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LivePerson Reports Financial Results for Q2 2025

On August 11, 2025, LivePerson, Inc. (NASDAQ: LPSN) announced its financial results for the second quarter ending June 30, 2025. The company, a prominent player in enterprise conversational AI, disclosed that its total revenue reached $59.6 million. This figure marks a 25.4% decrease compared to the same quarter last year, primarily influenced by customer cancellations and downsells.

Q2 Highlights and Performance Analysis

During this quarter, LivePerson secured a total of 38 deals, which included 35 renewals from existing customers and 3 new customer sign-ups. Notably, the average revenue per enterprise and mid-market customer (ARPC) saw a growth of 4.0%, rising to $655,000 from approximately $630,000 in the same period a year prior.

CEO John Sabino noted, "In the second quarter, we took decisive steps to enhance our financial stability through a refinancing agreement that significantly reduces our debt levels while also providing a clearer path forward for our operational strategies." Additionally, the company experienced a 45% increase in interactions powered by their Generative AI suite and reinforced its strategic partnership with Google Cloud.

John Collins, CFO and COO, emphasized the successful culmination of a multi-year strategy to deleverage the company’s balance sheet. This move has resulted in a debt reduction of $226 million, allowing for an extended operational runway through 2029. Collins' comments highlighted a shift toward creating shareholder value through these strategic financial maneuvers.

Customer Expansion and New Partnerships

Key expansions and renewals during the quarter involved substantial partners such as:

• - A global financial services firm
• - A prominent European retail chain
• - One of Australia's major retail groups
• - A leading health plan provider in the U.S.

The quarter also introduced a new logo from a European digital marketing agency, showcasing LivePerson's growing footprint in diverse industries.

Financial Performance: Losses and Adjusted Metrics

LivePerson reported a net loss of $15.7 million or $0.17 per share in Q2 2025, a stark contrast to a net income of $41.8 million or $0.47 per share from the same quarter in 2024. The difference is largely attributed to a significant gain of $73.1 million from debt extinguishment reflected in the previous year.

The adjusted operating loss was $2.7 million, compared to an adjusted operating income of $0.5 million in Q2 2024. On a non-GAAP basis, the adjusted EBITDA stood at $2.9 million, a decline from the adjusted EBITDA of $8.2 million from the prior year. The challenges reflected in these numbers underline a critical period for enhancing financial and operational practices.

Although the cash balance decreased from $183.2 million at the end of 2024 to $162 million by June 30, 2025, LivePerson continues to navigate its funds strategically amidst these fluctuating revenue curves.

Looking Ahead: Financial Expectations

For Q3 2025, LivePerson forecasts total revenues between $56 million and $59 million, translating to a year-over-year decline of 25% to 21%. With an expected range for adjusted EBITDA from $(4) million to $(2) million, the company is set to remain cautious regarding its financial maneuvers and clientele retention strategies.

The Company projects full-year revenue to land between $230 million and $240 million, again reflecting anticipated declines compared to 2024. In addition, recurring revenue is set to represent 93% of its total revenue, highlighting a commitment to stable income streams.

Conclusion

As LivePerson adapts to these challenges, the focus on operational improvements while leveraging advanced technologies remains apparent. The strategic decision-making around debt management and customer relationships will be pivotal as the company aims to regain a growth trajectory in the competitive landscape of conversational AI.