19:05:56 EDT Thu 12 Mar 2026
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LivePerson Announces Fourth Quarter 2025 Financial Results

2026-03-12 16:30 ET - News Release

LivePerson Announces Fourth Quarter 2025 Financial Results

PR Newswire

-- Total Revenue of $59.3 million, above the high-end of our guidance range --

-- Adjusted EBITDA above the high-end of our guidance range--

NEW YORK, March 12, 2026 /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) ("LivePerson" the "Company", "we" or "us"), a leading provider of predictable conversational AI, today announced financial results for the fourth quarter ended December 31, 2025.

Fourth Quarter Highlights

Total revenue was $59.3 million for the fourth quarter of 2025, a decrease of 19% as compared to the same period last year, driven by customer cancellations and downsells.

LivePerson signed 40 deals in total for the fourth quarter, consisting of 36 existing and 4 new customers. Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased 8.8% for the fourth quarter to $680,000, up from approximately $625,000 for the comparable prior-year period. ARPC is calculated using only recurring revenue, which is consistent with the revenue base for calculating Net Revenue Retention.

"Over the past year, we improved our balance sheet, optimized our cost structure, and successfully scaled and innovated on our platform," said John Sabino, LivePerson CEO. "With Syntrix launched, our Google Cloud partnership scaling, and our platform modernization near completion, we are now executing from a stronger position, focused on accelerating innovation, expanding high-velocity partnerships, and returning to growth."

"We are entering 2026 with a leaner cost base and improved balance sheet, providing a stronger foundation for commercial execution," said John Collins, LivePerson CFO and COO. "Strong renewal performance in the quarter underscored customer confidence in the staying power of our platform, and we expect growing traction with partners like Google Cloud Marketplace to help maintain the momentum."

Customer Expansion

During the fourth quarter, the Company signed 40 total deals for the quarter, including 36 expansions and 4 new logos. Expansions included:

  • a major European telecommunications provider;
  • a leading South American bank; and
  • a global airline carrier.

New logos included:

  • a New Zealand-based wealth manager.

Net Loss, Adjusted Operating Income (Loss) and Adjusted EBITDA

Net loss for the fourth quarter of 2025 was $46.1 million or $3.92 per share, as compared to a net loss of $112.1 million or $19.00 per share for the fourth quarter of 2024. Adjusted operating income, a non-GAAP financial metric, for the fourth quarter of 2025 was $5.5 million, as compared to $1.0 million adjusted operating income for the fourth quarter of 20241. Adjusted operating income (loss) excludes provision for income taxes, interest expense, interest income, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net.

Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter of 2025 was $10.8 million as compared to adjusted EBITDA of $8.1 million for the fourth quarter of 2024. Adjusted EBITDA excludes interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net.

A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading "Non-GAAP Financial Measures."

Cash and Cash Equivalents

The Company's cash balance was $95.0 million at December 31, 2025, as compared to $183.2 million at December 31, 2024.

Financial Expectations

The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially from these forward-looking measures. The Company does not present a quantitative reconciliation of the forward-looking non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP financial measures (or otherwise present such forward-looking GAAP measures) because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. In particular, these non-GAAP financial measures exclude certain items, including interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net, which depend on future events that the Company is unable to predict. Depending on the size of these items, they could have a significant impact on the Company's GAAP financial results.

For the first quarter of 2026, we currently expect total revenue to range from $53 million to $55 million or (18)% to (15)% year over year. We currently expect recurring revenue to represent 92% of total revenue. For the first quarter of 2026, we currently expect adjusted EBITDA to range from $2 million to $5 million, or a margin of 3.8% to 9.1%.

For the full year 2026, we currently expect total revenue to range from $195 million to $207 million or (20)% to (15)% year over year. In addition, we currently expect recurring revenue to represent 92% of total revenue. For the full year 2026, we currently expect adjusted EBITDA to range from $(4) million to $7 million, or a margin of (2.1)% to 3.4%.


 ___________________________________



 
          (1)                      All historical share and per share amounts for the periods prior to the completion on October 13, 2025 of the 1:15 reverse stock split have been adjusted to give retroactive
                                        effect to the reverse stock split for all periods presented.

