Thank you, everyone. Good afternoon. How many of you here have a music subscription? Spotify, Apple? How many have two? We are one of seven music subscription platforms, right, left in North America. Listen, watch, attend, engage, transact. We just reported consolidated revenues of $19.4 million and adjusted EBITDA of $4.3 million. Full year, last year, consolidated revenues were $77 million with adjusted EBITDA of - $900,000. We have turned that dramatically. We have achieved 52% year-over-year reduction in operating expenses through aggressive AI-driven efficiencies and a streamlined workforce. We have gone from 350 people down to about 88. I think we are at about 80 today. Really amazing. Fiscal guidance, $85 million - $95 million in revenues, $8 million - $10 million of EBITDA. It is a huge swing. We expanded our stock repurchase program from $7 million to $12 million.
We have about $5 million left, and we bought $1 million-plus last quarter. We increased our cash by over $3.3 million, increased our stockholders' equity by almost $7 million, and reduced our liabilities by $5.5 million. As you look at our portfolio of assets here, Slacker Radio, our pure play audio, very much like Spotify or Sirius. We are the low-end provider. We are sort of the Walmart of the business at the lowest price because we are a white label solution for many partners that you will hear about. Our podcast business just finished number six for the second month in a row. Over 1 billion impressions. We have over 200 podcasters, and the revenues are ramping up and growing fast. As you look at the model, our flywheel allows for many different things, many different revenue streams.
This is the first time in my career. Most of you know me from Digital Turbine or know me from iWon.com. I took both of those businesses, my team took it, one to $860 million, sold to Barry Diller, and Digital Turbine to a multi-billion dollar valuation, have had one business model. In this, we have five that each has an opportunity of being $1 billion or better. Music subscription, podcast, live streaming/pay-per-view, merchandise, and music publishing. That flywheel is just simply the more talent, the more traffic, the bigger the audience, the more revenue streams that drive from it. As you look at our numbers, they are pretty staggering. 6.6 billion listens. Over 2,900 artists streamed on our platform. 148 live-streamed events. 2,200 hours of live music. Our partnerships continue to grow.
Our platforms, we have just announced partnerships with LG, Samsung, AT&T to go along with Paramount and Netflix, to go along with the great partnerships that we already have. PodcastOne has over 190 exclusive shows with over 3.9 billion podcast downloads annually across 350 hours of weekly distributed content. We are in 220 countries, and we have live-streamed to 334 million people. As you look at our growing franchises, we have just announced a partnership with Dr. Phil. Dr. Phil, probably the second most important television host behind Oprah, was making $50 million- $70 million with CBS for almost 15 years, has now gone into the podcast business, and I think he is going to be just an amazing force with that. He brought all of his content, all of his library with him to our platform.
We have the likes of LadyGang and Baby Mamas and almost every housewife, you can dream of from New York to L.A. Adam Carolla, one of our stars since day one, the first podcaster in history and the Guinness Book of Records holder for most downloads. Slacker Radio, we have 50 million tracks. We have 500 crafted music channels. We have 400,000+ hours of podcast episodes. We have 100 million downloads. 55 in net promoter score. Our audio listens are over 82 billion. 67% music subscription growth by 2030. The TAM in this industry is exploding. Goldman Sachs just came out with a new report. That report gave guidance that streaming will grow by over 30% by 2030. We will continue to be a participant in that and continue to grow off the backs of these massive distribution deals.
Podcast business, 350+ episodes produced on a weekly basis. 19 million monthly downloads. 200,000+ advertisers. 5.8 million monthly uniques. 600 million downloads, and again, very proudly, we moved from when we bought the company number 20 to number six in the world. We have grown those revenues. We bought the company in 2021. The beginning of COVID, was doing $20 million in revenues. We finished last year at $61 million in revenues, and it looks like we have nice growth again this year, probably in the 15%-20% range, and continue to both grow in distribution, in size, as well as revenues. As you look at the advertisers, our advertising network. You are reading about Netflix numbers missing terribly today, and their advertising business just has not taken off. Amazon fighting the same thing. We have a massive distribution of advertising.
