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Comcast (CMCSA) has lost 19.2% over the past year, while the S&P 500 returned 18.5%, and the reason given is usually broadband: 167,000 subscribers gone in the June quarter. The stock trades at 0.7 times sales, its own ten-year low. The number that argues the other way is not an earnings figure. Free cash flow over the last twelve months ran at about 159% of reported net income. Why Is Comcast Choosing To Earn Less From Broadband? Most of the pressure on broadband revenue per customer is deliberate. Management did not take a broadband rate increase, migrated customers onto simplified pricing with lower everyday price points, and pushed free wireless lines that dilute broadband ARPU on day one. Broadband ARPU fell 3.8% in the June quarter. Spending on the customer experience behind the same shift contributed to a 5.8% decline in Connectivity & Platforms EBITDA. The group adjusted EBITDA fell 5% in the June quarter, on two causes: management names, the go-to-market pivot, and the first year of the NBA rights contract, whose costs land before the revenue does. Management frames both as timing. The same quarter still produced $4.6 billion of free cash flow, of which $2.1 billion went back to shareholders. The repair is coming out of cash. What Is Comcast Getting For The Revenue It Gave Up? Comcast added 448,000 net wireless lines in the June quarter, its second consecutive record, with roughly half of residential postpaid phone connects coming from customers taking a free line. It ended the quarter with 10.2 million lines, 17% penetration of its domestic residential broadband customer base, and only 7% of the total wireless line opportunity in its footprint. Broadband losses still improved by 34,000 year over year. Convergence ARPA, the value of the customer relationship once wireless is added to broadband, is roughly $85, well below what telecom competitors report. Each free line that converts to paid lifts that number from a low base, and management expects more to convert through the second half of 2026, though convergence ARPA fell 1.5% in the June quarter. Can You Trust The Cash While Broadband Keeps Shrinking? The case has edges. Parks softened more than management anticipated, with attendance across the broader Orlando market weakening in June and staying weak into the third quarter of 2026. Peacock turned its first profit in the June quarter, $189 million of EBITDA, though management expects that to swing with the sports calendar. Share repurchases have been paused since July 1 and stay that way until the media separation closes, roughly a year away on management's plan. The cash keeps arriving; less of it comes back through the share count for now. The options market prices the same uncertainty, with implied volatility in the 79th percentile of its own trailing one-year range. Cash conversion is not a forecast that broadband stops shrinking. It says Comcast can fund the repair itself while the argument is being settled, and a price at its ten-year low on sales suggests the market is giving that little credit. Our dip-buying screen puts the same question to other names the market has marked down. How Big Should A High Conviction Position Actually Be? A strong signal is worth acting on, just not with more of your net worth than one surprise could undo. Concentration tends to arrive by accident rather than by decision. What your largest position would do to your net worth is exactly what the Trefis Wealth team computes, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.

TRAVERSE CITY, Mich., Sept. 09, 2026 (GLOBE NEWSWIRE) -- MachTen, Inc. (OTC: MACT) today announced financial results for the second quarter and six months ended June 30, 2026. “The second quarter marked an important period of progress for MachTen and our operating companies,” said Dan Miller, Chief Executive Officer. “Our fiber construction capabilities continue to strengthen, we are making meaningful progress toward Enhanced A-CAM and ReConnect deployment commitments, and the recently announced agreement to acquire the Educational Access Network will significantly expand our broadband platform capabilities.” “We also formally entered an Operating Services Agreement with UP Fiber, Inc. following its acquisition of wireline assets from AT&T. The agreement is expected to generate service revenue for Michigan Broadband, create opportunities to reduce network transport costs, and expand the availability of bundled services across the region.” Second Quarter 2026 Financial Highlights Revenue: $5.0 million for the second quarter of 2026, an increase of 17.5% compared to $4.2 million in Q2 2025, driven by the previously disclosed increase in Enhanced A-CAM support. This improvement was partially offset by continued declines in legacy voice and copper-based broadband services. Operating Profit: $1.5 million in Q2 2026 vs. $1.3 million in Q2 2025, an improvement of 16.9%, as higher regulated revenue more than offset increased depreciation expense associated with continued fiber network investment. Net Income: $0.9 million for Q2 2026 vs. $0.6 million in Q2 2025, a 37.8% improvement year-over-year. EBITDA: $2.5 million in Q2 2026 vs. $2.2 million in Q2 2025, an improvement of 13.5%, with an EBITDA margin of 51.0%. See “Non-GAAP Financial Measures.” First Half 2026 Financial Highlights (Six Months Ended June 30, 2026) Revenue: $9.9 million for the first half of 2026, an increase of 18.8% compared to $8.4 million in the first half of 2025. The increase was driven primarily by the increase in Enhanced A-CAM support that took effect with payments beginning in February 2026, partially offset by continued declines in legacy voice and DSL services. Operating Profit: $2.9 million for H1 2026 vs. $2.4 million in H1 2025, an improvement of 18.1%, reflecting higher revenue partially offset by increased depreciation and cost of revenue associated with the ongoing fiber network buildout. Net Income: $1.6 million for H1 2026 vs. $1.2 million in H1 2025, a 32% improvement year-over-year, as higher operating profit was partially offset by higher interest expense. EBITDA: $5.0 million for H1 2026 vs. $4.3 million in H1 2025, an improvement of 16.8%, with an EBITDA margin of 50.8%. See “Non-GAAP Financial Measures.” Strategic & Operational Highlights Fiber Network Expansion: The Michigan Broadband fiber construction team continued to develop fiber infrastructure, with a focus on ReConnect projects during the seasonally challenging second quarter.  