📊 LPSN Key Takeaways
Is Liveperson Inc. (LPSN) a Good Investment?
Company faces severe balance sheet insolvency with negative stockholders' equity of -$51.5M, indicating liabilities exceed assets by a critical margin. Operating losses (-3.1% margin) combined with unsustainable debt burden ($512.1M) and negative interest coverage (-0.2x) demonstrate the business cannot service debt from operations. While positive FCF provides near-term runway, structural financial impairment poses existential viability risk.
Fundamentals show sharp contraction and ongoing losses: revenue fell 22% YoY with deeply negative operating and net margins, and free cash flow remains negative. The balance sheet is strained with negative equity, high long‑term debt, and negative interest coverage, elevating solvency risk. While net loss improved YoY, the path to sustainable profitability and cash generation is unclear without revenue stabilization and cost discipline.
Liveperson Inc. Key Strengths (LPSN)
- Positive operating cash flow of $9.5M and free cash flow of $6.9M with 12.1% FCF margin demonstrate operational cash generation despite accounting losses
- Cash reserves of $101.5M provide liquidity buffer for debt service and restructuring runway
- Active revenue base of $57M shows functional business operations underlying financial distress
- Year-over-year improvement in net loss trajectory
- Cash balance of ~$95M provides limited near-term liquidity
- Modest capex requirements help flexibility
LPSN Stock Risks: Liveperson Inc. Investment Risks
- Negative stockholders' equity of -$51.5M represents technical balance sheet insolvency with liabilities exceeding assets
- Long-term debt of $512.1M with negative interest coverage (-0.2x) is structurally unsustainable and cannot be serviced from operations
- Persistent operating losses with -15.5% net margin and -3.1% operating margin indicate fundamental business model profitability challenges
- Current ratio of 1.12x provides thin liquidity cushion despite positive FCF
- Negative stockholders’ equity and high leverage (~$512M long-term debt)
- Persistent operating losses and negative free cash flow
- Revenue decline (-22% YoY) signaling demand or retention issues
Key Metrics to Watch
- Achievement of operating profitability and positive operating margin trajectory
- Improvement of interest coverage to positive territory through debt reduction or earnings growth
- Recovery of stockholders' equity to positive balance sheet through earnings retention or debt-to-equity conversion
- Quarterly free cash flow sustainability and debt paydown rate
- Operating/free cash flow turning positive
- Interest coverage and net debt reduction
Liveperson Inc. (LPSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Liveperson Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LPSN Profit Margin, ROE & Profitability Analysis
LPSN vs Technology Sector: How Liveperson Inc. Compares
How Liveperson Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Liveperson Inc. Stock Overvalued? LPSN Valuation Analysis 2026
Based on fundamental analysis, Liveperson Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Liveperson Inc. Balance Sheet: LPSN Debt, Cash & Liquidity
LPSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Liveperson Inc.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $-19.17 indicates the company is currently unprofitable.
LPSN Revenue Growth, EPS Growth & YoY Performance
LPSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $57.0M | -$8.8M | $-0.73 |
| Q3 2025 | $60.2M | $8.7M | $-2.76 |
| Q2 2025 | $59.6M | $6.2M | $-0.17 |
| Q1 2025 | $64.7M | -$14.1M | $-0.24 |
| Q3 2024 | $74.2M | $10.8M | $-0.25 |
| Q2 2024 | $79.9M | $6.2M | $-0.09 |
| Q1 2024 | $85.1M | -$17.4M | $-0.23 |
| Q3 2023 | $101.3M | $10.8M | $-0.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Liveperson Inc. Dividends, Buybacks & Capital Allocation
LPSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Liveperson Inc. (CIK: 0001102993)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LPSN
What is the AI rating for LPSN?
Liveperson Inc. (LPSN) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LPSN's key strengths?
Claude: Positive operating cash flow of $9.5M and free cash flow of $6.9M with 12.1% FCF margin demonstrate operational cash generation despite accounting losses. Cash reserves of $101.5M provide liquidity buffer for debt service and restructuring runway. ChatGPT: Year-over-year improvement in net loss trajectory. Cash balance of ~$95M provides limited near-term liquidity.
What are the risks of investing in LPSN?
Claude: Negative stockholders' equity of -$51.5M represents technical balance sheet insolvency with liabilities exceeding assets. Long-term debt of $512.1M with negative interest coverage (-0.2x) is structurally unsustainable and cannot be serviced from operations. ChatGPT: Negative stockholders’ equity and high leverage (~$512M long-term debt). Persistent operating losses and negative free cash flow.
What is LPSN's revenue and growth?
Liveperson Inc. reported revenue of $57.0M.
Does LPSN pay dividends?
Liveperson Inc. does not currently pay dividends.
Where can I find LPSN SEC filings?
Official SEC filings for Liveperson Inc. (CIK: 0001102993) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LPSN's EPS?
Liveperson Inc. has a diluted EPS of $-0.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LPSN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Liveperson Inc. has a D grade with 86% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LPSN stock overvalued or undervalued?
Valuation metrics for LPSN: ROE of N/A (sector avg: 22%), net margin of -15.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is LPSN's AI grade for 2026?
Our dual AI analysis gives Liveperson Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LPSN's free cash flow?
Liveperson Inc.'s operating cash flow is $9.5M, with capital expenditures of $2.6M. FCF margin is 12.1%.
How does LPSN compare to other Technology stocks?
Vs Technology sector averages: Net margin -15.5% (avg: 18%), ROE N/A (avg: 22%), current ratio 1.12 (avg: 2.5).