Even though we only do $80 million in revenues, look at the list of advertisers on our platform, and that is because our team, led by Sue McNamara, was the head of CBS Radio, and then post-CBS Radio, she went on to run Howard Stern's, all of Howard Stern's sales. She has literally done just an amazing job of building a lineup of the most prolific advertisers around the world. Our pay-per-view business, we are just starting to relaunch after COVID. Had to wait and take a step back and refocus and make sure we kept our eye on the ball on where the revenues were, our cost savings were, and get the business in line with where it was. But our pay-per-view business, we have just announced a massive deal across boxing, of which we did over $30 million in revenues and over $5 million in EBITDA pre-COVID.
Now we are back in the space, and we are back in with a partner where we take a feed from television, no cost to us, and we just generate traffic and audience and revenues. You will start to see music, podcasts, music and podcast live pay-per-view events that will be added to the lineup. CPS, been a struggle. When we bought it, we bought it right in the beginning of COVID. It was supposed to be part of our live business. When we took down the live business during COVID, we also did the same in merchandise. We have now refocused that merchandise business, took 150 bodies out of it, and only focused on celebrity brands. Celebrities meaning podcasters, musicians, social media stars who have an audience. We can launch a product with them very cheaply, and if it takes off, we step on the gas and hit it.
As you all know, you're reading about every one of these crazy celebrity stories building billion-dollar revenue streams, whether it's MrBeast, whether it's Kim Kardashian, and they continue to grow and continue to build. We've got the luxury of already knowing that podcasters, 50% of the revenues comes from direct response. If you can sell direct response, you can sell a product. As you look at our capabilities, we match up extraordinarily well with each of our competitors. iHeart's at $6 billion, Sirius is at $25 billion, Spotify's at $90 billion, and you go to trillion-dollar companies. With us, we're sitting at a $35 million market cap, way down from where it was.
Right now, we're buying back a ton of stock because we have all the same things as them, except we have way more original programming and way more skills in that our patents are, of course, 46 different areas, including pay-per-view, live streaming, and tokenization. Our global distribution just continues to grow. As you look at this lineup, this is changing so fast. Just in the last eight weeks, sorry, last eight months, we've announced partnership with AT&T, LG, Samsung, VIZIO, and we've just announced a four-year deal with one of the biggest retailers in the world. That retailer has over 50 million monthly paying subscribers. We are white labeling and launching that by December 31st, which could dwarf the size of any partnership this company's had, including Tesla. Tesla was 50 million, they only had 2 million cars. This is 50 million-plus monthly paying subscribers.
They already have their credit cards and just need to add this on, and some of it will come, like Tesla, will come directly from that retailer. Some of it will come on their high-end customers, they'll pay us directly. Their mid-tier customers, they'll pay a portion of it, and the lower-end customers, they'll offer it for free with advertising. That advertising will be that retailer's advertising, so you have guaranteed revenues coming from it, and we're expecting that launch anywhere between November 15th and December 31st. As you look at the team, we have a world-class team. Craig Christensen, our CFO. She's coming off taking the company 22 acquisitions, went to $700 million of value. Sue McNamara, we've already talked about. Kit Gray came out of iHeart, whole background in him.
Josh Hallbauer, who ran Roc Nation's publishing, built it for us, has built that for us as well. As you look at our board, it is one of the most prolific boards maybe in the history of media and technology. Led by Ramin Arani. Ramin was the Fidelity, ran the Puritan Fund, one of the great hedge fund managers, asset managers, one of the top in the industry, and subsequently went on to be the first investor in Spotify, Goop, Peloton, and many other great asset sets. He now sits on the board of Brunello, and he sits on our board. Ken Solomon built the Tennis Channel, took it from zero to $135 million EBITDA. Patrick Wachsberger is the architect who took Lionsgate up by over $20 billion in value when he merged his company into Lionsgate. Stock sat for 8- 10 years.
