Live Ventures Incorporated
02/12/2026 | Press release | Distributed by Public on 02/12/2026 15:56
Quarterly Report for Quarter Ending December 31, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For a description of our significant accounting policies and an understanding of the significant factors that influenced our performance during the three months ended December 31, 2025, this "Management's Discussion and Analysis of Financial Condition and Results of Operations" (hereafter referred to as "MD&A") should be read in conjunction with the condensed consolidated financial statements, including the related notes, appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the "2025 Form 10-K").
Note about Forward-Looking Statements
This Quarterly Report on Form 10-Q includes statements that constitute "forward-looking statements." These forward-looking statements are often characterized by the terms "may," "believes," "projects," "intends," "plans," "expects," or "anticipates," and do not reflect historical facts.
Specific forward-looking statements contained in this portion of the Quarterly Report include, but are not limited to: (i) statements that are based on current projections and expectations about the markets in which we operate, (ii) statements about current projections and expectations of general economic conditions, (iii) statements about specific industry projections and expectations of economic activity, (iv) statements relating to our future operations, prospects, results, and performance, (v) statements that the cash on hand and additional cash generated from operations together with potential sources of cash through issuance of debt or equity will provide the Company with sufficient liquidity for the next 12 months, and (vi) statements that the outcome of pending legal proceedings will not have a material adverse effect on business, financial position and results of operations, cash flow or liquidity.
Forward-looking statements involve risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Factors and risks that could affect our results, future performance and capital requirements and cause them to materially differ from those contained in the forward-looking statements include those identified in our 2025 Form 10-K under Item 1A "Risk Factors" and Part II, Item 1A. "Risk Factors" below, as well as other factors that we are currently unable to identify or quantify, but that may exist in the future.
In addition, the foregoing factors may generally affect our business, results of operations and financial position. Forward-looking statements speak only as of the date the statements were made. We do not undertake and specifically decline any obligation to update any forward-looking statements except as required by federal securities laws. Any information contained on our website www.liveventures.com or any other websites referenced in this Quarterly Report are not incorporated into and should not be deemed a part of this Quarterly Report.
Our Company
Live Ventures Incorporated is a holding company of diversified businesses, which, together with our subsidiaries, we refer to as the "Company", "Live Ventures", "we", "us" or "our". We acquire and operate companies in various industries that have historically demonstrated a strong history of earnings power. We currently have five segments to our business: Retail-Entertainment, Retail-Flooring, Flooring Manufacturing, Steel Manufacturing, and Corporate and Other.
Under the Live Ventures brand, we seek opportunities to acquire profitable and well-managed companies. We work closely with consultants who help us identify target companies that fit within the criteria we have established for opportunities that will provide synergies with our businesses.
Our principal offices are located at 8548 Rozita Lee Ave., Suite 305, Las Vegas, Nevada 89113, our telephone number is (702) 939-0231, and our corporate website (which does not form part of this Quarterly Report on Form 10-Q) is located at www.liveventures.com. Our common stock trades on the Nasdaq Capital Market under the symbol "LIVE".
Retail-Entertainment Segment
Our Retail-Entertainment Segment is composed of Vintage Stock, Inc., doing business as Vintage Stock, V-Stock, Movie Trading Company and EntertainMart (collectively, "Vintage Stock").
Vintage Stock is an award-winning specialty entertainment retailer that offers a large selection of entertainment products, including new and pre-owned movies, video games and music products, as well as ancillary products, such as books,
comics, toys and collectibles, in a single location. With its integrated buy-sell-trade business model, Vintage Stock buys, sells and trades new and pre-owned movies, music, video games, electronics and collectibles through 73 retail locations strategically positioned across Alabama, Arkansas, Colorado, Idaho, Illinois, Kansas, Missouri, Montana, Nebraska, New Mexico, Oklahoma, Tennessee, Texas, and Utah.
