LivePerson Q4 revenue falls driven by customer cancellations and downsells

LivePerson

12/03/2026 20:41

Overview

Conversational AI provider's Q4 revenue fell 19% yr/yr due to customer cancellations and downsells

Adjusted EBITDA rose to $10.8 mln from $8.1 mln a year ago

Company posted a net loss of $46.1 mln

Outlook

LivePerson sees Q1 2026 revenue between $53 mln and $55 mln, down 15%-18% year-over-year

Company expects Q1 2026 adjusted EBITDA of $2 mln to $5 mln, margin 3.8%-9.1%

LivePerson sees full-year 2026 revenue between $195 mln and $207 mln, down 15%-20% year-over-year

Result Drivers

CUSTOMER CANCELLATIONS AND DOWNSIZING - Co said revenue decline was driven by customer cancellations and downsells

CUSTOMER EXPANSION - Co signed 36 expansion deals and 4 new customers in the quarter

HIGHER REVENUE PER CUSTOMER - Trailing-twelve-months average revenue per enterprise and mid-market customer increased 8.8% yr/yr

Company press release: ID:nPn6PXlPMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$59.29 mln
$52.46 mln (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for LivePerson Inc is $11.50, about 315.2% above its March 11 closing price of $2.77

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)