Live Ventures Incorporated

For the second quarter ended March 31, 2026, revenue was $102.9 million, down approximately $4.1 million or 3.8% from $107 million a year ago. Gross profit was $34.6 million, down approximately $600,000 or 1.6%, while gross margin improved 80 basis points to 33.6% from 32.8%. Operating loss was $2 million versus operating income of $2.1 million last year, driven mainly by a noncash goodwill charge of approximately $4 million in Steel Manufacturing; excluding that charge, consolidated operating income would have been approximately $2 million. Net loss was approximately $2.4 million, or $0.80 diluted loss per share, compared with net income of approximately $15.9 million, or $5.05 diluted EPS, in the prior-year period. Adjusted EBITDA was $5.9 million, down approximately $600,000 or 8.8%. Management did not give formal next-quarter or full-year financial guidance on the call; it said it remains focused on reducing costs, improving operations, and building on second-half progress, while continuing to drive efficiencies in Retail Flooring.

Jon Isaac did not provide extensive prepared remarks on this call, but management’s tone was cautiously constructive. The company emphasized that operating improvements in Retail Entertainment and Flooring Manufacturing were encouraging, even as Retail Flooring remained challenged. The strategic message was that Live Ventures is balancing operational cleanup with opportunistic M&A, while continuing to pay down debt when acquisition opportunities are limited.

David Verret said Retail Entertainment operating income grew 32.8% and Flooring Manufacturing operating income grew 24%, but those gains were offset by a $1.9 million increase in operating loss in Retail Flooring and a noncash goodwill impairment of approximately $4 million in Steel Manufacturing. He highlighted revenue of $102.9 million, gross profit of $34.6 million, gross margin of 33.6%, G&A down 2.3% to about $27.7 million, sales and marketing up 3.4% to about $4.9 million, and adjusted EBITDA of $5.9 million. On liquidity, he reported total cash availability of about $39.8 million, including $15.2 million of cash on hand and $24.6 million of credit availability, with working capital at $74.4 million. He also said debt had been paid down by about $8 million from March of last year to the current year.

The main analyst question focused on the goodwill impairment, and management explained it was triggered by a decline in production tied to softer market conditions, especially in steel stamping and metal forming businesses serving appliances and autos. Verret stressed it was a paper loss with no cash impact and no effect on EBITDA. In response to questions about acquisitions, he said the strategy has not changed: the company is interested in good opportunities, but is also using the current period to pay down debt. He added that acquisition targets depend on what comes up, with diversification considered if a business meets their criteria, and that the company has tried to learn from prior missteps through tighter due diligence and postmortems.