When he came in as chairman, stock went through the roof. Kris Wright runs a little division of Nike called Jordan Brand. Steve Bornstein built ESPN, built the NFL Network. To wrap it up, the highlight of it is, our revenues are ramping back up after the loss of Tesla. We restructured the business. We took costs out of the business. We are ramping back up $19.3 million of revenues, adjusted EBITDA of $4.3 million. Our audio business alone did $6 million in EBITDA for the quarter. We reported a full year 2026 consolidated revenues of $77.1 million and adjusted EBITDA of - $900,000. Our podcast business, record revenues, $16 million in revenues, EBITDA $1.6 million, 172% year-over-year growth. Podcasts hit a record number six on Podtrac second week in a row, which was just announced this week, surpassing the likes of Disney, Fox, Warner, and many others.
Our fiscal 2027 guidance, $85 million-$95 million in revenues and EBITDA of $8 million-$10 million. That is a $15.6 million swing from last year. We are positioned to continue eliminating. We have eliminated over $15 million of liabilities, all converted at $7.5 a share, or three times the stock price today. We closed a $10 million financing eight months ago at $7.5. Those are the lowest prices we ever did, all at three times where the price is today. We just announced a really exciting podcast. We acquired the rights to "The Magnificent Others" with Billy Corgan. If you are watching it, watch closely. We announce a new podcast almost every two weeks. As you see those podcasts, it is really simple. These are mostly existing podcasts.
You are adding somewhere between a quarter of a million to a million in revenues, probably an average of $500,000, and we add one every two to three weeks. Fast-forward, and then that will open up questions. We are buying back a lot of stock. We put our money where our mouth is. I personally invested $17.5 million in this company, including $3.5 million in the IPO. We are at an all-time low, these last couple of days. Microcap market has just completely collapsed. This is the time you get rich. You follow the leaders in it, whether it is mine or anyone that is buying back their stock and showing they are believers in their company, their stock is down. This is the time to jump in, not just in ours, but just in the overall industry. This is where people have gotten really rich.
If you look at the guys that come to these microcap conferences that made $100 million or more, they did not make it with a lot of money. They made it with a small amount of money owning a piece of these stocks. When they drop down on these, and they drop down on great news, it is even better. Warren Buffett always said, "If you like this stock at 50, you must love it at 25. If you loved it at 25, you got to be thrilled with it at five." It is a philosophy I personally live by. Again, my hands, my feet, and my mouth always go in the same direction. If a stock is coming down and I believe in it, I am going to buy more and more. You have just seen us buy over $1 million last quarter.
We also bought back a big piece of our PodcastOne stock last quarter. You will see a further buy as the numbers come out in two weeks. I could not be more proud of our team fighting through a restructuring. It is the second one we have had to go through. We went through it during COVID. We lost all of our live business. We grew the business. We were $65 million. We dropped to $25 million.
We took that from $25 million back over $100 million. We dropped. We lost our Tesla business. We have now grown that back. We are about almost even with Paramount at $25 million and Amazon at $20 million. We are right there. Any one of these eight new deals that we have announced, if any one of them hits the kind of numbers they are hitting, these are big companies, $12 trillion worth of businesses.
If any one of those hit, they all have massive audiences. They all have at least 10 million people and as high as 300 million, just in their own pipelines. If we hit one of those, we are going to bust through $100 million again. We are right now trading at 50% of revenues, maybe 45% of revenues. I will open it up to questions. Anyone have any thoughts or questions? I am happy to answer them.
Regarding podcasts, what rights do you guys retain on those podcasts? Do they provide additional value to you in retaining those rights? Then following up, what is your cost to produce? How much do you guys put into them? What is your eye for return on that investment?
Yeah. It is a little tricky because each one is a little bit different. We are a full 360 podcast network, so we could be just your production, just your advertising. We are always your sales. What we are best at is being the sales force across programmatic as well as hardcore sales. We are better than anybody in the business and get a little higher ARPU. So each one is a little bit different. They are typically 60/40 splits, in that range, in favor of the talent. We do as much work as they need from them. If there is more work, they will be closer to 50/50. If there is less work, they will be closer to 70/30. With that, we retain all rights, everything that comes in that podcast.
