Live Ventures Incorporated

What they do

Live Ventures operates a portfolio of decentralized businesses, including Vintage Stock, a specialty entertainment retailer with 73 storefronts, and other subsidiaries in textiles, flooring, tools, steel, and entertainment. The company focuses on value-oriented acquisitions of closely held businesses with earnings growth and cash flow generation. Management is responsible for capital allocation and selecting CEOs for each operating business.

Revenue drivers

• Retail-Entertainment (Vintage Stock) — Sells new and pre-owned movies, video games, music, books, comics, toys, and collectibles through 73 stores and online, with a buy-sell-trade model. In fiscal Q3 2026, revenue grew 13% with operating income up 34%.
• Steel Manufacturing — Revenue increased 7% in fiscal Q3 2026, with operating income up 69% and Adjusted EBITDA up 16%, contributing to overall segment growth.
• Flooring Manufacturing — Revenue increased $1.1 million in fiscal Q3 2026, partially offsetting declines in the Retail-Flooring segment.
• Retail-Flooring — This segment declined approximately $9.0 million in fiscal Q3 2026 due to weakness in new-home construction and home-refurbishment markets, pressuring overall results.

Recent performance

For the fiscal third quarter ended June 30, 2026, revenue was $108.9 million, down 3.2% year-over-year, with a net loss of $1.1 million and diluted EPS of -$0.34, versus net income of $5.4 million and EPS of $1.24 in the prior-year period. Gross margin expanded to 34.1%, and Adjusted EBITDA was $9.3 million. Year-to-date quarterly revenue trended from $113.9 million (Sep 2025) to $108.9 million (Jun 2026). As of June 30, 2026, total assets were $385.8 million and stockholders' equity was $91.9 million.

Strategy

The company follows a disciplined buy-build-hold, long-term focused strategy, acquiring well-run, closely held middle-market companies. It operates businesses on a decentralized basis with minimal corporate involvement in day-to-day activities. Management is focused on improving performance across segments, particularly addressing weakness in the Retail-Flooring segment, while capitalizing on strength in Retail-Entertainment and Steel Manufacturing. They evaluate financing options for subsidiaries and manage a share repurchase program with approximately $9.5 million remaining under a $10 million authorization.

Risks

• Subsidiary default risk — Precision Metal Works (PMW) is in default of a financial covenant under its Fifth Third credit facility, with forbearance extended through August 19, 2026, and may face acceleration of its $10.6 million debt if not refinanced.
• High leverage — As of September 30, 2025, the company had $117.7 million in total consolidated debt, including $48.7 million in floating-rate revolver loans, exposing it to interest rate risk and restrictive covenants.
• Retail-Flooring weakness — Continued softness in new-home construction and home-refurbishment markets is negatively impacting the Retail-Flooring segment's revenue and operating performance.
• Operational fluctuation — Results can fluctuate due to consumer spending, changing technologies, price competition, tariffs, and inflationary pressures affecting discretionary retail and manufacturing segments.

Outlook

Management expects continued growth in Retail-Entertainment and Steel Manufacturing segments, while navigating challenges in Retail-Flooring. They are focused on improving operating performance and sustainable value creation. The company is evaluating financing options for PMW to resolve its credit agreement default, but there is no assurance of acceptable terms. No specific revenue or earnings guidance was provided.