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Liveperson
(NASDAQ:LPSN)
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Rating:46Neutral
Price Target:
$2.50
▲(47.93% Upside)
Action:Reiterated
Date:08/08/26
The score is held down primarily by very weak financial performance (shrinking revenue, deep losses, negative equity, and ongoing negative free cash flow). Technicals are supportive in the short term (price above key moving averages) but are overheating (RSI/Stoch overbought). Corporate events provide a positive offset via reduced merger-regulatory uncertainty, while valuation offers limited support due to losses and no dividend.
Positive Factors
Recurring subscription & usage model
LivePerson’s core revenue model centers on recurring subscriptions plus usage fees for messaging interactions, creating durable contractual revenue and upsell paths. Over 2–6 months this supports predictable cash inflows, customer retention incentives, and opportunity to expand ARPU via AI automation and analytics add-ons.
Negative Factors
Multi-year revenue decline
Sustained top-line contraction signals weakening demand or loss of customer spend, which erodes operating leverage and reduces the company’s ability to cover fixed platform and R&D costs. Over 2–6 months this trend limits margin recovery prospects and increases dependence on restructuring, M&A, or aggressive cost cuts to stabilize results.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription & usage model
LivePerson’s core revenue model centers on recurring subscriptions plus usage fees for messaging interactions, creating durable contractual revenue and upsell paths. Over 2–6 months this supports predictable cash inflows, customer retention incentives, and opportunity to expand ARPU via AI automation and analytics add-ons.
Read all positive factors
Liveperson (LPSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.31M
Dividend YieldN/A
Average Volume (3M)407.39K
Price to Earnings (P/E)―
Beta (1Y)2.10
Revenue Growth-15.77%
EPS Growth66.35%
CountryUS
Employees615
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-9.61
Shares Outstanding12,332,427
10 Day Avg. Volume553,535
30 Day Avg. Volume407,389
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.68
Price to Sales (P/S)0.12
P/FCF Ratio-0.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.75
Revenue Forecast (FY)$199.71M
Liveperson Business Overview & Revenue Model
Company Description
LivePerson, Inc., along with its subsidiaries, specializes in developing and delivering conversational commerce software, alongside its Gainshare solutions. Its operations are organized into two main divisions: Business and Consumer. Through its B...
How the Company Makes Money
LivePerson primarily makes money by selling subscriptions to its cloud-based conversational engagement platform to business customers (generally on recurring contract terms). Revenue is generated from platform access and usage-based components tie...
Liveperson Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call reflects cautious optimism: clear execution wins (Q4 beat, positive adjusted EBITDA, product launch of Syntrix, accelerating AI adoption, meaningful enterprise renewals, and stronger partnerships especially with Google) balanced against material near-term revenue headwinds (hosted and professional services declines, sub-80% net revenue retention trend, RPO declines) and guidance that implies year-over-year revenue pressure in 2026. Management framed 2026 as a transition year with investments to achieve positive net new ARR in H2; upside depends on scaling Syntrix and marketplace motions.Positive Updates
Beat Guidance on Top and Bottom Lines
Q4 revenue of $59.3M came in above the high end of guidance (driven by higher variable revenue). Adjusted EBITDA was $10.8M, also above the high end of guidance, reflecting benefits from the prior restructuring and disciplined cost execution.
Negative Updates
Guidance Implies Year‑over‑Year Revenue Decline
Full-year 2026 revenue guidance of $195M to $207M implies a year-over-year decline (company explicitly said guidance implies Y/Y revenue decline). Q1 2026 revenue guide $53M–$55M implies a sequential decline of about $5M at the midpoint vs Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Beat Guidance on Top and Bottom Lines
Q4 revenue of $59.3M came in above the high end of guidance (driven by higher variable revenue). Adjusted EBITDA was $10.8M, also above the high end of guidance, reflecting benefits from the prior restructuring and disciplined cost execution.
