operating income for the nine months ended June 30, 2026, was $6.8 million, an increase of 38.7%, compared to $4.9 million for the prior-year period. The improvement in operating income reflects the combined impact of higher gross margins and the ongoing benefits of cost‑reduction actions. Steel Manufacturing Steel Manufacturing segment revenue for the nine months ended June 30, 2026 was $100.7 million, an increase of approximately $2.1 million, or 2.1%, compared to $98.6 million in the prior-year period. The increase in revenue was primarily driven by higher sales volumes in the fabricated, hardened wear, and tool and die businesses, partially offset by lower revenue in the metal forming, assembly, and finishing solutions business. Gross margin increased to 22.3% for the nine months ended June 30, 2026, compared to 20.7% for the prior-year period. The increase in gross margin was primarily due to a more favorable sales mix. Operating income for the nine months ended June 30, 2026 was $3.8 million, compared to $5.7 million in the prior-year period, a decrease of approximately $1.9 million primarily attributable to a non-cash goodwill impairment charge of approximately $4.0 million related to PMW, partially offset by higher gross profit. Corporate and Other Corporate and Other segment operating loss was $3.0 million and $2.9 million for the nine months ended June 30, 2026, and 2025, respectively. Non-GAAP Financial Information Adjusted EBITDA We evaluate the performance of our operations based on financial measures, such as “Adjusted EBITDA,” which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business’s ability to fund acquisitions and other capital expenditures and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company’s financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by generally accepted accounting principles (“GAAP”), should not be construed as an alternative to net income or loss, and is indicative neither of our results of operations, nor of cash flow available to fund our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with GAAP. As companies often define non-GAAP financial measures differently, Adjusted EBITDA, as calculated by Live Ventures Incorporated, should not be compared to any similarly titled measures reported by other companies. Forward-Looking and Cautionary Statements The use of the word “Company” refers to Live Ventures and its wholly owned subsidiaries. Certain statements in this press release contain or may suggest “forward-looking” information within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. Words such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements are intended to identify forward-looking statements. Live Ventures may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, in press releases and other written materials, and in oral statements made by its officers and directors to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Additionally, new risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. Live Ventures undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. About Live Ventures Incorporated Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. Live Ventures’ acquisition strategy is sector-agnostic and focuses on well-run, closely held businesses with a demonstrated track record of earnings growth and cash flow generation. The Company seeks opportunities to partner with management teams of its acquired businesses to build increased stockholder value through a disciplined buy-build-hold long-term focused strategy. Live Ventures was founded in 1968. In late 2011, Jon Isaac, Chief Executive Officer and strategic investor, joined the Company's Board of Directors and later refocused it into a diversified holding company. The Company’s current portfolio of diversified operating subsidiaries includes companies in the textile, flooring, tools, steel, and entertainment industries. Contact:Live Ventures IncorporatedGreg Powell, Director of Investor Relations725.500.5597gpowell@liveventures.comwww.liveventures.com Source: Live Ventures Incorporated LIVE VENTURES INCORPORATEDNON-GAAP MEASURES RECONCILIATION Adjusted EBITDA The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA¹ for the periods indicated (dollars in thousands):

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Retail, entertainment, and flooring manufacturing segments delivered strong operating income growth of 32.8% and 24%, respectively. Retail Entertainment segment revenue increased by 14.8% to $21.2 million, driven by strong consumer demand. Gross margin improved by 80 basis points to 33.6%, reflecting better margins in several segments. General and administrative expenses decreased by 2.3% due to targeted cost reduction initiatives. Total cash availability increased to approximately $39.8 million, with improved working capital of $74.4 million. Revenue decreased by approximately $4.1 million or 3.8% compared to the prior-year period. Retail Flooring segment revenue decreased by 26.2% due to challenges in the new home construction and refurbishment markets. A non-cash goodwill impairment charge of $4 million negatively impacted the steel manufacturing segment. Net loss of approximately $2.4 million compared to net income of $15.9 million in the prior-year period. Adjusted EBITDA decreased by 8.8% due to lower gross profits. Warning! GuruFocus has detected 9 Warning Signs with LIVE. Is LIVE fairly valued? Test your thesis with our free DCF calculator. Q: Could you explain the goodwill impairment charge and its impact? A: The goodwill impairment charge is a non-cash accounting adjustment required when there's a triggering event, such as a decline in market conditions. In our case, it relates to the steel industry, specifically the stamping and metal forming business. This charge does not affect EBITDA or cash flow; it's purely a paper loss that adjusts the goodwill value on our books. (Answered by David Barrett, CFO) Q: Is the company considering acquisitions, or is the focus on debt reduction? A: Our strategy remains open to acquisitions if good opportunities arise. Meanwhile, we are actively paying down debt, having reduced it by about $8 million from March last year to the current year. (Answered by David Barrett, CFO) Q: When considering acquisitions, does the company focus on existing markets or diversification? A: It depends on market opportunities. While we often see more opportunities