Retail-Flooring Segment
Our Retail-Flooring Segment is composed of Flooring Liquidators, Inc. ("Flooring Liquidators").
Flooring Liquidators is a leading retailer and installer of flooring, carpeting, and countertops to consumers, builders, and contractors in California and Nevada, operating 25 warehouse-format stores and a design center. Over the years, the company has established a strong reputation for innovation, efficiency, and service in the home renovation and improvement market. Flooring Liquidators serves retail and builder customers through two businesses: retail customers through its Flooring Liquidators retail stores, and builder and contractor customers through Elite Builder Services, Inc.
Flooring Manufacturing Segment
Our Flooring Manufacturing segment is comprised of Marquis Industries, Inc. ("Marquis").
Marquis is a leading carpet manufacturer and distributor of carpet and hard-surface flooring products. Over the last decade, Marquis has been an innovator and leader in the value-oriented polyester carpet sector, which is currently the market's fastest-growing fiber category. Marquis focuses on the residential, niche commercial, and hospitality end-markets and serves thousands of customers.
Since commencing operations in 1995, Marquis has built a strong reputation for outstanding value, styling, and customer service. Its innovation has yielded products and technologies that differentiate its brands in the flooring marketplace. Marquis's state-of-the-art operations enable high quality products, unique customization, and short lead-times. Furthermore, the Company has recently invested in additional capacity to grow several attractive lines of business, including printed carpet and yarn extrusion.
Steel Manufacturing Segment
Our Steel Manufacturing segment is comprised of Precision Metal Works, Inc. ("PMW"), Precision Industries, Inc. ("Precision Marshall"), and its wholly-owned subsidiaries The Kinetic Co., Inc. ("Kinetic"), and Central Steel Fabricators, LLC. ("Central Steel").
Precision Marshall
Precision Marshall is the North American leader in providing and manufacturing pre-finished de-carb free tool and die steel. For over 75 years, Precision Marshall has served steel distributors through quick and accurate service. Precision Marshall has led the industry with exemplary availability and value-added processing that saves distributors time and processing costs.
Founded in 1948, Precision Marshall "The Deluxe Company" has built a reputation of high integrity, speed of service, and doing things the "Deluxe Way". The term Deluxe refers to all aspects of the product and customer service to be head and shoulders above the rest. From order entry to packaging and delivery, Precision Marshall makes it easy to do business and backs all products and service with a guarantee.
Precision Marshall provides four key products to over 500 steel distributors in four product categories: Deluxe Alloy Plate, Deluxe Tool Steel Plate, Precision Ground Flat Stock, and Drill Rod. With over 5,000 distinct size grade combinations in stock every day, Precision Marshall arms tool steel distributors with deep inventory availability and same day shipment to their place of business or often ships direct to their customer saving time and handling.
On June 28, 2022, Precision Marshall acquired Kinetic. Kinetic is a highly recognizable and regarded brand name in the production of industrial knives and hardened wear products for the tissue, metals, and wood industries and is known as a one-stop shop for in-house grinding, machining, and heat-treating. Kinetic is headquartered in Greendale, Wisconsin. Kinetic manufactures more than 90 types of knives and numerous associated parts with modifications and customizations available to each. Kinetic employs approximately 100 non-union employees.
On July 20, 2023, Live acquired PMW. Founded in 1947 in Louisville, Kentucky, PMW manufactures and supplies highly engineered parts and components across 400,000 square feet of manufacturing space. PMW offers world-class metal forming, assembly, and finishing solutions across diverse industries, including appliance, automotive, hardware, electrical, electronic, medical products, and devices.
On May 17, 2024, Precision Marshall acquired Central Steel. Founded in 1969 in Chicago, Illinois, Central Steel is a manufacturer of specialized fabricated metal products. Central Steel offers over 2,300 unique products to more than 500 customers. Its extensive product line, primarily for data centers, includes cable racks, auxiliary framing, hardware, insulation products, and network bays.
