LivePerson Announces Fourth Quarter 2025 Financial Results

Core Insights - LivePerson reported total revenue of $59.3 million for Q4 2025, a 19% decrease year-over-year, attributed to customer cancellations and downsells [1][2] - The company signed 40 deals in Q4 2025, including 36 expansions and 4 new customers, indicating ongoing customer engagement despite revenue decline [1][2] - Adjusted EBITDA for Q4 2025 was $10.8 million, an increase from $8.1 million in Q4 2024, reflecting improved operational efficiency [1][2] Financial Performance - 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 [1][4] - Average revenue per enterprise and mid-market customer increased by 8.8% to $680,000 in Q4 2025, up from approximately $625,000 in the prior year [1][2] - Cash and cash equivalents decreased to $95.0 million at the end of 2025 from $183.2 million at the end of 2024 [1][5] Future Guidance - 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% [2] - For the full year 2026, total revenue is projected to be between $195 million and $207 million, indicating a decline of 20% to 15% year-over-year [2] - Adjusted EBITDA for 2026 is anticipated to range from $(4) million to $7 million, with a margin of (2.1)% to 3.4% [2] Customer Expansion - Notable expansions in Q4 2025 included a global airline carrier, a leading South American bank, and a major European telecommunications provider [1][2] - New customer acquisition included a New Zealand-based wealth manager, showcasing the company's ability to attract new clients [1][2] Operational Improvements - The company has focused on optimizing its cost structure and improving its balance sheet, which is expected to provide a stronger foundation for future growth [1][2] - The launch of Syntrix and scaling of the Google Cloud partnership are key initiatives aimed at enhancing the company's market position [1][2]