in markets where we already have a presence, like the steel industry, we are open to diversifying if an opportunity meets our criteria. (Answered by David Barrett, CFO) Q: What lessons has the company learned from past acquisition missteps? A: We focus on thorough due diligence and learn from each acquisition. We conduct post-mortem assessments to identify what worked and what didn't, aiming to improve our processes and mitigate negative aspects in future acquisitions. (Answered by David Barrett, CFO) Q: Is the goodwill impairment a paper loss, and do revenues continue? A: Yes, the goodwill impairment is a paper loss with no cash impact. Revenues continue to come in, and the impairment does not affect EBITDA. (Answered by David Barrett, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET Chief Financial Officer — David Verret David Verret: Thank you, Greg. Good afternoon, everyone. Before discussing our financial results, I'd like to touch on a few key highlights from the quarter. During the quarter, our Retail Entertainment and Flooring Manufacturing segments delivered strong operating income growth of 32.8% and 24%, respectively. However, these gains were offset by a $1.9 million decrease in operating loss -- increase in operating loss in the Retail Flooring segment and a noncash goodwill impairment charge of approximately $4 million in our Steel Manufacturing segment. Excluding the impairment charge, consolidated operating income would have been approximately $2 million, essentially in line with the prior year period. Let's now discuss the financial results for the second quarter ended March 31, 2026. Revenue decreased approximately $4.1 million or 3.8% to $102.9 million compared to revenue of $107 million in the prior year period. The decrease in revenue primarily reflects a decline of approximately $7.2 million in the Retail Flooring segment, partially offset by an increase of approximately $2.7 million in the Retail Entertainment segment. Retail Entertainment segment revenue increased approximately $2.7 million or 14.8% to $21.2 million compared to $18.5 million in the prior year period. The revenue growth was driven by strong consumer demand across all product lines. Retail Flooring segment revenue decreased approximately $7.2 million or 26.2% to $20.2 million compared to $27.4 million in the prior year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new home construction and home refurbishment markets. Flooring Manufacturing revenue decreased approximately $1 million or 3.2% to $30.3 million compared to $31.3 million in the prior year period. The decline was primarily attributable to continued softness in the housing market. Net of intercompany eliminations, revenue decreased approximately $600,000 compared to the prior year period. Steel Manufacturing segment revenue increased approximately $1.1 million or 3.4% to $32.5 million compared to the prior year period. The increase in revenue was primarily driven by higher sales volumes in the fabricated, hardened ware, tool and die businesses, partially offset by lower revenue in the metal forming, assembly and finishing solutions business. Net of intercompany eliminations, revenue increased approximately $900,000 compared to the prior year period. Gross profit decreased approximately $600,000 or 1.6% to $34.6 million compared to $35.1 million in the prior year period. The decrease in gross profit was driven primarily by the lower revenues in the Retail Flooring segment. Gross margin increased 80 basis points to 33.6% compared to 32.8% in the prior year period, reflecting improved margins in the Steel Manufacturing, Flooring Manufacturing and Retail Flooring segments as well as a more favorable revenue mix as the higher-margin Retail Entertainment segment represented a larger share of consolidated revenue. General and administrative expense decreased 2.3% to approximately $27.7 million. The decline was driven primarily by targeted cost reduction initiatives in our Retail Flooring and our Flooring Manufacturing segments, including lower compensation expense and reduced professional fees, partially offset by increased compensation and occupancy costs in our Retail Entertainment segment. Sales and marketing expense increased 3.4% to approximately $4.9 million, primarily reflecting higher sales and marketing activity in the Retail Flooring segment. Operating loss was $2 million compared to operating income of $2.1 million in the prior year period. The decrease was primarily driven by a noncash goodwill charge of $4 million in the Steel Manufacturing segment. Excluding the noncash goodwill impairment charge, consolidated operating income would have been $2 million compared to $2.1 million in the prior year period. Interest expense remained consistent at approximately $3.9 million as compared to the prior year period. Net loss was approximately $2.4 million and diluted loss per share was $0.80 compared with net income of approximately $15.9 million and diluted EPS of $5.05 in the prior year period. The net loss in the quarter -- for the quarter ended March 31, 2026, includes the goodwill impairment charge as well as a $1.4 million gain related to employee retention credits in the Retail Flooring segment. The prior year period benefited from a $22.8 million gain related to the modification of the Flooring Liquidators' seller note. Adjusted EBITDA was $5.9 million, a decrease of approximately $600,000 or 8.8% compared to the prior year period. The decrease in adjusted EBITDA was primarily due to the lower gross profit. Turning to liquidity. We ended the second quarter with total cash availability of approximately $39.8 million, consisting of cash on hand of $15.2 million and availability under our various lines of credit of $24.6 million. Our working capital was $74.4 million as of March 31, 2026, compared to $62.1 million as of September 30, 2025. As of March 31, total assets were $392.5 million and total stockholders' equity was $92.9 million. In conclusion, this quarter demonstrated both the resilience of our business model and the ongoing challenges in the Retail Flooring market. We are focused on reducing costs and improving operations across our businesses, and we are pleased with the operating improvements in our Retail Entertainment and Flooring Manufacturing segments. We remain committed to building on that progress in the second half of the fiscal year while driving