Corporate and Other Segment
Our Corporate and Other segment consists of certain corporate general and administrative costs, and operations of certain legacy products and service offerings for which we are no longer accepting new customers.
Intercompany Eliminations
Intercompany eliminations include the elimination of intercompany sales, cost of goods sold, profit in inventory, and intercompany accounts payable and receivable in consolidation. Segment results are presented before these eliminations.
Critical Accounting Policies
Our unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Preparation of these statements requires us to make judgments and estimates. Some accounting policies have a significant and material impact on amounts reported in these financial statements. Estimates and assumptions are based on management's experience and other information available prior to the issuance of our financial statements. Our actual realized results may differ materially from management's initial estimates as reported. Our critical and significant accounting policies include Trade Receivables, Inventories, Goodwill, Revenue Recognition, Fair Value Measurements, and Income Taxes. For a summary of our significant accounting policies and the means by which we develop estimates thereon, see Part II, Item 8 - Financial Statement and Supplementary Data - Notes to Consolidated Financial Statements Note 2 - Summary of Significant Accounting Policies in our 2025 Form 10-K.
Adjusted EBITDA
We evaluate the performance of our operations based on financial measures such as "Adjusted EBITDA", which is a non-U.S. GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business' ability to fund acquisitions and other capital expenditures, and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company's financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by U.S. GAAP, and should not be construed as an alternative to net income or loss and is indicative neither of our results of operations, nor of cash flows available to fund all our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with U.S. GAAP. As companies often define non-U.S. GAAP financial measures differently, Adjusted EBITDA, as calculated by the Company, should not be compared to any similarly titled measures reported by other companies.
Results of Operations Three Months Ended December 31, 2025 and 2024 (In $000's)
The following table sets forth certain statement of income items and as a percentage of revenue, for the three months ended December 31, 2025 and 2024 (in $000's):
|
Three Months Ended December 31, 2025 |
Three Months Ended December 31, 2024 |
||||||||||||||||||||||
|
% of Total Revenue |
% of Total Revenue |
||||||||||||||||||||||
| Selected Data | |||||||||||||||||||||||
| Revenue | $ | 108,544 | $ | 111,508 | |||||||||||||||||||
| Gross Profit | 35,353 | 32.6 | % | 35,362 | 31.7 | % | |||||||||||||||||
| General and administrative expenses | 27,842 | 25.7 | % | 30,071 | 27.0 | % | |||||||||||||||||
| Sales and marketing expenses | 4,060 | 3.7 | % | 4,529 | 4.1 | % | |||||||||||||||||
| Interest expense, net | 3,561 | 3.3 | % | 4,162 | 3.7 | % | |||||||||||||||||
| (Loss) income before provision for income taxes | (89) | (0.1 | %) | 573 | 0.5 | % | |||||||||||||||||
| (Benefit) provision for income taxes | (25) | - | % | 81 | 0.1 | % | |||||||||||||||||
| Net (loss) income | $ | (64) | (0.1 | %) | $ | 492 | 0.4 | % | |||||||||||||||
| Adjusted EBITDA (a) | |||||||||||||||||||||||
| Retail-Entertainment | $ | 4,967 | $ | 3,810 | |||||||||||||||||||
| Retail-Flooring | (2,301) | (783) | |||||||||||||||||||||
| Flooring Manufacturing | 3,275 | 1,633 | |||||||||||||||||||||
| Steel Manufacturing | 3,314 | 3,187 | |||||||||||||||||||||
| Corporate & Other | (1,163) | (1,334) | |||||||||||||||||||||
| Intercompany Eliminations | (300) | (769) | |||||||||||||||||||||
| Total Adjusted EBITDA | $ | 7,792 | $ | 5,744 | |||||||||||||||||||
| Adjusted EBITDA as a percentage of revenue | |||||||||||||||||||||||
| Retail-Entertainment | 21.0 | % | 17.9 | % | |||||||||||||||||||
| Retail-Flooring | (9.1 | %) | (2.5 | %) | |||||||||||||||||||
| Flooring Manufacturing | 11.3 | % | 5.6 | % | |||||||||||||||||||
| Steel Manufacturing | 10.4 | % | 9.6 | % | |||||||||||||||||||
| Corporate & Other | N/A | N/A | |||||||||||||||||||||
| Intercompany Eliminations | N/A | N/A | |||||||||||||||||||||
| Consolidated adjusted EBITDA as a percentage of revenue | 7.2 | % | 5.2 | % | |||||||||||||||||||
(a)See reconciliation of net income to Adjusted EBITDA below.
