LiveWire Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue increased 38% year-over-year to $7.9 million in Q3 2026, driven by a 21% increase in unit sales to 7,233 units.
• Consolidated net loss was $18.6 million for Q3 2026, a 4% improvement from $19.4 million in the prior year period.
• Consolidated operating loss was $17.5 million for Q3 2026, a 7% improvement from $18.8 million in the prior year.
• Adjusted EBITDA was negative $14.7 million for Q3 2026, an 11% improvement from negative $16.5 million in the prior year.
• Year-to-date net cash used by operating activities was $38.3 million, a 16% reduction from $45.6 million in the prior year.
• Year-to-date free cash flow was negative $40.5 million, a 16% improvement from negative $48.2 million in the prior year.
• Cash and cash equivalents decreased to $39.9 million as of September 30, 2026, from $82.8 million as of December 31, 2025.
• Total liabilities increased to $109.4 million as of September 30, 2026, from $100.4 million as of December 31, 2025.
• Shareholders' equity turned negative to $(5.5) million as of September 30, 2026, from $46.0 million as of December 31, 2025.
• Related party interest expense increased by $1.5 million in Q3 2026 compared to the prior year.

Guidance and Future Outlook:

• The Company withdrew its previously issued full-year 2026 operating loss guidance of $70 to $80 million.
• Management has determined that conditions raise substantial doubt about the Company's ability to continue as a going concern within one year.
• The Company is evaluating comprehensive financing and strategic alternatives, including capital raises, partnerships, investments, sales, and restructuring transactions.
• Debt maturity is scheduled for December 2027.

Business Segments and Product Lines:

• STACYC Segment: Revenue increased 9% to $5.2 million with unit sales up 20% to 6,992 units; operating loss widened to $0.6 million from $0.4 million due to higher freight costs.
• Electric Motorcycles Segment: Revenue surged 178% to $2.7 million with unit sales up 31% to 241 units; operating loss narrowed to $17.0 million from $18.4 million, driven by a $2.6 million gross margin improvement offset by $1.2 million in higher selling, administrative, and engineering expenses.
• The S4 Honcho™ Trail was delivered to the U.S. market in August 2026, with S4 Honcho™ Street units delivered to dealers in October 2026.
• S4 Honcho™ Trail units are expected to be delivered to Europe in October 2026, followed by S4 Honcho™ Street in November 2026.
• Q3 2025 Electric Motorcycle revenue was impacted by increased incentives implemented to drive market demand.

Market and Competitive Landscape:

• LiveWire held an 80% market share in the U.S. electric motorcycle 50+ kilowatt on-road EV segment year-to-date through September 30, 2026.
• The Company faces a highly competitive and rapidly evolving electric vehicle industry.

Risks and Challenges:

• Recurring operating losses, negative cash flows from operations, and limited liquidity resources contribute to substantial doubt regarding the ability to continue as a going concern.
• There is no assurance that financing efforts or strategic transactions will be successful or available on acceptable terms.
• Risks include dependency on Harley-Davidson for services, supply chain constraints, geopolitical volatility, and potential inability to satisfy NYSE listing requirements.

Management Commentary and Tone:

• Management formed a Special Restructuring Committee on October 22, 2026, to review and negotiate strategic transactions.
• Roy Gallagher was appointed as Chief Restructuring Officer (CRO) and principal executive officer, reporting to the Special Restructuring Committee.
• The Committee has sole authority to approve or reject potential conflict matters and to recommend strategic transactions to the Board.

Other Key Points:

• The Company acquired a business for $375,000 during the nine months ended September 30, 2026.
• Capital expenditures totaled $2.5 million for the nine months ended September 30, 2026.
• The Company repurchased $862,000 of common stock during the nine months ended September 30, 2026.
• Gross proceeds from the sale of common stock via the at-the-market public offering were $100,000 for the nine months ended September 30, 2026.
• The Company paid $800,000 toward borrowings under a related party term loan during the nine months ended September 30, 2026.
• An audio webcast with Harley-Davidson management is scheduled to discuss LiveWire segment results, noting that GAAP results may differ from standalone LiveWire Group results.