The podcast, all the advertising that is in it, whether we put it on Spotify, Apple, Amazon, Paramount, we keep all the advertising dollars and split with our talent. The ancillary revenues could be multiple. The flywheel in that is live shows. Sometimes we will get it, sometimes we will not. Some will have a deal already. If they are already producing their own live shows, they may be doing live dates, so on. If they are not, we will produce those shows. If they are doing pay-per-view, it is definitely us. If they are doing merchandise, any merchandise they launch with us is going to be in partnership on those same rev shares. Really important, I left this out, the newest and really interesting revenue stream that may explode this business right now is data.
Every single AI company is just for the training models, let alone long-term, for the training models, is paying a lot between $100 and $500 per hour of content. We have over 500,000 hours of audio content, over 250,000 hours of video content, and about two billion codes, which is 22 years of building. If anyone is following that AI model, the programmatic, all of these models, the training models must have a staggering amount of data. Why did Larry Ellison buy Warner? Why did he put this Paramount Warner together? Yes, he wants the media for his son, but really the truth of it is he desperately needed for Oracle. They must have this data in order to build out these models.
Someone else has a question.
On PodcastOne, do they have their own separate board of directors and management team? Also on PodcastOne, is there ever arbitrage where one is high, one is low, a merger, or something like that?
Yeah. We've talked about it. The first part of it is, we do have separate boards. Some of the board is the same, but most of it is separate board members. We have an amazing board on PodcastOne, including [Jim] Berk, who ran PodcastOne previously. Including Steve Lehman, probably the best new addition. My partner sadly passed away, a guy who was the great genius in the business and created Westwood One. We brought in the number two guy, Steve Lehman, who Steve built Premiere Radio to roll up the podcast industry. That's why he's there. He's now Vice Chairman of the company. We have world-class boards on both of them. Separately, on your second question, give them to me again.
Just arbitrage between the two stocks buying or selling.
Yeah. There was a crazy arbitrage up until a few weeks ago where PodcastOne was worth more than the parent company by a long distance. Now that's changed, and they're both kind of trading down right now. Now it looks like they're starting to stabilize. The change now is the tax-loss selling ends October 31st for institutions. Hopefully, that helps. Maybe the election helps. Let's hope those things do. But there is an arbitrage, and there also is we're buying back a ton of our stock in PodcastOne. We just bought back 2.2 million shares. We'll continue to buy it if it's going to trade down here. We were buying it up at $4. We'll certainly buy it down here at $1.50, $1.75, we'll buy everything down.
Buy their stock or our stock?
Both. Maybe PodcastOne now has cash on their balance sheet. They may start buying as well. We hit a very important period. Last year, I think we bought $3.5 million worth of LiveOne and $2.5 million of PodcastOne, January, February, March, because our subscriptions all come due. We pick up a lot of cash the next 8 - 12 weeks. As the subscriptions go due, most of our subscribers are year-long subscribers. A lot of cash pours into the business right now.
Are you guys expanding your content acquisition to include things like digital shorts, the vertical text series, or some of the other AI-created content that's AI voiceover, like audiobooks and stuff like that?
Yeah. Great question, in that we haven't done that yet, but we've entered the video business by default. Because podcasts have now become vodcasts. When I first bought the company, I went on Fox with Adam Carolla, and I used the word vodcast, and they all looked at me like I had three heads. I go, "These podcasts," there are some radio guys, there's a standing joke in the radio industry. Some people's faces are only made for radio, right? What's happened now is most podcasts have become vodcasts. There's a whole new revenue stream. The industry's grown from $500 million to $25 billion around the world, and it's going to $50 billion. That's by 2030. This is going to continue to grow. Whether you're a fan of television hosts or radio hosts, that's all it is.
Now they just have a bigger audience. They got a global audience, and they can say what they want to say. A very different world than when they were stuck inside of a giant company, and they were controlling what they say. These guys have their own voice, and it allows for something that is so critical in this world for dialogue to happen between two different people, two different opinions.
