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Good morning, and thank you for standing by. Welcome to LiveOne's fiscal fourth quarter and full year ended March 31st, 2026 financial results and business update conference call. During today's call, all participants will be in listen-only mode. Following the presentation, the conference will be opened for questions. Presenting on today's call is Rob Ellin, CEO and Chairman of LiveOne, and Craig Christensen, Interim CFO of LiveOne. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons.

Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31st, 2026, and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor relations website. The company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, June 24th, 2026. Except as required by law, the company does not undertake any obligation to update or revise this information after today's call.

I'd like to highlight to all participants that this call is being recorded. The company will make it available to investors and media via webcast, and a replay will be available on its website in the investor relations section shortly following the conclusion of this call. Additionally, it is the property of the company, and any redistribution, transmission, or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne's CEO, Rob Ellin.

Good morning, everyone, and thank you for joining. This has been a transformational year for LiveOne. I want to start by applauding my team at LiveOne, at PodcastOne, at Slacker, and our merch business. Each of those subsidiaries have fought through this year and battled and turned this around. LiveOne reported this morning $77 million in revenues. Our audio business, $73 million, $73.5 million and $6.1 million in EBITDA. This is hugely transformative for the company. It's been a tough battle. In 30-plus years of running public companies, we lost our major customer, Tesla. We lost $65 million out of $75 million in revenues. We took punches from our debt holders, our banks, our investors in a brutal market. At one point, it felt like the Knicks game. I'm wearing my Knicks hat today as this was comeback time for LiveOne. Our teams rallied and did not quit.

As you look at our podcast business, Kit Gray showed up as our Jalen Brunson. He took that business and has now grown it from the time I acquired it from $17 million, this year, we did $61 million, with $6.3 million in EBITDA. When we acquired the business, it was losing $6.5 million a year. That's a $12 million swing in EBITDA. As you look at this first quarter, we've just raised our guidance and raised our guidance to $78 million-$85 million with $8 million-$10 million of EBITDA, and we're already doing close to $2 million of EBITDA for the quarter. You're on an $8 million run rate off the slowest quarter. At LiveOne, we survived our banks pulling out. We replaced them. We have now paid down all of our junior debt.

We have now converted over $15 million of equity at $7.5 a share. We have cleansed our balance sheet dramatically. Now is the time everyone has fought through this year to start to see this business turn and go back in the direction where we started. We traded for almost five years between $40-$100 a share. We went through a tough period of time during COVID. We came out stronger than ever. We've gone through a tough period of time with Tesla, and we're coming out stronger than ever. Our B2B lineup is growing dynamically across many verticals. As you look at the past announcements that have just come out in this quarter, this current quarter, we've announced partnerships with Vizio, which is part of Walmart. We've announced partnerships with Samsung. We've announced partnerships now with AT&T. AT&T will now reach over 70 million people and growing.

As you continue to add these to our current lineup of B2B deals, we also added LG to the lineup. If you take the combination of just those alone, there's hundreds of millions of monthly eyeballs. As you now look up forward, we expect to announce our next major partnership with a retailer with over 50 million monthly subscribers. We've already talked about going through phase one and the success of it, and the success of the sign-ups that came at almost 46%, way higher than we could have dreamed. When you look at the Tesla partnership, there were only 2 million cars. Consumers had to sign up for $10 a month, and somehow we ran from when we acquired the company, we acquired Slacker Radio, doing $200,000 a month to doing $65 million-$70 million a year and growing. We have now started to replace that.

Part of that replacement came with a really exciting partnership with Amazon, now over $20 million, that it was paramount. When it first started, it started at Pluto TV. It started as a $2 million deal. It's now over $26 million. We continue to grow these. We see telltale signs that these partnerships will all look similar, that if you just can convert a half a percent to 1% of their total audiences, we could be looking at hundreds of millions of dollars in the next two years and $1 billion over the next five years. We couldn't be more excited about where the business is going. We wanted to show the street our hand. Right? We rallied back. What did we do? We bought back a substantial amount of additional stock.

We now said we bought over $7 million stock in the free market and that we have $5 million additional to acquire. We also have bought a substantial amount of PodcastOne stock back. If the company is going to continue to trade at these discounts, we are going to continue to acquire, we're going to continue to buy back, as well as you will see me personally buying a sizable position back in the company. I bought as high as $60 a share, and I certainly will continue to buy down at these low levels. With that, again, I want to thank my management team for successfully surviving a uniquely difficult period of time, and for coming out of it stronger than ever. We feel like these B2B deals are starting to build momentum. We have over 100 in the pipeline right now.

Everything from hotels to airlines, things to streaming networks, to audio companies, carriers, auto companies. We see the telltale sign that these will continue to grow. With that, I want to pass this over to Craig and give him an opportunity. Craig has joined us on an interim basis, but hopefully for long-term, has done just an amazing job of harboring the ship and getting the 10-Qs and 10-Ks done, and brings a very prolific background as CFO, as well as real serious experience in M&A, doing over 20 acquisitions in his last company. Craig, take over from here, and then I'll jump back in and finalize everything. Thank you.

All right. Thank you, Rob, and thanks for that intro. I'll just spend a few minutes here providing a brief overview of our results for the fourth quarter, and then I'll cover the full fiscal year. Some of these numbers Rob commented on, the consolidated revenue for the fourth quarter was $18.9 million, with positive adjusted EBITDA of $300,000. Our audio division revenue for the fourth quarter was $18.3 million, with adjusted EBITDA of $2.4 million. On a U.S. GAAP basis, consolidated net loss was $7.6 million or negative $0.65 per basic and diluted share in the fourth quarter of fiscal 2026. Our PodcastOne subsidiary produced Q4 revenue of $15.7 million and adjusted EBITDA of $1.9 million. Our Slacker subsidiary produced Q4 revenue of $2.6 million and adjusted EBITDA of $600,000.

For the full year, our revenue for fiscal 2026, as Rob mentioned, was $77.1 million, adjusted EBITDA of negative $900,000. Our audio division produced full year revenue of $73.5 million and adjusted EBITDA of $6.1 million. Down at the operating level, Slacker reported full year revenue of $11.8 million and adjusted EBITDA of negative $200,000. Our PodcastOne subsidiary produced record full year revenue of $61.7 million and $6.3 million in adjusted EBITDA. As Rob mentioned, we're very pleased to report strong continued growth at our PodcastOne subsidiary. We expect that to continue throughout the year. We're advancing several strategic partnerships from our business development pipeline that we believe have potential to drive long-term growth and value creation. In fiscal 2027, we believe the company's well-positioned for transformational growth, new B2B partnerships, and potential M&A transactions. Rob, that's all I got. Back over to you.

I think you hit that great, Craig, I think maybe the most important line there was just at Slacker, right. Revenues are down so far, yet we took all these costs out of it and have the adjusted EBITDA as positive. You're going to see every subsidiary in this company with adjusted EBITDA positive. You're going to start to hear us talk about at the end of the year about our $225 million, $230 million NOL, and as those NOLs start kicking in and we start talking about earnings, it's a very different game for everybody. With that, we've raised our guidance to $85 million-$95 million, with $8 million-$10 million of EBITDA. That is a massive turn here. We fully expect that if these B2B deals continue, that we'll be looking at increasing those guidances down the line.

