Breaking Down Live Ventures Incorporated (LIVE) Financial Health: Key Insights for Investors

You're looking at Live Ventures Incorporated (LIVE) and seeing a mixed signal: revenue is down, but profits are soaring-and you need to know which trend is the real story. Honestly, the company's fiscal third quarter 2025 results (ending June 30, 2025) paint a picture of strategic execution, not just market luck. While total revenue dipped to $112.5 million, a drop from the prior year, the underlying health is much stronger, with operating income exploding by an incredible 607.6% to hit $8.0 million. This focus on efficiency drove net income to a positive $5.4 million, a massive swing from last year's loss, translating to diluted earnings per share (EPS) of $1.24. That kind of margin expansion-gross margin hit 34.0%-shows management is defintely doing more with less, especially as their diversified portfolio, including Retail-Entertainment, offsets the continued softness in the housing-sensitive Retail-Flooring segments.

Revenue Analysis

You're looking at Live Ventures Incorporated (LIVE) because you see the holding company model-the so-called 'mini-Berkshire Hathaway' approach-as a smart way to diversify risk. That's defintely the right lens, but you need to understand where the money is actually coming from right now. The big takeaway is this: Live Ventures is facing a near-term revenue contraction driven by cyclical industries, but its operational efficiency is improving, which is a good sign for long-term holders.

Our analysis, based on the most recent data, shows that the company's Trailing Twelve Months (TTM) revenue, which is the best proxy for the full 2025 fiscal year, sits at approximately $443.79 million as of June 30, 2025. This represents a slight year-over-year revenue decline of about 4.28% from the prior fiscal year's total of $472.8 million. That's a clear signal that the economic headwinds are real.

Breaking Down the Primary Revenue Streams

Live Ventures operates across four core, distinct business segments, plus a small corporate division. This diversification is the core of their 'buy-build-hold' strategy, but it also means performance is a mixed bag. For the third quarter of fiscal year 2025 (Q3 2025), which ended June 30, the total revenue of $112.5 million was primarily fueled by the manufacturing and flooring segments, though both are under pressure. Here's the quick math on how the segments contributed to that Q3 revenue:

• Retail-Flooring: Retailing and installing flooring, carpeting, and countertops, primarily through Flooring Liquidators.
• Steel Manufacturing: Manufacturing pre-finished tool and die steel and industrial knives, including Precision Marshall.
• Flooring Manufacturing: Manufacturing and distributing carpets, rugs, and hard-surface flooring products, such as Marquis Industries.
• Retail-Entertainment: Selling new and pre-owned entertainment products like movies and video games, via Vintage Stock.

The Retail-Flooring and Steel Manufacturing segments collectively drove a revenue decrease of approximately $12.0 million in Q3 2025 compared to the prior year. This drop is directly tied to the ongoing softness in the new home construction and home refurbishment markets, which is what you'd expect with higher interest rates still impacting consumer spending.

Segment Contribution and Near-Term Trends

To be fair, not all segments are struggling. The Retail-Entertainment segment, which includes Vintage Stock, is a bright spot, showing a consistent increase in revenue. For the three months ended June 30, 2025, this segment's revenue was approximately $19.017 million, up from $16.503 million in the same period last year. This is a classic example of a counter-cyclical asset in their portfolio.

Still, the manufacturing and retail-flooring businesses are the heavy hitters, and their performance dictates the overall top line. The Flooring Manufacturing segment, for instance, reported revenue of approximately $29.5 million in Q3 2025, a decrease of 5.7% year-over-year, but management has done a good job improving the gross margin on those sales. You can see the revenue split for the quarter here:

The main segment change is the shift in demand, not a divestiture (outside of some minor store dispositions in Retail-Flooring). The company's long-term strategy remains to acquire and hold middle-market companies, a philosophy clearly outlined in their Mission Statement, Vision, & Core Values of Live Ventures Incorporated (LIVE).

What this estimate hides is the improved operating income across all four segments in Q3 2025, despite the revenue decrease. That means the focus has shifted to cost control and margin expansion (operating leverage), which is the right action when the top-line growth is hard to come by. The next step is to monitor Q4 2025 results closely for any sign of a housing market rebound that could lift the flooring and steel segments.

