Liquidity remains a primary concern as cash reserves have dwindled from $212.9 million in 2023Q4 to $101.5 million in 2026Q1, exacerbated by an OCF/NI ratio of -1.08.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | -17.8M | -30.43M | -15.13M | -19.77M | -62.1M | 3.25M | 33.6M | -59.16M | 4.78M | 10.29M | 24.56M | 21.83M | 15.67M | 16.96M | 28.01M | 25.07M | 15.55M | 21.02M | 7.99M | 8.99M | 2.6M | 4.6M | 2.07M | 1.11M | -738K | -12.91M | -26.57M | -6M |
| Operating CF Margin % | - | -12.49% | -4.84% | -4.92% | -12.06% | 0.69% | 9.17% | -20.29% | 1.91% | 4.7% | 11.02% | 9.13% | 7.47% | 9.54% | 17.79% | 18.84% | 14.15% | 24.03% | 10.7% | 17.22% | 7.77% | 20.66% | 11.88% | 9.27% | -8.96% | -165.42% | -423.19% | -1000% |
| Operating CF Growth % | 8.49% | -101.16% | 23.45% | 68.17% | -2012.57% | -90.34% | 156.81% | -1337.87% | -53.56% | -58.1% | 12.5% | 39.29% | -7.58% | -39.46% | 11.71% | 61.26% | -26.03% | 163.27% | -11.21% | 245.22% | -43.41% | 122.69% | - | 250.95% | 94.28% | 51.4% | -342.87% | - |
| Net Income | -61.93M | -67.23M | -134.27M | -100.44M | -225.75M | -124.97M | -107.59M | -96.07M | -25.03M | -18.19M | -25.87M | -26.44M | -7.35M | -3.5M | 6.36M | 12.04M | 9.26M | 7.76M | -23.84M | 5.82M | 2.2M | 2.54M | 2.09M | -816K | -6.77M | -27.26M | -43.33M | -9.8M |
| Depreciation & Amortization | 22.03M | 22.73M | 42.27M | 54.75M | 54.4M | 36.75M | 26.38M | 19.3M | 17M | 17.04M | 18.68M | 20.15M | 14.16M | 10.73M | 7.91M | 7.59M | 7.54M | 5.32M | 4.73M | 2.57M | 1.94M | 1.1M | 1.01M | 1.33M | 723K | 5.15M | 2.87M | 100K |
| Stock-Based Compensation | 11.81M | 14.26M | 21.99M | 11.85M | 109.64M | 69.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 677K | 677K | 0 | 0 |
| Deferred Taxes | 544K | 622K | 623K | 1.05M | -1.16M | -6.24M | 579K | -1.21M | -309K | -2.4M | 1.85M | 14.46M | -1.74M | -4.88M | -2.87M | 229K | 832K | 2.87M | -1.09M | -4.98M | -2.58M | 666K | 8K | 0 | -677K | 183K | 0 | 0 |
| Other Non-Cash Items | 20.39M | 11.83M | 76.47M | 9.33M | 664K | 37.2M | 86.94M | 53.98M | 16.3M | 10.67M | 13.99M | 10.49M | 14.15M | 12.96M | 10.73M | 7.06M | 5.05M | 4.79M | 27.91M | 3.98M | 2.33M | 30K | 276K | 358K | 5.7M | 8.42M | 13.83M | 2.7M |
| Working Capital Changes | -10.63M | -12.64M | -22.21M | 3.68M | 109K | -9.15M | 27.3M | -35.16M | -3.18M | 3.17M | 15.91M | 3.17M | -3.55M | 1.64M | 5.88M | -1.85M | -7.13M | 280K | 271K | 1.59M | -1.28M | 263K | -1.32M | 237K | -393K | -76K | 61K | 1M |
| Change in Receivables | -171K | 1.16M | 37.55M | 1.46M | -38K | -17.31M | 6.37M | -43.76M | -9.66M | -8M | -3.27M | -1.37M | -1.35M | -4.63M | -664K | -4.8M | -6.39M | -2.76M | -1.7M | -1.86M | -2.33M | -116K | -432K | 0 | -231K | -231K | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.76M | -7.19M | 0 | 0 |
| Change in Payables | -14.48M | -19.82M | -44.52M | -13.57M | 12.05M | 801K | -733K | 3.81M | 2.2M | -2.74M | 185K | -1.92M | -1.53M | -2.66M | 2.92M | 1.45M | 45K | 1.84M | 1.29M | 877K | 293K | 84K | 146K | 0 | -534K | -534K | 0 | 0 |
| Cash from Investing | -12.5M | -13.73M | -28.22M | -18.84M | -56.86M | -140.25M | -43.48M | -48.51M | -29.22M | -17.83M | -12.9M | -13.13M | -54.91M | -8.17M | -31.46M | -7.34M | -8.89M | -6.01M | -7.15M | -10.14M | -1.02M | -362K | -662K | -142K | -1.42M | 2.57M | -14.97M | -2.6M |
