Investment Thesis
Liberty Live faces severe financial distress with negative stockholders' equity indicating technical insolvency, critical liquidity crisis (0.33x current ratio), and negative operating cash flow of -$29.5M against a massive $1.7B debt burden. Despite $545.5M in cash reserves, flat revenue growth combined with -22.8% net margin and negative operating income demonstrates fundamental operational failure with unsustainable debt service requirements.
Strengths
- Maintains $545.5M in cash reserves providing near-term operational runway
- Substantial asset base of $1.9B offers potential restructuring or liquidation value
- Operates in entertainment/recreation sector with cyclical recovery potential
Risks
- Negative stockholders' equity of -$49.1M indicates technical insolvency and heightened bankruptcy risk
- Critical liquidity crisis with 0.33x current ratio threatens immediate going concern viability
- Massive debt burden of $1.7B (4.5x annual revenue) with negative operating cash flow creates refinancing emergency
- Persistent operating losses of -$51.7M and zero revenue growth demonstrate failed business model
- Negative free cash flow of -$29.5M guarantees rapid depletion of cash reserves without operational improvement
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive to avoid liquidity crisis
- Stockholders equity and debt covenant compliance - restructuring or bankruptcy risk
- Revenue growth acceleration and margin improvement - path to profitability critical
Financial Metrics
Revenue
382.0M
Net Income
-87.0M
EPS (Diluted)
$0.00
Free Cash Flow
-29.5M
Total Assets
1.9B
Cash
545.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-13.5%
Net Margin
-22.8%
ROE
N/A
ROA
-4.6%
FCF Margin
-7.7%
Balance Sheet & Liquidity
Current Ratio
0.33x
Quick Ratio
0.33x
Debt/Equity
N/A
Debt/Assets
101.4%
Interest Coverage
N/A
Long-term Debt
1.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-12T16:39:20.444556 |
Data as of: 2025-12-31 |
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