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Company

LIVEPERSON INC

Ticker
LPSN
Sector
Industry
Report date
August 8, 2026
Valye AI Score

100

Very high visibility
Recent developments
Recent developments summary

Recent news coverage includes updates on the pending merger with SoundHound AI, industry earnings reports, and analysis of AI stocks including LivePerson.

Recent developments:
  • SoundHound AI raised its 2026 revenue outlook after strong Q2 sales driven by its OASYS platform [N1].
  • The Trade Desk reported Q2 earnings and revenue below expectations, highlighting competitive pressures in the digital advertising space [N2].
  • Analysis discusses challenges and potential rebound scenarios for SoundHound AI investments [N3].
  • RF Industries reported Q2 earnings and revenues exceeding estimates, indicating sector activity [N4].
  • SoundHound AI's CEO highlighted the company's proven track record in mergers and acquisitions [N5].
  • Two AI stocks under $10, including LivePerson, are discussed as potential long-term gain candidates [N6].
  • The integration of LivePerson into SoundHound is described as risky but potentially rewarding [N7].
  • Inuvo, Inc. reported Q1 earnings above estimates, reflecting broader market dynamics [N8].
Overview

LivePerson, Inc. is a technology company specializing in digital customer engagement through its AI-powered LivePerson Platform. Since 1998, it has enabled brands to connect with consumers via digital channels such as mobile apps, web browsers, SMS, social media, and third-party messaging platforms, as well as voice channels. The platform integrates proprietary AI, third-party bots, and large language models to assist human agents, improving efficiency and customer experience. The company operates as a single segment with global operations primarily in the Americas, EMEA, and APAC regions. Revenue is generated mainly from hosted services and professional services, with contracts typically spanning one year or more. LivePerson has experienced declining revenues over recent years and reported net losses. The company maintains liquidity with over $96 million in cash and equivalents as of mid-2026. It is currently engaged in a merger process with SoundHound AI, which presents operational and financial risks.

Executive summary

Financial figures (if any) are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice. LivePerson, Inc. operates a digital customer conversation platform that integrates AI and human agents across multiple digital and voice channels. The company reported revenues of $243.7 million for the year ended December 31, 2025, with net losses of $67.2 million. As of June 30, 2026, LivePerson held $96.7 million in cash and equivalents and maintained a current ratio of 1.1. The company is undergoing a pending merger with SoundHound AI, which introduces significant integration and transaction risks. The merger agreement imposes restrictions on LivePerson's business activities and includes potential termination fees. The company has taken steps to maintain Nasdaq listing compliance, including a reverse stock split in 2025.

Scenarios for LPSN

Bull case model:

LivePerson's platform leverages advanced AI technologies, including generative AI and large language models, to enhance customer engagement and agent productivity. Its multi-channel integration and ability to combine human and AI interactions provide a differentiated offering. The company's global presence and established customer base support its market relevance. The pending merger with SoundHound AI could create synergies and expand capabilities, potentially strengthening the combined entity's position in AI-driven customer experience solutions.

Bear case model:

LivePerson has experienced declining revenues and sustained net losses in recent years, indicating challenges in scaling its business profitably. The pending merger with SoundHound AI introduces significant risks including potential failure to complete the transaction, integration difficulties, loss of key personnel, and operational disruptions. Restrictions imposed by the merger agreement may limit LivePerson's strategic flexibility. Market competition, technological changes, and regulatory risks related to AI and data privacy also pose challenges to the company's business model and financial performance.

Moat:

LivePerson's competitive advantage lies in its comprehensive AI-powered digital customer conversation platform that integrates multiple communication channels and leverages generative AI and large language models. The platform's ability to seamlessly combine human agents with AI and third-party bots enhances agent efficiency and customer engagement. The company's long-standing presence since 1998 and its global footprint across key regions contribute to its market position. Additionally, the proprietary technology and integration capabilities with customers' existing AI investments create switching costs and barriers for competitors. However, the company faces challenges from evolving AI technologies and competitive pressures in the digital customer engagement space.

