Liveperson (LPSN) AI Stock Analysis

• Market Cap: $102.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -23.04%
• EPS Growth: 11.60%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 93,849,815
• 10 Day Avg. Volume: 2,157,200
• 30 Day Avg. Volume: 1,282,325
• PEG Ratio: -0.09
• Price to Book (P/B): 15.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.70
• Enterprise Value/Market Cap: 22.85
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 11.14
• Enterprise Value/Ebitda: -9.35
• 1Y Price Target: $0.95
• Price Target Upside: -9.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-4.76%Downside)

LivePerson's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. While the earnings call provided some positive guidance and strategic advancements, the technical indicators suggest caution due to overbought conditions. The valuation remains unattractive with a negative P/E ratio.

Positive Factors

Business Metrics

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

Profitability

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

Negative Factors

Balance Sheet Risk

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

Financial Guidance

The FY25 guidance called for adjusted EBITDA losses at the midpoint, contrary to expectations of a positive outcome.

Revenue Decline

Revenue continues to decline, reflecting LPSN's legacy cost structure.

Sales Pipeline

Sales cycle elongation is pushing deals that were expected to close into the next quarter.

Liveperson Business Overview & Revenue Model

Company Description

LivePerson, Inc. is a leading technology company specializing in conversational artificial intelligence (AI) and messaging solutions. The company operates within the technology sector, focusing on providing businesses with the tools to engage and communicate with their customers through AI-powered chatbots and messaging platforms. LivePerson's core products and services facilitate customer interactions across various digital channels, enhancing customer experiences and increasing operational efficiency.

How the Company Makes Money

LivePerson generates revenue primarily through the sale of its subscription-based conversational AI and messaging platform. The company offers its solutions to businesses of varying sizes across multiple industries, including retail, financial services, telecommunications, and travel. Clients pay for access to LivePerson's platform, which often includes features such as AI-driven chatbots, analytics, and integration capabilities. Additionally, LivePerson may generate revenue from professional services, such as consulting and implementation support, as well as through strategic partnerships with other technology providers that help enhance its platform's functionality and market reach.

Liveperson Financial Statement Overview

Summary

Liveperson is facing significant financial challenges, with declining revenues and profitability, heavy leverage, and negative equity. Despite cash inflows from financing, the reliance on debt and operational inefficiencies present substantial risks. The company needs to address these challenges to improve its 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	292.02M	312.47M	401.98M	514.80M	469.62M	366.62M
Gross Profit	209.87M	219.07M	259.16M	330.10M	312.74M	260.35M
EBITDA	-56.03M	-70.74M	-31.68M	-147.52M	-53.12M	-64.12M
Net Income	-112.78M	-134.27M	-100.44M	-225.75M	-124.97M	-107.59M
Balance Sheet
Total Assets	596.22M	607.78M	835.51M	1.09B	1.19B	1.01B
Cash, Cash Equivalents and Short-Term Investments	176.25M	183.24M	210.78M	391.78M	521.85M	654.15M
Total Debt	528.86M	527.23M	591.89M	740.26M	580.35M	551.33M
Total Liabilities	671.16M	675.09M	787.38M	1.02B	837.22M	754.47M
Stockholders Equity	-74.94M	-67.32M	48.14M	68.09M	349.44M	252.62M
Cash Flow
Free Cash Flow	-35.90M	-40.27M	-52.43M	-113.27M	-45.07M	-8.04M
Operating Cash Flow	-19.32M	-15.13M	-19.77M	-62.10M	3.25M	33.60M
Investing Cash Flow	-19.65M	-28.22M	-18.84M	-56.86M	-140.25M	-43.48M
Financing Cash Flow	87.64M	14.97M	-151.14M	1.62M	11.84M	483.84M

Liveperson Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.05
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 1.05 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.84, and above the 200-day MA of 1.00, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LPSN.

Liveperson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGHT	71 Outperform	$291.80M	―	-24.28%	―	-1.87%	61.90%
SPT	66 Neutral	$1.23B	―	-36.95%	―	17.79%	16.49%
DSP	65 Neutral	$864.04M	471.43	4.15%	―	30.64%	―
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
BMBL	58 Neutral	$680.69M	―	-46.57%	―	-2.39%	-2961.26%
ONTF	52 Neutral	$232.34M	―	-24.47%	―	-8.39%	7.79%
LPSN	45 Neutral	$102.30M	―	-137.76%	―	-23.04%	11.60%

Liveperson Corporate Events

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.

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.