Live Ventures Incorporated Q1 FY2026 earnings call

• Portfolio companies strengthened operating disciplines and optimized cost structures, leading to a $2.7 million or 352.9% increase in operating income compared to prior year period.
• Adjusted EBITDA was $7.8 million, a $2 million or 35.7% increase compared to prior year period.
• Retail-Entertainment segment saw revenue growth driven by strong consumer demand across all product lines.
• Retail-Flooring segment had revenue decline due to store footprint changes and housing market softness, but opened 3 new stores.
• Flooring Manufacturing segment revenue decrease primarily due to lower sales to Retail-Flooring segment, but net of intercompany sales eliminations, revenue increased.
• Steel Manufacturing segment revenue decrease due to lower sales volumes in metal forming, assembly and finishing solutions business.
• Gross margin increased by 90 basis points to 32.6% due to higher margins in Flooring Manufacturing, improved efficiencies in Steel Manufacturing, and favorable product mix in Retail-Entertainment, partially offset by lower margins in Retail-Flooring.
• General and administrative expense decreased $2.2 million or 7.4% due to targeted cost reduction initiatives in Retail-Flooring.
• Sales and marketing expense decreased 10.4% due to lower compensation and product sample-related expenses in Flooring Manufacturing.
• Operating income increased $2.7 million or 352.9% driven by higher gross margins and lower operating expenses.
• Interest expense decreased 14.4% due to lower average debt balances.
• Successfully refinanced one credit facility in Steel Manufacturing segment.
• Rolling out a comprehensive strategy to integrate AI across business units, modernizing operations and improving efficiency.

Retail-Entertainment segment revenue for the first quarter was approximately $23.6 million, an increase of approximately $2.3 million or 11% compared to $21.3 million in the prior year period. Retail-Flooring segment revenue for the first quarter was approximately $25.3 million, down $6.4 million or 20.2% compared to $31.7 million in the prior year period. Flooring Manufacturing segment revenue for the first quarter was approximately $28.9 million, a decrease of approximately $300,000 or 1.1% compared to approximately $29.2 million in the prior year period, but net of intercompany sales eliminations, revenue increased approximately $2 million compared to the prior year period. Steel Manufacturing segment revenue for the first quarter was approximately $31.9 million, a decrease of approximately $1.4 million or 4.3% compared to approximately $33.3 million in the prior year period.

• Rolling out a comprehensive strategy to integrate AI across business units to modernize operations, improve efficiency, and reinforce cost discipline for long-term strategy.

• Actual results could differ materially due to factors outlined in latest SEC filings, including Forms 10-K and 10-Q.

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