LivePerson Inc

LivePerson operates with a highly leveraged capital structure, as evidenced by a debt-to-equity ratio of 26.7, significantly above the median for its industry. The company holds $127.06 million in cash and equivalents but faces $512.24 million in long-term debt, resulting in a negative net cash position. Liquidity remains a concern, with a current ratio of 1.2 and free cash flow of -$35.90 million in the latest period.

Profitability metrics show substantial underperformance relative to industry norms. The company reported a net loss of $35.63 million and an operating loss of $36.36 million, translating to a negative return on equity of -185.74% and a return on assets of -4.92%. Gross profit margin of 65.4% is strong, but operating margin is -42.7%, indicating significant overhead and operational inefficiencies.

LivePerson derives revenue from a single business segment focused on AI-driven customer engagement platforms. Geographic exposure is concentrated in North America, which accounts for the majority of revenue, though specific percentages are not disclosed. The company lacks diversification in either product or geographic markets, increasing vulnerability to regional economic shifts.

Growth trajectory remains negative, with no disclosed revenue growth in the latest period. The company reported $85.15 million in revenue, down from prior periods. Analysts project limited upside, with a mean price target of $4.00 and a median of $4.00, representing a 83.5% upside from the current market price of $2.18. No buy or strong-buy recommendations have been issued.

Risk factors include liquidity constraints, with free cash flow of -$35.90 million and a negative net cash position. Dilution risk is currently low, as shares outstanding remain unchanged between basic and diluted counts. However, the company's negative net income and operating cash flow suggest potential future capital-raising needs.

Recent filings highlight ongoing challenges in achieving profitability and managing debt. The 10-K filing notes strategic shifts toward AI integration and cost optimization, but execution risks remain. No material events in the past quarter have altered the company's trajectory.

Analysts project 104.1% upside to a mean price target of $4.00, significantly above the current market price of $1.96.

Operating income improved by 53.7% year-over-year to a loss of $50.98 million, indicating a trajectory toward operational breakeven.

Free cash flow improved by 51.5% year-over-year to a loss of $58.23 million, suggesting better cash management efficiency.

Long-term debt decreased to $391.78 million in FY2026, reflecting a reduction in leverage compared to prior fiscal years.

Net income loss narrowed by 49.9% year-over-year to $67.23 million, demonstrating progress in reducing bottom-line deficits.

The company carries high credit risk and a debt-to-equity ratio of -11.22, indicating severe financial leverage concerns.

Revenue $59.3M, −19,0% YoY; Operating income +59,7% YoY.

• ▍Revenue $59.3M, −19,0% YoY
• ▍Operating income +59,7% YoY
• ▍Net income +58,9% YoY
• ▍Free cash flow +60,6% YoY
• ▍Net margin -77.8%

Revenue $60.2M, −19,0% YoY; Operating income +181,9% YoY.

• ▍Revenue $60.2M, −19,0% YoY
• ▍Operating income +181,9% YoY
• ▍Net income +130,8% YoY
• ▍Free cash flow +148,1% YoY
• ▍Net margin 14.5%

Revenue $59.6M, −25,4% YoY; Operating income −114,9% YoY.

• ▍Revenue $59.6M, −25,4% YoY
• ▍Operating income −114,9% YoY
• ▍Net income −137,6% YoY
• ▍Free cash flow −128,4% YoY
• ▍Net margin -26.4%

Revenue $64.7M, −24,0% YoY; Operating income +53,4% YoY.

• ▍Revenue $64.7M, −24,0% YoY
• ▍Operating income +53,4% YoY
• ▍Net income +60,3% YoY
• ▍Free cash flow +65,3% YoY
• ▍Net margin -21.8%

Revenue $73.2M; Operating income -$101.0M.

• ▍Revenue $73.2M
• ▍Operating income -$101.0M
• ▍Net margin -153.2%

Revenue $74.2M; Operating income -$16.0M.

• ▍Revenue $74.2M
• ▍Operating income -$16.0M
• ▍Net margin -38.1%

Revenue $79.9M; Operating income $43.3M.

• ▍Revenue $79.9M
• ▍Operating income $43.3M
• ▍Net margin 52.3%

Revenue $85.1M; Operating income -$36.4M.

• ▍Revenue $85.1M
• ▍Operating income -$36.4M
• ▍Net margin -41.8%

Revenue $243.7M, −22,0% YoY; Operating income +53,7% YoY.

• ▍Revenue $243.7M, −22,0% YoY
• ▍Operating income +53,7% YoY
• ▍Net income +49,9% YoY
• ▍Free cash flow +51,5% YoY
• ▍Net margin -27.6%

Revenue $312.5M, −22,3% YoY; Operating income +1,1% YoY.

• ▍Revenue $312.5M, −22,3% YoY
• ▍Operating income +1,1% YoY
• ▍Net income −33,7% YoY
• ▍Free cash flow −53,4% YoY
• ▍Net margin -43.0%

Revenue $402.0M, −21,9% YoY; Operating income +49,8% YoY.

• ▍Revenue $402.0M, −21,9% YoY
• ▍Operating income +49,8% YoY
• ▍Net income +55,5% YoY
• ▍Free cash flow +64,8% YoY
• ▍Net margin -25.0%

Revenue $514.8M, +9,6% YoY; Operating income −137,9% YoY.

• ▍Revenue $514.8M, +9,6% YoY
• ▍Operating income −137,9% YoY
• ▍Net income −80,6% YoY
• ▍Free cash flow −58,6% YoY
• ▍Net margin -43.9%