LiveWire enters restructuring after CEO exit as Q3 sales grow but cash runs low
B2B-News | LiveWire Group, the Harley-Davidson-controlled electric motorcycle company, is going through the most uncertain period since it went public in 2022. In just over a week, its CEO stepped down, the board brought in a restructuring specialist, and the company said there is substantial doubt it can keep operating for another year. At the same time, its third-quarter figures show sales and losses moving in the right direction. Both things are true.
Leadership change
Karim Donnez resigned as CEO effective October 21, 2026, and no new CEO has been named. Instead, Roy Gallagher was appointed Chief Restructuring Officer and serves as the principal executive officer. Gallagher is a Senior Managing Director at Ankura Consulting Group with more than two decades of financial experience, and he reports to the committee.
Q3 2026: growth in units and revenue
The quarterly numbers, published on October 29, show growth across the business. Consolidated revenue rose 38% to $7.9 million, from $5.7 million a year earlier. Total units grew 21% to 7,233. The operating loss narrowed to $17.5 million from $18.8 million, and the net loss came in at $18.6 million, compared with $19.4 million.
The electric motorcycle segment was the main driver. LiveWire sold 241 motorcycles in the quarter, up 31% from 184. Segment revenue rose 178% to $2.7 million, and the operating loss improved to $17.0 million from $18.4 million. Part of the revenue jump reflects a weak base: Q3 2025 revenue had been reduced by higher incentives used to stimulate demand.
STACYC, the electric balance bike brand for children, remains the volume business. It sold 6,992 units, up 20%, with revenue up 9% to $5.2 million. Its operating loss grew slightly to $0.6 million, mainly due to higher freight costs.
Over the first nine months, revenue reached $22.1 million versus $14.3 million in the same period of 2025, while the operating loss fell to $53.2 million from $57.7 million. Cash used by operations dropped 16% to $38.3 million.
On the product side, LiveWire delivered the first S4 Honcho Trail units in the US in August and the S4 Honcho Street reached US dealers in October. European deliveries of the Trail were expected in October, with the Street following in November. The company also reports an 80% share of the US on-road electric motorcycle segment above 50 kW through September.
The balance sheet
The issue is not the direction of the numbers, but the size of the gap and the cash left to bridge it. Cash stood at $39.9 million on September 30, down from $82.8 million at the end of 2025. Shareholders’ equity turned negative at minus $5.5 million, from plus $46.0 million at year-end. The related-party term loan stood at $76.8 million. That loan comes from LiveWire’s majority shareholder. Related-party interest added $1.5 million in costs during the quarter.
Going concern warning
Management concluded there is substantial doubt about the company’s ability to continue as a going concern within one year of issuing its September 30 financial statements, citing recurring losses, negative operating cash flow, limited liquidity and future funding needs. The options under review include significant capital raises, strategic partnerships or investments, and sales, though the company says there is no guarantee any of these will succeed or be available on acceptable terms. The board pointed to a debt maturity in December 2027 as a factor in setting up the restructuring committee.
What comes next
More detail on liquidity, management’s plans and the going concern assessment will be included in the 10-Q filing, expected on or before November 9, 2026. LiveWire was also expected to present at EICMA next week, including the production version of the Dust Hightail off-road model. Whether those plans go ahead unchanged, and what role Harley-Davidson will play in any financing or transaction, are the key questions for the coming weeks.