further efficiencies in our Retail Flooring business. We will now take questions from those of you on the conference call. Operator, please open the line for questions. Operator: [Operator Instructions] First up, we have Joseph Kowalsky of JD Financial Planners. Joseph Kowalsky: I hope there's not an echo here. I have to actually step out to a different room and have to leave the other phone. I'm just curious about the goodwill impairment. I generally understand accounting. But when it comes to things like goodwill, I always find it a little bit confusing. Could you go into just what exactly that refers to, please? David Verret: Sure. So for accounting purposes, there's an annual goodwill test. Ours is in Q4. But if there's ever a triggering event that happens before that or outside of that testing period, then you're required to do kind of impromptu test. And essentially, because of some of the loss in production that we're seeing, really stemming from a decline in the market, namely, this has to do with -- in our steel industry with our stamping and metal forming business. And a lot of what they do relates to appliances and automobiles and things like that. And then as we're seeing our customers pull back because sales are lagging on their end, we're coming in lower than what we expected to produce in the period because they're adjusting their volume as they go. So really, it's all stemming just from just continued uncertainty in the market. Interest rates... Joseph Kowalsky: Is that a paper loss, but you still have the revenues coming in? Is it... David Verret: That is correct. It is all just a paper loss. So it has no impact on EBITDA. There is no cash aspect related to it. It is just a charge that kind of wipes out the goodwill. In the old days, you used to amortize goodwill down over 15 years for book purposes, but GAAP had changed that where you do not amortize it. So the only way it ever comes off the book is if, I guess, you run to an impairment. Joseph Kowalsky: I understand. Is the company -- has the company been considering acquiring anyone at this point? Or is the focus on paying down the debt from prior acquisitions and... David Verret: Yes. I think our strategy has remained the same. I think if there are good opportunities that are coming up, we're absolutely interested in looking at those. And while there isn't anything out there, we are taking advantage of that time and paying down our debt. I believe our debt was paid down about $8 million from March of last year to the current year, so. Joseph Kowalsky: And then the final question is, when you are looking for other potential acquisitions, and this is similar to a question I've asked in the past, but maybe I'm looking at it a little differently. Do you tend to look in the same areas that you currently have companies? Or are you looking more to diversify the portfolio into other areas? Or does that just depend on what comes up in the market? David Verret: I think it depends on what comes up in the market. But I think what we've seen is as we begin to establish a presence in a certain market, i.e., like in the steel industry, we start to see more of opportunities just from our presence in that space. But we will diversify it. If there's something that kind of meets our criteria, then it doesn't matter the industry. Joseph Kowalsky: And there is actually one final question. You've had a couple of missteps in the past. And I just wonder what you can say you've learned from those missteps as far as acquiring companies in the future. And then I will be quiet and listen. David Verret: Yes. Well, that's kind of a tough one right there. I just think really it's all just around due diligence. And every time there may be a little nuance related to an acquisition that we will kind of pick up on and then try to fine-tune that kind of going forward. So I mean, after every acquisition, I believe we get better. We get a little bit more knowledgeable. And so all we do is kind of look at what has happened, do a postmortem type of assessment on acquisitions and find out what worked and what didn't work and just trying to build on the positives and mitigate those negative aspects. Operator: [Operator Instructions] We have no further questions at this time. David, back over to you for any closing comments. David Verret: Thank you. I want to thank everyone for joining our Q2 earnings call, and we look forward to seeing you next quarter. Thank you. Operator: That concludes our meeting today. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Live Ventures LIVE Q2 2026 Earnings Transcript was originally published by The Motley Fool

LAS VEGAS, May 14, 2026 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) (“Live Ventures” or the “Company”), a diversified holding company, today announced financial results for its fiscal second quarter ended March 31, 2026. Fiscal Second Quarter 2026 Key Highlights: Revenue was $102.9 million, compared to $107.0 million in the prior-year period Gross margin increased 80 basis points to 33.6%, compared to 32.8% in the prior-year period Operating loss was $2.0 million, compared to operating income of $2.1 million in the prior-year period. Excluding a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment, the fiscal second quarter 2026 operating income would have been approximately $2.0 million Net loss was $2.4 million and diluted loss per share was $0.80, compared to net income of $15.9 million and diluted earnings per share (“EPS”) of $5.05 in the prior-year period. Current-year period results include a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment and a $1.4 million gain on Employee Retention Credits in the Retail-Flooring segment. Prior-year period results benefited from a $22.8 million gain related to the modification of the Flooring Liquidators, Inc. (“Flooring Liquidators”) seller note Adjusted EBITDA¹ was $5.9 million, compared to $6.4 million in the prior-year period Total assets were $392.5 million, and stockholders’ equity was $92.9 million as of March 31, 2026 Approximately $39.8 million in cash and availability under the Company’s credit facilities as of March 31, 2026 “Our Retail-Entertainment and Flooring Manufacturing segments delivered strong operating income growth of 32.8% and 24.0%, respectively. These gains were offset by continued macroeconomic headwinds in the new-home construction and home-refurbishment markets, which negatively impacted our Retail-Flooring segment, as well as by a non-cash goodwill impairment charge of approximately $4.0 million in our Steel Manufacturing segment. Consolidated operating income before the non-cash goodwill charge would have been approximately $2.0 million, essentially in line with the prior-year period,” said David Verret, Chief Financial Officer of Live Ventures. “This quarter demonstrated both the resilience of our business model and the ongoing challenges in the Retail-Flooring market. We are focused on reducing costs and improving operations across our businesses, and we are pleased with the operating improvements in our Retail-Entertainment and Flooring Manufacturing segments. We remain committed to building on that progress in the second half of the fiscal year while driving further efficiencies in our Retail-Flooring business,” commented Jon Isaac, President and Chief Executive Officer of Live Ventures. 