Thank you. Good afternoon, everyone, and thank you for joining us.

This was one of the most important and strongest quarters in the history of LiveOne. We delivered $19.3 million in revenues and $18.6 million of audio revenues at a record $6.3 million of adjusted EBITDA.

Our podcast delivered record revenues over $16.2 million and $1.6 million of adjusted EBITDA. Maybe just as importantly, we increased our cash position by $3.3 million, increased our stockholders' equity by $7 million, and eliminated $5 million of liabilities for the quarter.

We've now completed $7 million of our $12 million of stock repurchase program and fully are prepared to continue to grow that and buy more and more stock at these low prices. We also acquired 150,000 shares of PodcastOne and paid off all of the junior debt at PodcastOne.

Our focus is simple: grow revenues, grow EBITDA, generate cash, strengthen the balance sheet, and create shareholder value. For the first time, I believe we see a very clear path to the next level of scale.

Our B2B pipeline is stronger than it ever has been. We now have partnership and opportunities with over $10 trillion worth of companies across the world.

We have signed major retail agreements with a 4-year agreement with one of the biggest retailers in the world. We're very close on a second retailer.

For the first time ever, we have partnered with Netflix and their 700 million global members. Our relationships continue to grow across Apple, Amazon, Alphabet, AT&T, Samsung, LG, Vizio, and many of the most important, largest companies in the world.

We're also seeing very meaningful expansion with our existing partners: Amazon representing over $20 million, and Paramount has now passed and on its way to over $27 million in revenues. This continues to demonstrate the accelerating opportunity across our major global distribution partners.

Based on the momentum we're seeing, we believe there is a clear path to over $250 million in revenues over the next 3 years. Importantly, this growth is happening against a dramatically leaner cost structure.

We have cut our staff down from 350 people at a high to now around 80. We are not just simply rebuilding revenues.

We are building a much more profitable, scalable LiveOne with the potential for dramatically increasing EBITDA and cash flow. Our M&A pipeline is the strongest it's ever been, with over $400 million of potential deals in the pipeline.

We're evaluating carefully acquisitions, mergers across our businesses, while continuing to receive substantial inbound interest from strategic and financial buyers looking to acquire individual LiveOne subsidiaries, assets, or potentially the entire company. That gives us tremendous optionality.

We can buy, merge, partner, or monetize assets, depending on which path creates the greatest value for our shareholders. PodcastOne is another critical part of our flywheel.

We believe audio and video belong together. We are watching a transformative move in the industry as you see Netflix enter in a very strong way into podcasting, and you see the likes of Fox buying up many podcast networks, as well as OpenAI paying 13.5 times revenues for a podcast network.

This is the second round of acquisitions, where there was over $10 billion of them in the first round, and I fully expect there'll be a larger scale acquisition mode, right, happening in the overall industry. There's very strong belief that you're going to see every streaming network, including the Apples, the Amazons, and the Alphabets of the world, the YouTubes of the world, acquiring podcast networks.

We've also now officially sold our podcast, 'Barnum Town' to a major streaming partner, and we're hoping for a green light on that in the very near future. This adds to our PodcastOne IP of podcasts that can turn into television or films and dramatically increases our opportunity of generating substantial cash flow from these.

AI has another major layer across our audio and video content, data, and intellectual properties. We have over 250,000 hours of video content, over 500,000 hours of audio content, and growing.

We see telltale signs that the LLMs are going to be buying up intellectual property, content, data at somewhere between $100 to $500 per hour on a non-exclusive basis. The most important message I want investors to take away from this: LiveOne's flywheel is robust, it is working, and is accelerating.

More partners create more distribution. More distribution creates bigger audiences.

More audience creates more revenues, and more content creates more IP. The more IP creates more opportunities across streaming, television, AI licensing, commerce, and M&A.

Then there is the valuation. The industry companies are trading at about 3.7 times revenues, while LiveOne is trading at about 65% of revenues.

We believe this represents an extraordinary valuation disconnect. As we execute, grow revenues, expand EBITDA, generate cash, and strengthen the balance sheet, we believe there is a significant opportunity to close that gap.

After more than 30 years of building media and technology companies to over $10 billion worth of companies, I believe this is the strongest and most powerful collection of assets and opportunities I've ever assembled. I've been through this journey with many companies where stock has had its difficult times and then rebounds in a very extraordinary way.

We watched this with Digital Turbine, dropping to almost $40 million and then 5 years later, trading to a $12 billion valuation. I believe LiveOne has today more assets, more revenue streams, and more ways to win.

