LiveWire, Harley-Davidson’s electric motorcycle spin-off, just reported its strongest quarter of 2026. In the same release, it said it isn’t sure it can survive the next year.
In the Q3 earnings release, LiveWire said management has determined that conditions and events raise substantial doubt about the Company’s ability to continue as a going concern within one year of the financial statements being issued. It also withdrew its 2026 forecast, which had called for “a LiveWire Group operating loss between $70 and $80 million.” baytobaynews livewire
Sales are up, but from a tiny base
LiveWire sold 241 units, up 31% from 184. Electric motorcycle revenue rose to $2.7M vs. $1.0M, up 178%. That jump looks less impressive once you know the 2025 base was depressed by incentives the company offered to drive demand. LiveWire +2
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LiveWire moved 241 bikes in three months. Spread across its 112 dealerships, that’s about two bikes a store.
Now compare sales with costs. The quarterly 10-Q shows the Electric Motorcycles segment lost $(16,954) thousand in the quarter. Divide that by 241 bikes and you get roughly $70,000 of operating loss per motorcycle, against about $11,000 of revenue per bike. LiveWire is selling bikes while losing about six times what each one brings in. sec
The part of the business that comes closest to working is the kids’ bikes. LiveWire’s STACYC balance-bike unit sold 6,992 units, up 20% from 5,805 and brought in more revenue than the motorcycles. It still lost money, though less. livewire
How long the cash lasts
LiveWire had $39.9M at September 30, 2026, down from $82.8M at December 31, 2025. Over the first nine months it burned about $40 million of free cash flow, or roughly $4.5 million a month. At that rate, the money runs out around mid-2027 unless something changes. livewire
Then there’s the debt. Harley-Davidson provided up to $75.0 million under an Amended and Restated Delayed Draw Term Loan Agreement. The Company borrowed the full $75.0 million on December 15, 2025. The maturity date is December 15, 2027. The loan is “collateralized by a security interest in substantially all of the assets of the Company.” LiveWire Group, Inc. – Form 10-Q – FY2026 +2
If LiveWire fails, Harley is first in line, because its loan is secured by almost everything LiveWire owns. Patents and tooling included. In practice, Harley could end up back in control of LiveWire’s assets without having to put in any more money.
Harley isn’t offering a rescue. Its own earnings release lists as a risk “the ability of LiveWire to obtain sufficient funding from sources other than the Company to sustain its operations.” The key words are “other than the Company.” Translation: don’t expect Harley to keep covering the losses. sec
A new boss brought in to restructure
The leadership changes are louder than the numbers. CEO Karim Donnez resigned on October 21, 2026. The next day, the board “formed a special restructuring committee of the Board.” The committee appointed Roy Gallagher as CRO, meaning chief restructuring officer, and made him the company’s top executive. LiveWire Group, Inc. – Form 10-Q – FY2026 +2
Companies appoint a restructuring officer when the job is to cut costs and negotiate with creditors and buyers, not to launch new products. LiveWire says it “continues to evaluate and pursue comprehensive financing and other strategic alternatives.” Those options include raising money, finding a partner or selling the company. livewire
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LiveWire can try to sell new shares, but its stock-sale program depends on H-D Board approval, since LiveWire is a controlled company. So far that program has raised $1.6 million, which covers about ten days of losses at the current rate. The stock has struggled too: the NYSE warned LiveWire this summer after its average closing price had been below $1.00 over 30 trading days. LiveWire Group, Inc. – Form 10-Q – FY2026 +2
What it means if you own one
If you own one, or are eyeing a discounted one, read this part twice.
- Warranty. LiveWire’s warranty reserve totals $2,226 thousand. That’s fine while the company is running. If it went through bankruptcy, warranty claims would generally sit behind secured creditors like Harley. Keep every service record and get any warranty issues fixed now, not later. sec
- Parts and service. LiveWire depends on Harley for services, including quality and safety testing, and on contract manufacturers, including H-D and KYMCO. Those working relationships are why the bikes are likely to stay supported. Harley has little reason to let a product carrying its name lose parts support. sec
- Insurance. The sleeper issue is insurance. If an EV battery pack or a model-specific motor becomes hard to get, insurers may declare a repairable bike a total loss. If you’re on a standard policy, check whether agreed-value coverage makes sense for you.
- Dealers. LiveWire had 111 independent retail partners and one Company-owned dealership. Before you buy, ask your dealer how service would be handled if the company’s ownership changes. sec
- Buyers. Discounts on new bikes may get bigger as the company tries to raise cash. A cheaper LiveWire One can be a good deal for someone who knows the risks. Read the warranty terms before you sign, not after.
The bigger picture
LiveWire’s financial statements show an accumulated deficit was $356.0 million. That’s the total amount it has lost since it started. Sales are growing. The cash is shrinking faster. sec
If a LiveWire dealer offers you a deep discount this winter, does the warranty risk kill the deal, or is that exactly when you start negotiating?