LivePerson (LPSN) Q1 2026 earnings summary

Executive summary

• Entered into a definitive merger agreement with SoundHound AI, Inc., under which the company will become a wholly owned subsidiary of SoundHound, subject to customary closing conditions and regulatory approvals.

• Revenue for Q1 2026 declined 12% year-over-year to $57.0 million, primarily due to customer cancellations and downsells, and slower renewals amid financial uncertainty and macroeconomic factors.

• Net loss for Q1 2026 was $8.8 million, an improvement from a net loss of $14.1 million in Q1 2025, reflecting cost reductions from restructuring.

• Significant cost reductions achieved across sales and marketing, general and administrative, and product development, driven by restructuring initiatives.

Financial highlights

• Revenue: $57.0 million, down from $64.7 million year-over-year.

• Net loss: $8.8 million, improved from $14.1 million year-over-year.

• Operating cash flow: $9.5 million provided, compared to $3.1 million used in Q1 2025.

• Cash and cash equivalents: $101.5 million as of March 31, 2026.

• Gross margin remained stable at 73%.

• Total operating expenses decreased significantly due to restructuring.

Outlook and guidance

• Management expects continued pressure on renewals and new bookings due to customer uncertainty and extended enterprise buying cycles.

• Revenue declines may not be immediately reflected in results due to subscription recognition over contract terms.

• Current cash position expected to be sufficient for at least the next 12 months.