First Quarter 2026

                                          Guidance



 Revenue (in millions)           
      $53 - $55



 Revenue growth (year-over-year)          (18)% -
                                             (15)%



 Adjusted EBITDA (in millions)     
      $2 - $5



 Adjusted EBITDA margin (%)          3.8% - 9.1%

Full Year 2026

                                         Guidance



 Revenue (in millions)           
   $195 - $207



 Revenue growth (year-over-year)         (20)% -
                                            (15)%



 Adjusted EBITDA (in millions)     
   $(4) - $7



 Adjusted EBITDA margin (%)            (2.1)% -
                                             3.4%

Disaggregated Revenue

Included in the accompanying financial results are revenues disaggregated by revenue source, as follows:

                                           Three Months Ended                 Year Ended December 31,
                             December 31,


                           2025              2024               2025     2024




                                      
         (In thousands)



 Revenue:



 Hosted services       $50,973           $60,216           $207,603 $261,682


  Professional services   8,315            12,990             36,139   50,792



 Total revenue         $59,288           $73,206           $243,742 $312,474

Supplemental Fourth Quarter 2025 Presentation

LivePerson will post a presentation providing supplemental information for the fourth quarter of 2025 on the investor relations section of the Company's web site at ir.liveperson.com.

Earnings Teleconference Information

The Company will discuss its fourth quarter of 2025 financial results during a teleconference today, March 12, 2026, at 5:00 PM ET. To participate via telephone, callers should dial in five to ten minutes prior to the 5:00 p.m. Eastern start time; domestic callers (U.S. and Canada) should dial 1-877-407-0784, while international callers should dial 1-201-689-8560, and both should reference the conference ID "13758561."

The conference call will also be simulcast live on the Internet and can be accessed by logging onto the investor relations section of the Company's web site at ir.liveperson.com.

If you are unable to participate in the live call, the teleconference will be available for replay approximately two hours after the call until March 26, 2026. To access the replay, please call 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international). Please reference the conference ID "13758561." A replay will also be available on the investor relations section of the Company's web site at ir.liveperson.com.

About LivePerson, Inc.

LivePerson (NASDAQ: LPSN) is an enterprise leader in predictable conversational AI. The world's leading brands use our award-winning Conversational Cloud and Syntrix platforms to connect with millions of customers. We power nearly a billion messages every month, providing uniquely rich data analytics, agent training, and AI evaluation tools to unlock the power of conversational AI for better business outcomes. Learn more at liveperson.com.

Non-GAAP Financial Measures

Investors are cautioned that the following financial measures used in this press release and on our earnings call are "non-GAAP financial measures": (i) adjusted EBITDA, or net loss before interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net; (ii) adjusted EBITDA margin, or net loss before interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net, divided by revenue; (iii) adjusted operating income (loss), or net loss before provision for income taxes, interest expense, interest income, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, gain on troubled debt restructuring, gain on debt extinguishment, impairment of goodwill, impairment of intangibles and other assets, leadership transition costs, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, loss on divestiture, and other (income) expense, net; (iv) free cash flow, or net cash used in operating activities less purchases of property and equipment, including capitalized internal-use software development costs; (v) non-GAAP cost of revenue, or cost of revenue excluding stock-based compensation and IT transformation costs; (vi) non-GAAP sales and marketing expenses, or sales and marketing expenses excluding stock-based compensation and leadership transition costs; (vii) non-GAAP general and administrative expenses, or general and administrative expenses excluding stock-based compensation, litigation, consulting and employee costs, leadership transition costs and acquisition and divestiture costs; and (viii) non-GAAP product development expenses, or product development expenses excluding stock-based compensation, litigation, consulting and employee costs, leadership transition costs and IT transformation costs.

Non-GAAP financial information should not be construed as an alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities as there may be significant factors or trends that it fails to address. We present non-GAAP financial information because we believe that it is helpful to some investors as one measure of our operations.