1 Adjusted EBITDA is a non-GAAP measure. A reconciliation of the non-GAAP measures is included below. Revenue decreased approximately $4.1 million, or 3.8%, to $102.9 million for the quarter ended March 31, 2026, compared to $107.0 million in the prior-year period. The decrease primarily reflects a decline of approximately $7.2 million in the Retail-Flooring segment, partially offset by an increase of approximately $2.7 million in the Retail-Entertainment segment. Gross profit decreased approximately $0.6 million, or 1.6%, to $34.6 million for the quarter ended March 31, 2026, compared to $35.1 million in the prior-year period, driven primarily by lower revenues in the Retail-Flooring segment. Gross margin increased 80 basis points to 33.6%, compared to 32.8% in the prior-year period, reflecting improved margins in the Steel Manufacturing, Flooring Manufacturing, and Retail - Flooring segments as well as a more favorable revenue mix, as the higher-margin Retail-Entertainment segment represented a larger share of consolidated revenue. Operating loss was $2.0 million for the quarter ended March 31, 2026, compared to operating income of $2.1 million in the prior-year period, representing a $4.1 million year-over-year decrease. The decrease was primarily driven by a non-cash goodwill impairment charge of $4.0 million in the Steel Manufacturing segment and lower revenues in the Retail-Flooring segment, partially offset by improved operational performance in the Retail-Entertainment, Flooring Manufacturing, and Corporate and Other segments. Excluding a non-cash goodwill impairment charge, consolidated operating income would have been approximately $2.0 million, compared to $2.1 million in the prior-year period. For the quarter ended March 31, 2026, net loss was approximately $2.4 million, and diluted loss per share was $0.80, compared to net income of approximately $15.9 million and diluted EPS of $5.05 in the prior-year period. The net loss for the quarter ended March 31, 2026, includes a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment and a $1.4 million gain on Employee Retention Credits in the Retail-Flooring segment. The prior-year period benefited from a $22.8 million gain related to the modification of the Flooring Liquidators’ seller note. Adjusted EBITDA¹ for the quarter ended March 31, 2026, was approximately $5.9 million, a decrease of $0.6 million, or 8.8%, compared to $6.4 million in the prior-year period. The decrease in Adjusted EBITDA¹ was primarily due to lower gross profit. As of March 31, 2026, the Company had total cash availability of approximately $39.8 million, consisting of $15.2 million in cash on hand and $24.6 million available under its various lines of credit. Second Quarter Fiscal Year 2026 Segment Results (in thousands) Retail – Entertainment Retail-Entertainment segment revenue for the quarter ended March 31, 2026 was $21.2 million, an increase of approximately $2.7 million, or 14.8%, compared to $18.5 million in the prior-year period. The revenue growth was driven by strong consumer demand across all product lines. Gross margin for the quarter decreased to 57.9%, from 59.1% in the prior-year period, reflecting a shift in the sales mix toward new products, which typically have lower margins. Operating income for the quarter ended March 31, 2026 was $3.3 million compared to y $2.5 million in the prior-year period. Strong revenue growth and disciplined management of general and administrative expenses drove the improvement in operating results. Retail – Flooring Retail-Flooring segment revenue for the quarter ended March 31, 2026 was $20.2 million, a decrease of approximately $7.2 million, or 26.2%, compared to $27.4 million in the prior-year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new-home construction and home-refurbishment markets. Gross margin for the quarter was 34.9%, compared to 34.4% in the prior-year period. The increase was primarily due to sales mix. Operating loss for the quarter ended March 31, 2026 was $4.6 million, compared to an operating loss of $2.7 million in the prior-year period. The increase in operating loss was driven mainly by lower revenue and gross profit, partially offset by lower general and administrative expenses resulting from cost-reduction initiatives implemented during fiscal year 2025. Flooring Manufacturing Flooring Manufacturing segment revenue for the quarter ended March 31, 2026 was $30.3 million, a decrease of approximately $1.0 million, or 3.2%, compared to $31.3 million in the prior-year period. The decline was primarily attributable to reduced demand in the new-home construction and home-refurbishment markets. Net of intercompany eliminations, revenue decreased approximately $0.6 million compared to the prior-year period. Gross margin for the quarter increased to 26.9%, compared to 26.5% in the prior-year period. The increase in gross margin was primarily due to improved manufacturing efficiency. Operating income for the quarter ended March 31, 2026 was $2.0 million, compared to $1.6 million for the prior-year period. The increase in operating income was primarily due to improved gross margins and lower operating expenses resulting from cost-reduction initiatives. Steel Manufacturing Steel Manufacturing segment revenue for the quarter ended March 31, 2026 was $32.5 million, an increase of approximately $1.1 million, or 3.4%, compared to $31.5 million in the prior-year period. The increase in revenue was primarily driven by higher