Now it comes down to final execution. The flywheel is accelerating, and we see very strong sign of hitting over $100 million in revenues in the very near future.

With that, I want to hand it off to Craig, our CFO, who's done an amazing job, and look forward to finalizing our call at the end. Thank you, Craig.

Hey,

thanks, Rob. I'll spend a few minutes just providing a brief overview of the results for our first quarter.

Consolidated revenue for the 3 months ended June 30, 2026 was $19.4 million, with positive adjusted EBITDA of $4.3 million. Our audio division posted revenue for Q1 of $18.6 million and adjusted EBITDA of $6.3 million.

The biggest driver of adjusted EBITDA was our Slacker business, with stock-for-service deals that covered certain past liabilities as well as credit for future services. On a US GAAP basis, for the first quarter, LiveOne posted a consolidated net loss of $3.1 million, or -$0.23 per basic and diluted share.

This compares to net loss of $3.9 million, or -$0.40 per basic and diluted share in the same quarter last year. At the operating level, our PodcastOne business reported record revenue $16.1 million and adjusted EBITDA of $1.6 million.

Our Slacker business posted Q1 revenue of $2.5 million and adjusted EBITDA of $4.7 million. This was primarily driven by stock-for-service deals and the elimination of certain past liabilities.

Overall, we see strong momentum in the first half of fiscal '27, led by the continued growth of PodcastOne. As Rob mentioned, we have several strategic opportunities gaining traction, which we believe can support the continued growth and create long-term value.

Rob, I'll turn it back over to you.

Just to finalize, we are well in the process of our next M&A transaction. It's been a few years since we've completed one.

For anyone that knows me, they're usually super accretive, very much like PodcastOne. When we acquired it doing $17 million in revenues and losing $5 million a year, it's now on a run rate to do well over $60 million this year, as we finished off the quarter with almost what we started with 5 years ago when we acquired it.

Now it's very strong EBITDA. We are going to continue to buy back stock aggressively, down at these low valuations.

As a team, I couldn't be more proud of what they've accomplished this quarter, to eliminate this kind of liabilities, create this kind of EBITDA, has really been special and really special to see what our team has done. We continue to look at ways to increase each of those.

Again, we'll continue to buy back stock. I want to thank everyone for joining, thank our shareholders for the patience, and we look forward to a really exciting end of the year.

Thank you.

Great. Thanks for taking my questions.

My questions will be around the B2B deals, and then I'll get back in the queue. At what point do you expect AT&T to begin offering your plans to automotive manufacturers?

Are there any manufacturers that AT&T is already offering LiveOne's content if you buy a car? If so, which?

Yeah. We're under NDA on that, we can't give names at this point.

The answer is yes and now. We'll have hopefully a very substantial update on that in the next 30 to 45 days.

Are really excited about that partnership. As Brian, you probably know, historically, this company has done and really before I was involved in it, has done most of their revenues through carriers, starting with Verizon and T-Mobile and obviously, AT&T being the biggest is really exciting for us to have this opportunity to grow with them.

Great. Similar question on smart TVs.

You've got 3 of the largest who's integrating your content. Are all 3 now selling TVs that consumers can buy with your content?

If so, can you talk about any evidence of usage, success, subscriptions, anything like that?

This is just the beginning of the beginning, but the answer is yes, across all 3 of them. The marketing strategies are just starting to come into place, and we'll have a lot more clarity on that the next 60 to 90 days.

Really exciting. Not only is it exciting just to have the TVs, but obviously, when you're talking about the likes of Vizio, right, you also have potential to move into Walmart, right?

When you're talking about Samsung, you have the opportunity of moving into Android. Again, Samsung was the biggest, probably was the second largest partner in the history of the company with Slacker Radio and did hundreds of millions of dollars of revenues over a 20 almost 20-year period with them.

Really exciting not only just what you can do in automobiles, but getting inside of these large, massive companies and building the relationships. As Brian, once you're in the door and you have contractual relationships, you can really expand to other areas of the business as well.

The distribution is well beyond just TVs that we see. Really exciting to have these opportunities.

We've used very tiny numbers, as something like a 0.5% to 1% penetration and a conversion off of that, and just take all the numbers of each of these companies, combine them, and we just need a little tiny piece of that for the revenues to really ramp up. We expect that fourth quarter, right, as we've said throughout the year.

It takes time as you put these in. People need to see them multiple times, right?

They need to experience. They've got to see the branding.