Forward-Looking Statements

Statements in this press release and on our earnings call regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including but not limited to financial guidance, changes to our capital structure, our ability to execute on our transformation strategy, the effects of our cost-reduction efforts and the impact of our new hires, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. With respect to our financial guidance, we note that it is routine for our internal projections and expectations to change as the quarter and year progress, and therefore it should be clearly understood that the internal projections and beliefs upon which we base our expectations may change. Although these expectations may change, we are under no obligation to inform you if they do. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: our ability to retain existing customers and cause them to purchase additional services and to attract new customers; the intensive personnel, infrastructure and resource commitment required to support our customer base; our ability to retain key personnel, attract new personnel and to manage staff attrition; our ability to realize the intended operational efficiencies and cost savings from our restructuring initiatives; our ability to successfully integrate acquisitions; our ability to secure necessary financing on commercially reasonable terms, or at all; lengthy sales cycles; delays in our implementation cycles; payment-related risks; potential fluctuations in our quarterly revenue and operating results; limitations on the effectiveness of our controls; non-payment or late payment of amounts due to us from a significant number of customers; volatility in the capital markets; recognition of revenue from subscriptions; customer retention and engagement; our ability to develop and maintain successful relationships with partners, service partners, social media and other third-party consumer messaging platforms and endpoints; our ability to effectively operate on mobile devices; the highly competitive markets in which we operate; general economic conditions; failures or security breaches in our services, those of our third-party service providers, or in the websites of our customers; regulation or possible misappropriation of personal information belonging to our customers' Internet users; US and international laws and regulations regarding privacy data protection and AI and increased public scrutiny of privacy, security and AI issues that could result in increased government regulation and other legal obligations; ongoing litigation and legal matters; new regulatory or other legal requirements that could materially impact our business; governmental export controls and economic sanctions; industry-specific regulation and unfavorable industry-specific laws, regulations or interpretive positions; future regulation of the Internet or mobile devices; technology-related defects that could disrupt the LivePerson services; our ability to protect our intellectual property rights or potential infringement of the intellectual property rights of third parties; the use of AI in our product offerings or by our vendors; the presence of, and difficulty in correcting, errors, failures or "bugs" in our products; our ability to license necessary third-party software for use in our products and services, and our ability to successfully integrate third-party software; potential adverse impact due to foreign currency exchange rate fluctuations; additional regulatory requirements, tax liabilities, currency exchange rate fluctuations and other risks if and as we expand; risks related to our operations in Israel; potential failure to meet service level commitments to certain customers; legal liability and/or negative publicity for the services provided to consumers via our technology platforms; technological or other defects that could disrupt or negatively impact our services; our ability to maintain our reputation; changes in accounting principles generally accepted in the United States; natural catastrophic events and interruption to our business by man-made problems; potential limitations on our ability to use net operating losses to offset future taxable income; risks related to our common stock being traded on more than one securities exchange; risks related to our ability to comply with stock exchange listing requirements; and other factors described in the "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 14, 2025, and the Company's Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025 and September 30, 2025, filed with the SEC on May 8, 2025, August 13, 2025 and November 12, 2025, respectively. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking statements. Readers are referred to the Company's reports and documents filed from time to time by us with the Securities and Exchange Commission for a discussion of these and other important factors that could cause actual results to differ from those discussed in forward-looking statements.

                                                                  
      
            
              LivePerson, Inc.

                                                            
 
     
           Consolidated Statements of Operations

                                                                
     (In Thousands, Except Share and Per Share Data)

                                                                                                 
          Unaudited




                                                                                             Three Months Ended                         Year Ended

                                                                                             December 31,                         December 31,


                                                                             2025                2024               2025          2024



          Revenue                                                        $59,288             $73,206           $243,742      $312,474



          Costs, expenses and other:



          Cost of revenue (exclusive of depreciation and                  15,918              16,526             69,392        77,395
amortization shown separately below)



          Sales and marketing                                             14,192              20,281             75,800        97,337



          General and administrative                                       8,746              16,090             44,441        79,761



          Product development                                             11,453              17,291             54,706        79,784



          Depreciation and amortization                                    5,522               7,521             22,732        42,272



          Restructuring costs                                                489               3,263             11,667        11,139



          Impairment of goodwill                                          41,595              56,924             41,595        60,551



          Impairment of intangibles and other assets                       2,108              36,304              2,108        46,872



          Loss on divestiture                                                  -                                               558



          Total costs, expenses and other                                100,023             174,200            322,441       495,669



          Loss from operations                                          (40,735)          (100,994)          (78,699)    (183,195)



          Other (expense) income, net:



          Interest expense                                               (8,073)            (6,286)          (31,530)     (14,486)



          Interest income                                                    594               1,312              4,751         5,860



          Gain on troubled debt restructuring                                  -                               27,720



          Gain on debt extinguishment                                          -                                            73,083



