Livewire Group Reduces Cash Burn by 40% in 2024

By Bobby Samwell • Wednesday, February 05 10:28 • Permanent Link

Livewire Group, Inc. has reported its financial results for the fourth quarter and full year of 2024, showcasing a mix of successes and challenges. The company's CEO, Karim Donnez, highlighted the initiatives undertaken in 2024 to address market dynamics and position the business for success in 2025, with a significant focus on reducing cash burn by 40% or more compared to 2024.

In terms of specific financial metrics, the fourth quarter of 2024 saw a 138% increase in unit sales compared to the third quarter, and the consolidated operating loss decreased by $8.5 million from the previous year. Additionally, the company realigned its go-to-market strategy with Europe, transitioning to a wholesale model and entering the markets of Spain and Italy.

Looking at the full year 2024 compared to 2023, the company experienced a 54% decrease in motorcycle units sold and a 42% decrease in electric balance bike units. Consolidated revenue decreased by 29%, with the electric motorcycles segment revenue down by 56% and the Stacyc segment revenue up by 7.1%.

The consolidated operating loss for the full year 2024 decreased by 25% compared to 2023, driven by a 28% decrease in electric motorcycle operating loss and a 225% decrease in Stacyc operating loss. However, the net loss for the company was $93.9 million, a 14% decrease from the previous year.

Looking ahead to 2025, Livewire Group, Inc. expects electric motorcycle sales of 1,000 to 1,500 revenue units and anticipates an operating loss of $70 to $80 million.

It's important to note that Livewire Group, Inc. is comprised of two business segments: electric motorcycles and Stacyc, which focuses on electric balance bikes for kids and related products. The company's majority shareholder is Harley-Davidson, Inc., and it is positioning itself as a dedicated player in the electric motorcycle sector, leveraging the expertise and lineage of Harley-Davidson.

Following these announcements, the company's shares moved 1.7%, and are now trading at a price of $3.12. For more information, read the company's full 8-K submission here.

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