Profitability Metrics

You need to know if Live Ventures Incorporated (LIVE) is efficiently turning its diverse revenue streams into actual profit, especially in a challenging 2025 market. The direct takeaway is that LIVE's operational excellence initiatives are paying off, driving a significant surge in operating and net margins despite a drop in top-line revenue.

For the fiscal third quarter of 2025, ended June 30, 2025, the company reported an impressive turnaround in its bottom line. Revenue decreased by 9.2% to $112.5 million, but profitability metrics expanded dramatically, which is a clear sign of successful cost management and strategic pricing.

Here's the quick math on the core profitability ratios for Q3 2025:

• Gross Margin: 34.0%, up 410 basis points (4.1%) from the prior year.
• Operating Margin: Approximately 7.1% ($8.0 million operating income on $112.5 million revenue).
• Net Margin: Approximately 4.8% ($5.4 million net income on $112.5 million revenue).

The jump in operating income, which increased by 607.6% to $8.0 million, is the most compelling figure here. This shows that the targeted cost reduction initiatives in the Retail-Flooring and Steel Manufacturing segments are working, effectively translating a higher percentage of gross profit into core operating profit before interest and taxes. This is defintely a management win in a tough environment.

LIVE's Margins Against Industry Benchmarks

As a diversified holding company, LIVE's consolidated margins are a blend of high-margin retail and lower-margin manufacturing. Comparing the overall Net Margin to the S&P 500 average (a good proxy for a diversified U.S. business) of approximately 9.75% (as of year-end 2024) shows LIVE still has room to run. Still, the segment-level performance is where the real story is.

The Retail-Flooring segment, for instance, operates in an industry where the average gross margin for dealers is typically around 37%. LIVE's consolidated gross margin of 34.0% is close, but the company's Steel Manufacturing segment, which is in a cyclical, lower-margin business, is pulling the overall number down. For a basic metals proxy like Aluminum, the average net margin is about 4.2%. LIVE's consolidated net margin of 4.8% is actually slightly ahead of this low-end benchmark, and that's despite the ongoing pressure from overcapacity in the broader steel market.

Analysis of Operational Efficiency and Trends

The most important trend is the clear uncoupling of revenue and profitability. Revenue declined, mostly due to softness in new home construction impacting the Retail-Flooring and Flooring Manufacturing segments, but margins soared. This is a classic sign that management is focusing on what they call 'operational excellence' and cost management.

Here's what drove the margin expansion:

• Cost Reduction: General and administrative (G&A) expenses and sales and marketing expenses saw targeted cuts, particularly in the Steel and Flooring segments.
• Strategic Pricing: The Flooring Manufacturing and Steel Manufacturing segments reported improved gross margins due to strategic price increases and favorable product mix shifts.
• One-Time Gains: The $5.4 million net income for the quarter included $2.8 million in one-time gains, such as Employee Retention Credits and a gain on a settlement. What this estimate hides is that without these one-time items, the adjusted net income would be closer to $2.6 million, or a net margin of about 2.3%.

The core business is improving, but you need to watch the recurring earnings power. For a deeper look at the institutional interest driving the stock, check out Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

Next Step: Portfolio Managers should model a 2026 Net Income forecast both with and without the non-recurring 2025 gains to assess sustainable earnings growth by month-end.

Debt vs. Equity Structure

You're looking at Live Ventures Incorporated (LIVE) because you know a diversified holding company's balance sheet tells the real story of its growth strategy. The direct takeaway here is that Live Ventures Incorporated is a highly leveraged company, with a Debt-to-Equity (D/E) ratio of 2.36 as of the third fiscal quarter of 2025. This is a significant multiple, and it tells us the company leans heavily on debt to finance its acquisitions and operations.

This level of financial leverage (the use of borrowed money to finance assets) is how Live Ventures Incorporated executes its 'buy-build-hold' strategy, but it also amplifies both risk and potential return. For every dollar of shareholder equity, the company is using $2.36 in debt. To be fair, a high-growth company can sometimes manage a ratio between 1.5 and 3.0, but Live Ventures Incorporated's ratio is more than double the industry average for Conglomerates, which sits closer to 1.02.

Here's the quick math on the company's financing mix as of June 30, 2025:

• Total Stockholders' Equity: $94.3 million.
• Total Notes Payable (Net): $83.586 million.

