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: -24.89%
• EPS Growth: -72.84%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.91
• 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: 1.73
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: -9.17
• 1Y Price Target: $18.75
• Price Target Upside: 245.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $5.00 ▼(-7.75% Downside)

Liveperson's overall stock score is primarily impacted by its poor financial performance, with significant challenges in revenue, profitability, and cash flow. Technical analysis indicates bearish momentum, and valuation metrics are unfavorable due to unprofitability. While the earnings call highlighted some positive strategic initiatives, the overall outlook remains negative due to financial instability and market challenges.

Positive Factors

AI Adoption

The significant increase in AI-driven interactions indicates strong adoption of LivePerson's AI solutions, enhancing customer engagement and potentially leading to improved operational efficiency and customer satisfaction.

Strategic Partnerships

Partnerships with major tech firms like Google Cloud and Databricks enhance LivePerson's AI capabilities and market reach, providing a competitive edge and supporting long-term growth in the AI and customer experience sectors.

Refinancing Agreement

The successful refinancing agreement improves financial stability by extending debt maturities and reducing leverage, allowing LivePerson to focus on strategic initiatives without immediate financial pressure.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and customer retention, potentially impacting long-term financial health and necessitating strategic adjustments to reverse the trend.

Lowered Revenue Guidance

The reduction in revenue guidance suggests ongoing difficulties in achieving growth targets, which could affect investor confidence and the company's ability to invest in future growth opportunities.

Slower Bookings and Renewals

Challenges in securing new bookings and renewals, especially from larger customers, could hinder revenue stability and growth, reflecting potential issues in customer satisfaction or competitive positioning.

Liveperson Business Overview & Revenue Model

Company Description

LivePerson, Inc. (LPSN) is a leading provider of conversational AI and messaging solutions, primarily serving businesses across various sectors, including retail, financial services, and telecommunications. The company's core products include its AI-driven messaging platform that enables real-time communication between businesses and customers through various channels such as SMS, web chat, and social media. LivePerson's solutions are designed to enhance customer engagement, streamline operations, and improve overall customer experiences.

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 across all areas. The income statement shows declining revenue and profitability, the balance sheet is heavily leveraged with negative equity, and cash flow is negative with declining growth. These factors indicate a need for strategic changes to improve financial health and sustainability.

Income Statement

Liveperson's income statement reveals significant challenges. The company has experienced a consistent decline in revenue, with a negative revenue growth rate of -6.94% in the TTM. Profitability metrics are concerning, with a negative net profit margin of -62.66% and negative EBIT and EBITDA margins, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a precarious financial position. The debt-to-equity ratio is extremely high at -6.53 in the TTM, reflecting significant leverage and negative equity. Return on equity is positive at 3.81%, but this is due to negative equity, which is not a sustainable situation. The equity ratio is negative, indicating liabilities exceed assets, posing a risk to financial stability.

Cash Flow

Cash flow analysis highlights ongoing cash management issues. The company has negative operating cash flow and free cash flow, with a declining free cash flow growth rate of -22.90% in the TTM. The free cash flow to net income ratio is positive at 2.19, suggesting some ability to cover net losses, but overall cash generation remains weak.

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: Negative
• Last Price: 5.42
• 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 5.42 is below the 20-day moving average (MA) of 6.10, below the 50-day MA of 9.00, and below the 200-day MA of 13.00, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.73 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	80 Outperform	$409.19M	13.03	46.33%	―	-4.71%	368.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$600.91M	―	-26.69%	―	13.09%	32.34%
RSKD	55 Neutral	$734.00M	―	-10.16%	―	7.96%	5.67%
ONTF	54 Neutral	$222.11M	―	-22.60%	―	-6.88%	15.83%
SMRT	53 Neutral	$263.30M	―	-25.48%	―	-24.30%	-181.62%
LPSN	38 Underperform	$58.13M	-0.19	―	―	-24.89%	-72.84%

Liveperson Corporate Events

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.

LivePerson Reports Q2 2025 Financial Results

LivePerson, Inc. is a prominent provider of enterprise conversational AI and digital transformation solutions, serving leading global brands with its innovative platform to enhance consumer interactions. In its latest earnings report for the second quarter of 2025, LivePerson reported a total revenue of $59.6 million, which is at the high-end of their guidance range, despite a 25.4% decrease from the previous year due to customer cancellations and downsells.

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.

The most recent analyst rating on (LPSN) stock is a Hold with a $0.85 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.