They've got to build a relationship with it. We see, again, at a very tiny percentage conversion with these partners, just a massive opportunity.

I'm going to slip one Thank you. I'm going to slip 1 more in, then I'll get back in the queue.

You made a comment, Rob, that you have a B2B deal with 1 of the largest retailers in the world. You've obviously been working with Amazon, everyone knows that.

Is that something new? It was just 1 quick comment.

I wasn't quite sure what to make of it or am I drawing maybe a blank on another announcement you had?

No. All I said is that it was a 4-year contract, right?

We can't give names, as you know. No different than we originally had our Paramount deal.

We didn't talk about it for almost 2 years, and now it's well over $27 million in revenues, right? This could be a massive, massive partnership.

Shortly, we fully expect to be able to talk about it in detail.

Okay. Thanks.

I'll get back in the queue.

To add to that, Brian, I think you're going to see us add ahead of partnerships in the retail area. You'll probably see the same thing in the carrier area.

As we've now shrunk the team dramatically, you will see some add-on team members coming shortly, including the president of the company, right, as well as area heads and sales heads of B2B divisions of where we're growing, right, carriers, auto, retailers, etc.

Hey, good morning, gentlemen. Want to start off and continue on the topic of B2B partners.

Rob, you mentioned Netflix at the beginning of the call, and obviously, that's a big partner. Are you at liberty to expand on what you're doing with them?

If I was a Netflix subscriber, what would I see from LiveOne? Would I just see podcasts or is it also music?

No, you're just going to see podcast to start, right? This is my humble opinion, I did a podcast on this, I think it was 3 months ago, and maybe for once I'll be right, right?

I came out and said very clearly that I fully expect that every streaming network will move into audio, right? No different than cable and satellite did, right?

There's still more channels on cable and satellite for music choice than there is anything else. I fully expect that you're going to see the likes of Netflix, Warner, Paramount, Hulu, Disney, every one of these streaming networks are going to add audio to their platforms, whether they add it as a distributor or they acquire them.

I see it as really intellectually smart for them to acquire them, right? You're seeing Netflix doing deals with iHeart.

You saw Disney do a deal with iHeart, right? You see Sirius trying to buy iHeart.

All this is coming in when you think about it, right, that audio streaming is charging the same price as Netflix is, right, whether it's Spotify, Apple. They're basically almost the exact same price, except for the differences in audio, the music's already made, right?

They don't have the risk of spending $10 billion, $20 billion producing content. As they try so hard every year to increase their ARPUs, it makes so much sense to me that a Netflix should have an audio network, right?

Having an audio network will give them the ability to raise their ARPUs way more than they can raise them the dollar a year that they're doing today, and I think the same thing on the audio side. I think you're going to see a roll-up happening.

We're going to see every streaming platform, including Apple, Amazon, who already have theirs, right? YouTube, those have a music network, but they're going to go harder into podcasting.

Then you're going to see the other streaming platforms that are competing with them, right, are going to have to have an audio platform. It's going to be so important to them, and I think you'll see acquisitions happening in the space quickly.

Okay. Then, my second question is around M&A specifically.

You said you're close on a deal, and you've talked about criteria where you gave one is the deal being accretive. Where are you shopping?

Are you shopping only in podcasting? I know, Kit is always looking for perhaps to pick up companies or

We brought in Steve Lehman, right? Steve is vice chairman of LiveOne, and Steve's background is rolling up audio, right?

He's done some video as well, but rolling up audio as a whole. There is massive opportunities there.

There's a fractured market, right? You're either big or you're small and kind of left out there.

We're looking at both, right? From the M&A side is we fully expect another acquisition that'll be similar to Slacker or similar to PodcastOne, where we acquire it extremely cheaply, right?

It fits into our flywheel, and it picks up substantial EBITDA for us and is extremely accretive. At the same time, we're looking at big chess moves that could be anything from a buy to a sell, right?

Inbound calls are coming in on a regular basis. You guys are all watching as podcast networks were bought up at 5 to 15 times revenues 5 years ago when the industry was a $600 million industry.

Now it's a $25 billion industry and growing, right, as video has been added. It's just going to continue to grow, and as that happens, I think you're going to see very aggressive moves in the media space.

You've started to see for the first time in 7 years media stocks really moving, right? Media stocks have had just a miserable, miserable 7 years.

Now you see Starz stock has gone up 3x, and iHeart stock was up 6.5x, 7x. Now it's still up 5x.

Same thing with Lionsgate. All of a sudden, you're waking up, and part of that is because people are realizing how valuable the data is.

