Liverpool's annual Pride event and the city's March with Pride have been cancelled amid "significant financial and organisational challenges".
LCR Pride Foundation, which organises the event, which was due to take place on 26 July, said "with great sadness" it would "regretfully" not go ahead.
The charity said rising costs and difficulty securing funding had made it "impossible to bring Pride in Liverpool this year".
About 60,000 people turned out for last year's event, the largest number ever to attend.
LCR Pride Foundation's board of directors said: "In recent months the charity has faced significant financial and organisational challenges, which have impacted timescales and resulted in it reverting to an almost entirely volunteer-led operation.
"This, combined with rising costs and difficulty securing national and local funding, has made it impossible to bring Pride in Liverpool to the city this year."
"We are devastated we will not be able to march together this year, at a time when coming together to stand in solidarity, protest and celebration is needed more than ever, and we understand how difficult this will be for our community."
They added: "However, we strongly believe it is the right decision to ensure both the continuation of the organisation and to enable the return of Pride in Liverpool and our march in 2026."
It said discussions with Liverpool City Council and a number of sponsors were already under way for next year's event and it was exploring other ways to bring the community together later in the year.
Councillor Harry Doyle, the council's cabinet member for health, wellbeing and culture, said it was "hugely disappointing, especially given the success of last year's event".
He continued: "I know it's a decision LCR Pride Foundation has tried valiantly to avoid. However, given the difficult circumstances they find themselves in it's also understandable and from a long-term point of view, it's the right decision for them."
