Thank you for standing by. Welcome to LiveOne Q2 fiscal 2026 financial results and business update conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the conference over to Ryan Carhart, Chief Financial Officer. You may begin. Thank you. Good morning and welcome to LiveOne's business update and financial results conference call for the company's fiscal second quarter ended September 30th, 2025. Presenting on today's call with me is Rob Ellin, CEO and Chairman of LiveOne. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31st, 2025, and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor relations website. The company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, November 12th, 2025, and, except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the investor relations section shortly following the conclusion of the call. Additionally, it is the property of the company, and any redistribution, transmission, or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne CEO, Rob Ellin. Thank you, Ryan, and welcome everybody, and thank you for joining us. This has been a transformative 12 months for the company. As we came out of the loss of over $50 million of revenues with Tesla, we not only survived, but we thrived. As you look at the numbers today, the highlights are going to be how this team and how this company has utilized technology and being a talent-first platform to again prove that we can get back to even positive numbers. With that loss of $50 million in revenues, we're excited to tell you that we finished the quarter with a little over $36 million, $36.6 million, in our audio division with $1.1 million of Adjusted EBITDA. How did we do that? The first thing we did is we leveraged technology. We embraced AI. We embraced the ability to use AI to be able to cut our staff and cut it from 350 people to 95. We have cut our costs down from $22 million down to $6 million. With that, we now have aggressively moved on our B2B plan to move to partnerships that the history of this company has been built on, like Tesla. With that, I'm excited to say we closed our seventh deal. We have now expanded our partnership with Amazon from $16.5 million in a three-year deal to over $20 million. That's all based on traffic and audience continuing to grow massively. Our Fortune 250 partner increased from $2 million originally to $12 million to now $26 million plus a year run rate. Going back to Tesla, we converted over 60% of the total cars out there, which was 2 million. We now have almost a million free cars, both paid and free. One million of those free cars are now being—those cars have now re-signed back up, right, of where we finally now have data and information on those consumers and now the ability to try to convert those. Now, using an AI marketing strategy, we are aggressively converting those and generating real cash every day and continue to grow that number of subscribers and see a really exciting opportunity now to convert into those million. If we can convert 10% of them, we will add another 100,000 paid subscribers. If we can convert 20%, the numbers start to skyrocket. We have 72 additional B2B partnerships, and fully expect to announce multiple additional ones before year-end. Utilizing AI, we have increased our RPUs by 60%. We are starting to see a $5+ RPU versus the $3 that we had previously. Our podcast business. Our podcast business has grown. We bought the company doing $20 million in revenues, losing $5 million. We have just announced record-breaking revenues over $15 million for the quarter and announced that we expect to do $56 million-$60 million this year and $4.5 million-$6 million of EBITDA. That is a $6 million-$8 million swing from last year. We have aggressively taken our podcast and now taking our true crime podcast, which we have a slate of over 12, that we have now brought that to market to the streaming networks, and we have sold three podcasts to television now. What does that mean for the company? It means hundreds of thousands of dollars in option money day one and could be millions to tens of millions of dollars in the very near future as those get greenlit. We've now sold the show to CBS, to Peacock, to Paramount, and we fully expect to sell additional shows. We have our first giant upcoming live event. Our last major live event goes back to the days of COVID, which was called Social Gloves. That event did over $20 million and over $4 million of EBITDA. On December 11, we are going to launch Reality Olympics. Reality Olympics will be at BMO Stadium and be launched with YouTube committing over a billion impressions to the event. We just announced our launch of our subsidiary, LiveOne Africa, with a commitment from Virtuosa Music to raise over $20 million to a market that will be bigger than the U.S. market in the next couple of years. Our buyback continues. We continue to buy back both stocks. We've now bought back over $6 million of stock in LiveOne. We will continue to buy back stock. For everyone that remembers, we sold $10 million of stock at $7.5 million only three months ago, two and a half months ago. We'll continue to buy that as well as you will see management and board members doing the same. As we look at the future, we see the highlight films of these B2B deals