With its third quarter 2026 results, LiveWire has issued a so-called going concern warning. According to management, there are substantial doubts about the company’s ability to continue operating over the next twelve months without additional measures. Reasons cited include recurring operating losses, negative cash flows, limited liquidity and increased financing needs.
This does not yet mean insolvency has been declared, but LiveWire has made it clear that additional financing or a strategic solution may be necessary. According to online portal Electrek, options being considered include debt and equity financing, partnerships or investments, as well as a sale, restructuring or recapitalization.
To address this, the board of directors created a dedicated restructuring committee on October 22. Your task is to evaluate and negotiate possible transactions. Additionally, Roy Gallagher has been appointed chief restructuring officer. LiveWire is also targeting a debt maturity of December 2027.
Motorcycle sales grow from low base
Operationally, LiveWire saw growth in the third quarter. Group revenue rose 38 percent to $7.9 million, while net loss narrowed slightly from $19.4 million to $18.6 million. Adjusted EBITDA was -$14.7 million.
In terms of electric motorcycles, LiveWire sold 241 units, up from 184 in the same quarter last year, an increase of 31 percent. Revenue in the motorcycle segment increased from $1.0 million to $2.7 million, although the operating loss remained significantly higher at $17.0 million. The majority of the total 7,233 units sold were not motorcycles, but part of the STACYC business, which includes balance electric bicycles and children’s electric bicycles, with 6,992 units sold in the quarter.
However, liquidity is the decisive factor in the current situation. As of Sept. 30, LiveWire had $39.9 million in cash and cash equivalents, up from $82.8 million at the end of 2025. In the first nine months of 2026, $38.3 million was used in operating activities, with free cash flow of minus $40.5 million. While both figures represent a 16 percent year-on-year improvement, the outflow of funds remains high.
As a result, LiveWire has withdrawn its previous annual forecast. The company had recently expected an operating loss of between $70 million and $80 million by 2026.
LiveWire targets new buyers with the S4 Honcho
Financial challenges arise as LiveWire launches its new S4 Honcho range, which the company is using to significantly expand its offering into the lower price segment. In Europe, the S4 Honcho Trail has a starting price of €5,299, while the road version, the S4 Honcho Street, is priced at €5,699. Previous LiveWire models, such as the S2 Mulholland, were typically priced around 20,000 euros.
Production of the two light electric motorcycles has already started at Kymco. According to LiveWire, the first S4 Honcho Trail units were delivered in the US in August, followed by the Street version in October at dealerships. For Europe, the first deliveries of the Trail were announced for October, while the Street version is expected in November.
With these more affordable models, LiveWire is targeting a significantly broader customer base than before. In parallel, the company is working on additional derivatives of the S2 and on an electric maxi-scooter developed jointly with Kymco.
It is not yet clear whether this expansion of the model range will be able to have a financial impact quickly enough. The going concern warning suggests that LiveWire first needs additional financing or another strategic solution to continue executing its business plan as planned.
LiveWire was spun off from Harley-Davidson in 2022 and is listed separately on the stock exchange. Harley-Davidson remains the majority shareholder of the electric motorcycle maker.
livewire.com, electrek.co
