TLDR: LivePerson announced its second quarter 2025 financial results, reporting total revenue of $59.6 million. The company significantly strengthened its financial position through a major debt refinancing agreement, while also highlighting a 45% sequential increase in conversations powered by its Generative AI suite and an expanded partnership with Google Cloud.
NEW YORK – LivePerson, Inc. (NASDAQ: LPSN), a prominent provider of enterprise conversational AI solutions, today unveiled its financial performance for the second quarter ended June 30, 2025. The company reported total revenue of $59.6 million, aligning with the high-end of its guidance range, despite a 25.4% decrease compared to the same period last year, primarily attributed to customer cancellations and downsells.
The second quarter saw a net loss of $15.7 million, or $0.17 per share, a notable shift from a net income of $41.8 million, or $0.47 per share, in Q2 2024. The prior year’s income included a significant $73.1 million gain from debt extinguishment. Adjusted operating loss for Q2 2025 stood at $2.7 million, compared to an adjusted operating income of $0.5 million in the second quarter of 2024. However, Adjusted EBITDA for the quarter reached $2.9 million, surpassing the high-end of the company’s guidance.
A cornerstone of LivePerson’s Q2 strategy was a decisive move to bolster its financial foundation through a comprehensive refinancing agreement. This strategic maneuver successfully deleveraged the balance sheet by $226 million, capturing $181 million of debt discount and extending the company’s financial runway through 2029. Specifically, the agreement involved exchanging $341.1 million of its outstanding 2026 Convertible Senior Notes for $45.0 million in cash, $115.0 million of 2029 Senior Subordinated Secured Notes, and Common and Preferred Equity.
John Sabino, LivePerson’s CEO, commented on the results, stating, “In the second quarter, we took a decisive step to strengthen our financial foundation by securing a refinancing agreement that significantly deleverages our balance sheet and provides a clear runway to execute our strategy. This action complements our continued execution, highlighted by a 45% sequential increase in conversations powered by our Generative AI suite and our deepened strategic partnership with Google Cloud. With a stronger capital structure in place and accelerating innovation, we are well-positioned to drive commercial execution.”
John Collins, CFO and COO, added, “Today’s transaction represents the successful culmination of our multi-year strategy to deleverage the balance sheet. This exchange captures $181 million of debt discount that accretes to shareholders, deleverages the balance sheet by $226 million.”
Operational highlights for the quarter included signing 38 deals, comprising 35 expansions and renewals with existing customers and 3 new customer acquisitions. The trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) demonstrated growth, increasing by 4.0% to $655,000, up from approximately $630,000 in the comparable prior-year period.
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Looking ahead, LivePerson provided its outlook for the third quarter of 2025, anticipating total revenue to range from $56 million to $59 million, representing a year-over-year decline of 25% to 21%. Adjusted EBITDA is projected to be between $(4) million and $(2) million. For the full fiscal year 2025, the company expects total revenue to be between $230 million and $240 million, a decrease of 26% to 23% year-over-year, with adjusted EBITDA ranging from $(3) million to $7 million.
