Liveperson (LPSN) AI Stock Analysis

• Market Cap: $103.39M
• Dividend Yield: N/A
• Average Volume (3M): 5.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -24.89%
• EPS Growth: -72.84%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): -0.13
• Shares Outstanding: 96,624,954
• 10 Day Avg. Volume: 2,722,772
• 30 Day Avg. Volume: 5,872,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.56
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: -9.17
• 1Y Price Target: $1.25
• Price Target Upside: 14.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-8.26% Downside)

LivePerson's overall stock score is primarily impacted by its poor financial performance, which poses significant risks. While technical analysis and valuation provide little support, recent corporate events and earnings call highlights offer some optimism. However, the company's financial instability remains the most critical concern.

Positive Factors

Business Metrics

Underlying business metrics appear to be improving, suggesting potential future growth.

Customer Concerns

The proposed exchange agreement, if approved, should alleviate customer cap structure concerns.

Profitability

Q1 results came in in-line to better than expected, particularly on the profitability front.

Negative Factors

AI Competition

AI competitive threats remain very real for the business.

Debt Concerns

Balance sheet risk is increasing due to a large amount of convertible notes maturing soon, which could lead to dilutive financing.

Revenue Guidance

FY25 revenue guidance was reduced as a result of elongated sales cycles related to increasing AI competition, the uncertain macro environment, and concerns raised by customers looking to renew regarding the health of LPSN's balance sheet.

Liveperson Business Overview & Revenue Model

Company Description

LivePerson, Inc., together with its subsidiaries, provides conversational commerce software and Gainshare solutions. It operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between experts and users seeking information and knowledge through mobile and online messaging. The company offers the Conversational Cloud, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging. It also provides professional services and value-added business consulting services. The company sells its products through direct and indirect sales channels to Fortune 500 companies, Internet businesses, online merchants, small businesses, automotive dealers, universities, libraries, government agencies, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, and the Asia-Pacific region. The company has strategic partnerships with TTEC that focuses on customer experience; and DMI to redefine customer experience with digital engagement, messaging, and artificial intelligence driven automation. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

How the Company Makes Money

LivePerson generates revenue primarily through subscription fees for its cloud-based conversational AI platform. The company offers various pricing tiers based on the level of service, features, and the volume of interactions handled by its platform. Additionally, LivePerson earns revenue from professional services, including implementation and consulting, as well as from partnerships with other technology providers that integrate its solutions into their offerings. The company's recurring revenue model is bolstered by long-term contracts with clients, ensuring a stable income stream. Significant partnerships with major companies in the retail and telecommunications sectors also contribute to its earnings by expanding its market reach and enhancing the value of its services.

Liveperson Financial Statement Overview

Summary

LivePerson is facing significant financial challenges, including declining revenues, negative profitability, heavy leverage, and negative equity. These issues present substantial risks to the company's financial health.

Income Statement

Liveperson has been experiencing a decline in revenue and profitability. The TTM figures show a significant decrease in total revenue and negative net income, indicating challenges in maintaining profitability. Gross profit margin has decreased, and the company is struggling with negative net and EBIT margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, but high total debt suggests leverage risk. The equity ratio is negative, highlighting the company's heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating issues in generating sufficient cash from operations. The free cash flow to net income ratio is not meaningful due to negative figures. Although financing activities have provided cash inflow, the sustainability of such reliance is questionable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	271.75M	312.47M	401.98M	514.80M	469.62M	366.62M
Gross Profit	192.76M	219.07M	259.16M	330.10M	312.74M	260.35M
EBITDA	-51.36M	-21.80M	-31.68M	-147.52M	-53.12M	-64.12M
Net Income	-170.28M	-134.27M	-100.44M	-225.75M	-124.97M	-107.59M
Balance Sheet
Total Assets	605.04M	607.78M	835.51M	1.09B	1.19B	1.01B
Cash, Cash Equivalents and Short-Term Investments	161.96M	183.24M	210.78M	391.78M	521.85M	654.15M
Total Debt	537.87M	527.23M	591.89M	740.26M	580.35M	551.33M
Total Liabilities	687.45M	675.09M	787.38M	1.02B	837.22M	754.47M
Stockholders Equity	-82.41M	-67.32M	48.14M	68.09M	349.44M	252.62M
Cash Flow
Free Cash Flow	-28.65M	-40.27M	-52.43M	-113.27M	-45.07M	-8.04M
Operating Cash Flow	-13.07M	-15.13M	-19.77M	-62.10M	3.25M	33.60M
Investing Cash Flow	-18.45M	-28.22M	-18.84M	-56.86M	-140.25M	-43.48M
Financing Cash Flow	47.21M	14.97M	-151.14M	1.62M	11.84M	483.84M

Liveperson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPSN, the sentiment is Positive. The current price of 1.09 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.98, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPSN.

Liveperson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPT	62 Neutral	$885.38M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
DSP	59 Neutral	$635.81M	300.60	5.20%	―	30.92%	―
ONTF	54 Neutral	$233.11M	―	-22.60%	―	-6.88%	15.83%
EGHT	52 Neutral	$253.65M	―	-18.25%	―	-0.73%	67.98%
BMBL	50 Neutral	$670.87M	―	-75.71%	―	-5.06%	-2318.18%
LPSN	48 Neutral	$103.39M	―	-137.76%	―	-24.89%	-72.84%

Liveperson Corporate Events

LivePerson Enters Exchange Agreement to Deleverage

On August 11, 2025, LivePerson, Inc. entered into an exchange agreement with holders of its 2026 Convertible Senior Notes, involving a mix of cash, new secured notes, and equity. This transaction aims to deleverage the company’s balance sheet by $226 million, extending its financial runway through 2029 and shifting more enterprise value to shareholders. The exchange is expected to close by the end of September 2025, subject to customary conditions.

LivePerson Appoints Tony Zingale as New Director

On July 11, 2025, LivePerson appointed Tony Zingale as a Class I director, with his term expiring at the 2028 Annual Meeting of Stockholders. Zingale, with over 40 years of experience in the technology industry, brings expertise in enterprise software, product innovation, and operational excellence. His appointment, announced on July 17, 2025, is expected to bolster LivePerson’s strategic objectives in the conversational AI industry, enhancing customer engagement and shareholder value.

LivePerson Stockholders Approve Key Decisions at Annual Meeting

LivePerson held its Annual Meeting of Stockholders virtually on June 25, 2025, where key decisions were made. Stockholders elected Vanessa Pegueros and William G. Wesemann as Class I directors until 2028, ratified BDO USA, P.C. as the independent accounting firm for 2025, approved executive compensation on a non-binding basis, and amended the 2019 Stock Incentive Plan to increase available shares.