providing a massive opportunity for the company. Current Amazon deal will see it just continue to grow. It's a highlight film as more podcasts, the more traffic we drive, the bigger those revenues are going to be. As we launch our next major project to over 30 million monthly paying subscribers, we will talk about this in great detail over the next couple of weeks and expect to launch this year. If you think about the Tesla numbers, we had 2 million subscribers, 2 million cars, right, and we've now converted 60% of them. If you have 30 million, if you just convert a couple of percentage of them, we're going to start to really generate very serious subscriber growth, ARPU growth, as well as revenue growth. With that, I'm proud of my team. They've survived Tesla's loss of the revenues and come out of it stronger than ever. For those of you there, if you remember when COVID hit, we went from $38 million in revenues. We lost all of our live business, and somehow the following year, we did well over $100 million in revenues. I see telltale signs that with the current B2B pipeline, the current B2B deals have already been announced, which are over $50 million in contractual deals, actually $52 million contractual deals as they continue to grow. I see telltale signs that this company is well on its way to again be well over $100 million. With that, we will continue to buy back stock, and I want to thank everybody and appreciate everybody's support and open up the floor to Ryan to talk about the numbers. Thanks, Ryan. Thanks, Rob. I'll spend just a few minutes providing a very brief overview of our results for the fiscal second quarter ended September 30, 2025. Consolidated revenue for the three-month period ended September 30th, 2025, was $18.8 million. Our audio division posted revenue for Q2 fiscal 2026 of $18.2 million and Adjusted EBITDA of $0.7 million. Consolidated Adjusted EBITDA for the second quarter of fiscal year 2026 was - $1 million. On a U.S. GAAP basis, LiveOne posted a consolidated net loss of $5.7 million or $0.52 per diluted share in Q2 fiscal 2026. At the operating level, our PodcastOne subsidiary posted record revenue of $15.2 million and Adjusted EBITDA of $1.1 million. Our Slacker subsidiary reported Q2 fiscal 2026 revenue of $3.1 million and an adjusted EBITDA loss of $0.4 million. We are pleased to report continued record growth from our PodcastOne subsidiary, which we anticipate will extend throughout the year. In parallel, we are advancing several transformative partnerships from our business development pipeline, creating significant opportunities for long-term growth and value creation in the near future. Rob, turn it back to you. Yeah, just to wrap it up, I think we've covered just about everything. Just to wrap it up, can't be more excited about the B2B partnerships, the history of LiveOne, as well as the two subsidiaries that generate the revenues from Slacker to PodcastOne have had a history of B2B deals. These B2B deals is a cycle that comes, and as you're watching the cycle, you're seeing in the industry that is exploding. The audio industry, iHeart stock is up 4x. Spotify stock is up 3x, almost $175 billion in value. Warren Buffett has been buying up Sirius Radio. There's so much math right now that shows that the partnerships that are being created, that are being announced in podcasting and audio, across Netflix announcing they're going to the audio business, and Spotify going to the video business. You're going to see more and more of this happening in the industry. In my humble opinion, you're going to see amazing strategic deals. You're going to see investments in the space, and you're going to see acquisitions in the space. The acquisitions are happening at multiples of revenues. We're trading at 60% of revenues. The industry is trading at three and a half times revenues. I think you're going to see just about every streaming partner. Anyone who's missing an audio platform is going to need an audio platform. When you think about the cost of content and how expensive it is for all these streaming networks, they can increase their RPUs dramatically overnight by acquiring a music platform or investing in a music platform or white labeling a music platform. With that, I'm going to open it up to questions. Thank you everyone for joining us, and thank our team for just doing an amazing job of not only surviving, but coming out of this and thriving. You're seeing those telltale signs where the revenues are going to start to ramp up dramatically in the very near future. Thank you. Thank you. We will now begin the question- and- answer session. If you have dialed in, would like to ask a question, simply press the star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press the star one again. You are called upon to ask your question and are listening via loudspeaker on your device. Please speak up your headset and ensure that your phone is not unmuted when asking your question. Your first question comes from Brian Kinslinger with Alliance Global Partners. Please go ahead. Great. Thanks so much. Last quarter, you discussed the stock launch at the beginning of August for a B2B partner with 30 million subscribers and said you'd share more information soon. Is there any details you can share