Read all positive updates
Company Guidance
LivePerson guided full-year 2026 revenue of $195M–$207M (≈92% recurring) with adjusted EBITDA of a loss of $4M to a gain of $7M (and does not expect adjusted EBITDA less CapEx to be positive in 2026); the company expects positive net new ARR in H2 but said prior negative net ARR will cause revenue to decline through the year with the rate of decline flattening in H2. For Q1 2026 it guided revenue of $53M–$55M (roughly a $5M midpoint sequential decline vs Q4’s $59.3M) and adjusted EBITDA of $2M–$5M, expects slightly negative free cash flow, finished Q4 with $95M cash, and noted that Syntrix commercialization and Google Cloud Marketplace represent upside to the guidance.Liveperson Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.89M | 243.74M | 312.47M | 401.98M | 514.80M | 469.62M |
| Gross Profit | 148.18M | 174.35M | 192.81M | 285.92M | 303.90M | 293.46M |
| EBITDA | -60.97M | -11.80M | -70.74M | -40.68M | -164.12M | -53.12M |
| Net Income | -118.77M | -67.23M | -134.27M | -100.44M | -225.75M | -124.97M |
Balance Sheet | ||||||
| Total Assets | 384.29M | 454.67M | 607.78M | 835.51M | 1.09B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 96.67M | 95.00M | 183.24M | 212.93M | 391.78M | 521.85M |
| Total Debt | 0.00 | 391.78M | 527.23M | 591.89M | 742.83M | 584.09M |
| Total Liabilities | 506.24M | 499.16M | 675.09M | 787.38M | 1.02B | 837.22M |
| Stockholders Equity | -121.96M | -44.49M | -67.32M | 48.14M | 68.09M | 349.44M |
Cash Flow | ||||||
| Free Cash Flow | -15.22M | -42.52M | -40.27M | -48.42M | -110.59M | -42.46M |
| Operating Cash Flow | -4.88M | -30.43M | -15.13M | -19.77M | -62.10M | 3.25M |
| Investing Cash Flow | -11.39M | -13.73M | -28.22M | -18.84M | -56.86M | -140.25M |
| Financing Cash Flow | -48.73M | -45.50M | 14.97M | -151.14M | 1.62M | 11.84M |
Liveperson Technical Analysis
Positive
1.69
Price Trends
1.94
Positive
2.26
Positive
3.20
Negative
Market Momentum
0.13
Negative
71.35
Negative
81.75
Negative
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 1.69 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 1.94, and below the 200-day MA of 3.20, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPSN.
Liveperson Risk Analysis
Liveperson disclosed 71 risk factors in its most recent earnings report. Liveperson reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liveperson Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $619.63M | -20.10 | -14.05% | ― | 11.85% | 47.54% | |
69 Neutral | $715.85M | -46.22 | -5.93% | ― | 5.10% | 48.36% | |
66 Neutral | $201.21M | 5.26 | 44.62% | ― | 5.20% | 1319.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $272.09M | -13.55 | -8.50% | ― | -2.78% | 72.47% | |
46 Neutral | $32.31M | -0.24 | 137.78% | ― | -15.77% | 66.35% |
* Technology Sector Average
LPSN
Liveperson
2.53
-15.32
-85.83%
EGAN
eGain
7.38
1.80
32.26%
SPT
Sprout Social
10.05
-3.32
-24.83%
SMRT
SmartRent
1.36
0.11
8.80%
RSKD
Riskified
5.32
0.27
5.35%
Liveperson Corporate Events
M&A TransactionsRegulatory Filings and Compliance
LivePerson nears SoundHound AI merger after approvals
Positive
Jul 24, 2026
LivePerson said its planned acquisition by SoundHound AI advanced on July 20, 2026, when Bulgarian regulators granted foreign investment clearance, following approvals from Italy and Canada on June 25, Germany on June 29, and the U.K. on July 1. W...
Business Operations and StrategyM&A TransactionsShareholder Meetings
LivePerson Urges Shareholder Support for SoundHound Acquisition
Positive
Jul 23, 2026
On July 23, 2026, LivePerson issued a shareholder letter and launched a dedicated microsite and FAQ outlining the benefits of its previously announced acquisition by SoundHound AI. The company is urging investors to vote in favor of the deal at a ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
LivePerson Amends Merger Agreement with SoundHound AI
Neutral
Jul 2, 2026
On April 21, 2026, LivePerson agreed to be acquired by SoundHound AI in an all-stock merger, but the parties later identified that Israeli securities rules affecting Tel Aviv Stock Exchange clearinghouse-held LivePerson shares would significantly ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.