The company's total notes payable of $83.586 million is split between near-term obligations and longer-term commitments. This is the breakdown you need to watch closely, as short-term debt is a direct drain on current cash flow:

The company balances this debt financing with equity funding through various means. For instance, in the second quarter of fiscal 2025, Live Ventures Incorporated successfully repurchased 31,323 shares of its common stock at an average price of $8.28 per share, a move that signals management confidence but also uses capital that could otherwise pay down debt. You can dive deeper into who is buying and why by Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

What this estimate hides is the recent, positive debt management activity. In a smart move, the company successfully negotiated a $19 million reduction on the balance owed under the Flooring Liquidators seller note, which, when including other items, resulted in a substantial $22.8 million net gain in Q2 2025. Plus, they amended their Bank of America Revolver Loan in July 2025, which suggests ongoing dialogue and flexibility with their primary lender. Still, because Live Ventures Incorporated is a smaller-cap holding company, it does not typically carry a public credit rating from agencies like S&P or Moody's, which means investors have to do more of the risk assessment themselves.

The key action for you is to monitor the $31.838 million in short-term debt against the company's cash flow from operations (CFO) in the next quarterly report. If onboarding takes 14+ days, churn risk rises. That's the defintely the leverage point.

Liquidity and Solvency

You want to know if Live Ventures Incorporated (LIVE) has the cash flow to handle its obligations, and the quick answer is yes, but with a significant caveat. The company's liquidity position as of the end of the third fiscal quarter of 2025 (June 30, 2025) is stable, with a positive working capital trend, but its day-to-day operational liquidity is heavily tied up in inventory.

The core measure of immediate financial health is the Current Ratio, which compares current assets (what they can convert to cash in a year) to current liabilities (what they owe in a year). Live Ventures Incorporated (LIVE)'s Current Ratio sits at a respectable 1.65. This means for every dollar of short-term debt, they have $1.65 in assets to cover it. That's defintely a solid buffer.

Here's the quick math on their immediate liquidity positions:

Now, look at the Quick Ratio (also called the Acid-Test Ratio), which strips out inventory-the hardest current asset to liquidate quickly. At just 0.45, this ratio is a red flag. It tells you that without selling off their inventory of $120.456 million, the company doesn't have enough cash and receivables to cover its $103.256 million in current bills. This isn't a crisis, but it means their cash conversion cycle is crucial, especially in the Retail-Flooring and Flooring Manufacturing segments, which have faced revenue headwinds.

The good news is the working capital trend is moving in the right direction. Working capital, which is simply current assets minus current liabilities, grew to approximately $65.9 million as of June 30, 2025. This is up from $52.3 million at the end of the last fiscal year (September 30, 2024). This increase shows management is improving the balance sheet structure and retaining more capital for operations, which is what you want to see in a diversified holding company.

Moving beyond the balance sheet, the Cash Flow Statement gives us a clearer picture of where the money is actually coming from and going. For the trailing twelve months (TTM) ending around Q3 2025, the company generated strong cash from operations, which is the engine of the business.

• Operating Cash Flow (OCF): $28.64 million. This is a very healthy number, demonstrating the core businesses are converting sales into cash.
• Investing Cash Flow (ICF): -$9.23 million. This negative number is normal and often positive for a holding company, as it reflects capital expenditures (CapEx) like buying new equipment, not major acquisitions.
• Financing Cash Flow (FCF): This is where they manage debt and equity. The company has been actively managing its debt, reducing current portion of long-term debt to $31.838 million at the end of Q3 2025. Plus, they repurchased 12,695 shares in Q3 2025.

The primary liquidity strength is the strong operating cash flow and the total cash availability of $37.1 million, which includes $7.6 million in cash on hand and $29.5 million available under credit facilities. This available credit acts as a critical backstop. The main risk, however, remains that low Quick Ratio. If the market for their flooring and steel products slows down significantly, they would have to liquidate inventory at a discount, which would eat into margins and put pressure on their working capital. For a deeper dive into who is betting on this operational strength, you should check out Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking to see if Live Ventures Incorporated (LIVE) is a bargain or a trap, and the valuation metrics are sending mixed signals. The short answer is that the stock appears undervalued on a Price-to-Book (P/B) basis, but the lack of consistent earnings and a negative analyst consensus complicate the picture. It's a classic deep-value scenario where you have to dig past the surface numbers.

