Roth Capital says shorting LivePerson shares too risky to advocate

Roth Capital says that while Neutral-rated LivePerson’s (LPSN) Q4 2024 results supported $32M in run-rate AEBITDA, Q1 2025 results left revenues in decline and AEBITDA slashed to $0.2M. With roughly $360M in convertible debt maturing in Q4 2026, the firm does not see a credible path to refinance its debts without massive equity dilution. Roth chooses not to downgrade to Sell as it believes a sale of the company could risk material losses to a short position. “We believe shorting the shares is too risky to advocate as we believe LPSN could be worth more in an outright sale, an outcome we are starting to believe is its only viable path to survival,” it adds.