Risks overview
Risks summary
The most significant risk for LivePerson is the uncertainty and challenges associated with the pending merger with SoundHound AI, including the possibility of non-completion, integration difficulties, and the impact on business operations and financial results.
Risks details:

• Merger Completion Risk: The pending merger with SoundHound AI may not be completed due to unmet conditions or termination of the merger agreement, which could adversely affect LivePerson's business and stock price [S2].
• Integration Risk: Challenges in integrating LivePerson into SoundHound could result in operational disruptions, loss of key employees, unforeseen liabilities, and failure to realize anticipated benefits [S2].
• Business Restrictions: The merger agreement restricts LivePerson's ability to pursue alternative transactions and certain corporate actions prior to merger completion, potentially limiting strategic options [S2].
• Financial Performance: LivePerson has reported declining revenues and net losses, with ongoing risks related to profitability and cash flow management [S1,S2].
• Regulatory and Market Risks: The company faces risks from evolving AI regulations, data privacy laws, competitive pressures, and market volatility that could impact operations and valuation [S1,S2].

FINAL FORECAST FOR LPSN

Final take one line
LivePerson operates a comprehensive AI-powered digital customer engagement platform with detailed financial disclosures and faces significant merger-related risks with SoundHound AI.
Final take 12 to 24 month view

Business trends: LivePerson's business centers on AI-enhanced digital customer conversations with multi-channel integration and ongoing revenue decline amid industry competition.
Execution milestones: Completion and integration of the pending merger with SoundHound AI, maintaining Nasdaq listing compliance, and managing operational efficiencies.
Key risks: Merger completion uncertainty, integration challenges, business restrictions from merger agreement, ongoing financial losses, and regulatory and market risks related to AI and data privacy.

Valye AI Visibility Research Score

Very high visibility

Visibility score reflects the breadth and consistency of available disclosure across SEC filings, recent public reporting, and baseline business context (research-only; not investment advice).

100
LLM visibility overview
LLM Visibility known facts
  • LivePerson, Inc. is a leader in digital customer conversation since 1998, enabling connections between consumers and customers through digital and AI-powered conversations [S1].
  • The LivePerson Platform supports conversations across multiple digital channels including mobile apps, web browsers, SMS, social media, and third-party messaging platforms, and integrates voice and digital channels for seamless customer interactions [S1].
  • The platform enables a 'tango' of humans, LivePerson bots, third-party bots, and large language models (LLMs), where humans oversee and are assisted by AI, allowing agents to focus on relationship building while AI handles repetitive tasks [S1].
  • LivePerson's customers' existing investments in Generative AI and LLMs are compatible with the LivePerson Platform [S1].
  • The company operates as a single reportable segment and evaluates performance based on net loss [S2].
  • Geographically, LivePerson has operations primarily in the United States, Germany, Australia, Netherlands, and other countries including Israel, UK, Japan, France, Italy, Spain, Canada, and Singapore [S1].
  • Revenue for the year ended December 31, 2025 was $243.7 million, down from $312.5 million in 2024 and $402.0 million in 2023, with hosted services and professional services as revenue sources [S1].
  • Revenue by region in 2025 was $134.4 million in Americas, $70.1 million in EMEA, and $39.2 million in APAC [S1].
  • The company recognized net losses of $67.2 million in 2025, $134.3 million in 2024, and $100.4 million in 2023 [S1].
  • Basic net loss per share was $(8.57) in 2025, $(22.70) in 2024, and $(19.17) in 2023 [S1].
  • As of June 30, 2026, LivePerson had cash and cash equivalents of approximately $96.7 million, current assets of $130.1 million, and current liabilities of $117.8 million, resulting in a current ratio of 1.1 and a cash ratio of 0.82 [S2].
  • The company completed a 1-for-15 reverse stock split in October 2025 to regain compliance with Nasdaq's minimum bid price requirement [S2].
  • LivePerson is subject to various risks including those related to the pending merger with SoundHound AI, which includes risks of transaction completion, integration challenges, and potential adverse effects on business and stock price [S2].
  • The merger agreement restricts LivePerson's ability to pursue alternatives and certain corporate actions prior to completion, and includes termination fees and other conditions [S2].
  • Integration risks include potential loss of key employees, operational challenges, unknown liabilities, and disruption of ongoing business [S2].
  • LivePerson stockholders will receive SoundHound common stock in the merger, resulting in reduced ownership and voting interest in the combined company [S2].
  • The company accounts for warrants as liabilities or equity based on specific criteria, with changes in fair value recorded in earnings [S1].
  • LivePerson's goodwill is tested annually for impairment using income and market approaches, with significant judgment involved [S1].
  • Contract acquisition costs are capitalized and amortized over an estimated customer life of four years [S1].
  • Deferred revenue and contract acquisition costs have decreased over recent years, reflecting changes in customer renewal patterns and contract structures [S1].
Sources
Sources - Context summary