Through June 30, nearly 1,000 additional passings have been added to the more than 12,000 directly serviceable and 20% take rate. Enhanced A-CAM: Consistent with updated FCC guidance published in late 2025, the Enhanced A-CAM true-up resulted in an increase to Michigan Broadband’s annual support to $12.3 million, up from $9.6 million previously. This support is expected to continue through 2038 and is a significant and stable contributor to cash flow. ReConnect (RC3) Grant Projects: We completed Phase 1 of the Grace Harbor project and 80% of the Watson project, with 75% of project costs reimbursable. Operating Agreement with UP Fiber: UP Fiber’s acquisition of AT&T’s wireline assets closed on March 31, 2026. Michigan Broadband is now providing customer service, billing, sales, marketing, and administrative support to UP Fiber’s footprint of more than 200,000 passings. Michigan Broadband also benefits from access to UP Fiber’s network infrastructure, reducing reliance on third-party transport providers. BEAD: Upper Peninsula Telephone Company was awarded $35.5 million in BEAD funding, with a grant agreement finalized subsequent to the end of the quarter. This project, in partnership with UP Fiber, will facilitate the construction of a hybrid fiber / 5G fixed wireless network serving approximately 4,500 BEAD-eligible locations, with UP Fiber expected to contribute additional capital to bring 100/20 service to communities that contain more than 300,000 residential and business passings. Educational Access Network Acquisition: Subsequent to the end of the quarter, Michigan Broadband announced an agreement to acquire substantially all assets of the Educational Access Network ("EAN") for $21 million. The EAN assets include licensed 2.5 GHz Educational Broadband Service spectrum covering portions of 41 counties, Nokia AirScale radio equipment across more than 70 tower sites, and licensed microwave facilities. The EAN currently generates approximately $2.5 million in annual revenue from 7,500 subscribers. Michigan Broadband intends to upgrade the network from 4G LTE to 5G and integrate it with its fiber platform, which now spans more than 2,500 miles across northern Michigan. The transaction is subject to customary regulatory approvals and closing conditions. Network Modernization: Michigan Broadband continued its multi-year project to modernize its voice, data, video, and wireless network infrastructure.  These investments are expected to improve network capacity, reliability and redundancy across Michigan Broadband’s service territory. Balance Sheet & Liquidity Debt: MachTen had $18.8 million of gross debt outstanding as of June 30, 2026, including a term loan with the National Cooperative Services Corporation (NCSC) and vehicle financing. Shareholders’ Equity: $19.2 million as of June 30, 2026, up from $17.5 million at December 31, 2025, reflecting $1.6 million of net income earned in the first half of 2026. Non‑GAAP Financial Measures EBITDA is a non-GAAP financial measure commonly used in the telecommunications industry as it eliminates differences in financial, capitalization, and tax structures. We believe EBITDA trends are a valuable indicator of whether our operations produce sufficient operating cash flow to fund working capital needs, service debt, and fund capital expenditures. We define EBITDA as Operating Profit from Continuing Operations plus depreciation and amortization expense and ad valorem / state of Michigan property taxes. A reconciliation of EBITDA to the most directly comparable GAAP measure is presented below. About MachTen, Inc.MachTen is a holding company for Michigan Broadband Corporation, Upper Peninsula Telephone Company (UPTC), Michigan Central Broadband Company (MCBC), and Alpha Enterprises Ltd. MachTen’s subsidiaries provide broadband internet access and communications services, including voice, video, automation, and managed hosting services. Investors should refer to filings posted at www.machteninc.com for additional information. Forward‑Looking StatementsThis press release contains “forward-looking statements,” including statements regarding expected build activity, program milestones, projected passings, subscriber growth, capital investments, regulatory developments, and anticipated financial performance. Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, among others, changes in economic conditions, regulatory or legal developments, the availability and cost of labor and materials, program timing and eligibility, competitive dynamics, and other risks described in our public disclosures. MachTen undertakes no obligation to update forward-looking statements, except as required by law. Contact:Dan MillerChief Executive Officer(914) 921-5193

