LiveWire Group, Inc.LVWR
LiveWire Group, Inc. Revenue Disclosure
Revenue
The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue.
Disaggregated revenue, net by major source was as follows for the years ended December 31, (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Electric Motorcycles | |||||||||||||||||
| Electric motorcycles | $ | 4,691 | $ | 7,644 | $ | 11,087 | |||||||||||
| Parts, accessories and apparel | 1,373 | 737 | 461 | ||||||||||||||
| $ | 6,064 | $ | 8,381 | $ | 11,548 | ||||||||||||
STACYC | |||||||||||||||||
| Electric balance bikes and electric bikes | $ | 15,808 | $ | 14,043 | $ | 22,865 | |||||||||||
| Parts, accessories and apparel | 3,800 | 4,209 | 3,610 | ||||||||||||||
| $ | 19,608 | $ | 18,252 | $ | 26,475 | ||||||||||||
| Total Revenue, net | $ | 25,672 | $ | 26,633 | $ | 38,023 | |||||||||||
Revenue from the sale of LiveWire One electric motorcycles, electric balance bikes, electric bikes, as well as parts and accessories and apparel are recorded when control is transferred to the customer, generally at the time of shipment to independent dealers and distributors or at the time of delivery to retail customers. In March 2025, STACYC launched an adult pedal assist electric bike (“electric bike”) that can operate with or without a battery. Currently, the electric bike is only sold with batteries and revenue related to both performance obligations is recognized when control is transferred to the customer, as discussed above. S2 electric motorcycles, being motorcycles produced from LiveWire’s S2 platform using the Arrow Architecture model, contain two performance obligations, which is the sale of the electric motorcycle and a stand ready obligation to transfer Firmware Over The Air (“FOTA”) software updates to the electric motorcycle, when-and-if available, to the customer. Revenue on the sale of the S2 electric motorcycles is recorded at a point-in-time when control is transferred to the customer. As the unspecified FOTA software updates to S2 electric motorcycles are provided when-and-if they become available, revenue related to these updates is recognized ratably over the period the updates will be provided, estimated by management to be five years, commencing when control of the electric motorcycle is transferred to the customer. The standalone selling prices of performance obligations are estimated by considering costs to develop and deliver the good or service, third-party pricing of similar goods or services and other information that may be available. The Company allocates the transaction price among the performance obligations in proportion to the standalone selling price of the Company’s performance obligations.
The Company offers sales incentive programs to independent dealers, distributors and retail customers designed to promote the sale of its products. The Company estimates its variable consideration related to its sales incentive programs using the expected value method. The Company accounts for consideration payable as part of its sales incentives as a reduction of revenue, which is accrued at the later of the date the related sale is recorded or the date the incentive program is both approved and communicated. Variable consideration related to sales incentives and rights to return is adjusted at the earliest of when the amount of consideration the Company expects to receive changes, or the consideration becomes fixed.
During the first quarter of 2024, the Company revised its retail partner strategy in the Electric Motorcycles segment and introduced new incentives with its retail partners. During the third quarter of 2024, the Company introduced additional incentives. As a result of the incentives in 2024, for the year ended December 31, 2024, the Company recorded $848 thousand of adjustments for variable consideration related to previously recognized sale. Adjustments for variable consideration related to previously recognized sales was not material for the year ended December 31, 2023.
In July 2025, the Company announced a new retail partner incentive program effective through December 31, 2025. In August 2025, the Company announced the “Twist & Go Promotion” offering temporary incentives from August 28, 2025 to October 31, 2025 on S2 electric motorcycles. In late October 2025, the Company approved and subsequently announced the extension of the Twist & Go Promotion through December 15, 2025. As a result of these incentives in 2025, for the year ended December 31, 2025, the Company recorded $987 thousand of adjustments for variable consideration related to previously recognized sales.
The Company offers the right to return eligible parts and accessories and apparel, electric balance bikes, electric bikes, and, in limited circumstances, on electric motorcycles. The Company estimates returns based on an analysis of historical trends and probability of returns and records revenue on the initial sale only in the amount that it expects to be entitled. The remaining consideration is deferred in a refund liability account. The refund liability is remeasured for changes in estimate at each reporting date with a corresponding adjustment to revenue. The Company records a refund asset at the carrying amount of the goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value as a reduction to Cost of goods sold. This amount is monitored and adjusted for any impairment as necessary. The refund asset of $298 thousand and $377 thousand were included in Other current assets as of December 31, 2025 and 2024, respectively, and $326 thousand and $154 thousand of the refund liability were included in Accrued liabilities as of December 31, 2025 and 2024, respectively, in the Company’s consolidated balance sheets. The remainder of the refund liability as of December 31, 2024 of $252 thousand was recorded as an offset to Accounts payable to related party, in the Company’s consolidated balance sheets, as this amount was repaid to Harley-Davidson Financial Services (“HDFS”), a wholly-owned subsidiary of H-D.
Shipping and handling costs associated with freight after control of a product has transferred to a customer are accounted for as fulfillment costs in Cost of goods sold. The Company accrues for the shipping and handling in the same period that the related revenue is recognized.
The Company offers standard, limited warranties on its electric motorcycles, electric balance bikes, electric bikes, and parts and accessories. These warranties provide assurance that the product will function as expected and are not separate performance obligations. The Company accounts for estimated warranty costs as a liability when control of the product transfers to the customer.
Contract Liabilities
The Company maintains certain contract liability balances related to payments received at contract inception in advance of the Company’s performance under the contract that generally relates to customer deposits for electric balance bikes, electric bikes, and electric motorcycles and consideration received upon transfer of control of the S2 motorcycles for FOTA software updates. Contract liabilities are recognized as revenue once the Company performs under the contract. The current portion of contract liabilities of $662 thousand and $174 thousand were included in Accrued liabilities and the long-term portion of contract liabilities of $410 thousand and $393 thousand were included in Other long-term liabilities in the Company's consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively. The Company expects to recognize $410 thousand included in Other long-term liabilities over the next five years.
Previously deferred revenue recognized as revenue in 2025 and 2024 was $122 thousand and $125 thousand, respectively.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.