Some more questions for you. In terms of your music acquisition, how active are you guys in purchasing catalogs? Does that seem a significant gain for you? Also, follow-up, are you planning to pull together Slacker Radio and PodcastOne into a singular entity so that you can now have those into a cohesive position?
Yeah. It's a great question. The first one is the publishing side. We haven't been buying publishing. We've been acquiring publishing via talent that we break, so we own it, and if they turn into superstars, we make money. It doesn't cost us anything. Huge upside. Josh did that at Roc Nation and turned it into a pile of gold. So with very little risk to it for us. On the second part of it, your second question to me again?
Do you plan on pulling your companies together for-
Yeah. So what I've stated on the last conference call is that based on the amount of inbound calls, we had brought JP Morgan in as our bankers. We were a higher valuation at the time. We were $300 million. Even at $300 million, it's too small for JP Morgan unless there's sort of a minnow swallowing the whale, which I've done many times in my career, or there's a buyer. What's happened is the podcast industry got rolled up five, six, seven years ago, crazy prices, average of five times revenues. It's a little bit lower this time, but all of a sudden, everybody is rolling up podcast businesses. They're rolling up at about 3.7 times revenues. It's everyone from OpenAI, Fox has bought three networks. iHeart continues to buy. You're seeing crazy deals with the Kelces for Amazon.
This is round two of the podcast industry now that it's gone up to video, that crossover. What I also said six years ago is I said, what's going to happen is that all of these streaming networks are going to buy up these podcasts because it's no different than television or television, radio, cable, or satellite. They're going to need talking heads. Without them, they don't have a business. Now you're watching, they're first renting. Netflix just entered the world with Bill Simmons. Now, if you go on Netflix, that first button before movies and television is podcasts, because the traffic is staggering. Then you've just seen Hulu and Disney enter. Now you saw, in shocking fashion, HBO Max just went into the Howard Stern world. Everybody is now coming in. They're renting it.
They're either going to come in as strategic partners, or they're going to start buying up everything. My guess is they're going to start buying networks. You're going to have to get over $100 million for the big to try to get seven times revenues. But those 3.7 times revenues are there. What I said on the last conference call, and what I wrote publicly in our last press release is that based on the inbound calls, we have retained bankers to, A, to protect our shareholders. Because as a fiduciary, we have to, no matter where the bids come in, you have no choice. You have to look at it and what's fair for shareholders.
When I built iOne.com, the bids came in at $200 million, then it was $400 million, then it was $600 million, and Barry Diller just keep bidding it up, and we sold it for $860 million. I wasn't looking to sell, and I'm not looking to sell now, but if the right price comes along, you have no choice. So we're in that world. The second thing we said is we'll consider all options to increase shareholder value. We spun out PodcastOne to be the only podcast network traded publicly in the world, and I do think there is a real place for that, but it's not where it's trading at $1.70. There's no value to it. You can't do the roll-up strategy. So we are looking at that, and as we buy up stock indirectly, we're buying more and more. The businesses really are all together.
They're just two separate companies. It's really almost a tracking stock, even though they're separate management. All of our podcasts are across our LiveOne business as well. So when we do a deal with a retailer or AT&T, when you get a LiveOne app, you're getting just like Spotify, you're getting everything that's in it, including audio, podcasting, pay-per-view, live streaming of all our events.
Do you also relicense those podcasts that you guys are creating out to other distributors?
We don't relicense them. We just put them on their platform. We have partnerships with Spotify, Apple, where most of the traffic is. I keep all the revenues, though. It's a trade. What's going to happen next is they're going to start paying for it.
Right.
Think of ESPN and all the fights with ESPN and cable and satellite. Now the consolidation's happening, and it's going to come down to maybe there's cable and satellite, and television. Maybe there's seven this time. There may be seven partners, and they're going to be competing with content. That's where Howard Stern just got paid. Someone may call me tomorrow and offer Adam Carolla $5 million a year to put him on that platform. It's shocking to me, because I know the traffic numbers. It's great, but they're coming, and they're coming fast.
Thank you so much. Any other questions can be taken outside.