LiveWire Group Warns of Potential Insolvency as Stock Plummets
LiveWire Group warned it may not survive as a going concern and withdrew 2026 guidance, causing its stock to plunge 42 percent.
Electric motorcycle manufacturer LiveWire Group warned on Thursday that it may not survive as a going concern, citing limited liquidity, negative cash flows, and recurring operating losses. The company withdrew its full-year guidance for 2026, which had previously projected an operating loss between $70 million and $80 million. Following the announcement, shares of the Harley-Davidson-backed company plunged 42 percent in New York trading.
To manage the crisis, the board formed a special restructuring committee on October 22 to evaluate strategic options, including potential sales and financing, before the company's debt matures in December 2027. As part of this effort, LiveWire appointed Roy Gallagher as chief restructuring officer and principal executive officer.
Despite the warning of insolvency, the company reported some growth in its most recent quarterly figures. Third-quarter revenue increased 38 percent to $7.9 million, and the net loss narrowed slightly to $18.6 million.
