Liveperson (LPSN) AI Stock Analysis

• Market Cap: $75.30M
• Dividend Yield: N/A
• Average Volume (3M): 3.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: -24.89%
• EPS Growth: -72.84%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.13
• Shares Outstanding: 150,594,100
• 10 Day Avg. Volume: 3,967,282
• 30 Day Avg. Volume: 3,838,668
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.26
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: -9.17
• 1Y Price Target: $1.25
• Price Target Upside: 145.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 43 Neutral
• Price Target: $1.00 ▲(96.08% Upside)

Liveperson's overall stock score is primarily impacted by its poor financial performance, which is the most significant factor. Technical analysis and valuation also contribute negatively, reflecting ongoing operational and market challenges. While the earnings call highlighted some positive strategic developments, these are not sufficient to outweigh the broader financial and operational issues.

Positive Factors

AI Adoption

The significant increase in AI-driven interactions indicates strong product adoption and positions LivePerson as a leader in conversational AI, enhancing its competitive edge.

Strategic Partnerships

Partnerships with major tech companies bolster LivePerson's AI offerings and market reach, potentially driving long-term growth and innovation.

Refinancing Agreement

The refinancing agreement improves financial stability by reducing leverage and extending debt maturities, enhancing long-term financial health.

Negative Factors

Revenue Decline

The significant revenue decline indicates challenges in maintaining market share and could impact future profitability and growth.

Financial Leverage

High leverage and negative equity pose risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Issues

Ongoing cash flow challenges hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

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 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. 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: 0.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.51 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.89, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 24.96 is Positive, neither overbought nor oversold. The STOCH value of 6.42 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	79 Outperform	$243.42M	7.81	46.33%	―	-4.71%	368.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$739.22M	―	-32.50%	―	14.79%	27.52%
SMRT	58 Neutral	$255.78M	―	-25.48%	―	-28.45%	-224.48%
ONTF	56 Neutral	$236.49M	―	-22.60%	―	-6.88%	15.83%
RSKD	54 Neutral	$738.70M	―	-10.16%	―	7.96%	5.67%
LPSN	43 Neutral	$75.30M	―	-137.76%	―	-24.89%	-72.84%

Liveperson Corporate Events

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.