sales volumes in the fabricated, hardened wear, and tool and die businesses, partially offset by lower revenue in the metal forming, assembly, and finishing solutions business. Net of intercompany eliminations, revenue increased approximately $0.9 million compared to the prior-year period. Gross margin was 22.1% for the quarter, compared to 21.0% for the prior-year period. The increase in gross margin was primarily due to a more favorable sales mix. Operating loss was $1.7 million for the quarter ended March 31, 2026 compared to operating income of $2.2 million in the prior-year period, representing a $3.9 million year-over-year decrease. The decrease was primarily driven by a non-cash goodwill impairment charge of a$4.0 million related to PMW. Corporate and Other Corporate and Other segment operating loss was $0.9 million and $1.3 million for the quarters ended March 31, 2026, and 2025, respectively. The reduction in operating loss was primarily attributable to lower corporate expenses, including compensation and professional fees. Revenue decreased approximately $7.1 million, or 3.2%, to $211.4 million for the six months ended March 31, 2026, compared to revenue of $218.5 million in the prior-year period. Net of intercompany sales eliminations, the decrease primarily reflects a decline of approximately $12.2 million in the Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing segments, partially offset by an increase of approximately $5.1 million in the Retail-Entertainment segment. Gross profit decreased by approximately $0.6 million, or 0.8%, to approximately $69.9 million for the six months ended March 31, 2026, compared to $70.5 million in the prior-year period, primarily due to lower revenue in the Retail-Flooring segment. Gross margin increased 80 basis points to 33.1%, compared to 32.3% in the prior-year period, reflecting improved operating efficiencies in the Flooring Manufacturing and Steel Manufacturing segments, as well as a more favorable revenue mix, as the higher-margin Retail-Entertainment segment represented a larger share of consolidated revenue. Operating income decreased $1.4 million, or 49.5%, to $1.4 million for the six months ended March 31, 2026, compared to operating income of $2.9 million in the prior-year period. The decrease was primarily driven by a non-cash goodwill impairment charge of $4.0 million in the Steel Manufacturing segment and lower revenue in the Retail-Flooring segment, partially offset by improved operations in the Retail-Entertainment, Flooring Manufacturing, and Corporate and Other segments. For the six months ended March 31, 2026, net loss was approximately $2.5 million, and diluted loss per share was $0.82, compared to net income of approximately $16.4 million and diluted EPS of $5.20 in the prior-year period. The net loss for the six months ended March 31, 2026, includes a non-cash goodwill impairment charge of approximately $4.0 million in the Steel Manufacturing segment and a $1.4 million gain on Employee Retention Credits in the Retail-Flooring segment. The prior-year period benefited from a $22.8 million gain related to the modification of the Flooring Liquidators’ seller note, an approximately $2.8 million gain related to the settlement of the earnout liability from the PMW acquisition, and an approximately $0.7 million gain from the settlement of PMW seller notes. Adjusted EBITDA¹ for the six months ended March 31, 2026, was approximately $13.7 million, an increase of $1.5 million, or 12.2%, compared to $12.2 million in the prior-year period. Adjusted EBITDA¹ increased despite lower operating income, reflecting lower operating expenses and the exclusion of a non-cash impairment charge. Six Months FY 2026 Segment Results (in thousands) Retail – Entertainment Retail-Entertainment segment revenue for the six months ended March 31, 2026 was $44.8 million, an increase of approximately $5.1 million, or 12.8%, compared to $39.7 million in the prior-year period. The revenue growth was driven by strong consumer demand across all product lines. Gross margin for the six months ended March 31, 2026 was 57.7%, essentially flat compared to 57.8% in the prior-year period. Operating income for the six months ended March 31, 2026 was $8.0 million compared to $5.9 million in the prior-year period. Strong revenue growth and disciplined management of general and administrative expenses drove continued improvement in operating results. Retail – Flooring Retail Flooring segment revenue for the six months ended March 31, 2026 was $45.5 million, a decrease of approximately $13.6 million, or 23.0%, compared to $59.1 million in the prior-year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new-home construction and home-refurbishment markets. Gross margin for the six months ended March 31, 2026 was 33.1%, compared to 35.9% in the prior-year period. The decrease in gross margin was primarily due to a less favorable overall product mix. Operating loss for the six months ended March 31, 2026 was $8.3 million, compared to an operating loss of $4.9 million in the prior-year period. The increase in operating loss was driven mainly by lower revenue and gross margin, partially offset by reduced operating expenses resulting from cost-reduction initiatives implemented during fiscal year 2025. Flooring Manufacturing Flooring Manufacturing segment revenue for the six months ended March 31, 2026 was $59.1 million, a decrease of approximately $1.3 million, or 2.2%, compared to $60.5 million in the prior-year period. The decline was primarily attributable to reduced demand in the new-home construction and home-refurbishment markets. Net of intercompany eliminations, revenue increased approximately $1.3 million compared to the prior‑year period. Gross margin for the six months ended March 31, 2026 increased to 26.0% from 24.1% in the prior‑year period, primarily due to improved manufacturing efficiency. Operating income for the six months ended March 31, 2026, was $4.3 million, an increase of 92.0%, compared to $2.2 million for the prior-year period. The improvement in operating income reflects the combined impact of higher gross margins and the ongoing benefits of cost‑reduction actions implemented across the segment. Steel Manufacturing Steel Manufacturing segment revenue for the six months ended March 31, 2026 was $64.4 million, a decrease of approximately $0.4 million, or 0.6%, compared to $64.8 million in the