It has been about a month since the last earnings report for SpaceX (SPCX). Shares have added about 30% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is SpaceX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. SpaceX Beats Q2 Earnings Estimates on AI Cloud and Starlink GrowthSpaceX reported a loss of 9 cents per share for the second quarter of 2026, 73.5% narrower year over year. The bottom line beat the Zacks Consensus Estimate of a 26-cent loss by 65.4%.Revenue surged 91.9% to $7.81 billion and topped the $6.72 billion consensus by 16.3%, led by AI cloud services and Starlink expansion. Starlink subscribers doubled to 12 million, while nameplate compute reached 1.4 gigawatts.SPCX Growth Broadens Across SegmentsAll three operating segments posted year-over-year revenue gains. Connectivity remained the largest contributor, while AI recorded the fastest growth and Space benefited from a more favorable customer launch mix.The revenue mix also shifted toward newer infrastructure services. AI generated nearly one-third of quarterly sales, supported by the initial ramp of cloud agreements. Recurring connectivity operations remained the company’s only segment-level source of operating income.Connectivity Delivers Operating LeverageConnectivity revenues climbed 65.8% year over year to $4.29 billion. Consumer revenues increased 44.4% to $2.49 billion, while Enterprise & Government revenues more than doubled to $1.81 billion on aviation wins and U.S. government demand.The segment’s operating income rose 79.4% to $1.66 billion, lifting operating margin about 3 percentage points to 38.6%. Adjusted EBITDA soared 64.1% to $2.60 billion. Average revenue per user was $66, unchanged sequentially and down from $85 a year earlier. Management expects geographic expansion may pressure blended ARPU over time.AI Cloud Deals Lift ProfitabilityAI revenues jumped 247.5% year over year and 213.1% sequentially to $2.56 billion. New cloud services agreements contributed $1.60 billion of incremental infrastructure revenue, while total contracted cloud sales reached $14.10 billion. Compute capacity increased from 1.0 gigawatt in the first quarter and 0.4 gigawatt a year earlier.The segment posted adjusted EBITDA of $1.15 billion, reversing from a $276 million loss a year ago. Its operating loss narrowed 49.1% sequentially to $1.26 billion. The filings also noted customer concentration in AI revenues and said cloud agreements generally can be terminated on 90 days’ notice after initial ramp periods.Starship Spending Pressures SpaceSpace revenues increased 29.0% year over year and 55.4% sequentially to $962 million. The company completed 10 customer launches and 28 internal launches during the quarter, carrying 485 metric tons to orbit. First-half activity totaled 78 launches and 1,041 metric tons.Higher Starship research and development spending kept the segment in the red. Space recorded an operating loss of $542 million and an adjusted EBITDA loss of $205 million. Management said Flight 13 met all objectives after quarter-end, supporting plans to deploy operational V3 Starlink satellites on upcoming Starship missions.Capex Surge Reshapes Cash DeploymentTotal costs and expenses rose 57.8% to $7.96 billion. Research and development spending increased 81.2% to $3.55 billion, reflecting investments across Starship, next-generation satellites and AI infrastructure. Still, the company reduced its consolidated operating loss to $143 million from $970 million and generated adjusted EBITDA of $3.54 billion.Capital expenditures reached $18.37 billion, including $15.83 billion for AI. Six-month operating cash flow improved to $3.47 billion, but investing activities used $34.49 billion. Following $85.68 billion of IPO proceeds and a $25 billion bond offering, cash and marketable securities were $100.01 billion, with backlog at $47.46 billion.SpaceX Sets Ambitious Year-End TargetsManagement expects capital spending in each of the next two quarters to remain near the second-quarter level. The company targets more than 2 gigawatts of compute by year-end, with newly contracted cloud services worth $6.70 billion beginning to ramp in October over a six-month period.SpaceX believes growth across cloud services, Cursor and its other businesses can support at least $100 billion in annualized revenue run rate by December. Management also expects V3 satellites to deliver a major capacity increase, while next-generation Starlink Mobile service is targeted to begin by the end of 2027. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 129.53% due to these changes. At this time, SpaceX has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SpaceX has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. SpaceX belongs to the Zacks Wireless National industry. Another stock from the same industry, AT&T (T), has gained 12.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. AT&T reported revenues of $31.56 billion in the last reported quarter, representing a year-over-year change of +2.3%. EPS of $0.65 for the same period compares with $0.54 a year ago. For the current quarter, AT&T is expected to post earnings of $0.62 per share, indicating a change of +14.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. AT&T has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan, Inc. AGX delivered a sharp beat for the second quarter of fiscal 2027 (ended July 31, 2026), with earnings and revenues topping the Zacks Consensus Estimate and growing year over year.The quarterly results reflected higher activity across all three business segments, led by construction ramp-ups in Power and stronger field services and vessel fabrication in Industrial. Project backlog stood at $2.5 billion as of July 31, 2026.AGX stock gained 9.9% during yesterday’s after-hours trading session, post the announcement of the financial results. The company’s quarterly earnings of $3.76 per share rose 50.4% year over year and topped the Zacks Consensus Estimate of $2.68 by 40.3%.Revenues increased 61.5% year over year to $384 million and surpassed the consensus mark of $298 million by 28.9%. Argan, Inc. price-consensus-eps-surprise-chart | Argan, Inc. Quote Consolidated gross profit rose 67.7% to $74.2 million, while gross margin expanded to 19.3% from 18.6%. Selling, general and administrative expenses increased 22.5% to $17.4 million but declined to 4.5% of revenues from 6% in the year-ago period.Adjusted