Liveperson (LPSN) AI Stock Analysis

• Market Cap: $58.13M
• Dividend Yield: N/A
• Average Volume (3M): 407.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: -23.03%
• EPS Growth: -107.34%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.91
• Shares Outstanding: 10,039,606
• 10 Day Avg. Volume: 553,535
• 30 Day Avg. Volume: 407,389
• PEG Ratio: -0.06
• Price to Book (P/B): -2.00
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -3.35
• Enterprise Value/Market Cap: 8.10
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: -14.11
• 1Y Price Target: $8.00
• Price Target Upside: 61.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $6.00 ▲(21.46% Upside)

Liveperson's overall stock score is primarily impacted by its weak financial performance and valuation, which are significant concerns. While the earnings call provided some positive insights with exceeded guidance and strategic initiatives, the technical analysis indicates bearish trends. The company's financial instability and negative valuation metrics weigh heavily on the overall score.

Positive Factors

Product Innovation

The new Conversation Simulator reduces agent ramp time by 30% and AI bot testing time by 60%, enhancing operational efficiency and customer satisfaction.

Strategic Partnerships

The expansion into Google Cloud Marketplace and new product integrations with Google enhance distribution channels and technological capabilities.

Financial Guidance

Raising full-year revenue and EBITDA guidance indicates management's confidence in business performance and potential for improved financial stability.

Negative Factors

Revenue Decline

A significant decline in hosted services revenue suggests challenges in maintaining customer engagement and market share in core offerings.

Financial Health

Negative equity and high leverage increase financial risk, limiting the company's ability to invest in growth and weather economic downturns.

Cash Flow Challenges

Negative operating cash flow indicates ongoing cash burn, which could strain liquidity and limit the company's ability to fund operations sustainably.

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 faces significant financial challenges with declining revenues, substantial losses, high leverage, and negative cash flows. Despite strong gross profit margins and some improvement in free cash flow, the overall financial health is concerning due to negative equity and ongoing operational inefficiencies.

Income Statement

Liveperson's income statement reveals significant challenges. The company has experienced declining revenue growth, with a negative growth rate in recent periods. Gross profit margins remain relatively strong at over 70% in TTM, but the net profit margin is deeply negative, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a precarious financial position. The company has a negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates high leverage and financial risk. Return on equity is positive in TTM due to negative equity, but this is not a positive indicator. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis indicates some improvement in free cash flow growth, but operating cash flow remains negative, suggesting ongoing cash burn. The free cash flow to net income ratio is positive, indicating that free cash flow exceeds net income losses, but the operating cash flow to net income ratio is negative, showing inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.66M	312.47M	401.98M	514.80M	469.62M	366.62M
Gross Profit	186.00M	219.07M	259.16M	330.10M	312.74M	260.35M
EBITDA	-33.38M	-21.80M	-31.68M	-167.90M	-53.12M	-64.42M
Net Income	-133.26M	-134.27M	-100.44M	-225.75M	-124.97M	-107.59M
Balance Sheet
Total Assets	511.45M	607.78M	835.51M	1.09B	1.19B	1.01B
Cash, Cash Equivalents and Short-Term Investments	106.66M	183.24M	210.78M	391.78M	521.85M	654.15M
Total Debt	382.41M	527.23M	591.89M	742.83M	584.09M	554.82M
Total Liabilities	512.84M	675.09M	787.38M	1.02B	837.22M	762.50M
Stockholders Equity	-1.39M	-67.32M	48.14M	68.09M	349.44M	243.93M
Cash Flow
Free Cash Flow	-39.44M	-43.35M	-48.42M	-110.59M	-45.07M	-9.87M
Operating Cash Flow	-23.90M	-15.13M	-19.77M	-62.10M	3.25M	33.60M
Investing Cash Flow	-15.93M	-28.22M	-18.84M	-56.86M	-140.25M	-43.48M
Financing Cash Flow	3.98M	14.97M	-151.14M	1.62M	11.84M	483.84M

Liveperson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4.94 is below the 20-day moving average (MA) of 5.41, below the 50-day MA of 6.72, and below the 200-day MA of 11.94, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPSN.