We think it's a great starting point coming off where we were last year and a telltale sign of where the business is headed. Craig has mentioned the potential of acquisitions. If you read the press release, we said we expect a very accretive acquisition coming imminently. We are highly confident that this is now the time to add additional podcasters, additional revenues, additional traffic, and additional talent to our platform. With that, we finished number seven on Podtrac. We're moving up the charts dynamically. We've been top 10 all year, and we see the really exciting times now that the company is really well-positioned to complete those acquisitions.

We have also, again, protected ourselves from the standpoint of we've had so many inbound calls on the company that we brought JPMorgan's bankers back in to make sure that we explore all options, and protect ourselves in case a lowball bid comes in. With that, we will continue to buy a substantial amount of stock starting next week. We will continue our buyback and show our confidence in why this company is so undervalued. You look at the industry, I did an interview about two and a half, three weeks ago. I said, "You're going to watch a roll-up of this industry that's going to be very dynamic." We haven't seen that in media in almost seven years. Everything from Roku being acquired at $22 billion. My close friend Charlie Collier, really exciting to see that. You see Lionsgate stock more than double.

You saw iHeart stock go up almost 7X. Media is back. People are waking up and realizing that it's not just media. Media is also data. As you look at data, we have a massive amount of data. We have 250,000 hours of video content, plus we have over 500,000 hours of audio content. Each of those are growing dynamically, and I think you're going to see some of the monetization across these AI platforms. They're going to desperately need more and more data.

As you watch that acquisition of Warner at $46 billion above where Netflix was willing to pay for it, a big part of that reason, I don't know why the world's not talking about it, is that you've watched David Ellison, whose father is Larry Ellison, who owns Oracle, for the first time in history, take $90 billion of debt, and they say it's going to go up to $150 billion. What is he going to need for a data business? What is he going to need to keep building his AI models? He's going to need data, and a beautiful place to get that is from content. We're well-positioned that our content could monetize in a very unique way across AI and fully expect to see some monetization coming from it almost imminently in the AI world.

With that, I'm going to open it up to questions, I want to thank everyone for joining and their patience with us and our patience with our team, we will continue to fight hard. Again, we see this year as a really exciting, transformational year for our company on the upside going forward. Thank you.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Barry Sine with Litchfield Hills Research. Barry, your line is open. Please go ahead.

Hey, good morning, Rob, and welcome aboard, Craig. Rob, I want to start off asking you about the AT&T deal. Obviously, a huge new partner, you've been talking about a carrier for some time, so you've delivered. Wanted to get a little bit more information. From the release, it sounds like they're going to sell a package to automobile manufacturers, OEMs. What's the status there? Have any been signed? When might we see some revenue from this new relationship? Thank you.

Yeah. A lot of questions in that. What I would tell you is this, is that historically, music subscription, the largest partners have always been carriers. Right? As you know, Barry, I owned Kazaa previously and did well over $100 million with carriers. When I built Digital Turbine, almost all of our revenues came from 58 carriers around the world. Right? This is a massive opportunity. Right? This is now the opportunity every time you go into your car, all of a sudden, your LiveOne app will show up in the car, and you'll have an opportunity across AT&T Mobility to be able to sign up, be able to utilize, and be able to drive. There's multiple different revenue streams come from this.

One is the current user, two is new users, we are highly confident that, as you can see by the press release, not only did AT&T announce this themselves, they put their symbol in. They put Cisco in as a partner, they are highly confident that they're going to be a great strategic partner to help both businesses grow. Just like Tesla did, utilize music to sign up for their platform. Really exciting partnership, there's 67-70 million so far has had a program for this and growing. They're basically taking the entire market in this.

We're really excited about this partnership, I think you're going to see more carrier relationships, I think you're going to see deeper carrier relationships as the cycle is changing, right, people are waking up that all these companies are infringing upon each other's businesses, AI is so critical to their survival. What is that about? That's about data. If they don't own their own data, they've basically handed most of their data to Apple and Android for the last 10 years. As that changes and as that cycle changes, they're going to start fighting for that data, I think we're well-positioned to be able to take a piece of that, I think this will be the first of potentially many carriers around the world

Okay. Rob, you mentioned AI, you've talked about monetizing the content you have. I want to ask a couple of questions on that. I understand the opportunity for licensing the PodcastOne content so the AIs can learn more to speak like real people. Are you also going to monetize the LiveOne catalog, things like music festivals or some of the interviews you've done? How many are you negotiating with? Have you signed any? Again, revenue timing, when we might see some revenue from AI deals show up in a 10-Q or a 10-K?

Yeah. Being very careful in that, I would say it's imminent. With that, I would say that there are multiple parties coming very aggressively, looking at this and looking at the space. You're reading about it on a daily basis, and Barry, you did some of your own research on this, and people are talking about $100-$500 per hour of content. That's just for the practice models. All you have to know is if you went onto your AI models, if you went onto the LLMs and you went onto them 10 weeks ago and you wanted to change your face to James Bond or Mickey Mouse, you could do it very easily. Now you couldn't even come close.

What's happening, there are war rooms in every single law firm right now that the major media companies are fighting these AI companies, and you're going to see lawsuits. CNN just filed one last week. There's going to be lawsuits everywhere. They're going to block everything they can until they can figure out what the model is. These models are no different than Napster in the old days or when we dealt with Kazaa. You're going to deal with it. It took 17 years for YouTube to settle this. What's going to happen is secondary content, and I don't mean secondary from the quality of it, secondary content that you have access to. Very differently with podcasters. Podcasters own their own content in conjunction with PodcastOne.

Whereas if you're on CBS, there's only a few people in history like Dr. Phil who's on our platform or Oprah actually own their own content. It was owned by CBS. Now you're going to have this wide-open field that are 250,000-plus hours, and that's just what we've collected from the first 17 podcasters. We're digging into it. It's probably way higher. Our 500,000 of audio content, we have to look back 24 years to get it. Shockingly, our codes have what looks like very unique value. We're exploring all options and have multiple bidders. We're looking for the right partners. We're making sure the contracts make sense, make sure we can protect our talent. Number one, we're always a talent-first platform, but I would expect that some revenues are going to come in imminently.

Okay, my last question is on Tesla, the process of converting free customers into paying customers, and then on the free customers, the process of monetizing those with, I'm guessing, programmatic advertising insertions. How are you doing in terms of the revenue recovery from the Tesla relationship?

Yeah, it is doing good. Listen, this is a tough process, but at the same time, we have somehow, miraculously, we are now up to 1.3 million Tesla users. The average user is using it, I think we just said 69 minutes a day. If you have access to them 69 minutes a day, and for any of you that have a Tesla car, you walk in the car, it is pretty magical. You walk in and you see the LiveOne button there. That did not exist for the first 12 years of that contract. Before it was a squiggly orange button that you did not really know what it was. If you listen to our hosts, you could hear Slacker Radio, you could hear LiveOne. The reality is you did not know who it was. You just knew it was a radio inside Tesla.

You see that button and now that button is there in perpetuity. I was literally just in an Uber the other day, and you walk in and it is a brand-new car and there is the LiveOne button. I think we are going to convert. I think we are going to be very successful at it. We have done way better than we expected already. We are using AI tools, AI marketing tools, Meta and other things that we are going to very aggressively start to try to convert those subscribers. We have done a nice job so far. As you can see, somehow our cash position went up, even though we have still been spending money paying off settlements around this whole loss of revenues. It is really exciting to see. We have also been able to, because of that, pay off all of our junior debt, part of our senior debt.

