Revenue has experienced a consistent decline, dropping 12.0% year-over-year as of 2026Q1, while operating margins remain pressured at -3.1% despite aggressive R&D cost reductions.
| 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 |
|---|
| Sales/Revenue | 236M | 243.74M | 312.47M | 401.98M | 514.8M | 469.62M | 366.62M | 291.61M | 249.84M | 218.88M | 222.78M | 239.01M | 209.93M | 177.81M | 157.41M | 133.09M | 109.86M | 87.49M | 74.66M | 52.23M | 33.52M | 22.28M | 17.39M | 12.02M | 8.23M | 7.81M | 6.28M | 600K |
| Revenue Growth % | -19.19% | -22% | -22.27% | -21.91% | 9.62% | 28.1% | 25.72% | 16.72% | 14.15% | -1.75% | -6.79% | 13.85% | 18.07% | 12.96% | 18.27% | 21.14% | 25.57% | 17.19% | 42.94% | 55.81% | 50.47% | 28.09% | - | 46.02% | 5.48% | 24.32% | 946.5% | - |
| Cost of Goods Sold | 88.72M | 69.39M | 119.67M | 170.81M | 210.9M | 176.16M | 120.65M | 88.48M | 70.51M | 65.25M | 70.82M | 78.21M | 56.74M | 43.43M | 35.8M | 33.3M | 29.9M | 21.82M | 21.71M | 14.65M | 9M | 5.23M | 3.68M | 2.03M | 1.6M | 6.74M | 5.64M | 800K |
| COGS % of Revenue | - | 28.47% | 38.3% | 42.49% | 40.97% | 37.51% | 32.91% | 30.34% | 28.22% | 29.81% | 31.79% | 32.72% | 27.03% | 24.42% | 22.74% | 25.02% | 27.22% | 24.94% | 29.09% | 28.05% | 26.86% | 23.47% | 21.16% | 16.87% | 19.48% | 86.34% | 89.78% | 133.33% |
| Gross Profit | 147.27M | 174.35M | 192.81M | 231.17M | 303.9M | 293.46M | 245.97M | 203.13M | 179.33M | 153.62M | 151.96M | 160.81M | 153.19M | 134.38M | 121.61M | 99.78M | 79.96M | 65.67M | 52.94M | 37.58M | 24.52M | 17.05M | 13.71M | 9.99M | 6.63M | 1.07M | 642K | -200K |
| Gross Margin % | 62.4% | 71.53% | 61.7% | 57.51% | 59.03% | 62.49% | 67.09% | 69.66% | 71.78% | 70.19% | 68.21% | 67.28% | 72.97% | 75.58% | 77.26% | 74.98% | 72.78% | 75.06% | 70.91% | 71.95% | 73.14% | 76.53% | 78.84% | 83.13% | 80.52% | 13.66% | 10.22% | -33.33% |
| Gross Profit Growth % | - | -9.57% | -16.6% | -23.93% | 3.56% | 19.31% | 21.09% | 13.27% | 16.74% | 1.1% | -5.5% | 4.97% | 14% | 10.5% | 21.87% | 24.79% | 21.77% | 24.04% | 40.88% | 53.27% | 43.8% | 24.34% | - | 50.75% | 521.95% | 66.04% | 421% | - |
| Operating Expenses | 156.71M | 197.68M | 255.08M | 314.47M | 501.33M | 383.33M | 306M | 288.12M | 197.97M | 168.85M | 161.7M | 171.53M | 156.86M | 138.85M | 105.62M | 80.15M | 65.62M | 52.88M | 52.06M | 34.36M | 23.47M | 14.13M | 11.64M | 9.82M | 6.99M | 16.22M | 45.85M | 10.1M |
| OpEx % of Revenue | - | 81.1% | 81.63% | 78.23% | 97.38% | 81.63% | 83.47% | 98.8% | 79.24% | 77.15% | 72.58% | 71.77% | 74.72% | 78.09% | 67.1% | 60.22% | 59.73% | 60.44% | 69.74% | 65.8% | 70.01% | 63.44% | 66.92% | 81.68% | 84.93% | 207.84% | 730.16% | 1683.33% |
| Selling, General & Admin | 105.86M | 120.24M | 180.48M | 217.3M | 334.65M | 239.57M | 207.82M | 211.23M | 146.01M | 131.18M | 122.54M | 133.45M | 120.25M | 102.46M | 75.57M | 59.93M | 49.91M | 40.77M | 39.17M | 25.33M | 18.41M | 11.43M | 9.64M | 7.17M | 5.35M | 11.46M | 34.77M | 8.4M |
| SG&A % of Revenue | - | 49.33% | 57.76% | 54.06% | 65.01% | 51.01% | 56.69% | 72.44% | 58.44% | 59.93% | 55.01% | 55.84% | 57.28% | 57.62% | 48.01% | 45.03% | 45.43% | 46.6% | 52.46% | 48.5% | 54.91% | 51.32% | 55.42% | 59.59% | 65.01% | 146.81% | 553.72% | 1400% |
| Research & Development | 50.85M | 54.71M | 79.78M | 103.86M | 174.07M | 143.76M | 98.18M | 76.89M | 51.95M | 37.68M | 39.15M | 38.08M | 36.61M | 36.4M | 30.05M | 20.22M | 15.71M | 12.11M | 12.9M | 9.03M | 5.06M | 2.7M | 2M | 1.64M | 1.28M | 3.51M | 8.21M | 1.6M |