That data may not just be valuable to other content partners. It could be enormously value to the AI models.

Right? As you're figuring out human behavior, right, human movement, and so on, you're going to need a substantial amount of content to keep feeding these LLMs and can continue to feed them quickly.

They're not going to be able to get content from the majors, right? You just saw the settlement, right, that Anthropic just did.

They paid a staggering $1.2 billion just to the book industry, right, for stealing some books. Imagine what's going to happen and how long it's going to take to settle the film, music, television, right, stuff that has been effectively taken, whether intentionally or not, by the AI models, right, that is now all blocked.

I think we're going to have enormous value in the content we have, which content is data. When you have data, it gives it just huge value to these AI models.

Just to follow up on that, where are you in the process of monetizing for AI licensing? Have you looked at doing that via tokenization, which would make the content much easier to slice and dice and price and sell?

Here's what I will tell you. What's really exciting is as of this morning, my team just sent me a message, we're in discussions with 17 AI businesses and growing.

All of them looking at somewhere between $100 and $500 an hour for content. We're very smartly and very carefully working with our talent, right, because they're a partner in that, right?

If it's The Stact with Froy or it's Adam Carolla or it's any one of them, we're working with that content. The same with our music content, which we own, we still have to work with our music partners, right, to monetize that.

We couldn't be more excited about the opportunity. Just to give you color, I personally invested in the companies just a couple of dollars, but I saw a friend of mine who started the company, and literally he's gotten $17 million of contracts upfront just to literally give content from security guards, cleaning people, people washing dishes, washing laundry.

This is if you're going to build robotics and you're going to build AI, they're going to need a staggering amount of content to keep feeding the system to keep it alive. We have real content.

Right? What I'm talking about is only for the practice models.

Imagine if it's worth $100 to $500 an hour for practice models, what is this content worth when it really goes to market, where it is exclusive deals to so on? It could be multiples of that.

We see a great sign in that, and we fully expect to start to monetize it in the next quarter.

Great. Lots of good info.

Thanks, Rob.

Thanks, Barry. Appreciate

Great. Thanks.

A few follow-ups. The first one relates to Netflix.

Are they paying annual fees for the content or based on usage?

We're not at liberty to give what the model is today, but if you read the stories of Bill Simmons and you read the stories with Disney yesterday, you can get a little bit of an idea that some of it is going to be free and is going to be ad-driven, right, and traffic-driven, and some of it is going to be paid for, right? Depends on which content it is.

You can be sure that you're not going to see us give the likes of a major talent to them, right, without monetizing it. I can just tell you that our video content is probably now 30% of our revenues.

Can't give you an exact number on it, but it was 0 when I bought this company. Right?

Video content is just exploding. There was a great CNBC interview this morning that literally walked through how much money is being monetized in video and what kind of revenues are being driven in video.

I just see great telltale signs that the TAM of our business is going to explode over the next 3 years.

Great. I have 2 numbers questions.

The gross margin has drastically improved. Craig, you made some comments that I wasn't quite sure how to decipher.

When I back into the gross margin of non-PodcastOne, you're at 63%. 3 quarters ago, you were in the 20s for several quarters.

Is there any non-recurring benefits in there? If so, can you quantify them?

Otherwise, is this sustainable?

Brian, you're right. There is some one-time pickups in Q1 in Slacker.

As I mentioned in my remarks, that we had a elimination of some liabilities. That was about $1.5 million.

That gets you back to a more normal margin, right, on a GAAP basis. Then, on top of that, we had some stock-for-service deals, and that's what drove the adjusted EBITDA.

There are one-time pickups there. We expect the margin to kind of sustain back to normal, unless we can continue to drive those stock-for-service deals.

Yep. That was going to be my next question.

We saw the share count jump significantly in the 3 months. Is that related to that stock comp?

How should we think about maybe stock comp and the share count for the remainder of the year?

I think we answered that, and we've basically given that number, which was around $15 million, right, at $7.50 a share. Right?

We picked up some great partners with that, Brian, that we've announced, right, and they've announced, right, including a fund that now is part of BMI that owns 7%, 8% of the company now. It's been great for us not only is it great from a balance sheet standpoint, right, but it also is great from having real long-term deals with the music industry, right, which we haven't had in the 8 years since we acquired it because of the payables that existed on the books previously.

We'll continue to do some deals at $7.50 a share or better. I fully expect that there'll be more of those as part of that $15 million over the next 60 to 90 days.

Okay. Thank you.