The balance sheet is literally the strongest it has been with some of the help of doing those conversions. I think it is really exciting. I think we have got to keep getting smarter on how we convert those people. I think we have got to get our prices higher. We have not raised them yet, even though everyone in the industry has raised them dramatically. We have to figure out what that balance is between them. I have got to tell you, no one ever expected. We thought we would get maybe 25% of the audience, and now we are back to well over 50% that we have a legitimate shot at starting to convert.

Okay. I will renew my subscription before you raise your prices. Those are my questions. Thank you.

All right. Thanks, Barry. Thanks for your support.

Your next question comes from the line of Sean McGowan with Roth Capital Partners. Sean, your line is open. Please go ahead.

Thank you. Good morning, Rob, and hi Craig. Nice to meet you both. First question starting off, when will the 10-K be published, issued?

Sean, it's Craig. We're aiming to get it out the end of this week, but we have until Monday, which we don't plan to use, but we have till then. It'll be out this week.

Okay. Thank you. A lot of questions around things that have changed subsequent to the quarter, kind of that would be helpful to update a model. Can you give us a sense of standing here today or kind of at the end of June, what is the share count now? Talk a little bit about what's out there that's convertible versus eliminated with some of the moves made more recently.

Say that one more time, Sean, you cut off at the end.

Sorry. About the share count as of today, taking into account a lot of the changes that you've made to the balance sheet in recent weeks. If we just take today forward, I know it's not going to be that for the first quarter, what's the share count today and what's still on the balance sheet that's convertible?

I think most of it that's convertible has been converted. I think we said today that 15 million total was almost completed, right? You'll see another, I don't know, probably from last quarter, probably 1 million shares total in that range. In those 1 million shares, these are in unique hands. These are the first time that we've signed long-term partnerships with many people in the industry, right? From BMI to Merlin, with that, we've also added over 20 million songs to our portfolio, right? In adding those 20 million songs, as most of you know, most of my background has been building off of carriers around the world and mobile businesses, right? We've never been able to and have chosen not to because it wasn't worth it at the time to really expand overseas.

This now gives us the opportunity that we now have a global presence that we can really start to, as we do an AT&T deal. There's no reason I can't go back to the many carriers that we've worked with over the years to expand. As you know, I've been in Paris, London, Mexico three times, Japan, China, and Switzerland where many of the same partnerships that I did with Digital Turbine, that I did with my other companies for the last 30 years, right? We couldn't really partner with them before because it didn't make sense to expand overseas till we had the balance sheet cleaned up, especially from the standpoint of the record labels and the publishers. We're almost completely clean at this point, and I would say this is the best shape we've ever been in from a balance sheet standpoint.

Good. Thanks for that clarity. Other question was on operating expenses, since you've done a good job of cleaning a lot of that stuff up and as you had hinted in the past, using AI and other tools to get more productive. That's encouraging. If you look at the operating expenses in the fourth quarter, should we expect things to kind of trend the same way? Or were there any expenses taken in the fourth quarter that you would consider non-recurring?

Craig, you want to take that?

Yeah. Barry, I think the quarter is probably a good baseline to trend off of because you can see that throughout the year, the company did fantastic at trying to cut costs with the contraction. A lot of those were permanent or salary-based. I think the G&A is stabilizing. The company's in great position now, I think, on a meaningful B2B deal or an M&A transaction to scale. There wasn't a lot of big one-time puts or takes in the quarter, I think it's stabilizing and it's a good model.

My last question on OpEx is, as you've said repeatedly in the past, you plan to use more stock-based comp with the podcast talent, and we see that in the financial statements. How much of that non-employee stock-based comp is taken outside of G&A? Is any of that in cost of sales?

Yeah, it does. It's in cost of sales. When we pay the talent or talent takes stock, it's in cost of sales.

Could you say that most of that non-employee stock-based comp is in cost of sales?

Yes.

Okay.

Yeah.

That's helpful. Thank you.

Yep.

Sean, I think you're going to see for the first time ever, the relationship with the talent is so strong that not only are they taking equity, but they're also becoming real participants in this. We think it's going to be very strong to have 1,000 podcasters, 250 that are most of our revenues, but those podcasters behind the stock as well and behind the company, right? Really helping to drive the brand and the recognition. Kit and the team have just done an exceptional job. We moved up to number seven on podcasts. You're watching the second round of acquisitions happening in podcasts right now. OpenAI bought a podcast network for 13.6 times revenues. Fox is buying everything they can get their hands on, right? They bought The Box and so on.

You're seeing round two of those acquisitions, and it's not by surprise because it's no longer an audio business, right? I think when I first bought the company in 2020, I went on Adam Carolla on Fox News and said, "This is not a podcast business. This is a vodcast business." A vodcast, meaning that it's going to move to video. The industry's grown from $600 million-$25 billion. It's going to $100 billion over the next seven years, right? You're just going to see massive growth coming out of this, we're just so well-positioned, and we want to make sure that our talent is a participant in the upside. We want them all rowing in the same direction. You may have seen Adam Carolla. I put my brother on his show this morning. I'll be going on either next week or the week after.

As he goes on to Fox News, we want to be talking together as a force. We want to be talking as a team. Yeah, I just think we're in the strongest position with talent that we've ever been in the company, including cleaning up those balance sheets on the music side. The more we can clean up, the stronger the relationship's going to be with everyone.

A reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Your next question comes from the line of Brian Kinstlinger with Alliance Global Partners. Brian, your line is open. Please go ahead.

Great, thanks. Nice to see all the new B2B announcements. You mentioned on one of the earlier responses that 1.3 million Tesla users you've got an average of 69 minutes. Can you quantify the number of conversions? Are you at 1% conversion? Are you at 5%? Somewhere in between? Then maybe can you talk about where you bottomed for the total business at paid subscribers and where you are today?

Yeah. It's a tricky one that I don't think I can answer exactly yet, Brian, because we still lose some of the old. As cars go off the road, we lose some. We lose some of those old subscribers at $3, and we gain them back at $5. I don't have an exact number in front of me right now. If you don't mind, we'll talk offline. I'll try to get you an exact number on it. I can tell you that I think we said it's about 1% or 2% we're starting to convert over the last couple of months. We've had overall positive numbers. Our ARPUs are going up, and we've had overall positive numbers the last two months.

Just to the roughly total paid subscribers, I'm trying to back into it. Is it around 200,000? Is that too many?

Do you have a number on that, Craig, in front of you?

Sorry, I don't have an exact number, Rob, but I think that is a good estimate, Brian. It's kind of in that range.

Great. Then you've got a number of agreements in place that you've announced. Let's take Vizio in February. I just know that date. All of them have a time you announced them. How long before you think it takes before you see meaningful additions to that paid subscriber base? Is that months? Is that immediately? What is the average timeframe you think a user converts?

Yeah, I just looked at the numbers. Vizio was signed February 23rd. That's the end of February. These typically are going to take 90-180 days before you start to really see revenue start to kick in. Just to give you an example. On Amazon, which is now $20 million, it took 11 months before it kicked in. There were some nice revenues, but really the revenues kicked in at 11 months, and then it started to really take off. Paramount was the better part of, it started off as a $2 million deal. Now it's $26 million plus. That took the better part of 14 months for the real revenues to kick in. Each of these, they're going to start.

As they get launched, as they start to grow, you start to get your feet under them, you start to understand what the consumer behavior is going to be. The consumer behavior changes every day, as you know, with what else is out there. We utilize our partners to market it with us and to build with us. The beauty of it is that we don't spend a nickel, not $1 marketing it. This is all utilizing. We're partnering with them because they have massive audiences, just like I did in Digital Turbine, just like I did in iWon, just like I did in Majesco. These are those B2B deals that they have the audience, they need the content. We're making a trade. No different than when cable and satellite, if ESPN or Disney came to cable and satellite, they were getting paid by them.

