I've been on and off of a low carb diet for about a year. Started at 180. Now at 155 - as lean as I've ever been. A noticeable difference in both improved energy levels and mental clarity on the diet - which is far more important to me than a few extra pounds of muscle mass.
Burn more calories than you take in. That's how you lose weight. Doesn't matter how you do it - whether you're dieting, lifting, biking, running, and/or whatever. If you eat an three pizzas and a chocolate cake by yourself after working out for 8 hours, you're probably not going to lose fat stores.
I also monitor my ketones and I think it's a good motivator actually. Once I'm in ketosis, I don't want to lose it. So it keeps me going on the diet.