Generated 2026-08-08

Sources - Earning calls
Sources - Other context
Sources - SEC Filings
  • S1 | 2026-04-30 | 10-K/A
  • S2 | 2026-08-07 | 10-Q
Sources - News headlines
  • N1 | 2026-08-07 | www.nasdaq.com | SOUN Raises 2026 Revenue Outlook After OASYS Drives Record Q2 Sales | https://www.nasdaq.com/articles/soun-raises-2026-revenue-outlook-after-oasys-drives-record-q2-sales
  • N2 | 2026-08-06 | www.nasdaq.com | The Trade Desk (TTD) Misses Q2 Earnings and Revenue Estimates | https://www.nasdaq.com/articles/trade-desk-ttd-misses-q2-earnings-and-revenue-estimates
  • N3 | 2026-07-07 | www.nasdaq.com | A $5,000 Investment in SoundHound AI Made at the Start of the Year Doesn't Look Good Now. Can It Rebound in the Second Half? | https://www.nasdaq.com/articles/5000-investment-soundhound-ai-made-start-year-doesnt-look-good-now-can-it-rebound-second
  • N4 | 2026-06-15 | www.nasdaq.com | RF Industries, Ltd. (RFIL) Q2 Earnings and Revenues Top Estimates | https://www.nasdaq.com/articles/rf-industries-ltd-rfil-q2-earnings-and-revenues-top-estimates
  • N5 | 2026-06-08 | www.nasdaq.com | SoundHound AI's CEO Says the Company Has a "Proven Track Record When it Comes to M&A." But Do the Numbers Really Back That Up? | https://www.nasdaq.com/articles/soundhound-ais-ceo-says-company-has-proven-track-record-when-it-comes-ma-do-numbers-really
  • N6 | 2026-05-18 | www.nasdaq.com | 2 AI Stocks Under $10 That Could Lead to Long-Term Gains | https://www.nasdaq.com/articles/2-ai-stocks-under-10-could-lead-long-term-gains
  • N7 | 2026-05-16 | www.nasdaq.com | Risky Integration or Rewarding Returns? The Stakes of SoundHound's LivePerson Acquisition. | https://www.nasdaq.com/articles/risky-integration-or-rewarding-returns-stakes-soundhounds-liveperson-acquisition
  • N8 | 2026-05-14 | www.nasdaq.com | Inuvo, Inc (INUV) Beats Q1 Earnings Estimates | https://www.nasdaq.com/articles/inuvo-inc-inuv-beats-q1-earnings-estimates
Important legal disclaimer

This material is for informational purposes only and does not constitute investment, financial, legal or tax advice, or an offer or solicitation to buy or sell any security. The Valye AI Score is a model-based estimate derived from public information and is subject to change without notice. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information herein. Past performance is not indicative of future results. Investors should conduct their own research and consult a qualified financial adviser before making any investment decisions.

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