LiveWire faces liquidity shortages
LiveWire has expressed serious doubts about continuing its operations and is exploring options such as new financing, strategic partnerships, or a sale. While sales of electric motorcycles have been rising recently, its liquid assets have decreased simultaneously.
The S4 Honcho is intended to give LiveWire additional sales opportunities through a more affordable entry-level model.
Image: LiveWire
With its figures for the third quarter of 2026, LiveWire has issued a so-called going-concern warning. Management believes there are significant doubts about the company’s ability to continue operating for the next twelve months without additional measures. LiveWire cites recurring operating losses, negative cash flows, limited liquidity, and further funding needs as reasons.
Of course, bankruptcy has not yet been announced. However, LiveWire makes it clear that additional financing or a strategic solution may become necessary. According to reports from the online portal Electrek, options being considered include external and internal capital financing, partnerships or investments, as well as a sale, restructuring, or recapitalization.
The board of directors established its own restructuring committee on October 22 to address this issue. It is tasked with evaluating and negotiating potential transactions. Additionally, Roy Gallagher was appointed as Chief Restructuring Officer. LiveWire also mentions a debt obligation that becomes due in December 2027 in this context.
Motorcycle sales rise from low levels
Operationally, LiveWire managed to show growth in the third quarter. The company’s revenue increased by 38 percent to $7.9 million, while the net loss slightly decreased from $19.4 million to $18.6 million. The adjusted Ebitda was minus $14.7 million.
In terms of actual electric motorcycles, LiveWire delivered 241 units, up from 184 in the previous quarter, representing a 31 percent increase. Revenue from the motorcycle segment rose from $1.0 million to $2.7 million, but the operating loss of $17.0 million remained significantly higher than revenue. The majority of the total 7,233 units sold were still not motorcycles, but rather STACYC’s electric balance bikes and children’s e-bikes, with 6,992 units sold in that segment during the quarter.
What is more critical for the current situation, however, is liquidity. As of September 30, LiveWire still had $39.9 million in cash on hand. By the end of 2025, that figure had risen to $82.8 million. In the first nine months of 2026, $38.3 million was drawn from operating activities, resulting in a free cash flow of minus $40.5 million. Although both figures improved by 16% compared to the previous year, the outflow of funds remains high.
For this reason, LiveWire has also withdrawn its previous annual forecast. Previously, the company had projected an operating loss of $70 to $80 million for 2026.
LiveWire aims to reach new customers with S4 Honcho
The financial problems hit LiveWire at the exact moment the new S4 Honcho series is launching on the market. With this series, the company aims to significantly expand its product range at lower prices. The S4 Honcho Trail starts at 5,299 euros in Europe, while the street version, the S4 Honcho Street, costs 5,699 euros. In contrast, previous LiveWire models like the S2 Mulholland are priced around 20,000 euros.
The production of these two lightweight electric motorcycles has already begun at Kymco. According to LiveWire, the first S4 Honcho Trails were delivered in the U.S. in August, with the street version arriving at dealerships in October. For Europe, deliveries of the trail version were scheduled for October, and those of the street version for November.
With its more affordable models, LiveWire aims to reach a much broader customer base than before. Meanwhile, the company is working on additional S2 derivatives and an electric maxi-scooter developed in partnership with Kymco.
It remains uncertain whether this expansion of the product lineup will have a rapid financial impact. Instead, the going-concern warning indicates that LiveWire first needs additional funding or another strategic solution to carry out its business plan as planned.
LiveWire was spun off from Harley-Davidson in 2022 and listed separately on the stock market. Harley-Davidson remains the majority shareholder of this electric motorcycle manufacturer.