The following table sets forth revenue by segment (in $000's):
| For the Three Months Ended December 31, 2025 | For the Three Months Ended December 31, 2024 | ||||||||||||||||||||||
|
Net Revenue |
% of Total Revenue |
Net Revenue |
% of Total Revenue |
||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Retail-Entertainment | $ | 23,621 | 21.8 | % | $ | 21,274 | 19.1 | % | |||||||||||||||
| Retail-Flooring | 25,327 | 23.3 | % | 31,747 | 28.5 | % | |||||||||||||||||
| Flooring Manufacturing | 28,861 | 26.6 | % | 29,168 | 26.2 | % | |||||||||||||||||
| Steel Manufacturing | 31,862 | 29.3 | % | 33,287 | 29.9 | % | |||||||||||||||||
| Corporate & Other | 7 | - | % | 56 | 0.1 | % | |||||||||||||||||
| Intercompany Eliminations | (1,134) | (1.0 | %) | (4,024) | (3.6 | %) | |||||||||||||||||
| Total Revenue | $ | 108,544 | 100.0 | % | $ | 111,508 | 100.0 | % | |||||||||||||||
The following table sets forth gross profit earned by segment and gross profit as a percentage of total revenue for each segment (in $000's):
| For the Three Months Ended December 31, 2025 | For the Three Months Ended December 31, 2024 | ||||||||||||||||||||||
|
Gross Profit |
Gross Profit % of Total Revenue |
Gross Profit |
Gross Profit % of Total Revenue |
||||||||||||||||||||
| Gross Profit | |||||||||||||||||||||||
| Retail-Entertainment | $ | 13,573 | 12.5 | % | $ | 12,044 | 10.8 | % | |||||||||||||||
| Retail-Flooring | 8,026 | 7.4 | % | 11,803 | 10.6 | % | |||||||||||||||||
| Flooring Manufacturing | 7,225 | 6.7 | % | 6,255 | 5.6 | % | |||||||||||||||||
| Steel Manufacturing | 6,348 | 5.8 | % | 5,977 | 5.4 | % | |||||||||||||||||
| Corporate & Other | 2 | - | % | 51 | - | % | |||||||||||||||||
| Intercompany Eliminations | $ | 179 | 0.2 | % | $ | (768) | (0.7 | %) | |||||||||||||||
| Total Gross Profit | $ | 35,353 | 32.6 | % | $ | 35,362 | 31.7 | % | |||||||||||||||
Revenue
Revenue decreased approximately $3.0 million, or 2.7%, to approximately $108.5 million for the three months ended December 31, 2025, compared to revenue of approximately $111.5 million for the three months ended December 31, 2024. The decrease primarily reflects an approximately $7.1 million decline in the Retail-Flooring and Steel Manufacturing segments, partially offset by an approximately $4.1 million aggregate increase in the Retail-Entertainment and Flooring Manufacturing segments, net of intercompany sales eliminations.
Gross Profit
Gross profit was approximately $35.4 million for the three months ended December 31, 2025, essentially unchanged compared to the three months ended December 31, 2024. However, gross margin increased by 90 basis points to 32.6%, as compared to 31.7% in the prior-year period. The gross margin improvement was attributable to higher margins in the Flooring Manufacturing segment due to improved efficiencies and a favorable product mix, improved efficiencies in the Steel Manufacturing segment, and a favorable product mix in the Retail Entertainment segment, partially offset by lower gross margins in the Retail-Flooring segment.