prior-year period. The decline in revenue was primarily attributable to lower sales in the metal forming, assembly, and finishing solutions business, partially offset by increased sales volumes in the fabricated, hardened wear, and tool and die businesses. Net of intercompany sales eliminations, revenue increased approximately $0.2 million compared to the prior-year period. Gross margin increased to 21.0% for the six months ended March 31, 2026, compared to 19.4% for the prior-year period. The increase in gross margin was primarily due to a more favorable sales mix. Operating loss for the six months ended March 31, 2026 was $50,000, compared to operating income of $3.4 million in the prior-year period, a decrease of approximately $3.3 million driven primarily by a non-cash goodwill impairment charge of approximately $4.0 million related to PMW. Corporate and Other Corporate and Other segment operating loss was $2.1 million and $2.9 million for the six months ended March 31, 2026, and 2025, respectively. The reduction in operating loss was primarily attributable to lower corporate expenses, including compensation and professional fees. Non-GAAP Financial Information Adjusted EBITDA We evaluate the performance of our operations based on financial measures, such as “Adjusted EBITDA,” which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business’s ability to fund acquisitions and other capital expenditures and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company’s financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by generally accepted accounting principles (“GAAP”), should not be construed as an alternative to net income or loss, and is indicative neither of our results of operations, nor of cash flow available to fund our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with GAAP. As companies often define non-GAAP financial measures differently, Adjusted EBITDA, as calculated by Live Ventures Incorporated, should not be compared to any similarly titled measures reported by other companies. Forward-Looking and Cautionary Statements The use of the word “Company” refers to Live Ventures and its wholly owned subsidiaries. Certain statements in this press release contain or may suggest “forward-looking” information within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. Words such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements are intended to identify forward-looking statements. Live Ventures may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, in press releases and other written materials, and in oral statements made by its officers and directors to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Additionally, new risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. Live Ventures undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. About Live Ventures Incorporated Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. Live Ventures’ acquisition strategy is sector-agnostic and focuses on well-run, closely held businesses with a demonstrated track record of earnings growth and cash flow generation. The Company seeks opportunities to partner with management teams of its acquired businesses to build increased stockholder value through a disciplined buy-build-hold long-term focused strategy. Live Ventures was founded in 1968. In late 2011, Jon Isaac, Chief Executive Officer and strategic investor, joined the Company's Board of Directors and later refocused it into a diversified holding company. The Company’s current portfolio of diversified operating subsidiaries includes companies in the textile, flooring, tools, steel, and entertainment industries. Contact: Live Ventures Incorporated Greg Powell, Director of Investor Relations 725.500.5597 [email protected] www.liveventures.com Source: Live Ventures Incorporated Adjusted EBITDA The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA¹ for the periods indicated (dollars in thousands):

This article first appeared on GuruFocus. Release Date: February 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Operating income increased by 352.9% to $3.5 million compared to the prior year period. Adjusted EBITDA rose by 35.7% to $7.8 million, driven by higher operating income. Gross margin improved by 90 basis points to 32.6%, attributed to efficiencies and favorable product mix. The company successfully refinanced a credit facility in the steel manufacturing segment, strengthening the balance sheet. General and administrative expenses decreased by 7.4% due to targeted cost reduction initiatives. Total revenue decreased by 2.7% to approximately $108.5 million. Retail flooring segment revenue dropped by 20.2% due to store closures and a soft housing market. Steel manufacturing segment revenue fell by 4.3% due to lower sales volumes. Net loss for the quarter was approximately $100,000, compared to a net income of $500,000 in the prior year. Working capital decreased to $59.1 million from $62.1 million as of September 30, 2025. Warning! GuruFocus has detected 10 Warning Signs with LIVE. Is LIVE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of the financial performance for the first quarter of fiscal year 2026? A: David Barrett, CFO, reported that the company saw a 352.9% increase in operating income, reaching $3.5 million, despite a 2.7% decrease in total revenue to $108.5 million. Adjusted EBITDA increased by 35.7% to $7.8 million. The decrease in revenue was mainly due to declines in the retail flooring and steel manufacturing segments, partially offset by growth in the retail entertainment and flooring manufacturing segments. Q: What were the main factors contributing to the changes in revenue across different segments? A: David Barrett, CFO, explained that the retail entertainment segment saw an 11% increase in revenue due to strong consumer demand. The retail flooring segment experienced a 20.2% decline due to changes in store footprint and a soft housing market. The flooring manufacturing segment had a slight decrease in revenue, while the steel manufacturing segment saw a 4.3% decline due to lower sales volumes. Q: How did the company manage to improve its operating income significantly? A: David Barrett, CFO, attributed the improvement in operating income to higher gross margins and lower operating expenses, particularly in the retail flooring manufacturing and corporate segments. This was achieved through targeted cost reduction initiatives. Q: What strategic initiatives is the company implementing to drive future growth? A: David Barrett, CFO, mentioned that the company is rolling out a comprehensive strategy to integrate AI across business units. This includes applying AI alongside robotics and data analytics to modernize operations, improve efficiency, and reinforce cost discipline. Q: What is the current liquidity position of Live Ventures? A: David Barrett, CFO, stated that the company ended the first quarter with total cash availability of $38.7 million, consisting of $15.1 million in cash on hand and $23.6 million available under various lines of credit. Working capital was approximately $59.1 million as of December 31, 2025. