LivePerson Reports 22% Revenue Decline and $67.2 Million Net Loss for Fiscal Year 2025

LivePerson, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2025, with total revenue decreasing by 22% to $243.7 million, down from $312.5 million in 2024. The decrease was primarily attributed to customer cancellations and reduced commitments upon contract renewals, particularly in its hosted services segment, which saw a drop of $54.1 million. Professional services revenue also fell by $14.7 million during the same period. The company recorded a net loss of $67.2 million for 2025, compared to a loss of $134.3 million in 2024, indicating some improvement in profitability despite the revenue decline.

In terms of operational metrics, LivePerson's average annual revenue per enterprise and mid-market customer rose to $680,000 in 2025 from $625,000 in 2024. However, revenue retention for enterprise and mid-market customers fell to 78%, below the company's long-term target of 105% to 115%, and down from 82% in the previous year. The company noted that slower renewals and new business bookings were influenced by customer uncertainty regarding its financial stability and broader macroeconomic factors, which have extended enterprise buying cycles.

Strategically, LivePerson has undertaken restructuring initiatives to realign its cost structure with its current business model, resulting in a 44% reduction in general and administrative expenses to $44.4 million. The company also reported a significant reduction in its workforce, with headcount decreasing by 22% to 615 employees as of December 31, 2025. Additionally, LivePerson completed a troubled debt restructuring in September 2025, which involved exchanging $341.1 million in convertible notes for new debt and equity, resulting in a gain of $27.7 million.

Looking ahead, LivePerson's management expressed cautious optimism, stating that they anticipate their current cash and cash equivalents will be sufficient to meet working capital and capital requirements for at least the next 12 months. However, they acknowledged the potential need for additional funding and the challenges posed by the competitive landscape, particularly in the rapidly evolving field of artificial intelligence. The company is focused on enhancing its product offerings and improving customer engagement through its digital customer conversation platform, which integrates AI capabilities to facilitate better interactions between brands and consumers.