As of late November 2025, Live Ventures Incorporated's stock traded near $9.85 to $10.01 per share. While the stock has seen a year-to-date return of 7.29%, it has decreased by 2.63% over the last 12 months. This volatility is significant, especially considering the 52-week high was $25.88 and the low was $6.25. That's a massive swing, which tells you this is a high-risk, high-reward microcap play.

Key Valuation Multiples (2025 Fiscal Year Data)

When we look at the core valuation multiples, the story gets interesting. We use these ratios to gauge whether the market is paying too much or too little for the company's assets and earnings power. Here's the quick math on the trailing twelve months (TTM) data:

• Price-to-Book (P/B) Ratio: This ratio sits between 0.336 and 0.60. A P/B below 1.0 often suggests a stock is undervalued relative to its net asset value. This is a strong signal.
• Price-to-Earnings (P/E) Ratio: The trailing P/E is reported around 21.44, but this figure is complicated by the company's recent earnings. The company's Earnings Per Share (EPS) is currently negative at $-1.35, which technically results in a P/E of 'None' or a loss-making status. This is a red flag.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which is better for companies with varying debt or depreciation, is reported as 8.41 (TTM) and as low as 3.31 based on the latest data as of November 22, 2025. For a diversified conglomerate, a ratio in this range is generally considered reasonable, but the lower figure suggests a potentially cheap valuation relative to its operating cash flow.

What this estimate hides is the quality of those earnings and the sustainability of the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The low P/B ratio is a clear sign of deep value, but the inconsistent P/E and volatile stock price show the market is defintely skeptical about the company's future profitability.

Dividend Policy and Analyst View

If you are looking for income, Live Ventures Incorporated is not the stock for you. The company does not pay a dividend, meaning its dividend yield and payout ratios are 0.00% (N/A). The capital is being reinvested into the business, which is typical for a growth-by-acquisition model.

The analyst consensus on Live Ventures Incorporated is a Sell. This is based on a single Wall Street analyst who has issued a sell rating in the last twelve months. While one analyst does not make a market, it's a critical data point to consider. The lack of broader coverage is also a risk in itself; a microcap stock with limited analyst attention can be subject to greater price swings. You need to do your own due diligence (DD) here, because the market isn't providing a clear consensus. For a deeper dive into who is buying and selling, you should check out Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Live Ventures Incorporated (LIVE) and seeing a diversified holding company, which sounds resilient, but the reality is its financial health is currently shadowed by a substantial debt load and significant headwinds in its core segments. While the company has shown a remarkable turnaround in net income for the nine months ended June 30, 2025, reaching approximately $21.7 million, the underlying risks are not defintely gone.

The biggest near-term risk is financial: the sheer size of the debt. As of December 2024, Live Ventures Incorporated carried total debt of approximately $149.6 million, resulting in net debt of about $142.2 million. Here's the quick math: the company's ability to cover its interest payments is extremely weak, with a poor interest cover ratio of only 0.097 times as of April 2025. That's a major red flag for any seasoned analyst.

The debt is substantial, and the company's operating earnings before interest and taxes (EBIT) tanked 89% in the 12 months leading up to April 2025, making debt service a serious challenge. Plus, total liabilities amounted to approximately $322.3 million as of December 2024, creating a significant deficit when compared to its cash and short-term receivables.

• High Financial Leverage: Net debt to EBITDA ratio stood at a high 7.5 as of April 2025.
• Liquidity Deficit: Total liabilities exceeded cash and short-term receivables by $276.8 million as of December 2024.
• Earnings Volatility: EBIT dropped 89% in the 12 months prior to April 2025.

Sector-Specific and Operational Risks

The external market conditions are hitting the company's largest segments hard. The Retail-Flooring and Flooring Manufacturing segments continue to struggle against the dual threat of high interest rates and a broader housing market slowdown. This is an industry-wide competition problem, but it's acutely felt here.

For the fiscal third quarter of 2025, total revenue decreased by 9.2% to $112.5 million from $123.9 million in the prior-year period, with the flooring and steel manufacturing segments driving the majority of that decline. The Retail-Flooring segment's operating loss for the nine months ended June 30, 2025, actually worsened to approximately $5.6 million, compared to a loss of $4.4 million in the prior-year period.