I think that's the direction of where things are going. I think that's directionally where it's going to happen now. You're going to see these streaming platforms digging in deeper and deeper. You're seeing the streaming platforms going deep into podcasts. You've just seen Netflix announce a deal with iHeart. iHeart's stock went up 7X. You just saw them do a deal with Spotify. They just bought a podcast for $100 million. Does less revenues literally than one of our podcasts. They paid $100 million for it. It's really exciting to see what's happening, and that cycle's changing. As long as we could keep signing these partners with massive audiences, getting them to market to their consumers, just like Tesla did, utilizing our content to sign them up, we're going to be in great shape.

Awesome. As it relates to your three TV partners, I assume you're able to monitor traffic. Can you share maybe unique TVs that have watched or listened to your content? How many repeat users are there? Are each of those three OEMs marketing the paid subscription to these viewers? Is that how it's going to work?

Yeah. Each deal is going to be a little bit different. We can't give you metrics yet. Those deals were all announced in end of March. You're literally looking at hours since we've gotten started in those. We'll have way better metrics, I would say probably September, October, November. In that range, we'll have way better metrics of where they're going and which partnerships are working better and which ones are delivering more subscribers.

Outperforming

Which ones are actually.

Yeah

Not just that, because sometimes they're doing a better job. You're signing free subscribers, but you're signing a big pool of them, but they're pushing them, and you can end up with way more down the line. We're still in the beginning phases of those. Obviously we have our next big one coming that we expect to be for sure this quarter. It's been delayed a little bit. We expect another gigantic one to be hitting any minute now.

For the TVs, are they pre-loaded the app on each of the three or just a few of them? Did the users have to go find and download that app?

No, they're pre-loaded.

On all three?

I would say by now you can find, I don't know if it's every TV, but certainly the most recent TVs, which I don't think has really changed in the last five years. Okay.

Yep.

I think you can find it if you go look. I've had multiple shareholders call me, say they found it, and they get excited about it. Just like when they see in a Tesla. Our brand is getting a total refresh without spending a dime. Think about what it costs for SiriusXM to buy their way into cars and so on. We're getting ourselves into these places without spending a nickel on it. We're not paying them. We're hoping they're going to be paying us substantial money for our great content.

Great. I have two more. The first one is relates to AT&T. I know previously Slacker Radio has been pre-installed on a number of different cars. Why is this different and more advantageous with your integration to AT&T with these OEMs?

They're trying to capture the inside of cars. They're trying to capture that home screen. There really wasn't a home screen previously. That home screen didn't have much value. Now home screens are growing, as you see, just my humble opinion, the robo cars are being launched right now. You're watching more and more of the Google cars out there. It's really fascinating. Every kid wants to take these cars. Nobody wants to drive. The bigger the screen gets, the bigger the opportunity gets. That screen now, when you go into a Tesla, we're one of five buttons that shows up when you get in the car. You could change it if you choose to and get rid of it. When you go in that car, that button's sitting there day one. That's where we want to be.

As many places as possible, we want to see our logo, our banner sitting there. Somebody presses a button, all of a sudden they become a free or paid customer.

With AT&T, you're on that front page, whereas before with some OEMs, you weren't necessarily on that page. Is that right?

No, I would say differently. With AT&T, they're doing what Tesla did. Remember with Tesla, this was an amazing run. It took 12 years to get there. When I bought the company, we were doing $200,000 a month with them. What they did was, they used the music to sign up their subscribers. Music is so sticky. Once you sign up, you're not going to get rid of it. What we're hoping for here, and the way that their position is a three-way partnership with us and Cisco and them. They're going to use the music to get the people to use their platform. That's how they're going to get them excited and ignited about it.

It's a huge branding and huge advertising for us that would cost millions and millions, if not tens of millions, for us to buy that space to get into that. They're going to market us in every way, shape, and form. They're going to come out and say AT&T. They're going to the OEMs and going to those car companies and going, "We're coming in with a music partner. We want to give you content right off the bat.

Okay. My last question, I think one of the previous questions was about G&A. I think in general is what, and OpEx, because in the fourth quarter, it was slightly higher than each of the previous quarters. What is EBITDA guidance range if you included corporate overhead for this year?

Well, I would say corporate overhead is now down to, Craig, what, about $3 million? $2.7 million-$3 million? In that range. You could use about that range.

Okay.

We'll have a lot closer number. One of the things I have mentioned, which I fully expect to happen soon, that for the first time ever, we will be hiring for the first time in a long time. We've been cutting, I am going to be stepping down as president and hiring a world-class president this quarter who has built and exited a $1 billion to multi-billion dollar public company. There will be some additional overhead that'll be added, that'll have to be post this acquisition. As we add this next acquisition in, which will be extremely accretive to revenues and bottom line, you'll see almost simultaneously, right around it, you'll see a new president of the company.

Great. Thanks for answering all my questions, Rob.

Okay. Thanks, Brian.

Your next question comes from the line of Sean McGowan with Roth Capital Partners. Sean, your line is open. Please go ahead.

Yeah. Thanks. Thanks for the chance for a follow-up. Just kind of circling back on your comments on the expected ramp up toward the end of the year of some of these deals, if they take 90-180 days. I take from that we should expect a lot of this incoming revenue to be back-end loaded. What does that say about the expectations for operating expenses? Will they also kind of follow a similar trend, or will they be more steady throughout the year?

No, I don't think our operating expenses are going to really change in that. I think the margins and bottom line will just get better. We're trying to be uber conservative. You and I had this conversation at 4:00 A.M. this morning, Sean. We're trying to be uber conservative about the guidance of where we're going. We're highly confident that this will be extremely accretive to the business. When you talk about the AI business, that's just money in the bank. There's no additional cost to that. We web share it with our talent, but there's no additional cost. Our movies, television shows that are at the studios right now, we have one of them right now that over $5 million has been spent by a studio if they green-light it. That could be millions of dollars the first year to tens of millions over the next few years.

There's no additional cost to it. We really built this dynamically now. We do not expect to grow the team very much. Maybe we'll add another B2B person to head up retail, a B2B person, head up auto, and a new president of the company. That's really it. I don't really see much additions to this team. We're pretty well-suited right now. AI has really given us just a dynamic advantage to cut our costs dramatically. The cost of programming, the cost of coding, the cost of building apps, all of it has gone down so dramatically, and the cost of having humans and sitting in the seat of DJs and so on, we don't need that anymore. We don't need them. We need a very small group to do exactly what we were doing before and more.

All right. Thank you very much, Rob. Appreciate it.

There are no further questions registered. I will now hand back to Rob Ellin for final remarks.

I want to thank you, everyone. Great questions. I appreciate everybody spending the time, and I appreciate the support from everybody. We really do believe this is going to be a spectacular year for the company. I'm a Knicks fan. I just watched one of the greatest comebacks ever. I feel like we've done a lot of the same things here. I don't know if we were down 29 going into the fourth quarter, but it was pretty close. When you lose your biggest customer and you lose that much revenues overnight, even though they gave us a great opportunity going forward, it takes a lot to recover from that and a lot to fix it. This team has just really sharpened their pencils, fought through, battled through, cleaned up the balance sheet to the best it's ever been in the history of the company.

