LivePerson Q4 Earnings Beat Expectations, Shares Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy LPSN?
Source: seekingalpha
- Earnings Performance: LivePerson reported a Q4 GAAP EPS of -$4.14, missing expectations by $2.23, indicating challenges in profitability; however, revenue of $59.29M, down 19% year-over-year, beat market expectations by $6.75M, showing some resilience in revenue generation.
- Future Guidance: For Q1 2026, revenue guidance is set between $53M and $55M, reflecting a year-over-year decline of 18% to 15%, while adjusted EBITDA is projected at $2M to $5M, indicating ongoing efforts to improve profitability amidst revenue pressures.
- Annual Outlook: The full-year 2026 revenue guidance ranges from $195M to $207M, with a year-over-year decline of 20% to 15%, and adjusted EBITDA expected to be between -$4M and $7M, suggesting continued profitability challenges in the coming year, despite slight improvements in EBITDA margins.
- Stock Reaction: Following the earnings release, LivePerson's shares rose by 3.35% in after-hours trading, reflecting a positive market response to the better-than-expected revenue performance, even as profitability remains a concern.
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Analyst Views on LPSN
Wall Street analysts forecast LPSN stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 2.180
Low
8.00
Averages
8.00
High
8.00
Current: 2.180
Low
8.00
Averages
8.00
High
8.00
No data
About LPSN
LivePerson, Inc. is an enterprise conversational artificial intelligence and digital transformation company. The Company enables connections between consumers and its customers through digital and artificial intelligence (AI)-powered conversations. Its LivePerson Platform powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop Web browsers, short messaging services, social media and third-party consumer messaging platforms. Brands can also use the LivePerson Platform to connect conversations across voice and digital channels to give customers additional options and ensure their interactions with brands are integrated no matter where they choose to reach out. Its products include Conversational Cloud, Conversational Intelligence & Insights, and Integrations. It serves various industries, including financial services, retail, healthcare, travel and hospitality, telco and cable, and automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition of LivePerson: SoundHound intends to acquire LivePerson, expecting it to contribute $100 million to total revenue in 2027, although skepticism surrounds the deal, with some viewing it as a potential money pit.
- Negative Market Sentiment: Despite impressive revenue growth, SoundHound remains unprofitable, and LivePerson has reported significant losses of $134.2 million in 2024 and $67.2 million in 2025, leading to concerns about the acquisition's viability.
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- Potential Impact of LivePerson Acquisition: SoundHound plans to acquire LivePerson for $43 million in an all-stock deal, expecting it to contribute $100 million in revenue by 2027, although market skepticism about profitability looms large.
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- Negative Market Sentiment: Despite impressive revenue growth, SoundHound remains unprofitable, and LivePerson has reported significant losses of $134.2 million in 2024 and $67.2 million in 2025, leading to concerns about the acquisition's viability.
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- Potential Impact of LivePerson Acquisition: SoundHound plans to acquire LivePerson for $43 million in an all-stock deal, expecting it to contribute $100 million in revenue by 2027, although market skepticism about profitability looms large.
- Market Concerns Over Acquisition: Despite impressive revenue growth, SoundHound remains unprofitable, while LivePerson has reported significant losses of $134.2 million in 2024 and $67.2 million in 2025, raising doubts about the viability of the acquisition.
- AI Agent Market Outlook: The global AI agent market is projected to grow from $7.6 billion in 2025 to $182.9 billion by 2033, positioning SoundHound to lead in this burgeoning sector, but the success of the integration will take time to assess.
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- Future Revenue Guidance: The company maintains its 2023 revenue guidance between $225 million and $260 million, expecting combined revenues to reach between $350 million and $400 million by 2027, with LivePerson contributing at least $100 million, although this estimate may be conservative.
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