LivePerson(US:LPSN)2025-11-13 00:11Financial Performance - Revenue for Q3 2025 was $60.154 million, a decrease of 19% compared to $74.244 million in Q3 2024[13] - Net income for Q3 2025 was $8.711 million, compared to a net loss of $28.309 million in Q3 2024[15] - The company reported a loss from operations of $14.587 million for Q3 2025, compared to a loss of $16.038 million in Q3 2024[13] - Basic net income per share for Q3 2025 was $0.98, compared to a loss of $4.74 per share in Q3 2024[13] - For the nine months ended September 30, 2025, the net loss was $21,132 thousand, a slight improvement from a net loss of $22,145 thousand in the same period of 2024, representing a 4.6% decrease in losses[23] - The Company reported a net income of $8.711 million for the three months ended September 30, 2025, compared to a net loss of $28.309 million in 2024[68] Assets and Liabilities - Total current assets decreased to $143.720 million as of September 30, 2025, down from $231.224 million as of December 31, 2024[11] - Total liabilities decreased to $512.835 million as of September 30, 2025, from $675.094 million as of December 31, 2024[11] - Cash and cash equivalents were $106.661 million as of September 30, 2025, down from $183.237 million as of December 31, 2024[11] - Total stockholders' equity improved to $(22.050) million as of September 30, 2025, from $(67.316) million as of December 31, 2024[11] - As of September 30, 2025, total long-lived assets decreased to $367.7 million from $376.6 million as of December 31, 2024, representing a decline of approximately 2.4%[72] - The Company’s total property and equipment, net, was $93.5 million as of September 30, 2025, down from $100.6 million as of December 31, 2024, representing a decrease of about 7.0%[80] Cash Flow and Expenses - Net cash used in operating activities for the nine months ended September 30, 2025, was $20,781 thousand, compared to $12,015 thousand in 2024, indicating a 73.2% increase in cash outflow[23] - The company reported a net cash used in investing activities of $11,215 thousand for the nine months ended September 30, 2025, down from $23,505 thousand in 2024, reflecting a 52.4% decrease[23] - Cash paid for interest increased significantly to $4,531 thousand in 2025 from $292 thousand in 2024, marking a substantial rise of 1461.3%[26] - The Company’s total interest expense for the nine months ended September 30, 2025, was not explicitly stated but is included in the overall financial performance evaluation[71] - The total interest expense for the three months ended September 30, 2025, was $8.1 million, an increase of 42.5% compared to $5.7 million for the same period in 2024[140] Stock and Equity - The total number of common shares issued as of June 30, 2024, was 6,116,832, with an additional paid-in capital of $927,529,000[20] - The balance of common stock as of December 31, 2023, was $91,000, with 6,040,234 shares outstanding[20] - The Company completed a 1-for-15 reverse stock split in October 2025, adjusting the number of shares and exercise prices of outstanding equity awards accordingly[32] - The Company issued 10-year Warrants with a strike price of $11.25 per share, exercisable for 649,782 shares, as part of a financing arrangement[141] - The Series B Preferred Stock issued has an initial stated value of $1,000 per share and does not have a stated maturity or mandatory redemption[111] Debt and Financing - The Company issued Second Lien Notes due 2029 amounting to $115,000 thousand as part of a troubled debt restructuring[26] - The Company recognized a gain of $27.7 million from the September 2025 Debt Exchange, classified as Gain on troubled debt restructuring in the condensed consolidated statements of operations[101] - The Company exchanged $341.1 million in principal amount of 2026 Notes for $45.0 million in cash, $115.0 million in Second Lien Notes, 3,555,596 shares of common stock, and 26,551 shares of Series B Preferred Stock[101] - The 2029 Notes have an effective interest rate of 19.13% and a combined carrying amount of $180.4 million as of September 30, 2025[137] - The Company must maintain a minimum cash balance of $60.0 million as per the covenants of the 2029 Notes[133] Restructuring and Costs - The company incurred restructuring costs of $9.312 million in Q3 2025, significantly higher than $1.448 million in Q3 2024[13] - The Company initiated a restructuring plan in Q3 2025, resulting in a charge of $9.3 million, primarily for severance and other compensation costs[181] - Total stock-based compensation costs for Q3 2025 amounted to $2.635 million, compared to $5.375 million in Q3 2024, and for the nine months ended September 30, 2025, it was $11.604 million compared to $18.833 million in the same period of 2024[180] Legal and Regulatory Matters - The Company faced multiple derivative lawsuits, including Marti v. LoCascio, claiming unspecified losses due to acts related to the Damri federal securities lawsuit[187] - Starboard Value LP filed a lawsuit alleging common law fraud and seeking damages for trading losses, which was settled in July 2025 without impacting the Company's financial statements[188] - The Company is subject to various legal and regulatory proceedings that could impact its operations and financial position[191] Tax and Valuation - The Company recorded a tax provision of $0.4 million for the three and nine months ended September 30, 2025, related to non-U.S. subsidiaries and unrecognized tax benefits[198] - A valuation allowance of $234.6 million was recorded against certain deferred tax assets for the year ended December 31, 2024, with an estimated decrease of $2.6 million in 2025[199] Other Financial Metrics - The allowance for credit losses decreased to $5.507 million as of September 30, 2025, from $8.627 million at the beginning of the year[64] - The Company actively monitors foreign currency exchange risks and may consider using derivative financial instruments to mitigate such risks[261] - The Company discontinued all COVID-19 related products and services and is cooperating with governmental inquiries regarding its previous offerings[190]