Paid down junior debt, paid down some senior debt, really positioned the company now to back to being a growth story, and back to being in a position of really being a thought leader across audio as well as podcasting, that pushes you into both audio and video. Yeah, I think we're really well respected in the industry. We got to get that same respect in The Street. In the interim, until we get there, we're going to be buying back stock, if that's what it takes, we just keep buying back stock. If we're going to trade at one-third of what the industry is trading at, we'll just keep buying back stock as much as we can. Thank you, everyone. I appreciate it. I appreciate your support, and I look forward to our next call coming soon.

Thank you. This concludes today's call. Thank you for attending. You may now disconnect.

Thank you for standing by. Welcome, everyone, to the LiveOne, Inc. Third Quarter Fiscal 2026 Financial Results and Business Update. [Operator Instructions] I would now like to turn the call over to Ryan Carhart, Chief Financial Officer. You may begin, sir.

Thank you. Good morning, and welcome to LiveOne's Business Update and Financial Results Conference Call for the company's fiscal third quarter ended December 31, 2025. Presenting on today's call with me is Rob Ellin, CEO and Chairman of LiveOne. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2025, and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its Investor Relations website. The company encourages you to periodically visit its Investor Relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, February 12, 2026. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of the call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is the property of the company and any redistribution, transmission or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now I would like to turn the call over to LiveOne's CEO, Rob Ellin.

Good morning, everyone, and thank you for joining us. This quarter marks a clear inflection point for our company. We delivered over $58 million in revenues for the 9 months, including $20 million in Q3, most important, expanding our adjusted EBITDA and structurally transforming the business. Operating expenses reduced by over 52% year-over-year. Our organization was streamlined with the help of AI from 350 people to 88 team members. We strengthened our balance sheet, reduced our debt, expanded our capital flexibility. We've just paid off over $2.5 million of debt. These were permanent structural improvements designed to create a scalable margin expanding platform. Over the past several years, we navigated COVID shutdowns, the collapse in media and microcap valuations, the loss of key partnerships and a disruption in the automotive channel. Many companies in our sector did not survive. We did, and we are emerging leaner, more disciplined and positioned for the next major growth cycle. Our Audio Division generated $52.2 million in 9-month revenue and over $3.7 million in adjusted EBITDA, again, showcasing those cost savings and the use of AI to materially change the staffing of this company, including $18.6 million in revenue and $2.6 million of EBITDA in Q3 alone. Looking ahead, our preliminary fiscal guidance for the first time we are putting out $85 million to $95 million in revenues and $8 million to $10 million in adjusted EBITDA. We are scaling profitably and closing the earnings delivery gap as we move forward towards year-end. Very importantly to note, we have over $125 million in net operating loss carryforwards. As we move towards profitability at the end of the year, these NOLs represent significant long-term shareholder value and tax efficiencies as we grow earnings. Industry valuation dynamics are improving. We're trading at 60% of revenues. The industry is trading over 3x revenues. The private sector in both podcasting and audio as a whole is trading over 3.7x, and there are multiple transactions in the last 120 days at well above 5x revenues. Strategic buyers understand the value of recurring engagement, monetization leverage and behavioral data. As fundamentals have normalized, valuation frameworks are starting to adjust. Our B2B pipeline is now the largest in company history, up over 30% in the last 120 days with over 100 active enterprise opportunities with $1 billion to $1 trillion companies. We are expanding our partnerships across Amazon, Apple, Paramount, Pluto TV, Telly, DAX and Tesla. This year, we expect to launch 3 major Fortune 500 partnerships across a national retailer, a leading TV platform and a major carrier. Two of those partners alone have over 50 million monthly paying subscribers. These are scaled recurring enterprise relationships designed to materially expand margins and enterprise value. At the same time, we're executing a focused strategy to convert more than 1 million free and ad-supported subscribers, including our Tesla users into highly monetized tiers. That conversion opportunity alone represents meaningful incremental revenue and EBITDA. We are also seeing a sharp acceleration in inbound M&A opportunities. As the market stabilizes and valuations normalize, strategic combinations are becoming increasingly attractive. Inbound calls continue to increase dramatically. We are disciplined in evaluating opportunities and to look at all opportunities that will increase shareholder value dramatically. We continue to expand our original IP. We have now sold our fourth television series to a major streaming platform with 100% margin economics. The costs are already built in into rolling out our podcast. And when they sell to the streaming networks, we are immediately taking in cash flow earnings. Owning intellectual properties creates long-term asset value and high-margin revenue streams. We are focused on building and controlling premium content that can travel across audio, video, streaming and live formats. We now have over 15 original projects in the pipeline and growing. Live experience is also returning a major growth sector. Prior to COVID, live events represented 50% of our revenues. That market is reaccelerating. As you watch Ari Emanuel raise over $2 billion, you watch many partners in that space growing dramatically and capital being raised, our creator community, brand relationships and audience scale position us to dramatically expand live shows across podcast, music and live events. And we're increasingly focused on owning our own products, not distribution of content and products, but actually ownership with a database exceeding 65 million consumers and billions of impressions and downloads across our platforms, we have the ability to test, launch, scale proprietary products directly to our community. That level of owned audience and data provides a powerful testing engine and distribution channel, enabling us to drive our own product margins and recurring revenue streams. The structural shift is happening across all of the major media businesses. Netflix is entering the podcast business. TikTok is expanding aggressively into audio. Audio remains the stickiest behavior in media. No one turns off their music subscription, music listening generates powerful behavioral data. Time of day patterns, mood cycles, frequency and engagement depth. That data becomes fundamental in training materially for sophisticated AI models. AI is not a feature. It's an infrastructure. Our AI partnerships are growing and initiatives are focused on leveraging behavioral audio data, enhancing personalization, optimizing monetization, and powering enterprise engagement. That is why B2B demand is accelerating. That is why the pipeline is exploding. To fully capitalize on this opportunity, we are evolving our leadership structure. We have started the process and we will shortly announce a new President, an accomplished operating executive in again, who has built and scaled and sold billion-dollar public companies and brings deep public market expertise to our team. This leader will also assume day-to-day operational roles, allowing me to dedicate 100% of my time to B2B partnerships, M&A activity and accelerating, most important, our AI initiatives and pursuing strategic growth opportunities. It's a proactive decision aligned with scale and opportunity and the fact that the restructuring has now been complete and it is now time to really focus our energy on top line growth and bottom line EBITDA numbers. Finally, our capital allocation reflects our confidence. We believe our company is materially undervalued, trading at less than 1x revenues, well below the 3.7 industry trading today. Our NOLs of over $125 million and improving industry multiples. As a result, we are expanding our share repurchase program with approximately $6 million remaining under the authorization. We are investing in growth. We are investing in ourselves. We are no longer rebuilding, we are accelerating. Revenue is scaling, EBITDA is exploding. The earnings gap is closing. B2B partnerships are growing. AI initiatives are advancing. Live experiences are returning, own products are launching. M&A opportunities and increasing industry valuations are normalizing and capital is being returned through disciplined buybacks. We survived disruption, we rebuilt the foundation, and we're now positioned at the intersection of audio, enterprise distribution, behavioral data, AI, IT ownership and scalable monetization. The next chapter is disciplined margin expanding growth. I want to thank everyone for their support and appreciate your time today, and I look forward to any questions. At this point, I'm going to hand it off to Ryan Carhart, our CFO, who has done an exceptional job of delivering on these numbers. Thank you.

