LivePerson 2025 Q2 Earnings Sharp Net Loss Amid Revenue Drop

LivePerson reported its 2025 Q2 earnings on August 13, 2025, revealing a significant decline in financial performance. The company’s total revenue fell by 25.4% to $59.60 million, a sharp miss compared to the prior year’s $79.88 million. The earnings report highlights a dramatic swing from profit to loss, with the stock experiencing mixed short-term price movement. Investors are now weighing the company’s strategic focus on AI-driven solutions against the backdrop of deteriorating financial metrics.

LivePerson’s Q2 revenue of $59.60 million represented a 25.4% decline compared to the same period in 2024. The company’s hosted services segment accounted for the majority of revenue at $50.32 million, while professional services contributed $9.28 million. The drop in overall revenue reflects a broader slowdown across key business lines, with hosted services, the company’s core offering, also experiencing a notable decrease.

LivePerson posted a net loss of $15.71 million in Q2 2025, compared to a net income of $41.80 million in Q2 2024, marking a 137.6% deterioration in profitability. On a per-share basis, the company swung to a loss of $0.17 from a profit of $0.47, a 136.2% negative change. These results underscore the company’s struggle to maintain profitability amid challenging market conditions and operational pressures.

The company’s earnings report was followed by mixed short-term price action. While the stock gained 3.06% during the latest trading day, it declined by 14.41% during the most recent full trading week. On a month-to-date basis, however, the stock rose 6.62%. A strategy of buying the stock after a revenue beat and holding for 30 days performed poorly, with a return of -98.48%, significantly underperforming the benchmark by 182.37%. The strategy’s Sharpe ratio of -0.63 highlights the high level of risk and poor risk-adjusted returns associated with this investment approach.

The performance of a strategy involving LPSN following a revenue beat was particularly disappointing. The approach resulted in a -98.48% return, significantly underperforming the benchmark by 182.37%. The strategy's Sharpe ratio of -0.63 indicates poor risk-adjusted returns and a high level of volatility. This underperformance raises concerns about the effectiveness of using revenue beats as a sole indicator for investment decisions in this context.

LivePerson’s CEO, Robert LoCascio, emphasized the company’s commitment to advancing its leadership in conversational AI and digital engagement. He highlighted recent innovations in AI orchestration and generative AI as key drivers for improving customer experiences and delivering measurable business outcomes. LoCascio noted that the platform is capable of unifying voice and digital channels, reducing operating costs by up to 30%, and enhancing customer satisfaction. He expressed cautious optimism about the momentum in conversational commerce and the growing adoption of AI-driven automation across industries.

LivePerson did not provide specific quantitative guidance for the upcoming period. However, the company outlined its continued investment in AI platform enhancements and omnichannel capabilities. The company expects to scale automation solutions and expand its market share in enterprise conversational commerce, signaling a long-term strategic focus on AI-driven innovation and customer engagement.

In the three weeks following LivePerson’s Q2 earnings release, several non-earnings-related news stories garnered attention in the Nigerian press. The Super Falcons players revealed they had not received the promised $100,000 in compensation, raising concerns about the management of national sports programs. In another development, the EKEDC denied any involvement in a controversial Badagry prepaid meter scheme. Meanwhile, the Nigerian government approved nine new private universities, expanding access to higher education and signaling potential long-term economic benefits.