LiveWire Group, Inc.

Consolidated revenue in Q1 2026 fell 12%; operating income was $23 million versus $160 million a year ago; EPS was $0.22 versus $1.07. HDMC revenue declined 2% to $1.1 billion, with gross profit at 25.3% versus 29.1% last year, and HDMC operating income was $19 million versus $116 million. HDFS revenue was down 54% to $112 million, operating income was $22 million, and its annualized retail credit loss ratio on managed loans was 3.6% versus 3.8%. LiveWire revenue increased 87%, and its operating loss was $18 million, $2 million better than a year ago. Global retail sales were up 8%, with North America up 14% and approximately 24,000 motorcycles sold there; outside North America, retail was down 4% with approximately 10,000 units. Dealer inventory was down 22% year over year, and Q1 wholesale shipments were approximately 37,300 units, down 3%. Full-year 2026 guidance was reaffirmed for HDMC retail units of 130,000 to 135,000 and wholesale units of 130,000 to 135,000; tariffs are now expected to be $75 million to $90 million, down from the prior $75 million to $105 million range; HDMC operating income is expected to be positive $10 million to a loss of $40 million; HDFS operating income is expected at $45 million to $60 million; LiveWire operating loss is expected at $70 million to $80 million.

Artie Starrs framed the quarter as the start of a broader reset rather than a one-quarter story. He said the company is shifting toward a more rider-centric, accessible portfolio, leaning into dealer profitability, and rebuilding the brand through "Back to the Bricks" and the new RIDE marketing platform. His tone was notably upbeat about early signs in North America, dealer inventory normalization, and the return of iconic products like Sportster in 2027 and Sprint in the back half of 2026.

Jonathan Root focused on the earnings bridge and the company’s financial reset. He cited the Q1 revenue decline, the 25.3% HDMC gross margin, $45 million of tariff costs in the quarter, $248 million of operating expenses at HDMC, and the new HDFS capital-light model that reduced revenue but improved the business mix and lowered credit and interest expense. He also highlighted cash generation pressure, with operating cash flow using $228 million in Q1 and cash and equivalents ending at $1.8 billion, while noting $128 million of discretionary buybacks in the quarter and 26.8 million shares repurchased for $726 million since the 2024 program started.

Analysts pressed management on tariffs, the meaning of “medium term,” demographic headwinds to motorcycling, and whether new smaller models can really offset a softer category. Management said “medium term” means 3 to 5 years and argued that the updated tariff environment should make 2027 more attractive than 2026, while noting tariff refunds are not a major assumed driver. On demographics, Starrs said Sportster and Sprint are intended to meet riders where they are, with Sportster described as a long-standing entry point for younger riders and Sprint as filling a gap tied to Riding Academy and brand entry.