LivePerson(US:LPSN)2026-03-12 20:38Financial Performance - Total revenue for Q4 2025 was $59.3 million, a decrease of 19% year-over-year, attributed to customer cancellations and downsells [3]. - Revenue for Q4 2025 was $59.288 million, a decrease of 19% compared to $73.206 million in Q4 2024 [27]. - Total revenue for the year ended December 31, 2025, was $243.742 million, down 22% from $312.474 million in 2024 [27]. - For Q1 2026, total revenue is expected to range from $53 million to $55 million, representing a year-over-year decline of 18% to 15% [11]. - For the full year 2026, total revenue is projected to be between $195 million and $207 million, indicating a year-over-year decline of 20% to 15% [12]. - Recurring revenue is expected to represent 92% of total revenue for both Q1 2026 and the full year 2026 [11][12]. Net Loss and Earnings - Net loss for Q4 2025 was $46.1 million, or $3.92 per share, compared to a net loss of $112.1 million, or $19.00 per share, in Q4 2024 [7]. - The company reported a net loss of $67.233 million for the year ended December 31, 2025, an improvement from a net loss of $134.273 million in 2024 [29]. - GAAP net loss for Q4 2025 was $46.1 million, compared to a loss of $112.1 million in Q4 2024, indicating a significant improvement [31]. Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $10.8 million, up from $8.1 million in Q4 2024 [8]. - Adjusted EBITDA for Q4 2025 was $10.8 million, up from $8.1 million in Q4 2024, reflecting a year-over-year increase of 33.5% [31]. - Adjusted operating income for Q4 2025 was $5.5 million, compared to $972,000 in Q4 2024, marking a substantial increase [31]. Cash and Balance Sheet - Cash balance at December 31, 2025, was $95.0 million, down from $183.2 million at the end of 2024 [9]. - Cash, cash equivalents, and restricted cash at the end of 2025 were $95.004 million, down from $183.237 million at the beginning of the year [29]. - Cash and cash equivalents decreased to $95.0 million as of December 31, 2025, down from $183.2 million in 2024, representing a decline of 48.0% [35]. - Total assets decreased to $454.7 million in 2025 from $607.8 million in 2024, a reduction of 25.1% [35]. - Total liabilities decreased to $499.2 million in 2025 from $675.1 million in 2024, a decrease of 26.0% [35]. Costs and Expenses - Total costs and expenses for Q4 2025 were $100.023 million, significantly lower than $174.200 million in Q4 2024 [27]. - Non-GAAP cost of revenue for Q4 2025 was $15.8 million, compared to $16.2 million in Q4 2024, reflecting a decrease of 2.5% [33]. - Non-GAAP sales and marketing expenses for Q4 2025 were $13.4 million, down from $19.4 million in Q4 2024, a reduction of 30.5% [33]. - The company incurred restructuring costs of $489,000 in Q4 2025, compared to $3.263 million in Q4 2024 [27]. - Impairment of goodwill for the year was $41.595 million, down from $60.551 million in 2024 [29]. - Impairment of goodwill for the year ended December 31, 2025, was $41.6 million, compared to $60.6 million in 2024, indicating a decrease of 31.4% [31]. Strategic Initiatives - The company aims to enhance innovation and expand partnerships, particularly with Google Cloud Marketplace, to regain growth momentum [5]. - The company has improved its balance sheet and cost structure, positioning itself for better commercial execution in 2026 [5]. Cash Flow - The company experienced a net cash used in operating activities of $30.435 million for the year 2025, compared to $15.130 million in 2024 [29]. - Total Free Cash Flow for the year ended December 31, 2025, was $(42.5) million, compared to $(40.3) million in 2024, showing a slight increase in cash outflow [33]. - The company issued 2029 convertible senior notes, generating $100 million in proceeds [29].