LivePerson Reports 12% Revenue Decline and $72.6 Million Net Loss in Q2 2026

LivePerson, Inc. reported a significant decline in financial performance for the second quarter of 2026, with revenues totaling $52.5 million, down 12% from $59.6 million in the same period last year. For the first half of 2026, revenue also decreased by 12% to $109.5 million compared to $124.3 million in the first half of 2025. The decline was attributed to a reduction in hosted services and professional services, driven by customer cancellations and downsells. The company recorded a net loss of $72.6 million for the quarter, compared to a loss of $15.7 million in the prior year, largely due to a goodwill impairment charge of $51.8 million.

In terms of operational metrics, LivePerson's total costs and expenses surged to $120.2 million for the second quarter, up from $66.0 million a year earlier. This increase was primarily due to the aforementioned goodwill impairment and higher general and administrative expenses, which rose significantly due to merger-related costs. The company’s headcount decreased to 1,047 employees, down from 1,176 a year prior, reflecting ongoing restructuring efforts aimed at aligning costs with current business conditions.

Strategically, LivePerson is in the process of merging with SoundHound AI, Inc., following an amended merger agreement that was finalized on July 2, 2026. This merger is expected to enhance LivePerson's capabilities in AI-powered customer engagement solutions. The company has also launched Syntrix, a new platform designed to evaluate AI behavior in customer interactions, which is intended to improve the reliability and safety of AI applications in its services.

Geographically, revenue from the Americas accounted for $26.4 million, while EMEA and APAC contributed $16.8 million and $9.3 million, respectively. The company reported a total of $147.3 million in remaining performance obligations as of June 30, 2026, indicating a backlog of contracted revenue expected to be recognized in the near future. LivePerson's cash and cash equivalents stood at $96.7 million, reflecting a slight increase from the previous quarter, which the company attributes to improved working capital management.

Looking ahead, LivePerson anticipates that the ongoing merger with SoundHound will provide strategic benefits, although it acknowledges the challenges posed by customer uncertainty and broader economic conditions that may impact revenue retention and new business bookings. The company remains focused on managing its costs and improving operational efficiency as it navigates these challenges.