LivePerson Q4 Revenue Falls 19% to $59.3M, EBITDA Beats Guidance
LivePerson posted Q4 revenue of $59.3 million, a 19% decline year-over-year, with adjusted EBITDA rising to $10.8 million, surpassing guidance. The company signed 40 deals (36 expansions and 4 new logos), lifted ARPC by 8.8% to $680,000, and ended the quarter with $95.0 million in cash.
1. Q4 Financial Performance
LivePerson reported total revenue of $59.3 million for the quarter ended December 31, 2025, down 19% from the prior year due to customer cancellations and downsells. Net loss narrowed to $46.1 million, or $3.92 per share, and adjusted operating income improved to $5.5 million from $1.0 million, while adjusted EBITDA rose to $10.8 million from $8.1 million.
2. Customer Growth and ARPC
The company secured 40 deals in Q4, comprising 36 expansions—including a major European telecommunications provider, a leading South American bank and a global airline carrier—and 4 new logos such as a New Zealand-based wealth manager. Trailing-twelve-months average revenue per customer increased 8.8% year-over-year to $680,000.
3. Balance Sheet and Cost Optimization
Cash and cash equivalents declined to $95.0 million at year-end from $183.2 million a year earlier, reflecting planned divestitures and a leaner cost structure. Leadership highlighted a strengthened balance sheet and optimized expenses as foundations for future growth.
4. 2026 Revenue and EBITDA Guidance
For Q1 2026, LivePerson forecasts total revenue of $53 million to $55 million, down 18% to 15% year-over-year, and adjusted EBITDA of $2 million to $5 million (3.8%–9.1% margin). Full-year 2026 guidance anticipates revenue of $195 million to $207 million (down 20% to 15%) and adjusted EBITDA of $(4) million to $7 million.