LiveOne Slashes Millions More In Costs With AI Push, Workforce Cuts

by | Feb 25, 2026 | General

LiveOne Inc. (NASDAQ:LVO) said Wednesday it has rolled out Claude and other proprietary AI tools to trim operating expenses by an additional $5 million since December, accelerating efforts to boost profitability.

The Los Angeles-based music and entertainment platform reduced headcount from 350 to 84 employees, including a more than 12% cut this quarter, as part of a broader restructuring plan to improve efficiency and operating leverage.

LiveOne also eliminated about $14 million in liabilities, repaying $3 million in debt and converting over $11 million into equity at $7.50 per share, strengthening its capital structure.

CEO Robert Ellin said the company is taking “decisive actions” to streamline costs, reinforce the balance sheet and drive sustained profitability.

Short Term Momentum Builds

Over the past 12 months, LiveOne’s stock price has declined by 31.17%. Currently, the stock is trading 13.8% above its 20-day SMA of $4.83 and 17.5% above its 100-day SMA of $4.68, yet it remains 4.4% below its 200-day SMA of $5.75. These figures suggest a short-term bullish trend despite the longer-term challenges reflected in the annual performance.

Earnings Forecast and Analyst Ratings

Looking further out, the next major catalyst for the stock arrives with the June 17, 2026, earnings report. Here are the anticipated financials and analyst expectations:

  • EPS Estimate: Loss of 36 cents (Up from a loss of 80 cents YoY)
  • Revenue Estimate: $20.25 million (Up from $19.29 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $25.60. Recent analyst moves include:

  • Roth Capital: Buy (Lowers Target to $13.00) (Sep. 15, 2025)

Benzinga Edge Scorecard

Below is the Benzinga Edge scorecard for LiveOne, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Weak (Score: 13.37) — The stock is underperforming the broader market significantly.

The Verdict: LiveOne’s Benzinga Edge signal reveals a challenging market position. The low Momentum score indicates that, despite today’s positive price action, the stock generally struggles against broader market trends.

LVO Price Action: LiveOne shares were flat at $5.430 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo by Melinda Nagy via Shutterstock