EBITDA climbed to $70 million from $38.49 million year over year, with margin improving to 18.2% from 16.2%. The Power segment generated $301.2 million in quarterly revenues, up 52.9% year over year and representing 78.4% of consolidated revenues. Growth reflected increased construction activity on the 1.4 GW Thermal Project, 700 MW Combined-Cycle Project, 1.2 GW Power Station and 860 MW Thermal Project.Power gross margin improved to 22.4% from 19.6% a year earlier. Management attributed the consolidated gross margin improvement primarily to changing project and contract mix and strong execution in the Power segment. Industrial revenues surged 111.2% to $76.2 million as field-services construction activity and vessel fabrication increased. The segment accounted for 19.8% of consolidated revenues, up from 15.2% in the prior-year quarter.Industrial gross margin, however, fell to 7.3% from 12.5%. Argan is constructing an additional fabrication facility in Farmville, NC, to support a contract for approximately 2,000 horizontal pressure vessels for thermal energy storage and chilled-water cooling systems. Completion is expected in the third quarter of fiscal 2027. Teledata revenues increased 39.5% to $6.6 million. Its gross margin declined to 16.6% from 24.7%, while the segment posted a pretax loss of $0.2 million for the quarter.On July 31, 2026, Argan acquired ValCor Communications for total consideration of approximately $9.4 million. Since the acquisition closed on the final day of the quarter, ValCor contributed no revenues or earnings to the reported period. The deal extends Teledata's reach into New England and adds defense and aerospace customers. Cash, cash equivalents and investments totaled $1.03 billion as of July 31, 2026, up from $895 million as of Jan. 31, 2026. Net liquidity increased to $440.4 million from $421 million, and AGX had no debt. Operating cash flow for the first six months of fiscal 2027 was $210.4 million.Argan used $14 million for dividends, $9.6 million for share repurchases and $8 million, net of cash acquired, for the ValCor transaction during the first half. The quarterly dividend was 50 cents per share, equivalent to an annual rate of $2.00 per share. The presentation characterized the backlog as fully committed by customers and actively being worked on. It showed 91% supporting the electric economy, comprising 80% natural gas and 11% renewable projects, while Industrial represented 8%. The backlog was $411 million below its Jan. 31 level.The company estimates that about 48% of remaining unsatisfied performance obligations will be recognized as revenues over the next 12 months, with substantially all the remainder expected within the following 12 to 24 months. Management cited data centers, electric vehicles and reshoring of manufacturing as demand drivers, while equipment constraints, interconnection delays, specialized labor availability and tariffs could affect project costs and timing. Argan currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 60.7%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. Quanta has a trailing four-quarter earnings surprise of 17%, on average.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan, Inc. AGX is scheduled to report its second-quarter fiscal 2027 results on Sept. 2, after market close.In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 42.7% and 15.2%, respectively. Year over year, both metrics grew 102.5% and 50.2%, respectively. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has remained unchanged at $2.68 over the past 60 days. The estimate indicates a 7.2% year-over-year improvement.The consensus estimate for revenues is pegged at $297.8 million, indicating a 25.3% year-over-year rise from $237.7 million. Argan, Inc. price-eps-surprise | Argan, Inc. Quote RevenuesArgan’s top-line performance in the fiscal second quarter is expected to have benefited from rising demand for data centers, EV adoption, water treatment and other industrial projects. The growing public infrastructure funding within and outside the United States borders, alongside the rapid evolution from natural gas-fired and coal plants, is likely to have been boosting the demand for AGX’s capabilities in similar fields.This growth cycle is likely visible in the increased contributions from AGX’s three reportable segments, Power Services (contributing 77.9% of first-quarter fiscal 2027 revenues), Industrial Services (20%) and Telecom Services (2.1%).However, the timing of work performed and project mix in a few recently received awards are expected to have pulled back the prospects to some extent. Nonetheless, a growing backlog in key end markets and execution capabilities of Argan are expected to have minimized the blow in the fiscal second quarter.EarningsRegarding the bottom line, during the fiscal second quarter, the metric is expected to have gained year over year on the back of increased leverage from revenue growth, strong execution and its efforts in ensuring project timing and delivery alignment.Although increases in certain project costs and selling, general and administrative expenses, alongside ongoing global geopolitical uncertainty, have been concerning, favorable market demand trends are likely to have offset these adversities. Our proven model does not conclusively predict an earnings beat for Argan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.AGX’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.AGX’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The stock has climbed 7.5% in the past six months.The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 58.8%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17%, on average. Quanta shares have inched up 6% in the past six months.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average. The stock has gained 20.3% in the past six months.