| R&D % of Revenue | - | 22.44% | 25.53% | 25.84% | 33.81% | 30.61% | 26.78% | 26.37% | 20.79% | 17.21% | 17.58% | 15.93% | 17.44% | 20.47% | 19.09% | 15.19% | 14.3% | 13.84% | 17.28% | 17.29% | 15.1% | 12.12% | 11.5% | 13.65% | 15.58% | 44.95% | 130.74% | 266.67% |
| Other Operating Expenses | 0 | 22.73M | -5.18M | -6.69M | -7.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.91M | 14.67M | 0 | 0 |
| Operating Income | -9.44M | -23.33M | -62.27M | -83.3M | -197.43M | -89.87M | -60.03M | -84.99M | -18.64M | -15.23M | -9.74M | -10.72M | -3.67M | -4.47M | 15.99M | 19.64M | 14.34M | 12.79M | 876K | 3.21M | 1.05M | 2.92M | 2.07M | -849K | -1.55M | -27.9M | -45.2M | -10.3M |
| Operating Margin % | -4% | -9.57% | -19.93% | -20.72% | -38.35% | -19.14% | -16.37% | -29.14% | -7.46% | -6.96% | -4.37% | -4.49% | -1.75% | -2.52% | 10.16% | 14.75% | 13.05% | 14.61% | 1.17% | 6.15% | 3.13% | 13.09% | 11.92% | -7.06% | -18.81% | -357.39% | -719.94% | -1716.67% |
| Operating Income Growth % | - | 62.54% | 25.24% | 57.81% | -119.68% | -49.7% | 29.37% | -356.07% | -22.34% | -56.39% | 9.18% | -192.45% | 18.04% | -127.98% | -18.55% | 36.92% | 12.15% | 1359.59% | -72.74% | 206.39% | -64.04% | 40.71% | - | 45.19% | 94.45% | 38.29% | -338.88% | - |
| EBITDA | 12.61M | -597K | -15.96M | -28.55M | -143.03M | -53.12M | -33.65M | -65.69M | -1.63M | 1.81M | 8.94M | 9.43M | 10.49M | 6.26M | 23.9M | 27.23M | 21.88M | 18.11M | 5.6M | 5.79M | 2.99M | 4.02M | 3.08M | 486K | -826K | -22.75M | -42.34M | -10.2M |
| EBITDA Margin % | 5.34% | -0.24% | -5.11% | -7.1% | -27.78% | -11.31% | -9.18% | -22.53% | -0.65% | 0.83% | 4.01% | 3.95% | 5% | 3.52% | 15.18% | 20.46% | 19.91% | 20.69% | 7.51% | 11.08% | 8.91% | 18.04% | 17.72% | 4.04% | -10.03% | -291.44% | -674.23% | -1700% |
| EBITDA Growth % | 194.67% | 96.26% | 44.09% | 80.04% | -169.26% | -57.84% | 48.77% | -3920.26% | -190.38% | -79.79% | -5.15% | -10.14% | 67.66% | -73.81% | -12.22% | 24.46% | 20.82% | 223.15% | -3.2% | 93.77% | -25.68% | 30.4% | - | 158.84% | 96.37% | 46.26% | -315.05% | - |
| D&A (Non-Cash Add-back) | 22.05M | 22.73M | 46.31M | 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 |
| EBIT | 11.46M | -34.54M | -117.05M | -83.3M | -218.52M | -89.87M | -90.5M | -83.23M | -24.17M | -17.69M | -19.94M | -10.63M | -5.49M | -4.14M | 10.72M | 19.15M | 14.33M | 12.88M | -22.3M | 4.11M | 1.76M | 3.22M | 2.15M | 175K | -363K | -15.16M | -45.2M | -10.3M |
| Net Interest Income | -28.51M | -24.49M | -8.63M | 4.67M | -352K | -37.41M | -14.33M | -7.41M | 0 | 0 | 0 | 0 | 0 | 39K | 71K | 63K | 99K | 14K | -47K | 896K | 715K | 300K | 77K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 3.8M | 4.75M | 5.86M | 9.55M | 5.15M | 127K | 295K | 2.59M | 0 | 0 | 0 | 0 | 0 | 39K | 71K | 63K | 99K | 94K | 329K | 896K | 715K | 300K | 77K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 32.3M | 29.25M | 14.49M | 4.88M | 5.5M | 37.41M | 14.63M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 80K | 376K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -48.36M | -40.45M | -69.26M | -12.97M | -26.59M | -37.51M | -45.1M | -8.24M | -5.54M | -2.46M | -10.2M | 94K | -1.82M | 337K | -5.28M | -485K | -7K | 14K | -23.55M | 896K | 715K | 300K | 77K | 33K | 1.55M | 637K | 65K | 0 |
| Pretax Income | -57.8M | -63.78M | -131.54M | -96.27M | -224.02M | -127.38M | -105.13M | -93.23M | -24.17M | -17.69M | -19.94M | -10.63M | -5.49M | -4.14M | 10.72M | 19.15M | 14.33M | 12.8M | -22.67M | 4.11M | 1.76M | 3.22M | 2.15M | -816K | -2.73M | -38.81M | -45.14M | 0 |