about this? Yeah. I mean, the success of the beginning launch was spectacular. I would say it was in line with the launch, the relaunch with Tesla, and succeeding, and again, without giving exact numbers. And Tesla, as you know, we've succeeded in bringing back 60% of those 2 million cars, which is kind of amazing in that we didn't necessarily have all those cars and not all those people even using the service, even if they paid through the connectivity package. I think you're seeing telltale signs of that as well with our next partner. And I think you're going to be able to highlight that as we enter year-end. Is this deal part of the $50 million+ B2B revenue? And if so, when does it begin to ramp? No. No. What we said is that's not part of the $52 million. This will be an additional. We have not put out guidance yet, but fully expect that somewhere around year-end, we're going to start to put out guidance as we said. These deals are ramping up. They've ramped up faster than we expected, both at Amazon as well as a streaming partner. We see a telltale sign that that new partner will be very similar. We will be talking about our guidance somewhere probably before year-end, but certainly by year-end, we'll start to talk about it. I think the biggest question I think investors might have is when you provide this $52 million B2B revenue over the next 12 months, I think you said last quarter, and so I'm sure it's still the next 12 months. How much of that is incremental to the revenue you've just reported in the September quarter, which I assume includes Amazon and some of your other B2B partners? Yeah. I mean, we can't give that obviously until we start to give guidance, which will happen again, as I said, before year-end. Our year-end is March 31st. And we're getting close to it fast. It's moving fast to do that. We'll start talking about that guidance. You've already seen us raise the guidance at PodcastOne, and I fully expect we'll start to talk about LiveOne as well. That ramp up, that ramp up will start to happen, as I said, towards the end of the fourth quarter, third a little bit, fourth quarter. It's starting to ramp up. We're starting to feel the momentum coming, but we'll have a lot more clarity on that as we enter the fourth quarter of this year. Thanks. Two more questions. First, can you share the premium versus paid subscribers for Slacker? And maybe if you can or can't, can you talk about the conversion that you're seeing for Tesla, if at all? Ryan, you want to give a little bit of that if we can? Yeah. I mean, Brian, just real quick, I mean, premium versus paid, I mean, you're talking about premium versus plus? Is that kind of what you're thinking? Yeah. Premium versus plus. I mean, I think. You have subscribers that are premium, especially in Tesla, and then you have paid subscribers. I am curious what the total is and maybe the split. I am curious how conversions are going for those premium. Yeah. If you think of the combination of all of our paying subscribers, you're looking at a total of somewhere between 250,000-275,000 in terms of the paid. The free would be the rest that Rob talked about earlier on his call. That's basically the breakup between the two. Rob talked a bit about ARPU earlier as well. Brian, does that answer the question? I'm just curious how conversions are going. It's been a few months. We've been hearing about the focus on that. Is it 1%? Is it 2%? Is it more or less? Yeah. We put out, I think it was a week or two ago, an earnings release on our new partnership with our AI-driven data partner that's going to help us really ramp up the conversions. That was launched. It took a little longer to start to get that fully to market. Right now, we're out there testing and optimizing the algorithm. I think you're really going to start seeing that come through second half of this quarter. We don't have full results yet as we're still kind of optimizing right now, but it will ramp up. We're expecting a 5-10% increase. It is definitely within the ballpark. It could be higher. We're still in that optimizing phase where the algorithm is doing its work. Yeah. We're going to lose some free subscribers in that process as well. We'll lose some free and we'll gain some paid. One of the exciting things that you can be looking at, just like last year, last year, you saw a large increase in cash right around the end of the year as you start to see one-year subscriptions, A, re-op, but also the new ones converting. We are very aggressively out there trying to convert those now to continue to strengthen our balance sheet, buy back stock, and put cash on our balance sheet. Great. Last question, Ryan. I did not hear anything. The gross margin for the first half is about 13% last year, almost twice that. Is that a pure function of scale with the falloff of the revenue, or is there something more to that? What might we think about getting to see a recovery? Thank you so much. Yeah. I think the difference this year versus last year has been the change in the customer relationship with Tesla, where the volume there lifted the margin because we were able to pull that off at a slightly higher than what we do normally now. I think that difference that you're seeing is really just the volume from Slacker changing