Liveperson (LPSN) AI Stock Analysis

• Market Cap: $56.08M
• Dividend Yield: N/A
• Average Volume (3M): 407.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• 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: 11,857,018
• 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: 8.40
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: -14.11
• 1Y Price Target: $8.00
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $5.00 ▲(11.61% Upside)

LivePerson's overall stock score is driven by significant financial challenges, including negative equity and ongoing losses. While recent earnings and corporate events show promise, the technical and valuation aspects remain weak, reflecting high risk and limited appeal.

Positive Factors

Strategic Partnerships

The expansion of LivePerson's platform to Google Cloud Marketplace opens new growth channels, enhancing market reach and product integration.

Product Innovation

The Conversation Simulator enhances operational efficiency and customer service, strengthening LivePerson's competitive edge in AI solutions.

Debt Refinancing

The refinancing reduces debt by $226 million and extends maturities, improving financial stability and cash flow potential.

Negative Factors

Revenue Decline

Declining revenue in core services indicates potential challenges in maintaining market share and customer retention.

High Leverage

High leverage and negative equity increase financial risk, potentially limiting strategic flexibility and investment capacity.

Negative Cash Flow

Persistent negative cash flow indicates inefficiencies in operations, posing long-term sustainability challenges.

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 a subscription-based model, where businesses pay for access to its conversational AI platform and related services. Key revenue streams include licensing fees from the use of its AI-driven messaging solutions, as well as additional charges for premium features and services. The company also benefits from partnerships with major technology providers and integration with various communication channels, which expand its customer base and enhance service offerings. Significant collaborations with companies in sectors such as e-commerce and customer service further contribute to its earnings by driving demand for its innovative solutions.

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: 4.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 4.48 is below the 20-day moving average (MA) of 4.89, below the 50-day MA of 5.57, and below the 200-day MA of 11.07, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 7.54 is Positive, 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	74 Outperform	$274.84M	7.97	49.42%	―	-0.32%	557.28%
SMRT	62 Neutral	$387.86M	-5.82	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$653.08M	―	-26.69%	―	13.09%	32.34%
ONTF	59 Neutral	$248.20M	-7.75	-20.20%	―	-6.23%	28.57%
RSKD	51 Neutral	$752.04M	-20.67	-10.54%	―	6.54%	-19.17%
LPSN	46 Neutral	$56.08M	-0.16	-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.

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.

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.

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.

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.