Liveperson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	79 Outperform	$275.92M	8.23	49.42%	―	-0.32%	557.28%
SMRT	62 Neutral	$329.21M	―	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$581.44M	―	-26.69%	―	13.09%	32.34%
ONTF	54 Neutral	$235.94M	―	-20.20%	―	-6.23%	28.57%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
LPSN	46 Neutral	$58.13M	-0.19	-605.44%	―	-23.03%	-107.34%

Liveperson Corporate Events

LivePerson Appoints Nathan Lane as New Director

On November 7, 2025, LivePerson, Inc. appointed Nathan “Tripp” Lane as a Class II director, with his term expiring at the 2026 Annual Meeting of Stockholders. This appointment follows an Exchange Agreement with former holders of the company’s 0% Senior Convertible Notes due 2026. Mr. Lane, founder of Delancey Cove LLC and a former director at several companies, brings extensive experience from his previous roles in investment and advisory firms. His appointment is expected to enhance LivePerson’s governance and strategic direction.

The most recent analyst rating on (LPSN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

LivePerson Exceeds Guidance Amidst Revenue Challenges

LivePerson’s recent earnings call revealed a generally positive sentiment, underscored by strong financial performance that exceeded guidance, innovative product developments, and growing customer confidence. However, the call also highlighted some challenges, particularly in the decline of hosted and professional services revenue.

LivePerson Reports Strong Q3 2025 Financial Results

LivePerson, Inc. is a prominent provider of conversational AI and digital transformation solutions, serving a diverse range of global brands with its innovative Conversational Cloud platform.

LivePerson Appoints Ryan Vardeman to Board of Directors

On October 14, 2025, LivePerson appointed Ryan L. Vardeman as a Class III director on its Board of Directors, with his term set to expire at the 2027 Annual Meeting of Stockholders. Vardeman, co-founder of Palogic Value Management, brings extensive experience in finance, corporate strategy, and investment management, particularly in technology and software sectors. His appointment follows an Exchange Agreement involving the company’s 2026 Notes. The company believes Vardeman’s expertise will support its strategic goals and enhance shareholder value.

The most recent analyst rating on (LPSN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

LivePerson Approves Reverse Stock Split for Nasdaq Compliance

On October 2, 2025, LivePerson’s stockholders approved a reverse stock split at a ratio of 1-for-15, which was later ratified by the Board of Directors. This decision, effective October 13, 2025, aims to reduce the number of authorized common shares from 300 million to 20 million and adjust the company’s equity plans, warrants, and convertible notes accordingly. The reverse stock split is expected to impact the company’s trading on the Nasdaq Global Select Market, potentially aiding compliance with listing requirements and influencing the company’s market positioning.

The most recent analyst rating on (LPSN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

LivePerson Approves Amendments to Incorporation Certificate

On October 2, 2025, LivePerson, Inc. held a special meeting where stockholders approved significant amendments to the company’s Certificate of Incorporation. The amendments included a reverse stock split of the Common Stock, with a ratio to be determined by the Board, and an increase in the number of authorized shares of Common Stock by 1.5 times. These changes led to the conversion of all Series B Preferred Stock into Common Stock, with the new shares expected to be issued on October 7, 2025.

The most recent analyst rating on (LPSN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

LivePerson Completes Strategic Refinancing to Reduce Debt

On September 15, 2025, LivePerson announced the successful completion of a strategic refinancing effort, which involved a significant deleveraging transaction. This move reduced the company’s debt by $226 million and extended debt maturities to December 2029, enhancing financial stability and positioning LivePerson to generate positive cash flow in 2026. The transaction also captured a $181 million debt discount, benefiting shareholders and reinforcing LivePerson’s commercial profile as a reliable long-term partner.

The most recent analyst rating on (LPSN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

LivePerson’s Earnings Call: AI Growth Amid Revenue Challenges

The recent earnings call for LivePerson presented a mixed sentiment, reflecting both promising advancements and notable challenges. While the company celebrated achievements such as a successful refinancing agreement and increased adoption of their AI solutions, these positives were tempered by revenue declines and difficulties in securing new bookings and renewals, particularly among larger clients.