          Other income (expense), net                                      5,132             (5,554)            13,977      (12,800)



          Total other (expense) income, net                              (2,347)           (10,528)            14,918        51,657



          Loss before provision for income taxes                        (43,082)          (111,522)          (63,781)    (131,538)



          Provision for income taxes                                       3,019                 606              3,452         2,735



          Net loss                                                     $(46,101)         $(112,128)         $(67,233)   $(134,273)





          Net loss per share of common stock:



          Basic (1)                                                      $(3.92)           $(19.00)           $(8.57)     $(22.70)



          Diluted (1)                                                    $(4.14)           $(19.00)          $(12.39)     $(22.70)



          Weighted-average shares used to compute net loss
per share:



          Basic (1)                                                   11,772,983           5,902,768          7,843,700     5,914,344



          Diluted (1)                                                 12,213,855           5,902,768          8,640,730     5,914,344




 (1)           The number of shares has been restated to reflect the 1:15 reverse stock split effectuated on October 13, 2025.
                  All historical share and per
       share amounts for the periods prior to the completion of the reverse stock split have been adjusted to give
       retroactive effect to the reverse stock
      split for all periods presented.

                                                                                                     
   
       
              LivePerson, Inc.

                                                                                                 
 
   
   Consolidated Statements of Cash Flows

                                                                                                                       
          (In Thousands)

                                                                                                                            
          Unaudited




                                                                                                                                                      Year Ended December 31,


                                                                                                                                         2025           2024



          OPERATING ACTIVITIES:



          Net loss                                                                                                                 $(67,233)    $(134,273)



          Adjustments to reconcile net loss to net cash used in operating activities:



          Stock-based compensation expense                                                                                            14,256         21,989



          Depreciation and amortization                                                                                               21,975         30,310



          Reduction of operating lease right-of-use assets                                                                                17          4,059



          Amortization of purchased intangible assets and finance leases                                                                 757         11,962



          Amortization of debt issuance costs and accretion of debt discount                                                           7,614          4,513



          Impairment of goodwill                                                                                                      41,595         60,551



          Impairment of intangibles and other assets                                                                                   2,108         46,872



          Change in fair value of warrants                                                                                          (13,202)        12,232



          Gain on troubled debt restructuring                                                                                       (42,429)



          Gain on debt extinguishment                                                                                                      -      (73,083)



          Interest expense                                                                                                            15,263          5,810



          Allowance for credit losses                                                                                                    866         14,959



          Loss on divestiture                                                                                                              -           558



          Deferred income taxes                                                                                                          622            623



          Changes in operating assets and liabilities:



          Accounts receivable                                                                                                          1,160         37,548



          Prepaid expenses and other current assets                                                                                    3,591          7,300



          Contract acquisition costs                                                                                                  10,383          3,331



          Other assets                                                                                                                    34            652



          Accounts payable, accrued expenses and other current liabilities                                                          (19,823)      (44,518)



          Deferred revenue                                                                                                           (4,315)      (23,058)



          Operating lease liabilities                                                                                                   (14)       (4,868)



          Other liabilities                                                                                                          (3,660)         1,401



          Net cash used in operating activities                                                                                     (30,435)      (15,130)



          
            INVESTING ACTIVITIES:



          Purchases of property and equipment, including capitalized internal-use software                                          (12,088)      (25,142)
development costs



          Purchases of intangible assets                                                                                             (1,639)       (3,074)



          Net cash used in investing activities                                                                                     (13,727)      (28,216)



          
            FINANCING ACTIVITIES:



          Payment on settlement of warrants                                                                                          (1,297)



          Payment in connection with troubled debt restructuring                                                                    (45,000)



          Proceeds from issuance of 2029 convertible senior notes                                                                          -       100,000



          Payment for repurchase of 2024 convertible senior notes                                                                          -      (72,492)



          Payment for repurchase of 2026 convertible senior notes                                                                          -       (4,901)



          Payment of debt issuance costs                                                                                                   -       (7,584)



          Principal payments for financing leases                                                                                       (26)         (401)



          Proceeds from issuance of common stock in connection with the exercise of options and                                          820            350
ESPP



          Net cash (used in) provided by financing activities                                                                       (45,503)        14,972



          Effect of foreign exchange rate changes on cash and cash equivalents                                                         1,432        (1,314)



          Net decrease in cash, cash equivalents, and restricted cash                                                               (88,233)      (29,688)



          Cash, cash equivalents, and restricted cash - beginning of year                                                            183,237        212,925



          Cash, cash equivalents, and restricted cash - end of year                                                                  $95,004       $183,237

                                                                          
          
            
              LivePerson, Inc.