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record first-half revenue of $8.5 million, up 40% year-over-year, representing 84% of full-year FY25 revenue. Strong full-year guidance of $17.5-$18.5 million, implying ~70% revenue growth, with contracted deals underpinning second-half performance. Rapidly growing recurring revenue (ARR) of $2.7 million in H1, expected to exceed $5.5 million for FY26 and reach $10 million by 2028, providing revenue stability. Major contract wins, including a $20 million AT&T deal and a $20 million UK government deal, with a $50 million+ order book and potential for additional variable components. Expectation of significant margin expansion in H2 as one-off ramp-up costs (estimated $350-400K) wash out, leading to improved profitability and free cash flow. Strong operating cash flow for the 10th consecutive year, with a strategic review underway to optimize capital structure and shareholder returns. First-half net margins were impacted by one-off costs related to ramping up UK and US operations, including recruitment, new facilities, and team rebalancing. Dependence on government procurement cycles, which can be slow and unpredictable, as seen in the Australian market's delayed MCX adoption. Revenue lumpiness remains a risk, though mitigated by growing ARR, with potential for milestone delays in large contracts. The Telstra trial in Australia has ended without immediate follow-on, and the Australian market is several years behind other regions, limiting near-term domestic growth. The strategic review introduces uncertainty regarding potential changes to capital structure or asset sales, which could affect investor sentiment. Exclusivity with Samsung has ended, requiring the company to broaden relationships with other switch vendors, which may involve new competitive pressures. Warning! GuruFocus has detected 4 Warning Signs with ASX:ESK. Is ASX:ESK fairly valued? Test your thesis with our free DCF calculator. Q: Is the strategic review limited to capital management or are there other components up for consideration, for example, selling off some of the IP?A: David Deacon (CEO): The review is broader in scope, as detailed in the July 13 announcement. While the primary focus is on accelerating returns to existing and new shareholders, many options are on the table for consideration as the company transitions to a new, higher level of revenue and profitability. Q: Can you quantify the one-off costs that impacted the gross margin and how much of those will not repeat in the second-half of FY26?A: David Deacon (CEO): We conservatively estimate $350,000 to $400,000 USD in one-off costs in the first half, related to new recruitment, new facility costs in the UK, and rebalancing the team for 24/7 global support. These growth-impacted costs have largely washed out, and we expect a significant improvement in all metrics in the second half. Q: The presentation notes over $50 million in new orders since August 25. What is the likely timing for delivery and recognition of those revenues?A: David Deacon (CEO): We have only scratched the surface of these orders. The $50 million represents the baseline fixed components of the three largest contracts (US, British, and Australian government) over a five to seven-year period. Each has significant variable components for additional services and subscriber growth, which could be as much again as the baseline. This fundamentally sets up a new revenue level from 2026 through 2030, before any new wins. Q: Should investors look at FY21 to 23 margins on a similar revenue to first half 26?A: David Deacon (CEO): Yes, on a margin basis. The first half of last year was unimpacted by one-off growth expenses, while the second half was significantly impacted. That impact spilled into the first half of this year as we finished build-outs. The second half of this year will be much more similar to the first half of last year as those one-off costs fall away. Q: Should cash flow from operations also be stronger in the second-half? And do you believe Etherstack will generate free cash flow for the full year?A: David Deacon (CEO): Without question. It will be the 10th year in a row with seven-figure operating cash flow, but it will be materially higher than in previous years. This is a key reason for undertaking the strategic review to look at the best ways to provide returns to shareholders. Q: Are there any updates on the pipeline for new MCX deployments?A: David Deacon (CEO): There are certainly updates, but we are limited by confidentiality agreements. I recommend investors research the European EUCCS program, which aims to connect all EU member states with this technology by 2030. Beyond public safety, the shift is also being driven in rail transportation, with major network upgrades from GSMR to new technology over the next 5-10 years. Q: How flexible is your workforce if there are some delays in the contract milestones?A: David Deacon (CEO): The impact of lumpiness is dramatically smoothed out by our growing annual recurring revenues and monthly support fees. We can financially sustain any shocks should they occur, though we don't expect them. We also have flexibility in reallocating staff to new products and activities, as we often see customer roadmaps 3-5 years in advance. Q: Is there any update on the satellite push to talk?A: David Deacon (CEO): The market is developing globally. Our middleware switching solution is well-placed to allow satellite comms to come back into the same command and control centres. We are also doing future research on new handsets with equipment manufacturers in Japan and the US, driven by new constellations with guaranteed service and bandwidth, which is essential for public safety. Q: Can you comment on how important the Samsung agreement is going forward for the business?A: David Deacon (CEO): It's a very important relationship. The British government selected Samsung for their part of the ESN, which is another stamp of confidence in our solution. However, the exclusivity arrangements have now fallen away, and we are happy to be broadening our relationships with other switch vendors. Q: In terms of the ongoing trial with Telstra, what is the final timeline on that decision?A: David Deacon (CEO): The Telstra trial has recently come to an end. Australia is running several years behind from a government funding perspective. NEMA has set aside budget to prepare for procurement of a future nationwide public safety mobile broadband network, but it will be a multi-year path. Other countries like New Zealand and many European nations are further ahead, and historically our revenues have always been offshore. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