Thanks, Rob. I'll spend just a few minutes providing a very brief overview of our results for the fiscal third quarter ended December 31, 2025. Consolidated revenue for the 3-month period ended December 31, 2025, was $20.3 million. Our Audio Division posted revenue for Q3 of $18.6 million and adjusted EBITDA of $2.6 million. Consolidated adjusted EBITDA for the second quarter of fiscal year 2026 was a positive $1.6 million. On a U.S. GAAP basis, LiveOne posted a consolidated net loss of $4.1 million or $0.37 per diluted share in Q3 fiscal 2026. At the operating level, our PodcastOne subsidiary posted record revenue of $15.9 million and adjusted EBITDA of $2.8 million. Our Slacker subsidiary reported Q3 revenue of $2.8 million and adjusted EBITDA of negative $0.1 million. We are pleased to report continued record growth at PodcastOne subsidiary, which we expect to continue throughout the end of the year and into next year. Concurrently, we are advancing several strategic partnerships from our business development pipeline that we believe have the potential to drive long-term growth and value creation. As we look ahead to fiscal 2027, we believe the company is well positioned for transformational growth. Rob, I'll turn it back to you.

Yes. Thanks, Ryan. I think we covered almost everything, and I think it's an opportunity for us to open up the floor for any questions. Again, we have said that we will be launching 3 massive initiatives for the company before year-end. We are looking forward to the guidance that we just put out for next year, showing again substantial growth opportunities. And with that, I'll open it up to any questions and look forward to it.

[Operator Instructions] And your first question comes from the line of Barry Sine with Litchfield.

Two questions, if you don't mind. First, on the B2B business. It seems to me that no 2 deals are alike. Every single one seems to be customized. And it looks like you're doing that with AI because your staff is down pretty dramatically. I wonder if you could elaborate on that, talk a little bit about what you're doing in terms of customization, some of the options that you're giving customers. And then on a related note, the potential risk, one or the other music streaming companies comes into the B2B space.

I think it's -- to start with, it's very hard for any of them to come into the B2B space in the fashion that we have. right? Number one, and you know my background also well, Barry, it's been built off of B2B deals, right, whether it was iWon, whether it's Digital Turbine, it's Majesco, all of them have built off these massive distributors who already have an audience, right? We're not in the business of chasing an individual and spending $86 a sub, right? So number one is none of those -- there's only a few, right? In the United States, only like 7. In the world, there's probably 12 altogether of what's called DSPs. All of those are massive in size, okay? And when you look at the competition in the U.S., they're all our partners, right, iHeart, Sirius, Spotify, Apple, Amazon, YouTube, okay? The smallest valuation is $6 billion, then it goes to $1 trillion, right? So -- and none of them are going to give up their brand. None of them are going to be able to white label and be a white label solution. So the best way I can describe as these B2B deals are being launched, right, we publicly said that our Amazon deal has grown to over $20 million from originally starting very small. Same thing with our streaming partner, Fortune 250 company grew from $2 million, it's now well over $26 million and growing, right? You're going to see the same type of transactions happening with those B2B partners. And when you look at the structure of them, number one, the reason that we're able to do this is we're the lowest price. We're the Walmart of the music space. Number two is we're the most nimble. Because of the size of the company, we have the capability of servicing them in a very different way. And then very important is the ability that we have to be able to white label, right? None of those companies are going to give up their brands. And part of the excitement and energy in this is all those competitors are partners of ours. We're all great friends and great partners, right? We're a small company, but our content is provided and put on to their platforms and their content is on our platforms. So really exciting to be in this time where the cycle is changing. And for any of you that have been in any of my companies, I talk about these cycles, the cycle is changing so fast. And with the initiatives of AI and what's happening and how critical data is, all these companies are competing with each other head on. It's kind of amazing to watch whether it's a retailer, whether it's social media, whether it's a streaming network, they're all crossing over each other's business in such a dynamic way. To think that Netflix has just entered the podcast space, right? Why are they entering? I humbly believe that you're going to see this year, one of the streaming platforms buy a music platform or maybe each one of them. It makes so much logical sense for them to acquire one and maybe that's why iHeart stock is up 6x. Maybe that's why Spotify was up $80 this week, right? It's so fundamentally makes so much sense for a streaming platform to buy one of the audio platforms because they're fighting to raise their ARPUs, right, by $0.50 or $1 every 2 years. Well, if they added audio, they could add $3 to $10 a month without any additional cost upfront. You don't have to make a movie, you don't have to make a television show, you don't have to spend $1 billion. Now here's the Wild West that is happening. Because of AI, every retailer, right? Everyone's got to compete with Amazon. So Amazon has got to compete with Walmart and Costco and Best Buy and Shopify, right? They're all competing. And now you've got Facebook entering the retail market doing billions of dollars and TikTok entering. Social media is entering, retail is entering. Anyone that has an online presence has to figure out how to keep that consumer engaged. There's no one on this call that doesn't have at least one music subscription. There's no one on this call that probably spends more time in media than anything other music because you can take the music with you, right, go everywhere, whether it's audio or video, you can take it everywhere. And especially as they've added podcasting into it and especially as you add video into it. So I think we're uniquely positioned as a B2B partner that we could either be a strategic partner. We could -- there could be a strategic investment from a major partner here across all those different verticals I just articulated, right, and the ones we're already partners with and there could be an M&A activity of someone trying to buy us. All of those are very possible, especially with us currently trading at this huge discount.

And that's great. If I could ask one more question just on Slacker. It seems to me that you have a huge largely untapped opportunity to sell advertising into that base of nonsubscription customers ad-supported. How is that going? I don't know if Ryan can give us the advertising revenue for Slacker in the quarter. I know you've added some partners in AI to kind of ramp that up. How is that process going? And what is the potential for ad revenue from Slacker ad-supported customers?

I mean I'd be a little bit careful to separate just Slacker because we have a very robust advertising business, right, across audio with our podcasting. But specifically on our free subscribers, there's multiple reasons to have those free subscribers. Spotify claims that 60% of all of their free subscribers and the reason they have a free tier eventually convert to long-term subscription and paid subscription, right? I don't know whether it's over 3 months, 6 months, 12 months or over 3 years, but that's a staggering number. So when we see our base of over 1 million free subscribers, number one is we've added advertising. We partnered with DAX, the #1 programmatic advertising company in the world. We started with them only a couple of months ago. We've just raised our ARPUs by over 30%, right? And with that, it's just the beginning, right? It means that the inventory is getting filled, which means that people are listening, which is a great sign, and we'll continue to grow that. Now you do that as a loss leader for a couple of things. One is you drive revenues. Two is you're going to lose some subscribers, right, who are going to go away. But most important is you're going to convert subscribers into paid subscription. So we look at all of those. With that, because of the unique B2B deals that we're doing and because of the structure of these deals, you could also see your partners bringing their own advertisers into the fold that won't be about CPMs and CPAs, they'll be about a customer who's looking for those products and driving those products because of those relationships with that B2B partner.

Next question comes from the line of Brian Kinstlinger with Alliance Global Partners.

Way to get back to profit. You highlighted the big streaming services will not white label their music, which gives you a competitive advantage. What is the competitive landscape to provide content for these brands look like? And are the Spotifys of the world trying to partner with the same large brands to offer a non-white label solution to brands?