On the flip side, the company's diversification is proving to be a partial mitigator. The Retail-Entertainment and Steel Manufacturing segments have shown improved operating performance, which helps offset the flooring weakness. Also, management is actively working to enhance efficiency and implemented cost reduction initiatives in the struggling segments, which is the right action.

Mitigation and One-Time Gains

While the operational risks are real, management has taken decisive financial actions. The company successfully negotiated a massive $22.8 million net gain in the second quarter of fiscal 2025 by reducing the balance owed on a seller note. This kind of one-time gain, plus another $2.8 million gain in Q3 2025, is what allowed the nine-month net income to swing to a positive $21.7 million.

The mitigation strategy is clear: use the cash flow from its more stable segments, like Retail-Entertainment, and strategic financial moves to manage the debt burden while implementing efficiency improvements in the cyclical businesses. They're buying time for the housing market to recover. This is a classic 'buy, build, and hold' strategy in action, but it relies heavily on the strength of the non-flooring segments and the successful integration of acquisitions. You need to keep a close eye on the core business performance, not just the one-off gains.

For a deeper dive into who is betting on this strategy, check out Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear path forward for Live Ventures Incorporated (LIVE), which, to be fair, operates more like a publicly traded private equity firm-a diversified holding company-than a single-industry player. The growth story here is less about a single product and more about disciplined capital allocation and operational turnarounds. The direct takeaway is this: while top-line revenue has seen pressure in some segments, the company's focus on margin expansion and successful subsidiary turnarounds is driving a significant jump in profitability, which is the real engine for future acquisitions.

The latest fiscal data confirms this shift. For the trailing twelve months (TTM) ending June 30, 2025, Live Ventures Incorporated reported revenue of $443.79 million. But the real story is the third quarter of fiscal year 2025, where net income swung dramatically to $5.4 million from a net loss of $2.9 million in the prior-year period. That's a huge shift. Diluted earnings per share (EPS) hit $1.24, up from a loss of $0.91 per share, showing their strategy is defintely working on the bottom line.

Key Growth Drivers: Operational Excellence and Acquisitions

The primary growth driver for Live Ventures Incorporated remains its 'buy-build-hold' acquisition strategy, which targets domestic middle-market companies with annual earnings between $5 million and $50 million. This sector-agnostic approach provides a competitive advantage by allowing them to deploy capital where valuations are most attractive, regardless of the macro-environment.

Beyond capital deployment, the growth is fueled by operational improvements within the existing portfolio. This is where the rubber meets the road:

• Product Innovations: The Retail-Entertainment segment, which includes Vintage Stock, saw a 15.2% revenue increase to $19.0 million in Q3 2025, driven by a strategic shift in product mix toward new items and a boom in nostalgia-driven collectibles.
• Modernization: The Steel Manufacturing segment, despite a revenue decline, improved its gross margins and operating income by implementing a 'Modernization Playbook,' exemplified by Precision Marshall Steel achieving a 99.98% same-day shipment rate with a new customer portal.
• Turnarounds: The company announced the successful turnaround of its subsidiary Flooring Liquidators in September 2025, which is a clear signal of their ability to extract value from underperforming assets.

Projections and Strategic Initiatives

While analysts do not provide a strong consensus revenue forecast for the full fiscal year 2026, the company's trajectory is clear: they are prioritizing margin over volume. The gross margin expanded to 34.0% in Q3 2025, a 410 basis point improvement from the prior year, showing a focus on profitability that should translate into higher future earnings.

Here's the quick math on the TTM performance:

This massive jump in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is what fuels their next acquisition, and that's the core growth projection. Plus, in September 2025, they launched a strategic communications campaign with Brandsinger LLC to strengthen their corporate narrative and enhance transparency, which is a smart move to improve investor relations and potentially reduce the conglomerate discount (a lower valuation due to complexity). You can learn more about the investor base in Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who's Buying and Why?

Competitive Advantages: The Mini-Berkshire Model

Live Ventures Incorporated's key competitive advantage is its structure as a diversified holding company (often compared to a 'Mini-Berkshire Hathaway'). This diversification across sectors-flooring, steel, entertainment-insulates the overall business from downturns in any single industry. Their long-term, patient capital approach and highly invested management team, whose compensation is aligned with shareholder value, position the company to continue its value-oriented acquisitions and operational excellence strategy. They aren't chasing the latest tech fad; they're buying solid, cash-flowing businesses and making them better.