AT&T (NYSE: T) is part of a cellphone oligopoly in the United States. Essentially, the telecom giant and its main competitors dominate the sector, making it difficult for a newcomer to break in. However, that hasn't stopped companies from trying, including cable operators offering bundled services and, perhaps, even Space Exploration Corporation's (NASDAQ: SPCX) Starlink. Here's how investors should view AT&T's ability to maintain its well-above-market 4.4% dividend yield as more companies try to break into the lucrative cellphone market. The first thing to consider when looking at AT&T's business is the competitive landscape. It has always been intense, as the members of the cellphone oligopoly fight tooth and nail for market share. There's a good reason for that, however: customer revenues tend to be annuity-like. That provides a solid foundation for paying the dividend. And while the involvement of cable companies and SpaceX increases competition, AT&T should be able to hold its own as a business. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » That big picture view of the situation, however, doesn't mean it will be able to continue paying its dividend at the current level. Most investors assessing dividend support will look to the payout ratio to determine whether the company can continue paying nearly $2 billion in dividends each quarter. The 36% trailing 12-month payout ratio suggests the answer is yes. But that $2 billion in dividends number came from the cash flow statement, not the income statement, where earnings live. This is because earnings aren't what pay the dividend; cash flow is. When you compare the dividend to cash flow, using the cash dividend payout ratio, you get a slightly lower coverage rate of 45%. That, however, still looks like ample coverage. There's another factor to consider here, as well. AT&T uses its cash flow for many purposes, including buying back shares. In the first half of 2026, it repurchased $4.669 billion worth of stock. The reduced share count benefited the company by lowering its dividend outlay, which dropped from $4.135 billion in the first half of 2025 to $3.973 billion in the same period of 2026. So the dividend is actually on even stronger footing now than it was just a year ago. If you are a dividend investor, there doesn't appear to be a material reason to worry about AT&T's dividend right now. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 23, 2026. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AT&T's Dividend Costs the Company a Fixed Amount Every Quarter Regardless of Competitive Pressure From Starlink or Cable Rivals. Here's the Coverage Ratio That Actually Determines Whether It's Safe. was originally published by The Motley Fool

It has been about a month since the last earnings report for AT&T (T). Shares have added about 9.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AT&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. AT&T Surpasses Q2 Earnings Estimates on Fiber & Wireless Growth AT&T reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions. T Gains from Advanced Connectivity MomentumAdvanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense. AT&T Posts Strong Internet Customer GrowthAdvanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end. T Benefits from Wireless Subscriber ExpansionWireless service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.AT&T Navigates Legacy Declines and Mexico CostsLegacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.T Expands Profitability and Cash GenerationConsolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.AT&T Reaffirms Outlook and Accelerates BuybacksAT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68. It turns out, estimates revision have trended downward during the past month. Currently, AT&T has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AT&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tutor Perini's second quarter was met with a positive market reaction, as management attributed outperformance to higher volumes and improved execution on large-scale projects across the Civil, Building, and Specialty segments. CEO Gary Smalley highlighted the ramp-up of nine recently awarded mega projects as central to increased operating margins and strong operating cash flow. The company also benefited from robust project execution in regions such as New York, California, Hawaii, and the Indo-Pacific, with segment margins rising due to a mix of new high-margin work and efficient project management. Is now the time to buy TPC? Find out in our full research report (it’s free). Revenue: $1.64 billion vs analyst estimates of $1.57 billion (19.2% year-on-year growth, 4.4% beat) Adjusted EPS: $1.74 vs analyst estimates of $1.26 (37.6% beat) Management raised its full-year Adjusted EPS guidance to $5.30 at the midpoint, a 3.9% increase Operating Margin: 7.2%, up from 5.6% in the same quarter last year Backlog: $19.86 billion at quarter end, down 5.9% year on year Market Capitalization: $5.13 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Adam Thalhimer (Thompson Davis & Co.) asked about the drivers behind stronger-than-expected Civil and Building segment margins. CEO Gary Smalley attributed this to the ramp-up of new mega projects, which carry higher profit margins than legacy work. Min Cho (Texas Capital Securities) inquired about growth potential and scaling for Black Construction in the Indo-Pacific region. Smalley said staff expansion is underway to capture a $4.6 billion bid pipeline, with expectations for continued growth and healthy margins. Min Cho (Texas Capital Securities) asked about opportunities in data center projects and the impact of trade shortages. Smalley noted the focus on electrical projects in Texas, where available capacity and healthy margins exist due to electrician shortages. Michael Dudas (Vertical Research Partners) questioned how Tutor Perini prioritizes resources given the $200 billion pipeline. Smalley explained their approach is to target projects with the best terms and selectivity, increasing margin potential. Liam Burke (B. Riley Securities) asked about the strategy in balancing dividends and share repurchases. CFO Ryan Soroka responded that share repurchases will be opportunistic, while maintaining a conservative approach to cash management to support large project surety requirements. In the coming quarters, the StockStory team will be monitoring (1) the pace of backlog conversion as projects in pre-construction move into full execution, (2) sustained margin performance as mega projects ramp further and new awards are secured, and (3) progress on expanding Black Construction and data center opportunities. Successful execution on strategic bidding and resource management, while navigating inflation and labor constraints, will be key signposts for Tutor Perini’s continued momentum. Tutor Perini currently trades at $97.47, up from $84.55 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. AT&T stock has more than doubled over the past three years, yet recent weakness over the last year and a mixed shorter term picture leave investors asking whether the current price around US$24.25 still represents value or if the easy gains are behind it. The broader valuation checks lean cheap, so the recent pullback now sits against a relatively supportive set of metrics. AT&T has returned about 101.4% over the past three years, which puts recent share price softness into the context of a strong multi year run. Ongoing network modernization with Ericsson can support cash flow expectations, while the prospect of fresh competition from SpaceX’s planned Starlink Mobile service may pressure growth assumptions and margins over time. AT&T screens as undervalued on most of Simply Wall St’s checks, with the stock passing 5 out of 6 valuation tests, which suggests the broader metrics still lean toward a discount rather than a premium. The issue now is whether that apparent discount is enough to compensate for competitive and execution risks that could affect AT&T’s earnings power in the years ahead. Find out why AT&T's -10.6% return over the last year is lagging behind its peers. The P/E ratio is a useful way to compare what you pay for each dollar of AT&T’s earnings with what the market pays for other telecom stocks. AT&T currently trades on a P/E of about 7.7x, compared with a Telecom industry average of roughly 16.9x and a peer average near 11.3x. That is a sizeable gap between AT&T and both its direct peers and the broader sector. The fair P/E ratio that blends AT&T’s size, margins, sector and risk profile is estimated at about 13.2x. Against the current 7.7x, that suggests the market is pricing the stock at a discount to what this framework indicates could be reasonable. Despite pressure on sentiment after SpaceX set out plans for a rival Starlink Mobile network by 2027, the present multiple still sits below both peers and this tailored fair value marker. On the P/E multiple alone, AT&T stock appears undervalued compared with both telecom peers and its own fair ratio estimate. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the P/E discussion for AT&T leaves off and explain which combinations of growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each Narrative is framed as a specific thesis about AT&T’s business that can be revisited over time so you can see how the underlying assumptions hold up as new information emerges on the Community page. The AT&T community splits into two very different camps on what the current price is really reflecting. Bull case: 16% undervalued Read the full Bull Case to see why AT&T could be undervalued Bear case: 14% overvalued Read the full Bear Case to see why AT&T could be overvalued Do you think there's more to the story for AT&T? Head over to our Community to see what others are saying! AT&T screens as undervalued on market multiples, and the broader valuation checks lean supportive rather than stretched. The gap between its current P/E and the fair ratio estimate suggests investors are still pricing in meaningful execution and competitive risk. The key question now is whether cost savings and cash generation from network upgrades can offset pressure from new and existing competitors. That tension, between a discounted valuation and the risk that the business underdelivers on earnings power, is what separates the bull view from the bear view on AT&T at today’s price. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include T. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