                                                                   
 
 
 Reconciliation of Non-GAAP Financial Information to GAAP

                                                                                                        
          (In Thousands)

                                                                                                             
          Unaudited




                                                                                                           Three Months Ended                      Year Ended
                                                                                                December 31,
                                                                                                                                      December 31,


                                                                                          2025               2024               2025          2024



 
            Reconciliation of Adjusted EBITDA:



 GAAP net loss                                                                      $(46,101)        $(112,128)         $(67,233)   $(134,273)



 Add/(less):



 Interest expense                                                                       8,073              6,286             31,530        14,486



 Interest income                                                                        (594)           (1,312)           (4,751)      (5,860)



 Provision for income taxes                                                             3,019                606              3,452         2,735



 Depreciation and amortization                                                          5,342              7,145             21,975        30,310



 Amortization of purchased intangibles and finance leases                                 180                377                757        11,962



 Litigation, consulting and other employee costs                                        (795)             2,029              4,683        16,976



 Restructuring costs                                                                      489              3,263             11,667        11,139



 Stock-based compensation expense                                                       2,652              3,156             14,256        21,989



 Change in fair value of warrants                                                     (4,444)             4,442           (13,202)       12,232



 Gain on troubled debt restructuring                                                        -                            (27,720)



 Gain on debt extinguishment                                                                -                                         (73,083)



 Impairment of goodwill                                                                41,595             56,924             41,595        60,551



 Impairment of intangibles and other assets                                             2,108             36,304              2,108        46,872



 Leadership transition costs                                                                -             (195)                          2,998



 Working capital adjustment - Kasamba                                                       -                                            1,776



 IT transformation costs                                                                    -               110                331         1,205



 Acquisition and divestiture costs                                                          -                                              920



 Loss on divestiture                                                                        -                                              558



 Other (income) expense, net                                                            (688)             1,110              (775)          566



 Adjusted EBITDA                                                                      $10,836             $8,117            $18,673       $24,059





 
            Reconciliation of Adjusted Operating Income (Loss):



 Loss before provision for income taxes                                             $(43,082)        $(111,522)         $(63,781)   $(131,538)



 Add/(less):



 Interest expense                                                                       8,073              6,286             31,530        14,486



 Interest income                                                                        (594)           (1,312)           (4,751)      (5,860)



 Amortization of purchased intangibles and finance leases                                 180                377                757        11,962



 Litigation, consulting and other employee costs                                        (795)             2,029              4,683        16,976



 Restructuring costs                                                                      489              3,263             11,667        11,139



 Stock-based compensation expense                                                       2,652              3,156             14,256        21,989



 Change in fair value of warrants                                                     (4,444)             4,442           (13,202)       12,232



 Gain on troubled debt restructuring                                                        -                            (27,720)



 Gain on debt extinguishment                                                                -                                         (73,083)



 Impairment of goodwill                                                                41,595             56,924             41,595        60,551



 Impairment of intangibles and other assets                                             2,108             36,304              2,108        46,872



 Leadership transition costs                                                                -             (195)                          2,998



 Working capital adjustment - Kasamba                                                       -                                            1,776



 IT transformation costs                                                                    -               110                331         1,205



 Acquisition and divestiture costs                                                          -                                              920



 Loss on divestiture                                                                        -                                              558



 Other (income) expense, net                                                            (688)             1,110              (775)          566



 Adjusted operating income (loss)                                                      $5,494               $972           $(3,302)     $(6,251)

                                                                                            
          
            
              LivePerson, Inc.