General and Administrative Expense
General and Administrative expenses decreased by 7.4% to approximately $27.8 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. The decrease was driven primarily by
targeted cost-reduction initiatives in our Retail-Flooring segment, including lower compensation expense and reduced professional fees.
Sales and Marketing Expense
Sales and marketing expense decreased by 10.4% to approximately $4.1 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, primarily due to reduced sales and marketing activities in our Flooring Manufacturing segment.
Interest Expense, net
Interest expense, net, decreased by approximately $0.6 million for the three months ended December 31, 2025 as compared to the three months ended December 31, 2024 due to lower average debt balances.
Results of Operations by Segment for the Three Months Ended December 31, 2025 and 2024
| For the Three Months Ended December 31, 2025 | For the Three Months Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail-Entertainment | Retail-Flooring |
Flooring Manufacturing |
Steel Manufacturing |
Corporate & Other |
I/C Eliminations | Total | Retail-Entertainment | Retail-Flooring |
Flooring Manufacturing |
Steel Manufacturing |
Corporate & Other |
I/C Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 23,621 | $ | 25,327 | $ | 28,861 | $ | 31,862 | $ | 7 | $ | (1,134) | $ | 108,544 | $ | 21,274 | $ | 31,747 | $ | 29,168 | $ | 33,287 | $ | 56 | $ | (4,024) | $ | 111,508 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of Revenue | 10,048 | 17,301 | 21,636 | 25,514 | 5 | (1,313) | 73,191 | 9,230 | 19,944 | 22,913 | 27,310 | 5 | (3,256) | 76,146 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | 13,573 | 8,026 | 7,225 | 6,348 | 2 | 179 | 35,353 | 12,044 | 11,803 | 6,255 | 5,977 | 51 | (768) | 35,362 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and Administrative Expense | 8,732 | 11,483 | 1,383 | 4,597 | 1,168 | 479 | 27,842 | 8,480 | 13,709 | 1,634 | 4,646 | 1,602 | - | 30,071 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling and Marketing Expense | 175 | 231 | 3,517 | 131 | 6 | - | 4,060 | 157 | 267 | 3,970 | 129 | 6 | - | 4,529 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Income (Loss) | $ | 4,666 | $ | (3,688) | $ | 2,325 | $ | 1,620 | $ | (1,172) | $ | (300) | $ | 3,451 | $ | 3,407 | $ | (2,173) | $ | 651 | $ | 1,202 | $ | (1,557) | $ | (768) | $ | 762 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail-Entertainment Segment
The Retail-Entertainment segment revenue for the quarter ended December 31, 2025, was approximately $23.6 million, an increase of approximately $2.3 million, or 11.0%, compared to approximately $21.3 million in the prior-year period. The revenue growth was driven by strong consumer demand across all product lines. Gross margin for the quarter increased to 57.5%, compared to 56.6% in the prior-year period, reflecting a shift in sales mix toward higher-margin product lines. Operating income for the quarter ended December 31, 2025, was approximately $4.7 million compared to approximately $3.4 million in the prior-year period. Strong revenue growth and disciplined management of general and administrative expenses have driven the continued improvement in operating results.
Retail-Flooring Segment
Retail Flooring segment revenue for the quarter ended December 31, 2025, was approximately $25.3 million, representing a decrease of approximately $6.4 million, or 20.2%, compared to approximately $31.7 million in the prior-year period. The decrease in revenue is primarily due to changes in store locations from the prior-year period, including two store closures and three new store openings late in the fiscal first quarter of 2026 that had not yet materially contributed to revenue, as well as continued softness in the housing market. Gross margin for the quarter was 31.7%, compared to 37.2% in the prior-year period. The decrease in gross margin is primarily due to a greater mix of aged inventory sold during the seasonally slower period and a less favorable overall product mix. Operating loss for the quarter ended December 31, 2025, was approximately $3.7 million, compared to an operating loss of approximately $2.2 million in the prior-year period. The increased loss was driven mainly by lower revenue and gross margin, partially offset by reduced operating expenses resulting from cost-reduction initiatives implemented in fiscal year 2025.