| Capital Expenditures | -10.59M | -12.09M | -28.22M | -32.66M | -51.17M | -45.7M | -41.64M | -47.58M | -21.94M | -17.39M | -12.34M | -12.98M | -51.46M | -8.04M | -22.02M | -7.27M | -8M | -5.92M | -6.83M | -1.71M | -652K | -362K | -260K | -67K | -59K | -516K | -14.84M | -2.6M |
| CapEx % of Revenue | 4.49% | 4.96% | 9.03% | 8.13% | 9.94% | 9.73% | 11.36% | 16.32% | 8.78% | 7.95% | 5.54% | 5.43% | 24.51% | 4.52% | 13.99% | 5.46% | 7.28% | 6.76% | 9.15% | 3.27% | 1.94% | 1.63% | 1.49% | 0.56% | 0.72% | 6.61% | 236.36% | 433.33% |
| Acquisitions | 0 | 0 | 0 | 13.82M | -3.43M | -91.94M | -1.83M | -924K | -7.29M | -441K | -555K | -150K | 0 | -79K | -9.44M | -75K | -884K | -98K | -316K | -8.43M | -366K | 0 | -402K | -75K | -1.37M | 0 | 2.72M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.91M | -1.64M | 0 | 0 | 0 | -2.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -51K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13K | 2.08M | -1.85M | 0 |
| Cash from Financing | -45.48M | -45.5M | 14.97M | -151.14M | 1.62M | 11.84M | 483.84M | 217.85M | 33.93M | 7.21M | -7.07M | -1.89M | -3M | -20.21M | 13.51M | 14.28M | 9.23M | 5.1M | -1.44M | 5.65M | 3.03M | 451K | 122K | 1.91M | 24K | 39K | 47.05M | 23.5M |
| Debt Issued (Net) | 26K | -26K | 14.62M | -153.03M | -3.73M | -3.56M | 504.55M | 221.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 820K | 350K | 1.89M | 5.35M | 15.4M | 25.36M | 20.16M | 33.93M | 7.21M | -7.07M | 199K | -3.67M | -20.4M | 9.41M | 10.28M | 7.83M | 4.16M | -3.16M | 2.55M | 989K | 451K | 122K | 1000K | 24K | 39K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -221K | -709K | 0 | -903K | -1.34M | -1.74M | -9.97M | -4.2M | -12.98M | -26.71M | 0 | 0 | -3.65M | -28K | -4.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -45.5M | -46.3M | 0 | 0 | 0 | 0 | -46.06M | -23.67M | 0 | 0 | 0 | -2.09M | 664K | 193K | 4.1M | 4M | 1.4M | 936K | 1.72M | 3.1M | 2.04M | 0 | 0 | 0 | 15K | 0 | 140K | 0 |
| Net Change in Cash | -74.75M | -88.23M | -29.69M | -179.27M | -131.33M | -130.62M | 477.63M | 110.07M | 8.88M | 2.71M | 639K | 4.84M | -42.53M | -11.43M | 10.06M | 31.94M | 15.76M | 20.07M | -722K | 4.49M | 4.61M | 17.12M | 0 | 2.89M | -2.13M | -10.31M | 5.5M | 14.8M |
| Free Cash Flow | -28.77M | -42.52M | -40.27M | -48.42M | -110.59M | -42.46M | -8.04M | -106.74M | -17.16M | -7.1M | 12.22M | 8.85M | 5.08M | 8.91M | 16.79M | 17.81M | 7.55M | 15.58M | 1.15M | 7.28M | 1.95M | 4.24M | 1.81M | 1.05M | -797K | -13.43M | -41.41M | -8.6M |
| FCF Margin % | -12.19% | -17.45% | -12.89% | -12.05% | -21.48% | -9.04% | -2.19% | -36.6% | -6.87% | -3.24% | 5.48% | 3.7% | 2.42% | 5.01% | 10.67% | 13.38% | 6.87% | 17.81% | 1.54% | 13.95% | 5.83% | 19.04% | 10.39% | 8.71% | -9.68% | -172.03% | -659.55% | -1433.33% |
| FCF Growth % | 21.67% | -5.59% | 16.83% | 56.21% | -160.47% | -428.32% | 92.47% | -522.06% | -141.68% | -158.12% | 38.02% | 74.1% | -42.97% | -46.9% | -5.72% | 135.93% | -51.56% | 1252.43% | -84.18% | 272.96% | -53.95% | 134.7% | - | 231.37% | 94.07% | 67.57% | -381.55% | - |
| FCF per Share | -2.39 | -4.92 | -6.81 | -9.24 | -22.26 | -9.15 | -1.83 | -25.58 | -4.35 | -1.89 | 3.27 | 2.35 | 1.40 | 2.44 | 4.41 | 4.86 | 2.14 | 4.77 | 0.36 | 2.33 | 0.68 | 1.59 | 0.05 | 0.45 | -0.35 | -5.93 | -25.32 | -18.19 |