and driving the overall down. Okay. All right. Thank you. That's offset by increased margin at PodcastOne. It's slightly offset to that, but yeah, that's the cost. Great. Thank you. The next question comes from the line of Sean McGowan with ROTH C apital. Please go ahead. Hi, Rob. Hi, Ryan. Following up on Brian's question on cost of sales. What portion of that increase as a percentage of revenue is stock-based comp? Is that a factor? Yeah. Stock comp is definitely higher in cost of sales versus year-over-year if you just do the comparison. You'll see it's not out yet in the queue, but we'll fully disclose that so you can see it. It kind of shifted categories. You're going to see more stock comp on the cost of sales line this quarter versus last quarter, a little bit lower just on the lower G&A that you're seeing year-over-year. Last year, we had a little bit more in G&A. You're going to see a decrease in stock comp and G&A this quarter year-over-year. Definitely notice the difference there. Less year-over-year, but still a chunk there. Okay. And when will the Q be out, Ryan? Filing date's Friday. Hoping to get it out sooner. So we're hoping to file tomorrow. Okay. Thanks. So on G&A, I imagine stock-based comp plays a role in that too. But is this level of G&A likely to be what we should expect to see, or were there extraordinary factors driving that up? Yep. Good question. Year-over-year, obviously, I know we're seeing definitely a lot of strong increases or decreases in the G&A. If you look at this quarter or last quarter, there were a couple of one-time things that flowed through. We expect it to be lower next quarter than it was this quarter. What you're seeing this quarter, you'll see an improvement next quarter and in Q4 and going forward, even less than Q1. Perfect. Thank you. Ryan, if I can ask you to repeat something. Right at the end of your prepared remarks, I think you made some comment about PodcastOne over the next six months or something like that. Would you mind repeating that? I could not quite track what you said. Yeah. All I'm saying is we expect continued growth with the PodcastOne subsidiary. That's it. Okay. Great. Okay. Great. We upped our guidance like Rob talked about. Yeah, we expect it to continue to grow as it has been. Right. Got it. It was that word growth that I couldn't quite get. I think Sean, just to add to that, you've seen our 17th additional podcast announced, just announced. And we're basically signing almost, you sign 24 a year. As we said before, you're picking up two things. Number one is you're picking up revenues. Most of these are existing podcasts. So the space has really moved to, you've watched Spotify and Amazon basically fire their entire teams. They keep their super big podcasts, but they're all waking up to realize they're really distributors. They're not curators of content. Because we're a full 360 play, these podcasts need handholding. We continue to add those. As we add them, it's a self-fulfilling prophecy. One is you're going to add immediate revenues, but two is you're going to add that immediate traffic. The more traffic we drive, the bigger the Amazon partnership is going to grow. I could not be more excited about where that is going and directionally, to think that it has only been a couple of months and we are ready from $16.5 million to go to $20 million. It looks like it can go way higher than that. I have talked about landing an anchor tenant on the podcast network. If we land an anchor tenant, which has been one of the only things missing from that business, you land an anchor tenant and then you could add some very serious traffic, those metrics just keep going up. If they keep going up, you are going to pick up a lot of revenues, a lot, a lot of revenues. You are going to move up the charts in terms of what number you are on Podtrac and the overall industry. The respect from the industry is showing in a unique way. Okay. Yeah. If Adam Karola is with him, he's probably like, "What the hell, man? I'm right here." So I'm just kidding. No, Adam's the best. Adam's the best. I I spoke to him yesterday. He's a great partner, and we just continue to grow with them. Okay. Last question for me. Kit did a great job yesterday of outlining the ways in which PodcastOne has used AI kind of across the platform, across the whole enterprise, drive revenue, drive cost, drive efficiency, etc. In addition to what Kit talked about yesterday, could you describe some of the AI tools that are being deployed in the rest of the company just so we have a fuller idea of that? Yeah. As you know, Sean, you know me a long time. All of my companies are media companies from a revenue standpoint, but are always focused on next-generation technology. We're right in the heart and the center of it. You're going to see more and more partnerships coming out of us in the AI space. The team, Brad and the team over at Slacker, under siege. You lose $50 million in revenues. You got to take costs down. They've just done an amazing job of embracing technology, both from a marketing standpoint, to convert subscribers, to lock down, to think that we lock down 60% of every Tesla car and got them, even though a lot of them are free. It's just an amazing thing. That was utilizing AI. They've