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LAS VEGAS, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) (“Live Ventures” or the “Company”), a diversified holding company, today announced financial results for its fiscal first quarter ended December 31, 2025. Fiscal First Quarter 2026 Key Highlights: Revenue was $108.5 million, compared to $111.5 million in the prior-year period Gross margin increased to 32.6%, compared to 31.7% in the prior-year period Operating income increased $2.7 million, or 352.9%, to $3.5 million, compared to $0.8 million in the prior-year period Net loss was $0.1 million and diluted loss per share was $0.02, compared to net income of $0.5 million and diluted earnings per share (“EPS”) of $0.16 in the prior-year period. Net income for the prior-year period includes a net gain of $3.6 million from non-recurring items Adjusted EBITDA¹ increased $2.0 million, or 35.7%, to $7.8 million, compared to $5.7 million in the prior-year period Total assets of $389.2 million and stockholders’ equity of $95.3 million as of December 31, 2025 Approximately $38.7 million in cash and availability under the Company’s credit facilities as of December 31, 2025 Successfully completed a $47.0 million refinancing for the Steel Manufacturing segment, providing additional lending capacity “We are pleased with the continued operational progress during the quarter, which contributed to a $2.7 million, or 352.9%, increase in operating income compared with the prior-year period. These results were delivered despite sustained softness in new home construction and home refurbishment, which continued to weigh on our Retail-Flooring segment. In addition, we successfully refinanced one of our credit facilities in the Steel Manufacturing segment, strengthening our balance sheet and enhancing our ability to support future growth,” commented David Verret, Chief Financial Officer of Live Ventures. “We delivered a solid quarter marked by meaningful operating improvements across the businesses, despite a still-challenging housing backdrop. The 35.7% increase in Adjusted EBITDA¹ reflects the impact of our cost-reduction initiatives implemented last fiscal year. To build on this momentum, we are rolling out a comprehensive strategy to integrate AI across our business units. By applying AI alongside robotics and data analytics, we are modernizing operations, improving efficiency across the organization, and reinforcing the cost discipline that supports our long-term strategy,” commented Jon Isaac, President and Chief Executive Officer of Live Ventures. Revenue decreased approximately $3.0 million, or 2.7%, to approximately $108.5 million for the quarter ended December 31, 2025, compared to revenue of approximately $111.5 million in the prior-year period. The decrease primarily reflects an approximately $7.1 million decline in the Retail-Flooring and Steel Manufacturing segments, partially offset by an approximately $4.1 million aggregate increase in the Retail-Entertainment and Flooring Manufacturing segments, net of intercompany sales eliminations. Gross profit was approximately $35.4 million for the quarter ended December 31, 2025, essentially unchanged compared to the prior-year period. However, gross margin increased by 90 basis points to 32.6%, as compared to 31.7% in the prior-year period. The gross margin improvement was attributable to higher margins in the Flooring Manufacturing segment due to improved efficiencies and a favorable product mix, improved efficiencies in the Steel Manufacturing segment, and a favorable product mix in the Retail Entertainment segment, partially offset by lower gross margins in the Retail-Flooring segment. Operating income increased approximately $2.7 million, or 352.9%, to $3.5 million for the quarter ended December 31, 2025, compared with operating income of approximately $0.8 million in the prior-year period. The increase in operating income was primarily driven by higher gross margins and lower operating expenses in the Retail-Flooring, Flooring Manufacturing, and Corporate and Other segments, reflecting targeted cost-reduction initiatives. For the quarter ended December 31, 2025, net loss was approximately $0.1 million, and diluted loss per share was $0.02, compared to net income of approximately $0.5 million and diluted EPS of $0.16 in the prior-year period. For the quarter ended December 31, 2024, net income includes an approximately $2.8 million gain related to the settlement of the earnout liability from the Precision Metal Works, Inc. (“PMW”) acquisition, as well as an approximately $0.7 million gain from the settlement of PMW seller notes. Adjusted EBITDA¹ for the quarter ended December 31, 2025, was approximately $7.8 million, an increase of approximately $2.0 million, or 35.7%, compared to $5.7 million in the prior-year period. The increase in Adjusted EBITDA¹ was primarily driven by higher operating income. As of December 31, 2025, the Company had total cash availability of approximately $38.7 million, consisting of approximately $15.1 million in cash on hand and approximately $23.6 million available under its various lines of credit. First Quarter Fiscal Year 2026 Segment Results (in thousands) Retail – Entertainment The Retail-Entertainment segment revenue for the quarter ended December 31, 2025, was approximately $23.6 million, an increase of approximately $2.3 million, or 11.0%, compared to approximately $21.3 million in the prior-year period. The revenue growth was driven by strong consumer demand across all product lines. Gross margin for the quarter increased to 57.5%, compared to 56.6% in the prior-year period, reflecting a shift in sales mix toward higher‑margin product lines. Operating