                                                                               
      
  
 Reconciliation of Non-GAAP Financial Information to GAAP

                                                                                                                          
          (In Thousands)

                                                                                                                               
          Unaudited




                                                                                                                             Three Months Ended                         Year Ended

                                                                                                                             December 31,                         December 31,


                                                                                                            2025               2024               2025          2024



          
            Calculation of Free Cash Flow:



          Net cash used in operating activities                                                        $(9,654)          $(3,115)         $(30,435)    $(15,130)



          Purchases of property and equipment, including capitalized                                    (2,304)           (3,638)          (12,088)     (25,142)
internal-use software development costs



          
            Total Free Cash Flow                                                           $(11,958)          $(6,753)         $(42,523)    $(40,272)






                                                                                                                             Three Months Ended                         Year Ended
                                                                                                     
            December 31,
                                                                                                                                                       December 31,


                                                                                                            2025               2024               2025          2024





          
            GAAP cost of revenue 
            
              (1)                             $15,918            $16,526            $69,392       $77,395



          Stock-based compensation                                                                        (117)             (198)             (583)      (1,080)



          IT transformation costs                                                                             -             (110)             (331)        (880)



          
            Non-GAAP cost of revenue                                                         $15,801            $16,218            $68,478       $75,435





          
            GAAP sales and marketing expenses
            
          (1)                     $14,192            $20,281            $75,800       $97,337



          Stock-based compensation                                                                        (754)             (903)           (3,698)      (7,394)



          Leadership transition costs                                                                         -                                            (860)



          
            Non-GAAP sales and marketing expenses                                            $13,438            $19,378            $72,102       $89,083





          
            GAAP general and administrative expenses
            
       (1)                  $8,746            $16,090            $44,441       $79,761



          Stock-based compensation                                                                      (1,152)             (948)           (5,963)      (6,789)



          Litigation, consulting and employee costs                                                         914            (2,029)           (4,138)     (16,976)



          Leadership transition costs                                                                         -               195                           (954)



          Acquisition and divestiture costs                                                                   -                                            (920)



          
            Non-GAAP general and administrative expenses                                      $8,508            $13,308            $34,340       $54,122





          
            GAAP product development expenses 
            
         (1)                     $11,453            $17,291            $54,706       $79,784



          Stock-based compensation                                                                        (629)           (1,107)           (4,012)      (6,726)



          Litigation, consulting and employee costs                                                       (119)                               (545)



          Leadership transition costs                                                                         -                                          (1,184)



          IT transformation costs                                                                             -                                            (325)



          
            Non-GAAP product development expenses                                            $10,705            $16,184            $50,149       $71,549




 
 (1) GAAP amounts have been adjusted to remove depreciation and amortization as those are now presented separately in the Consolidated Statements
          of Operations for each period.

                                                                                                  
     
     
              LivePerson, Inc.

                                                                                               
 
       
        Consolidated Balance Sheets

                                                                                                    
     
     
              (In Thousands)

                                                                                                      
     
        
              Unaudited




                                                                                                                                  December 31, December 31,
                                                                                                                                          2025          2024



          
            ASSETS



          Current assets:



          Cash and cash equivalents                                                                                                   $95,004      $183,237



          Accounts receivable, net of allowances of $4,451 and $8,627 as of December 31, 2025                                          27,014        28,737
and 2024, respectively



          Prepaid expenses and other current assets                                                                                    15,100        19,250



          Total current assets                                                                                                        137,118       231,224



          Property and equipment, net                                                                                                  90,389       100,557



          Contract acquisition costs, net                                                                                              23,951        33,559



          Intangible assets, net                                                                                                       13,409        15,070



          Goodwill, net                                                                                                               184,902       222,554



          Deferred tax assets, net                                                                                                      4,511         4,411



          Other assets                                                                                                                    387           403



          
            Total assets                                                                                                  $454,667      $607,778





          
            LIABILITIES AND STOCKHOLDERS' EQUITY



          Current liabilities:



          Accounts payable                                                                                                             $9,522       $15,378



          Accrued expenses and other current liabilities                                                                               38,700        66,582



          Deferred revenue                                                                                                             54,295        57,980



          Convertible senior notes                                                                                                     20,052



          Total current liabilities                                                                                                   122,569       139,940



          Senior notes, net of current portion                                                                                        371,732       527,070



          Deferred tax liabilities                                                                                                      4,196         3,542



          Other liabilities                                                                                                               665         4,542



          Total liabilities                                                                                                           499,162       675,094



          Commitments and contingencies



          Total stockholders' equity                                                                                                 (44,495)     (67,316)



          
            Total liabilities and stockholders' equity                                                                    $454,667      $607,778

Investor Relations contact
ir-lp@liveperson.com

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SOURCE LivePerson

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