Flooring Manufacturing Segment
The Flooring Manufacturing segment revenue for the quarter ended December 31, 2025, was approximately $28.9 million, a decrease of approximately $0.3 million, or 1.1%, compared to approximately $29.2 million in the prior-year period. The decrease in revenue was primarily due to lower sales to the Retail-Flooring segment. Net of intercompany sales eliminations, revenue increased approximately $2.0 million compared to the prior-year period. Gross margin for the quarter increased to 25.0%, compared to 21.4% for the prior-year period. The increase in gross margin is primarily due to a change
in product mix toward carpet, which typically has higher gross margins, combined with improved operational efficiencies. Operating income for the quarter ended December 31, 2025, was approximately $2.3 million, compared to an operating income of approximately $0.7 million for the prior-year period. The increase in operating income was primarily due to improved gross margins and lower operating expenses resulting from cost-reduction initiatives.
Steel Manufacturing Segment
The Steel Manufacturing segment revenue for the quarter ended December 31, 2025, 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. The revenue decrease was primarily driven by lower sales volumes in the metal forming, assembly, and finishing solutions business. Net of intercompany sales eliminations, revenue decreased approximately $0.7 million compared to the prior-year period. Gross margin was 19.9% for the quarter, compared to 18.0% for the prior-year period. The increase in gross margin was primarily due to strategic price increases and improved operational efficiencies. Operating income for the quarter ended December 31, 2025, was approximately $1.6 million, compared to approximately $1.2 million in the prior-year period. The increase in operating income was primarily due to improved gross margins.
Corporate and Other Segment
The Corporate and Other segment operating loss was approximately $1.2 million and $1.6 million for the quarters ended December 31, 2025, and 2024, respectively. The decrease in operating loss is primarily due to a reduction in corporate expenses, including compensation and professional fees.
Intercompany Eliminations
Intercompany eliminations represent intercompany activity, including sales, cost of goods sold, and inventory profit, that is removed in consolidation. Segment results are presented prior to these eliminations.
Adjusted EBITDA Reconciliation
The following table presents a reconciliation of net income to Adjusted EBITDA for the three months ended December 31, 2025 and 2024 (in $000's):
| For the Three Months Ended | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Net income (loss) | $ | (64) | $ | 492 | |||||||
| Depreciation and amortization | 3,926 | 4,415 | |||||||||
| Stock-based compensation | 51 | 51 | |||||||||
| Interest expense, net | 3,561 | 4,162 | |||||||||
| Income tax (benefit) expense | (25) | 81 | |||||||||
| Debt issuance costs | 59 | - | |||||||||
| Gain on extinguishment of debt | - | (713) | |||||||||
| Gain on settlement of earnout liability | - | (2,840) | |||||||||
| Other nonrecurring charges | 284 | 96 | |||||||||
| Adjusted EBITDA | $ | 7,792 | $ | 5,744 | |||||||
Adjusted EBITDA increased by approximately $2.0 million, or 35.7%, for the three months ended December 31, 2025, as compared to the prior year period. The increase was primarily due to an overall increase in operating income, as discussed above.
Liquidity and Capital Resources
As of December 31, 2025, we had total cash on hand of approximately $15.1 million and approximately $23.6 million of available borrowing under our revolving credit facilities. As we continue to pursue acquisitions and other strategic transactions to expand and grow our business, we regularly monitor capital market conditions and may raise additional
funds through borrowings or public or private sales of debt or equity securities. The amount, nature, and timing of any borrowings or sales of debt or equity securities will depend on our operating performance and other circumstances; our then-current commitments and obligations; the amount, nature and timing of our capital requirements; any limitations imposed by our current credit arrangements; and overall market conditions.