I mean there's a little bit of that, but it's very hard to do the same thing we're doing, right? Obviously, the music business has been built off the backs of carriers, right? And the carriers kind of lost their way and that they were in a robust market with low interest rates, right, where they're enjoying that low interest rate and it's okay for them. But the reality is as AI has exploded, everyone is waking up and saying, everybody is competing for every piece of the business. The crossover to think that Tesla, Elon Musk, Starlink could be competing with Verizon, T-Mobile and AT&T, right, is kind of scary, right? And that goes across almost everything as AI continues to expand. So I think what you're going to see is you're going to see a little bit of that where you may see some of the Spotify app, AT&T, Verizon, T-Mobile deals. But again, it's hard for them ever to white label or to be able to really offer them the same kind of offering that we give them with the flexibility or to service them in the same way because it's just not as meaningful, right? They've got a massive business, billions, billions of dollars, right? We got a small business. It's very important to us as we get those B2B deals to be able to service them and give their clients exactly what they need. Tailor the music, tailor the pricing, understand the needs of the exact consumer of each of those B2B partners and understand that AI data and what we can deliver with it. And so I think we're uniquely positioned. I don't think there's anybody else in the space that can do what we're doing right now. And I think that you're going to get some competition a little bit in carriers probably, but you're not going to really see it in the other verticals that we've talked about across streaming, social media, retailers. I don't think that, that's going to be a competitor because they want their own brands, right? We recently had a conversation with one of our B2B partners that we're launching and they were like we don't need you as a brand. We need you because of your service. You got 22 years of history, right? Remember, before we got here, that NOL was built by the likes of Columbia, Mission and Rho, who put in $180 million into Slacker Radio, right? So the infrastructure is built, right? It's all that -- all the labels, all the publishers, all the dynamics and all the payouts, right? You got to pay out 50 partners, right? It's a very complicated algorithm that if someone tried, in fact, Tesla tried it, and they realized afterwards, it's impossible. A, it's really hard to build and it costs hundreds of millions of dollars. The second is you got to deal with all these partners and be able to pay all of them. It's a very complicated algorithm. So I think we're uniquely positioned there as 1 of 10, right, really in the country and 1 of 12 in the world, right, who is doing this, that we're really uniquely positioned to be able to grab those B2B deals and have enough of them, right? We won't get every one of them. We only need a couple of them, right? A few more of these deals, you keep adding to Amazon and Paramount and Telly and Spotify and you add to these deals. These are all $10 million-plus deals. You keep growing those, and there's no reason you can't see this company doing $0.25 billion and getting back to that $25 million to $50 million of EBITDA over the next couple of years.

Great. And then can you share any more information on the B2B partnership with the 30 million-plus subscribers? Is that contract signed? What is the timing? What industry is this partner? And if it's not signed, what are the items that you need to get accomplished to get you over the finish line?

Yes. So what I said was, and I'm going to be very careful in my words, but I crystal clear said, these are being launched, right? And what I crystal clear is these are already signed, right? And what I said on the call today was there are multiple partners, right, in there who have over 50 million. So I've increased that number from $30 million to over $50 million, right? So -- and that's about as much detail as I can give. But what you can start to do is you can start to -- like we did with Tesla, right, shockingly, right, out of 2 million cars, we re-signed 1.2 million approximately between free and paid, right? If you use a number, that's crazy. That's a 60% staggering number, right? If you use a 1% number, even 0.5% number, right, that signs up from these partners. And like I said, there are 3 of them of very serious sized Fortune 500 companies, and there's 100 more in the pipeline. When we last talked, Brian, that 100 was -- I think we were 65 or 70. That pipeline is increasingly and is staggeringly increasing. And it's not because we're so smart. It's because we're the only ones who can truly do this right now. And like I said, you're seeing Netflix and TikTok entering the podcast space. You're seeing the likes of audio businesses, these podcast businesses are getting bought up at aggressive, aggressive, aggressive valuation. It's 3x revenues, 5x revenues. A deal that just got done on Friday at 7x revenues, right? Why is that? The data is so critical. These are right? These are super humans, superstars who have super fans. When you can get that data, the super fans, it's really hard for any that are using AI, you're watching, you try to put things into the model now and things you used to be able to do. I put a little joke in from my daughter's wedding the other day where I wanted to put a picture from Scarface with my son who happens to be a great-looking kid. It literally looks like I was going to make them look like. You cannot do that anymore. So they're starting to block that content because all lawsuits are starting. The beauty of this is because we have the licenses, we have the capability of having the biggest stars in the world, right, the biggest musicians go across the board. You want Bad Bunny, you want Drake, you want Post Malone. If you go to sports, right, LeBron James can only play for the Lakers. In music, they're playing for everybody. And they play for Spotify, they play for Apple and they play for us. We have all the same music that anybody else has. We have all the same content. We have 46 patents around it. We have $125 million NOL, and we have the flexibility to provide a unique service because of our middle tier that we can price lower than anybody else. And because of our infrastructure, which is getting smaller and smaller and more powerful, it's getting better, right? It's not like the more people we had, the better we are at this. We're actually getting better at it every day. We're getting stronger at it. We're able to deliver more music channels with way less cost. So we're really well positioned that if we can stay in the game long enough, there are going to be enough B2B partners. I say this humbly, right? Everyone who is in Digital Turbine with me anyone who knows what I did with iWon, anyone who knows what we did with Majesco, they're all built off of 1 to 5 of these B2B deals that you're leveraging someone who already has built that massive audience holding their hands, right, literally giving a full 360, right? We do anything they need to do to make sure that we service them. And if we can just land a few more of those, right, who would imagine that Amazon has already grown to 20 and Paramount is over 26 now, right? These are growing fast. These are massive partners that have 10 million to 3 billion eyeballs like Facebook and just think of every one of them who is missing a music subscription, a podcast piece, an audience like ours, right? We have billions of impressions, right? You think about network's history historically. If you listen to the all-in podcast and Ari Emmanuel, he said, right now, you're watching the new future. Syndications coming back. There's only a few streaming partners, right? And then there's these trillion dollar companies of Apple, Amazon and YouTube, right? And they're all starting to buy Seinfeld. They're all starting to buy The Office. They're paying South Park, billions of dollars. But what is going to be the biggest syndication as always, is going to be talking heads. Who was the biggest before? Oprah, Dr. Phil. We just signed Dr. Film to our network. The biggest talent we've ever had in the history of our platform, okay? We got to grow them. We've got to build them again, right? He's just coming back to podcasting from the television side of it. But this was a guy who was paid $50 million to $70 million by CBS. Those talking heads are desperately needed on these platforms. You just watched the Red Network. It's now bought -- Fox has now brought up the Red Network. With that, they just bought Tucker Carlson and Megyn Kelly. They continue every week, take those talking heads. The consolidation back to the reality of where the business was, whether it was audio and video, audio and video come together in neat package, just like CBS Radio and CBS Television, right? Those talking heads across audio and video are going to be the largest pay base, just like Howard Stern, just like Ryan Seacrest, just like Joe Rogan is today. We're right in that sweet spot. So I think we have a very unique advantage of the proposition that we're offering and the pricing that we're offering.

Great. My last question is with the 3 massive B2B partnerships that are signed, maybe help us with how these might ramp. I think I heard you gave guidance of $85 million to $95 million for next fiscal year, coming from plus or minus $78 million this year, what's contemplating the high end and low end?

