LivePerson (LPSN) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached $59.3 million, exceeding guidance high-end despite a 19% year-over-year decline due to customer cancellations and downsells, driven by strong recurring revenue and expansion deals.

• Adjusted EBITDA for Q4 2025 was $10.8 million, above guidance, reflecting operational improvements and cost restructuring.

• Secured 40 total deals in Q4, including 36 expansions and 4 new customers, with notable wins in telecom, banking, airlines, and wealth management.

• Launched Syntrix, an AI assurance platform, and LivePerson Sync, both enhancing AI deployment and workflow integration, with Syntrix gaining early traction with enterprise customers.

• Platform modernization and strengthened partnerships, notably with Google Cloud, are positioning for future growth and expanding market reach.

Financial highlights

• Q4 2025 revenue was $59.3 million, with recurring revenue at $52.9 million (89% of total), and professional services revenue at $8.3 million.

• Adjusted EBITDA for Q4 2025 was $10.8 million, with a margin of 18.3%; net loss was $46.1 million, improved from $112.1 million in Q4 2024.

• Average revenue per customer rose 8.8% year-over-year to $680,000.

• Net revenue retention rate for recurring revenue was 78% in Q4 2025, down from 82% in Q4 2024.

• Ended Q4 2025 with $95 million in cash and cash equivalents.

Outlook and guidance

• Q1 2026 revenue expected between $53 million and $55 million, down 15–18% year-over-year; adjusted EBITDA guidance of $2–$5 million (3.8–9.1% margin).

• Full-year 2026 revenue expected between $195 million and $207 million, down 15–20% year-over-year, with recurring revenue projected at 92% of total.

• Adjusted EBITDA for 2026 guided between a loss of $4 million and a gain of $7 million; margins expected between (2.1)% and 3.4%.

• Revenue expected to decline through 2026, with the rate of decline flattening in the second half; positive net new ARR anticipated in H2 2026.

• Commercial traction with Syntrix and platform modernization represent potential upside to guidance.