also utilized AI in that we used to need way more hosts. You can now create a music channel way quicker, and you can combine the use of AI with a human as a DJ, VJ, host. We are able to cut those costs down. I think you are going to see a lot more of those initiatives happening as the revenues ramp back up on the other side of the business. As those ramp back up, we will continue to grow those. We are looking at consistently looking at more and more ways to do it. We have been able to cut our staff from 350 people to 95. Ryan has just done a great job of restructuring, fighting through this, and literally surviving a loss of $50 million in revenues. Most companies cannot survive that. We have come out, and now we are thriving. Yeah. Thanks for that additional detail. Circling back for one second, I just thought of something else I wanted to ask. On the number of subscribers that you've converted, it is amazing. I never would have thought you'd get to that 60%. You kind of feel like you're at that limit now. I mean, it was never going to be 100. It was probably never going to be even 60, and you managed that. I noticed that the number is about the same as it was at the end of August. Have we converted pretty much everybody we're going to convert? From a free standpoint, yes. From a cost standpoint, now we just started to put advertising in. We partnered with Dax, the biggest ad agency, to do that, doing programmatic advertising. It does three things, Sean. Number one is it annoys the hell out of people. All of a sudden, you go from no ads to a ton of ads. My son was giving me a hard time because I had it in my car because I want to hear actually what's happening in it. I want to make sure those ads are relevant, A, so the people that are going to stay for free are actually going to use it. That's A. And then B is I want to convert them. We're now using Intuzi, which is an amazing AI marketing technology platform that really is able to find in multiple different spaces, but first in the automotive space. Now the goal is to convert those people. Just think about if we converted 100,000 out of the million at an average RPU of $60 a year, most of that's going to be paid upfront, we could generate a lot of cash right now. That initiative has just started. We went from zero advertising—it was three months ago, Ryan—to today, we're like 90% advertising, 90% fulfillment, which generates some revenues as well. It's a new revenue stream. They'll start to kick in the advertising side of it. Our real goal is, and Spotify says they convert 60% of every—the reason they have a free tier is 60% convert. I don't know what the timeframe they convert, but if we can convert 10% of this, 20% of it, if somehow we converted 60, obviously, the numbers would be off the charts. If we can convert 10-20%, we're going to generate a ton of cash upfront, and we're going to generate long-term revenues with those subscribers that are going to be beyond the advertising side. All right. Thank you very much. Appreciate it. Any other questions? Once again, if you would like to ask a question, simply press the star one on your telephone keypad. I'm showing no further questions at this time. I would like to turn it back to Rob Ellin for closing remarks. I think we covered everything. I'm looking forward to our next call. I'm looking forward to the next major announcements of this company. As I said, there are 72 B2B deals in the works. This is what I've done my career. Ryan's always been sort of the smaller company that's been able to partner with these massive distributors. There are so many of them now that are out there that the cycle has changed. You look at the cycle, everyone from Facebook to Microsoft to every streaming partner to auto companies, everybody's fighting for data again. I think we're right in the sweet spot that LiveOne has the opportunity to be that strategic partner that we're nimble with the lowest price and we're willing to white label. I think you're going to see more and more of those B2B deals. You see a couple more Amazons. You see a couple more streaming partners. You see a couple more retail partners. You can easily see this company in the next five years doing a billion dollars of revenues with zero cost to marketing. We're not chasing an individual subscriber. We're chasing a pool of subscribers. We're looking at leveraging this great content we have, this original programming we have, and really leveraging and positioning ourselves that we partner with anyone who has 10 million-3 billion eyeballs like Facebook. We partner with a lot of them, both before I owned this company and since we've owned it. We partner with the likes of everyone from TikTok to Facebook to Amazon to Paramount. We continue to do that, and we continue to grow with it. I see telltale signs that we're starting to build real momentum on those B2B deals. have landed a couple more of these, and we are going to have another exciting run. Like I said, I am proud of our team. I am proud we fought through this battle. I see the future extraordinarily bright right now for where the company is going. With that, thank you, everyone. I appreciate your time. Thank you. This now concludes today's conference call. Thank you all for attending. You may now disconnect.