Yes. I mean, again, we're trying to be super conservative in this because, again, we're running -- as you run the traps on these, right, if you have 2 partners over $50 million, right, and you have another partner with millions and millions, right, just take the $100 million. If you took 0.5% or 1% right on conversion, right? And you're going to have multiple different pricing tiers, just like every music subscription, just like LiveOne has been since the time I've acquired it and the 17 years before me, right? This company has had hundreds of millions of dollars of revenues from carriers. There have been hundreds of millions of dollars of revenues from the likes of Samsung way before I was involved in it, from Milk Studio, right? You're just going back to that cycle again right now. And as you ramp this up, take a super conservative model, take -- I just sat with one of your peers, right, in the industry and walked through it and I said, just take 0.5 to 1%, 1%, right? The 60% that we signed in free and paid from Tesla is staggering. We're all shocked, right? We thought it would be like 25% maximum. It's been 60%. But if you sign 1%, 0.5% to 1% of those numbers, you're going to rebuild way past where we were with Tesla. We lost $56 million of revenues. We're ramping back up and catching back up on those. We got a little bit of ways to go, but you can easily see this year and next year, this company heading towards well over $100 million on its way to $0.25 billion by just getting a little tiny percentage of these partnerships.

[Operator Instructions] And your next question comes from the line of Sean McGowan with ROTH Capital Partners.

You're able to hear me?

Yes, I can hear you. It's a little bit quiet, but I can hear you.

Okay. Will try to speak up. A couple of quick questions. So when will the 10-Qs be out for both LiveOne and Podcast?

Should be out tomorrow. Yes, Sean, they should be out tomorrow.

Tomorrow. Okay. Great. That's helpful. Shifting to costs, a big part of the story here is a massive positive inflection in EBITDA relative to revenue. So can you help us with how sustainable the various cost buckets are at these current levels that we're seeing really for both companies, but let's say, in the aggregate for LiveOne. Like do you think G&A at this level is what we should expect for the next several quarters on a quarterly basis?

Yes, Sean, thank you. Yes, I think you should absolutely model that forward, if not down. We continue to do everything we can to reduce that. It's an ongoing effort. So our expectation is that next quarter, the G&A should go down even further. But where we're at right now reflects something we're sitting on positive EBITDA. But yes, I would expect that to go down next quarter slightly, and we'll continue to fine-tune that as we go forward.

And same question for sales and marketing?

Yes, same. It's really a reflection of all of OpEx, Sean.

Okay. Well, some of the ones that get added back for EBITDA, I'm also interested in. So depreciation and amortization seems to be leveling up. Should we expect that to increase?

Nothing material. Really, the depreciation and amortization is going to be driven by [ cap software ]. So same as kind of what you're seeing right now is about what we expect. It could go up slightly over the next year as we continue to code out new products for our new partnerships. But for now, in the short term, I think you can roll that forward.

And stock-based comp is something that on the podcast side, I know they've been using more of stock for the talent, and we saw an increase there. It should -- but it also depends on grants and things like that. So what should we be expecting on stock-based comp over the next several quarters?

Yes. You should expect similar levels to this quarter going into next and then it potentially could increase depending on how it goes with getting our talent online with our equity plans. So kind of you can roll it forward and potentially expect some increase there.

Okay. And then I'm going to circle back a couple of questions that have been touched on, but I want to see if we can get a little bit more precise. So let's say, this 30 million subscriber deal, when -- what's the timing on when that -- when revenue from that deal would be expected to start to show up?

Do you want to take that, Ryan?

Yes, sure. Sean, I think right now, with one of them, we're on the cusp of launching something. It will be a test phase. So I think we're going to be pushing that through this quarter. We don't expect it to really ramp until the following year. We're not putting any numbers against that or anything right now, Sean. But I think you could start to see a little bit come in this quarter and then the following quarter, the ramp coming in -- maybe...

The $85 million to $95 million audio guidance, that does contemplate revenue from that deal, right?

Yes, the $85 million -- Rob mentioned this earlier, Sean, I mean, the $85 million to $95 million is a very, very conservative look forward. So we would consider that to be a baseline case, a very baseline case, and it would only go up from there.

Okay. Yes, I'm trying to get my arms around because it's easy to pencil out some numbers if you look at multiple deals that get to much higher numbers than that. So I'm just trying to figure out if there's any revenue from that particular B2B deal that is embedded in the $85 million to $95 million. If you're saying there's some, but it could be better, that's one answer. But if you say there's none in there for that, then that's a different answer. So I'm just trying to figure out, have you contemplated any revenue from that particular deal in that guidance?

Nickels and dimes, Sean.

Okay.

Okay? We're being -- as you can see, we're being very careful because this is happening as we speak, right? This is real time now, right? The first phase is done. The second phase is going, and the other ones are being launched shortly. But as we said, we expect all 3 of them to be out there publicly by year-end. So we're going to be very conservative, but we look forward to the fourth quarter and really talking about the highlights of where we think next year can be.

Okay. And then my last question is on -- is back on these Tesla users that have converted from the old model to the new. Right now, it's ad-supported. What kind of conversion are you seeing to paid so far? And are you expecting that to contribute more revenue? Are you expecting that number to grow the revenue from Tesla subscribers? Are you expecting that number to grow next fiscal year?

Absolutely. And what I would say now is to kind of highlight is we just paid off $2.5 million of debt. One of the beauties, right, of what happens with this is you get year-long subscriptions. So you get a chunk of money upfront. And so that should be very, very helpful, right, in building balance sheet, using to buy back stock, pay down debt. And we couldn't be more excited that we've paid off all of our junior debt and now part of our senior debt is starting to be paid. We couldn't be more excited to do that and to continue to strengthen the balance sheet. And I think you'll see a lot more excitement coming this quarter, right, around the additional cleanup of that balance sheet and strengthening of the balance sheet over the next literally 30 to 60 days.

I'm not showing any further questions in the queue. I would now like to turn it over to Mr. Ellin for closing remarks.

I think we've covered everything. I just want to thank everyone for your patience. Thank you for being supportive. We couldn't be more excited about the business. And I say this very humbly, I really think that right now, the current B2B deals and the ones imminently coming out put us in a position that this could be the biggest opportunity that I've been involved in my career. I am looking forward to stepping down as President right in the very near future and bringing in an operating President, which we've had previously and had great success with, right, pre-COVID, bringing in someone, again, adding to it and putting them next to me in a position that they have both public experience in building as well as selling public companies for $1 billion or better, just like I've done before. And done before in my other companies and really focusing my energy on M&A side. We have not done an acquisition in a substantial period of time, which is unique. We usually have one acquisition a year, and we haven't done one in a few years. This is now becoming an exciting time for that as well as on the other side of it is we have to really explore those strategic partners or potential buyers of a subsidiary or the whole company at some point and that the inbound calls are coming in. So I want to focus my energy on that. And then my key energy right now is I am so really fascinated and excited about what AI is doing for our company and doing for the industry. I want to focus the energy on that and on our B2B deals. And that crossover between them, I really believe that the data of music is so critical to building these data -- all of these AI models right, that music is going to be a very important component of that. And I think we're right in the center of the ring of that. And having the talent we have behind it is going to give us the ability to really expand those. So I'm going to spend a lot of energy on that. Now that the restructuring is completed, we're really going to focus on that $125 million NOL. As everyone knows, in Digital Turbine, when we started eating away at that NOL and started showing profits, which I expect at the end of this year, right, you're going to get GAAP earnings and you can have just a massive, massive run in the stock under GAAP earnings. So I'm laser-focused on that. And I think fully expect that you'll see an operating president here in the very near future with a big background at building and selling a multibillion-dollar public company.

Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.