| FCF Conversion (FCF/Net Income) | 0.46x | 0.45x | 0.11x | 0.20x | 0.28x | -0.03x | -0.31x | 0.62x | -0.19x | -0.57x | -0.95x | -0.83x | -2.13x | -4.85x | 4.41x | 2.08x | 1.68x | 2.71x | -0.33x | 1.54x | 1.18x | 1.81x | 0.99x | -1.37x | 0.11x | 0.47x | 0.61x | 0.61x |
| Interest Paid | 0 | 0 | 3.71M | 1.24M | 1.93M | 2.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -330K | 0 | 1.89M | 1.86M | 3.24M | 582K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Cash Flow Instability
As reported in financial statements, the persistent gap between net income and operating cash flow, highlighted by an OCF/NI ratio of -1.08 in 2026Q1, suggests that reported earnings are frequently decoupled from actual cash generation, complicating the assessment of the company's underlying operational health.
The frequent divergence between bottom-line results and cash flow from operations indicates that non-cash charges and working capital fluctuations are masking the true economic reality of the business. Investors should monitor whether this disconnect stems from aggressive revenue recognition practices or simply the high cost of maintaining legacy enterprise software deployments.
Based on LivePerson's reported figures, free cash flow margins have remained largely negative over the last ten quarters, with a trough of -28.7% in 2024Q2, indicating that the firm is currently unable to self-fund its operations through its core conversational cloud business model.
The inability to generate consistent positive free cash flow suggests that the company's current cost structure is misaligned with its declining revenue base. This trajectory implies that without a significant pivot toward operational efficiency, the firm may continue to deplete its cash reserves to sustain its current market position.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $14.7 million inflow in 2025Q3 to a $16.3 million outflow in 2025Q4, which suggests significant instability in the company's ability to manage its cash conversion cycle effectively.
This volatility in working capital likely reflects the challenges of managing a gainshare-based revenue model where collections are tied to variable performance milestones. Such unpredictability in cash inflows makes it difficult for management to forecast liquidity needs and may necessitate more conservative cash management strategies moving forward.
As indicated by the quarterly data, the cash flow statement is heavily influenced by stock-based compensation and depreciation, which together obscure the true cash burn rate by masking the underlying expense of maintaining the company's specialized engineering and implementation talent base.
The reliance on non-cash adjustments to reconcile operating cash flow warrants further investigation into whether these figures are truly representative of the company's ongoing maintenance requirements. If these adjustments are consistently used to bridge the gap between negative net income and cash flow, the company's long-term viability may be more fragile than headline figures suggest.
Quick answers to the most common questions about buying LPSN stock.
LivePerson, Inc. (LPSN) generated $-30.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LivePerson, Inc. (LPSN) reported negative free cash flow of $42.5M in 2025, indicating capital requirements exceeded cash from operations.
LivePerson, Inc. (LPSN) spent $12.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.