income for the quarter ended December 31, 2025, was approximately $4.7 million compared to approximately $3.4 million in the prior-year period. Strong revenue growth and disciplined management of general and administrative expenses have driven the continued improvement in operating results. Retail – Flooring Retail Flooring segment revenue for the quarter ended December 31, 2025, was approximately $25.3 million, representing a decrease of approximately $6.4 million, or 20.2%, compared to approximately $31.7 million in the prior-year period. The decrease in revenue is primarily due to changes in store locations from the prior-year period, including two store closures and three new store openings late in the fiscal first quarter of 2026 that had not yet materially contributed to revenue, as well as continued softness in the housing market. Gross margin for the quarter was 31.7%, compared to 37.2% in the prior-year period. The decrease in gross margin is primarily due to a greater mix of aged inventory sold during the seasonally slower period and a less favorable overall product mix. Operating loss for the quarter ended December 31, 2025, was approximately $3.7 million, compared to an operating loss of approximately $2.2 million in the prior-year period. The increased loss was driven mainly by lower revenue and gross margin, partially offset by reduced operating expenses resulting from cost-reduction initiatives implemented in fiscal year 2025. Flooring Manufacturing The Flooring Manufacturing segment revenue for the quarter ended December 31, 2025, was approximately $28.9 million, a decrease of approximately $0.3 million, or 1.1%, compared to approximately $29.2 million in the prior-year period. The decrease in revenue was primarily due to lower sales to the Retail-Flooring segment. Net of intercompany sales eliminations, revenue increased approximately $2.0 million compared to the prior-year period. Gross margin for the quarter increased to 25.0%, compared to 21.4% for the prior-year period. The increase in gross margin is primarily due to a change in product mix toward carpet, which typically has higher gross margins, combined with improved operational efficiencies. Operating income for the quarter ended December 31, 2025, was approximately $2.3 million, compared to an operating income of approximately $0.7 million for the prior-year period. The increase in operating income was primarily due to improved gross margins and lower operating expenses resulting from cost-reduction initiatives. Steel Manufacturing The Steel Manufacturing segment revenue for the quarter ended December 31, 2025, was approximately $31.9 million, a decrease of approximately $1.4 million, or 4.3%, compared to approximately $33.3 million in the prior-year period. The revenue decrease was primarily driven by lower sales volumes in the metal forming, assembly, and finishing solutions business. Net of intercompany sales eliminations, revenue decreased approximately $0.7 million compared to the prior-year period. Gross margin was 19.9% for the quarter, compared to 18.0% for the prior-year period. The increase in gross margin was primarily due to strategic price increases and improved operational efficiencies. Operating income for the quarter ended December 31, 2025, was approximately $1.6 million, compared to approximately $1.2 million in the prior-year period. The increase in operating income was primarily due to improved gross margins. Corporate and Other The Corporate and Other segment operating loss was approximately $1.2 million and $1.6 million for the quarters ended December 31, 2025, and 2024, respectively. The decrease in operating loss is primarily due to a reduction in corporate expenses, including compensation and professional fees. Non-GAAP Financial Information Adjusted EBITDA We evaluate the performance of our operations based on financial measures, such as “Adjusted EBITDA,” which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business’s ability to fund acquisitions and other capital expenditures and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company’s financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by generally accepted accounting principles (“GAAP”), should not be construed as an alternative to net income or loss, and is indicative neither of our results of operations, nor of cash flow available to fund our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with GAAP. As companies often define non-GAAP financial measures differently, Adjusted EBITDA, as calculated by Live Ventures Incorporated, should not be compared to any similarly titled measures reported by other companies. Forward-Looking and Cautionary Statements The use of the word “Company” refers to Live Ventures and its wholly owned subsidiaries. Certain statements in this press release contain or may suggest “forward-looking” information within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. Words such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements are intended to identify forward-looking statements. Live Ventures may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, in press releases and other written materials, and in oral statements made by its officers and directors to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Additionally, new risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. Live Ventures undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. About Live Ventures Incorporated Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. Live Ventures’ acquisition strategy is sector-agnostic and focuses on well-run, closely held businesses with a demonstrated track record of earnings growth and cash flow generation. The Company seeks opportunities to partner with management teams of its acquired businesses to build increased stockholder value through a disciplined buy-build-hold long-term focused strategy. Live Ventures was founded in 1968. In late 2011, Jon Isaac, Chief Executive Officer and strategic investor, joined the Company's Board of Directors and later refocused it into a diversified holding company. The Company’s current portfolio of diversified operating subsidiaries includes companies in the textile, flooring, tools, steel, and entertainment industries. Contact: Live Ventures Incorporated Greg Powell, Director of Investor Relations 725.500.5597 [email protected] www.liveventures.com Source: Live Ventures Incorporated