LivePerson Reports 25% Revenue Decline and $15.7 Million Net Loss in Q2 2025

LivePerson, Inc. reported a significant decline in its financial performance for the second quarter of 2025, with revenues dropping 25% to $59.6 million compared to $79.9 million in the same period last year. For the first half of 2025, revenue also fell by 25% to $124.3 million from $165 million in the prior year. The decrease was attributed primarily to a reduction in hosted services, which saw a decline of $17 million, largely due to customer cancellations and downsells. Professional services revenue also decreased by $3.3 million for the quarter and $7.4 million for the half-year.

The company's net loss for the second quarter was $15.7 million, compared to a net income of $41.8 million in the same quarter of 2024. This resulted in a basic net loss per share of $0.17, a stark contrast to the earnings of $0.47 per share reported in the previous year. The loss was exacerbated by increased interest expenses, which rose to $7.9 million from $2.1 million, and a significant drop in other income, which included a $73.1 million gain on debt extinguishment recorded in the prior year.

LivePerson has been undergoing strategic restructuring to align its cost structure with its current business model, resulting in a 67% reduction in general and administrative expenses to $7.9 million for the quarter. The company also reported a decrease in sales and marketing expenses by 23% to $19.9 million, reflecting a reduction in workforce and marketing activities. As of June 30, 2025, the company had 176 employees, down from 202 a year earlier, indicating a continued effort to streamline operations.

In terms of operational metrics, the average annual revenue per enterprise and mid-market customer increased to approximately $655,000, up from $630,000 a year ago. However, revenue retention for enterprise and mid-market customers fell to 78%, below the target range of 105% to 115%. The company noted that customer hesitation regarding financial stability and broader macroeconomic factors have contributed to slower new business bookings.

Looking ahead, LivePerson anticipates that its current cash and cash equivalents, totaling approximately $162 million, will be sufficient to meet its working capital needs for at least the next 12 months. However, the company acknowledged the potential need for additional funding to support growth initiatives and refinance existing debt. The company is also evaluating the impact of recent legislative changes on its financial statements and operations.