| Pretax Margin % | -24.49% | -26.17% | -42.1% | -23.95% | -43.52% | -27.12% | -28.67% | -31.97% | -9.68% | -8.08% | -8.95% | -4.45% | -2.61% | -2.33% | 6.81% | 14.39% | 13.05% | 14.63% | -30.37% | 7.87% | 5.26% | 14.44% | 12.36% | -6.79% | -33.22% | -497.17% | -718.9% | - |
| Income Tax | 4.12M | 3.45M | 2.73M | 4.16M | 1.73M | -2.4M | 2.47M | 2.85M | 858K | 501K | 5.93M | 15.81M | 1.86M | -638K | 4.36M | 7.11M | 5.07M | 5.04M | 1.17M | -1.71M | -438K | 675K | 58K | 0 | 6.41M | 12.1M | -1.87M | -500K |
| Effective Tax Rate % | -7.13% | -5.41% | -2.08% | -4.32% | -0.77% | 1.89% | -2.35% | -3.05% | -3.55% | -2.83% | -29.76% | -148.77% | -33.87% | 15.42% | 40.7% | 37.14% | 35.4% | 39.35% | -5.14% | -41.63% | -24.83% | 20.98% | 2.7% | 0% | -234.3% | -31.19% | 4.14% | - |
| 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 |
| Net Margin % | -26.24% | -27.58% | -42.97% | -24.98% | -43.85% | -26.61% | -29.35% | -32.95% | -10.02% | -8.31% | -11.61% | -11.06% | -3.5% | -1.97% | 4.04% | 9.05% | 8.43% | 8.87% | -31.93% | 11.15% | 6.57% | 11.41% | 12.03% | -6.79% | -82.23% | -349.23% | -690.14% | -1633.33% |
| Net Income Growth % | 45.09% | 49.93% | -33.69% | 55.51% | -80.64% | -16.15% | -11.99% | -283.79% | -37.61% | 29.69% | 2.16% | -259.88% | -110% | -155.06% | -47.21% | 30.01% | 19.27% | 132.57% | -509.5% | 164.35% | -13.38% | 21.51% | - | 87.95% | 75.16% | 37.09% | -342.18% | - |
| Net Income (Continuing) | -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 | -1.43M | -27.26M | -43.33M | -9.8M |
| Discontinued Operations | 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 |
| Minority Interest | 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 |
| EPS (Diluted) | -5.13 | -12.39 | -22.70 | -19.17 | -45.45 | -26.93 | -24.49 | -23.02 | -6.34 | -4.80 | -6.90 | -7.05 | -1.95 | -0.90 | 1.65 | 3.30 | 2.70 | 2.40 | -7.50 | 1.80 | 0.75 | 0.90 | 0.05 | -0.35 | -3.00 | -12.00 | -26.55 | -20.70 |
| EPS Growth % | 69.31% | 45.42% | -18.41% | 57.82% | -68.77% | -9.96% | -6.39% | -263.09% | -32.08% | 30.43% | 2.13% | -261.54% | -116.67% | -154.55% | -50% | 22.22% | 12.5% | 132% | -516.67% | 140% | -16.67% | 1700% | - | 88.3% | 75% | 54.8% | -28.26% | - |
| EPS (Basic) | - | -8.57 | -22.70 | -19.17 | -45.45 | -26.93 | -24.49 | -23.02 | -6.34 | -4.80 | -6.90 | -7.05 | -1.95 | -0.90 | 1.65 | 3.45 | 2.70 | 2.40 | -7.50 | 1.95 | 0.90 | 1.05 | 0.06 | -0.35 | -3.00 | -12.00 | -26.55 | -20.70 |
| Diluted Shares Outstanding | 12.06M | 8.64M | 5.91M | 5.24M | 4.97M | 4.64M | 4.39M | 4.17M | 3.95M | 3.76M | 3.74M | 3.76M | 3.63M | 3.65M | 3.81M | 3.67M | 3.53M | 3.27M | 3.16M | 3.12M | 2.89M | 2.66M | 39.68M | 2.32M | 2.27M | 2.27M | 1.64M | 472.8K |
| Basic Shares Outstanding | 12.06M | 7.84M | 5.91M | 5.24M | 4.97M | 4.64M | 4.39M | 4.17M | 3.95M | 3.76M | 3.74M | 3.76M | 3.63M | 3.65M | 3.69M | 3.53M | 3.38M | 3.2M | 3.16M | 2.91M | 2.65M | 2.5M | 37.26M | 2.32M | 2.27M | 2.27M | 1.64M | 472.8K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Sustained Revenue Contraction
As reported in financial statements, LivePerson has experienced a consistent decline in top-line performance, with revenue falling from $95.5 million in 2023Q4 to $57.0 million in 2026Q1, representing a sustained contraction that suggests significant challenges in maintaining enterprise customer retention and wallet share.
