PodcastOne, Inc. (PODC) 2025 10-K Review

In this in-depth review, we dissect the annual report (Form 10-K) for PodcastOne, Inc. (Nasdaq: PODC) for the fiscal year ended March 31, 2025. We explore the company’s business model, financial performance, key metrics, risk factors, and future outlook. Whether you’re a prospective investor, a podcast industry enthusiast, or a market analyst, this post will give you the essential insights you need.

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Table of Contents

1. Business Overview
2. Revenue Model & Key Metrics
3. Fiscal 2025 Financial Highlights
4. Detailed Results of Operations
   • Revenue
   • Cost of Sales
   • Operating Expenses
   • Other Income (Expense)
5. Non-GAAP Measures
6. Liquidity & Capital Resources
7. Balance Sheet Health
8. Cash Flow Analysis
9. Key Risks & Uncertainties
10. Investment Thesis & Score
11. Conclusion

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1. Business Overview

PodcastOne, Inc. is a leading podcast platform and publisher. The company distributes over 275 weekly episodes across 300 shows through its own website and app, and via Apple Podcasts, Spotify, Amazon Music and more. They cater to 6 million monthly unique listeners and record over 200 million annual downloads.

Services and revenue sources include:

• Host-read Ads (embedded, long-form)
• Dynamic Ads (pre-, mid-, post-roll)
• Segment Sponsorships
• Branded Series & Merch
• Programmatic Ad Sales

PodcastOne also operates LaunchpadOne, a free self-publishing platform for independent podcasters, which serves as a talent pool for new show acquisitions.

Ownership and Listing:

• Majority-owned subsidiary of LiveOne, Inc. (Nasdaq: LVO)
• Completed spin-out and direct listing in September 2023 under PODC
• Operates from Beverly Hills, CA (1,398 sq ft studio & office)

2. Revenue Model & Key Metrics

Ad-Supported Framework

PodcastOne’s model is ad-supported audio and video streaming. Advertisers buy slots by CPM (cost per mille), purchasing impressions across episodes. Revenue recognition follows delivery of impressions.

LaunchpadOne

Independent podcasters use LaunchpadOne for free hosting and distribution. PodcastOne monetizes these shows programmatically, while creators keep 100% of any self-sold ads.

Key Metric

Podcast Downloads (fiscal year ended 3/31):

• 2025: 204.7 million
• 2024: 368.8 million
• Year-over-year change: –44%

Drivers of the drop: Apple iOS 17 download attribution change; non-revenue partner departures.

This single metric best reflects listener engagement and ad inventory potential.

3. Fiscal 2025 Financial Highlights

USD in millions, except per-share figures

Metric	FY 2025	FY 2024	YoY %
Revenue	52.1	43.3	+20%
Cost of Sales	(47.4)	(37.3)	+27%
Gross Profit	4.7	5.9	–20%
Operating Expenses	(11.2)	(11.0)	+2%
Operating Loss	(6.4)	(5.0)	–28%
Net Loss	(6.5)	(14.7)	+56%
EPS (loss)	(0.26)	(0.68)	—

• Non-GAAP Adjusted EBITDA: $(3.1)M vs. $(10.1)M in FY 2024
• Free Cash Flow: $(0.2)M vs. $2.2M in FY 2024

4. Detailed Results of Operations

Revenue: $52.1M (+20%)

• Strong ad inventory sales growth, led by the top customer (94% of increase)
• Mixture of host-read and programmatic ads

Cost of Sales: $47.4M (+27%)

• Revenue share for talent and commissions.
• Margin pressure as splits remain constant.

Operating Expenses

Sales & Marketing: $3.5M (–24%)

• Lower spend on show promotions compared to prior year.

Product Development: $0.05M (–39%)

• Less project activity year-over-year.

G&A: $6.2M (+14%)

• Rise in stock-based comp (grant timing) + legal & audit fees.

Depreciation & Amortization: $1.4M (+21%)

• More content-related intangibles, routine D&A.

Impairments: $0.33M (FY 2025)

• Abandonment of certain acquired show / software assets.

Other Income (Expense)

• 2025: $0.0M
• 2024: $(9.7)M
  • Loss on revaluation of convertible derivative
  • Interest on bridge loan

Income Taxes

• Low expense related to state & local apportionments (deferred tax outlook remains uncertain)

5. Non-GAAP Measures

Metric	FY 2025 (non-GAAP)	FY 2024 (non-GAAP)
Contribution Margin	$4.7M	$6.0M
Adj. EBITDA	$(3.1)M	$(10.1)M
FCF	$(0.2)M	+$2.2M

Why it matters: Excludes non-cash and one-time items to show underlying operating performance.

6. Liquidity & Capital Resources

Cash & Equivalents: $1.1M

Debt & Equity Financing

• 2022 Bridge Loan → 2023 direct‐listing conversion (2.34M shares)
• Capchase Loan: $1.7M secured, 8% interest, matures 30 months post-closing
• ABL Credit Facility paydown via May 2025 debentures issuance ($16.8M OID debentures)
• Total consolidated debt as of May 31, 2025: $17.4M net of fees

Going Concern

• Recurring net losses and minimal cash buffer
• Continued profitability depends on ad sales growth, cost control, and successful debt service

7. Balance Sheet Health

• Net Working Capital: $1.5M
• Total Liabilities: $6.1M
• Total Equity dwindles as losses accumulate

Capital Structure

• Majority-owned by LiveOne, Inc. (Nasdaq: LVO)
• Dual controls / related-party activity requires careful monitoring

8. Cash Flow Analysis

	FY 2025	FY 2024
Cash from Ops	$(0.2)M	+$2.2M
Cash from Inv	$(0.2)M	$(0.8)M
Cash from Fin	+$0.6M	(—)
Net Δ in Cash	+$0.2M	+$1.5M

• Ops: loss narrowed, but still negative
• Investing: capex & acquired show costs
• Financing: Bridge conversion & new debentures

9. Key Risks & Uncertainties

1. Net Loss Trend: Recurring losses.
2. High Leverage: $17.4M debt; covenants with cash-balance requirements.
3. Content Costs: Rising MGs, revenue shares.
4. Download Declines: –44% yoy from iOS 17 attribution and partner exits.
5. Concentration: Single customer drives 94% of ad growth.
6. Cash Burn: Negative operating cash flow.
7. Related-Party: Ongoing majority control by LiveOne.
8. Accounting: Recent restatements & internal control concerns.

10. Investment Thesis & Score

Upside

• 20% ad revenue growth as podcast ad budgets shift from traditional media
• White-glove service model & strong host relationships
• Opportunity to monetize LaunchpadOne pipeline

Downside

• Weak free cash flow and recurring net losses
• High leverage and refinancing risk
• Declining download metric and dependency on single top customer

Score: 4.2 / 10

Weighing the strong revenue growth against chronic losses, weakened listener metrics, and leverage, PodcastOne presents a high-risk proposition. There is potential if management can diversify ad base, stabilize downloads, and convert losses to profitability. Until then, valuation remains speculative.

11. Conclusion

PodcastOne leads in independent podcast publishing with a differentiated service offering. However, the company suffers recurring operating losses, negative free cash flow, and a leveraged balance sheet. While ad revenue is growing, reliance on a top customer and steep download declines hamper stability.

Any turnaround hinges on broadening advertiser relationships, regaining lost downloads, and prudently managing cash and debt. Investors seeking growth should monitor listener trends and debt covenant compliance closely. Those seeking stability may find the risks outweigh the potential rewards at this score.

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This article is for informational purposes only and does not constitute a buy or sell recommendation.