LOS ANGELES, Aug. 12, 2026 (GLOBE NEWSWIRE) -- LiveOne (Nasdaq: LVO), an award-winning, creator-first music, entertainment, and technology platform, announced today its financial results for the first quarter (“Q1 Fiscal 2027”) ended June 30, 2026. LiveOne will host a conference call and webcast today, August 12, 2026. Financial Highlights Q1 Fiscal 2027 Revenue: $19.4M Q1 Fiscal 2027 Adjusted EBITDA*: $4.3M, a $6.1M improvement from prior year Q1 (or 338%) Audio Division Q1 Fiscal 2027 Revenue: $18.6M, and record Adjusted EBITDA* of $6.3M Increased cash by $3.3 million Increased stockholders’ equity by $6.9 million Reduced total liabilities by $5.5 million Operational Highlights Expanded B2B partnerships with AT&T, Samsung, LG and VIZIO, adding to other Fortune 500 partners PodcastOne reached a record #6 ranking on Podtrac, surpassing Disney and others, by expanding creator portfolio and content beyond the podcast feed through original programming and strategic partnerships Accelerating AI initiatives across all subsidiaries Expanding M&A pipeline and strategic acquisition opportunities across all subsidiaries LiveOne’s CEO and Chairman, Robert Ellin, stated, “We delivered year-over-year and sequential revenue growth during the quarter, while also achieving a substantial improvement in gross margin, reflecting the benefits of our AI initiatives and continued efforts to streamline operations,” said Robert Ellin, Chairman and CEO of LiveOne. Q1 Fiscal 2027 vs Q1 Fiscal 2026 Results Summary (in $000’s, except per share; unaudited) Q1 Fiscal 2027 Results Summary Discussion For Q1 Fiscal 2027, LiveOne posted revenue of $19.4 million versus $19.2 million in the same period in the prior year, driven primarily by an increase in PodcastOne revenue. Q1 Fiscal 2027 Operating Loss was ($3.7) million compared to a ($4.0) million Operating Loss in the first quarter ended June 30, 2025 (“Q1 Fiscal 2026”). The $0.3 million improvement in Operating Loss was largely a result of increased margins from Slacker. Q1 Fiscal 2027 Adjusted EBITDA* was $4.3 million, as compared to Q1 Fiscal 2026 Adjusted EBITDA* of ($1.8) million, an increase of $6.1 million. Q1 Fiscal 2027 Adjusted EBITDA* was comprised of Audio Division Adjusted EBITDA* of $6.3 million, Other Operations Adjusted EBITDA* of ($0.4) million and Corporate Adjusted EBITDA* of ($1.6) million. About LiveOneHeadquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide and live and virtual events. LiveOne's subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, Custom Personalization Solutions, LiveXLive and DayOne Music Publishing. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR's OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com. Forward-Looking StatementsAll statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “could,” “believe,” “seek,” “continue,” “contemplate,” “predict,” “potential,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: LiveOne’s reliance on its largest OEM customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance stockholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its subscribers and paid users; LiveOne identifying, acquiring, securing and developing content; LiveOne’s ability to implement and continue its announced digital asset treasury strategy and/or purchase digital assets from time to time pursuant to such strategy, including for the maximum announced amount, and other risks related to such strategy; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other debt covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; LiveOne’s ability to repay its indebtedness when due; LiveOne’s ability to satisfy the conditions for closing on its announced additional convertible debentures financing; uncertain and unfavorable outcomes in legal proceedings and/or LiveOne’s ability to pay any amounts due in connection with any such legal proceedings; significant legal, commercial, regulatory and technical uncertainty and risks related to digital assets; regulatory developments related to digital assets and digital asset markets; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2026, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. * About Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), we present Contribution Margin (Loss) and Adjusted Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity. We use Contribution Margin (Loss) and Adjusted EBITDA to evaluate the performance of our operating segments. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.  Contribution Margin (Loss) is defined as Revenue less Cost of Sales before (a) Cost of Sales share-based compensation expense, (b) depreciation, and (c) amortization of developed technology. Adjusted EBITDA is defined as earnings before interest, other (income) expense, income tax expense, depreciation and amortization and before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, and (e) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results. With respect to projected quarter and full Fiscal 2027 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted EBITDA. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. For more information on these non-GAAP financial measures, please see the tables entitled "Reconciliation of Non-GAAP Measure to GAAP Measure" included at the end of this release. LiveOne Press Contact:[email protected] LiveOne Investor Relations Contact:[email protected] Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and X at @liveone. Financial Information The tables below present financial results for the three months ended June 30, 2026 and 2025. (1) Other Non-Operating and Non-Recurring Costs include outside legal, accounting and other professional fees directly attributable to acquisition activity in the period, in addition to certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at certain acquired companies prior to their purchase date and non-recurring employee severance payments.(2) Other (income) expense above primarily includes interest expense, net and change in fair value of derivative liabilities. These are included in the statement of operations in other income (expense) and are an add back to net loss above in the reconciliation of Adjusted EBITDA* to loss. * See the definition of Contribution Margin under “About Non-GAAP Financial Measures” within this release.