Love Group Ltd (LVE) AI Stock Analysis

• Market Cap: AU$4.86M
• Dividend Yield: 55.56%
• Average Volume (3M): 17.09K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.18
• Revenue Growth: -5.51%
• EPS Growth: 38.41%
• Country: AU
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 40,534,170
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 17,089
• PEG Ratio: 0.14
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 7.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$0.14 ▲(95.71% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid financial performance (strong margins and a conservative balance sheet) and very attractive valuation (low P/E and high dividend yield). Technicals are supportive due to an uptrend, but the overbought RSI and the latest-year revenue/cash-flow volatility temper the overall rating.

Positive Factors

High gross margins

Consistently ultra-high gross margins indicate a structurally scalable, low-variable-cost business model or strong pricing power in its niche. Such margins provide durable earnings insulation versus revenue swings and support long-term profitability and reinvestment when top-line recovers.

Conservative balance sheet

Very low leverage and meaningful equity growth deliver financial flexibility and lower default risk. This conservative capital structure sustains dividend capacity and enables investment or restructuring without near-term refinancing pressure during industry cycles.

Strong cash conversion & ROE

Near-1.0 FCF-to-net-income conversion shows reported profits are largely cash-backed, while very high recent ROE signals efficient capital use. Together these traits support sustainable cash returns and internal funding of growth or shareholder distributions over the medium term.

Negative Factors

Sharp revenue contraction

A dramatic year-over-year revenue decline undermines confidence in the stability of the business model and casts doubt on the durability of recent margins. Persistent or repeated top-line shocks reduce predictability for cash flows, investments, and payout policies.

Inconsistent cash flow growth

Volatile free cash flow growth limits the company's ability to reliably fund capex, acquisitions or dividends without tapping reserves. This inconsistency raises execution risk and lowers the margin of safety for sustaining distributions during downturns.

Historical operational swings

Prior periods of high leverage and a deeply negative ROE demonstrate the business can swing from strong returns to loss-making quickly. That history signals structural sensitivity to demand or execution shocks, increasing long-term operational risk despite current strength.

Love Group Ltd Business Overview & Revenue Model

Company Description

Love Group Global Ltd, together with its subsidiaries, provides social and dating products and services in Oceania, Asia, and Europe. The company offers Datetix, Lovestruck, and Noonswoon online dating applications. It also provides personalized matchmaking services; and member events, as well as operates lounge business. The company was formerly known as Datetix Group Ltd and changed its name to Love Group Global Ltd in May 2017. Love Group Global Ltd was incorporated in 1982 and is based in Perth, Australia.

How the Company Makes Money

Love Group Ltd generates revenue primarily through subscription fees charged to users of its online dating platforms. Users can access basic services for free, but advanced features and enhanced matchmaking services are available through tiered subscription packages. Additional revenue streams include advertising partnerships with companies targeting the dating and relationship market. The company may also engage in strategic partnerships or collaborations to expand its user base and enhance service offerings.

Love Group Ltd Financial Statement Overview

Summary

Strong profitability recovery with very high gross margins and solid recent EBIT/net margins, supported by a low-leverage balance sheet. Offsetting this is high volatility, including a sharp reported revenue contraction and weaker cash flow growth in 2025.

Income Statement

Profitability has strengthened materially versus the 2021 loss year, with 2025 showing solid operating and net margins (EBIT margin ~17%, net margin ~19%) and a clear multi-year step-up from 2022–2024. Gross margin is very strong across the period (mid-90%+ recently). The main weakness is growth: revenue swung from strong expansion in 2022–2024 to a sharp decline in 2025 (reported revenue growth of -113%), highlighting volatility and limiting confidence in the durability of recent earnings.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt in 2023 and 2025 (and only minimal debt in 2024), keeping leverage risk very low. Equity has grown meaningfully since 2022, and returns on equity are strong in the most recent years (2025 ROE ~63%). The key watch-out is historical volatility: leverage was higher in 2020–2021 and ROE was deeply negative in 2021, indicating the business can experience sharp swings in performance even if current balance sheet risk is modest.

Cash Flow

Free cash flow conversion looks strong, with free cash flow closely matching net income in each year (near 1.0), suggesting reported profits are generally backed by cash generation. However, operating cash flow coverage remains moderate (roughly 0.14–0.55 across the years), and cash flow growth is inconsistent, including a steep decline in 2025 (free cash flow growth of -4.927). Overall, cash generation is positive but volatile, and the latest year shows pressure.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.44M	4.70M	3.99M	3.61M	2.69M
Gross Profit	4.44M	4.40M	3.80M	3.55M	2.34M
EBITDA	777.42K	536.99K	376.58K	275.17K	-224.02K
Net Income	849.04K	611.05K	203.32K	204.95K	-597.04K
Balance Sheet
Total Assets	2.56M	2.64M	2.20M	1.60M	1.67M
Cash, Cash Equivalents and Short-Term Investments	2.52M	2.60M	2.15M	1.42M	1.38M
Total Debt	0.00	1.93K	0.00	64.51K	250.27K
Total Liabilities	1.21M	1.29M	1.45M	1.04M	1.29M
Stockholders Equity	1.36M	1.36M	750.74K	557.74K	376.83K
Cash Flow
Free Cash Flow	652.65K	457.60K	790.03K	141.78K	96.97K
Operating Cash Flow	653.72K	457.60K	792.85K	147.21K	97.62K
Investing Cash Flow	71.00K	0.00	-2.82K	-5.43K	358.00
Financing Cash Flow	-812.07K	0.00	-144.03K	-160.42K	-192.36K

Love Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LVE, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 94.35 is Negative, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LVE.

Love Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVE	78 Outperform	AU$4.86M	5.49	62.59%	55.56%	-5.51%	38.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RNT	52 Neutral	AU$56.83M	-4.52	-150.45%	―	0.72%	17.24%
SHO	47 Neutral	AU$111.20M	-7.19	―	―	340.15%	-168.75%
RMY	45 Neutral	AU$38.53M	-2.82	―	―	12.70%	71.21%
CHL	45 Neutral	AU$25.08M	-2.39	-31.81%	―	-12.00%	-95.07%
TNY	40 Underperform	AU$15.03M	-3.88	-89.43%	―	-10.12%	66.90%

Love Group Ltd Corporate Events

Love Group Delivers Record Operating Cash Flow as Hong Kong Matchmaking Strengthens

Love Group Global reported record net operating cash flow of $369,000 for the second quarter of FY26, supported by quarterly customer cash receipts of $1.042 million, which rose 2% quarter-on-quarter but fell 12% year-on-year. Hong Kong drove growth with a 6% quarterly and annual increase in receipts to $590,000, while Singapore declined 4% quarter-on-quarter and 27% year-on-year to $451,000, and overall cash on hand fell to $1.689 million after a capital return and modest investing outflows. Management kept quarterly expenditure in line with budget, focusing $208,000 on advertising and marketing and $351,000 on staff costs, while pursuing a growth strategy centered on scaling matchmaking operations in core Asian markets, expanding singles events, and testing international expansion into the US and UK.

The most recent analyst rating on (AU:LVE) stock is a Buy with a A$0.10 price target. To see the full list of analyst forecasts on Love Group Ltd stock, see the AU:LVE Stock Forecast page.