Hey, hello again. Just as a follow-up on the music partners, the record labels, now that you've kind of cleaned that up, you brought some in as shareholders, as partners, in the past, Rob, you've talked about going global, and many of your B2B partners, like a Netflix, do have global businesses, and I know you're not yet licensing music to them, just podcasts.

Can you talk about the prospects for taking the music part of the business global and adding global licenses so you're not just in North America?

I think the answer is the minute we have our first partner that is a global partner that needs this across the board will be the minute we go sit down and start negotiating. We're in a completely different position than we've been in the last 8 years, right?

We've had these massive payables from the acquisition of Slacker in the beginning. Right?

Now that that's strengthened, cleaned up, and so many of the music partners, we've signed just about every one of them now. We got a couple left to do over the next, as I said, 30 to 90 days.

If we can get that cleaned up, we will certainly be exploring that and looking at that opportunity. Also, podcasting is exploding around the world, too.

Right? There's a real opportunity with it globally as well to expand that.

My last question, you threw out a number that's pretty significant aspirational number of $250 million in revenue 3 years out, and I know that's not guidance. Could you flesh out that vision a little bit more?

What does that look like in terms of balance between podcasting, between B2B deals, and then financially, what does that look like from an EBITDA standpoint? What's the vision on this company with that $250 million in revenue 3 years out?

I think I think we want to get to adjusted EBITDA like we're doing now, right? We've taken our cost structure down.

As if COVID didn't hit, we were on our way to $250 million, 6 years ago, right? If Tesla, didn't change the contract on us, we were on our way to $250 million, a year ago, right?

A year and year and 4 months ago. We're back on track now.

We're highly confident, right? When you talk about $10 trillion worth of companies that were in partnerships with, we just got to keep growing them, right?

A Paramount could grow it's growing from $2 million to 20 over $27 million. Amazon's growing, at literally just starting off as as a test has now grown to $20 million, right?

We're now in position with, 10, 12, 14 partners that all have, they're all multibillion to trillion-dollar companies. We've just got to execute, right?

We've got to execute. We've got to deliver We've got to deliver for them, and we've got to continue to sign more and more of those partnerships.

Then it's just a numbers game. The The bigger their distribution partners are, right, the more traffic we're going to get, the more revenues we're going to drive.

When you go onto a Netflix as an example, right, you put a couple of shows on the start, you got 700 million subscribers, right, around the world, right? I can't tell you exactly what that number is going to be day 1, but there's going to be some numbers, right?

That's just the beginning. When you control that, right, that environment, when we go onto Netflix, no different than we're on YouTube or on Spotify, whatever advertising is is played during that show, we get the revenues from.

Then there could be subscription revenues, right? Our subscription revenues all of a sudden ramped up with one of our big podcasters, which is starting to be a real real number every month.

I I just see, that as just a big opportunity for us to grow. I think Netflix is missing an audio network.

I think Walmart is missing a audio network. I think Costco is missing an audio network.

I think that Facebook is missing an audio network. I think Microsoft is missing an audio network.

I think every carrier is missing one. Everyone is calling back.

AI is running the world. Everybody's scared.

Everybody's infringing on each other's businesses, and it is so critical right now for people to own their own data. There is nothing that is used more than than audio content.

No matter what, more than video is always going to be audio, right? There's still going to be 2 hours a day in a car.

There's going to be usage on mobile. It's hard to watch as much on a mobile device as you're going to listen on a mobile device.

I think we're right in the sweet spot, and I think with Craig's help and a new president at the company, right, and a couple more B2B people, $250 million is very achievable over the next 3 years.

Great. Thank you.

I think I've said everything today. Very humbly, right, we are humbled by where our stock is today.

We're pretty shocked because media has had some life to it. It looked like the stock was going to run last quarter, had a little run up to 7, couldn't break those levels.

We're going to keep buying back stock. We're going to keep our foot on the pedal.

We are going to continue to clean the balance sheet until we get rid of any of the outstanding issues that are out there, and we're going to continue to build massive real partnerships with billion to trillion-dollar companies. Again, I just want to thank everyone for their patience.

We're right there next year. We'll be buying stock as soon as we get legal restriction off, which is any day now.

We'll continue to buy more stock, and I just couldn't be more proud of my team and what we got accomplished in this year, but just in this quarter, it's just amazing to see $7 million added net equity, $3 million of extra cash. This is a telltale sign of where we're going, and we're going to continue to grow this thing.

Thank you, everyone, and we look forward to talking to you soon with the next update.