Based on our current operating plans, we believe that available cash balances, cash generated from our operating activities and funds available under our asset-based revolver lines of credit will provide sufficient liquidity to do the following for at least the next 12 months: fund our operations; pay our scheduled loan payments; repurchase shares under our share buyback program; and, pay dividends on our shares of Series E Preferred Stock as declared by the Board of Directors.
Working Capital
We had working capital of approximately $69.1 million as of December 31, 2025, compared to working capital of approximately $62.1 million as of September 30, 2025, an increase of approximately $7.0 million. The increase was primarily driven by an aggregate decrease in current liabilities of approximately $9.2 million, reflecting reductions in the current portion of long-term debt, the current portion of lease obligations, and accrued liabilities, as well as an increase in accounts payable. These changes were partially offset by an aggregate decrease in current assets of approximately $2.2 million, driven by decreases in trade receivables and inventories.
Cash Flows from Operating Activities
The Company's cash, as of December 31, 2025, was approximately $15.1 million compared to approximately $8.8 million as of September 30, 2025, an increase of approximately $6.3 million. Net cash provided by operations was approximately $9.8 million for the three months ended December 31, 2025, as compared to net cash provided by operations of approximately $9.4 million for the three months ended December 31, 2024. The increase was primarily driven by changes related to the settlement of the earnout liability and the gain on extinguishment of debt recognized during the three months ended December 31, 2024, and reflects a decrease in the amortization of the seller note discount, decreases in the changes in accounts receivable, inventories, and accrued liabilities, and an increase in the changes in deposits and other assets and accounts payable.
Our primary sources of cash inflows are from customer receipts from sales on account and factored accounts receivable proceeds. Our most significant cash outflows include payments for raw materials and general operating expenses, including payroll costs and general and administrative expenses that typically occur within close proximity of expense recognition.
Cash Flows from Investing Activities
Our cash flows used in investing activities of approximately $1.3 million for the three months ended December 31, 2025, and approximately $1.8 million for the three months ended December 31, 2024, consisted of the purchases of property and equipment.
Cash Flows from Financing Activities
Our cash flows used in financing activities of approximately $2.2 million during the three months ended December 31, 2025 consisted of payments on notes payable of approximately $6.6 million, net borrowings under revolver loans of approximately $3.9 million, payments for finance leases of approximately $1.1 million, payments for debt issuance costs of approximately $0.7 million, and payments on seller notes of approximately $70,000, partially offset by proceeds from the issuance of notes payable of approximately $9.8 million, and net borrowings under related party revolver loans of approximately $0.4 million.
Our cash flows used in financing activities of approximately $4.8 million during the three months ended December 31, 2024 consisted of net borrowings under revolver loans of approximately $3.1 million, cash paid for the settlement of seller notes of $1.9 million, payments on notes payable of approximately $1.8 million, payments for finance leases of approximately $1.0 million, payments on related party notes payable of approximately $0.3 million, and purchases of treasury stock of approximately $0.2 million, partially offset by proceeds from the issuance of related party notes payable of approximately $1.9 million, and net borrowings under related party revolver loans of approximately $1.6 million.
Currently, we are not issuing common shares for liquidity purposes. We prefer to use asset-based lending arrangements and mezzanine financing together with Company provided capital to finance acquisitions and have done so historically. Occasionally, as our Company history has demonstrated, we will issue stock and derivative instruments linked to stock for services or debt settlement.
Future Sources of Cash; New Products and Services
We may require additional debt financing or capital to finance new acquisitions, refinance existing indebtedness or other strategic investments in our business. Other sources of financing may include stock issuances and additional loans; or other forms of financing. Any financing obtained by us may further dilute or otherwise impair the ownership interest of our existing stockholders.
Live Ventures Incorporated published this content on February 12, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 12, 2026 at 21:57 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]