The double-digit year-over-year revenue declines indicate that the company is struggling to defend its market position against integrated CRM suites. This trend suggests that the core business model may be facing structural headwinds, potentially driven by vendor consolidation or a shift in enterprise demand away from standalone conversational messaging platforms.
Based on the provided income statement data, gross margins have fluctuated significantly, ranging from a low of 51.1% in 2023Q4 to a recent peak of 63.8% in 2026Q1, reflecting the inherent difficulty in stabilizing profitability amidst a shrinking revenue base and high service delivery costs.
While the recent improvement in gross margin appears positive, it may be a byproduct of reduced professional services activity rather than improved software pricing power. Investors should monitor whether these margin levels are sustainable or if they are merely a temporary reflection of a leaner, albeit smaller, operational footprint.
According to historical income statement figures, LivePerson has struggled to achieve positive operating leverage, as evidenced by operating margins that remained negative in eight of the last ten quarters, despite aggressive efforts to manage overhead and reduce R&D expenditures from their previous peak levels.
The inability to scale operating income alongside gross profit suggests that the company's fixed-cost structure remains misaligned with its current revenue scale. This persistent operating loss warrants further investigation into whether the current cost-cutting measures are sufficient to reach a break-even point before liquidity constraints become a primary concern.
As indicated by the quarterly data, the company has successfully reduced R&D spending from $24.8 million in 2023Q4 to $12.2 million in 2026Q1, demonstrating a clear management pivot toward expense discipline in response to the ongoing contraction in top-line revenue and overall business scale.
While the reduction in R&D and SG&A is necessary for survival, it may also signal a reduced capacity for innovation in a highly competitive AI landscape. Analysts should consider whether these cost reductions are impacting the company's ability to maintain its proprietary intent data moat against better-funded competitors.
Based on the reported figures, the primary risk to the investment thesis is the company's inability to arrest revenue decay, as the -22% year-over-year decline suggests that the platform may be losing relevance in an era where generative AI is commoditizing basic conversational intent recognition.
Short-sellers would likely focus on the disconnect between the company's legacy messaging architecture and the rapid adoption of LLM-based solutions by enterprise clients. The lack of consistent GAAP profitability, combined with a shrinking revenue base, suggests that the company may face significant hurdles in executing a successful turnaround.
Quick answers to the most common questions about buying LPSN stock.
For fiscal year 2025, LivePerson, Inc. (LPSN) reported total revenue of $243.7M. This represents a 40523.7% increase compared to $0.6M in 1999.
LivePerson, Inc. (LPSN) reported a net loss of $67.2M for the fiscal year ending 2025.
LivePerson, Inc. (LPSN) reported an operating income of $-23.3M, resulting in an operating profit margin of -9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
LivePerson, Inc. (LPSN) generated $174.3M in gross profit for the year, representing a gross profit margin of 71.5%. This demonstrates the company's core pricing power and production efficiency.