LivePerson Share Price Plummets 20.37% to 20-Year Low as Reverse Split Sparks Delisting Fears

LivePerson’s share price plunged to its lowest level since September 2002 on October 9, 2025, with an intraday decline of 20.37%. The selloff coincided with the company’s announcement of a 1-for-15 reverse stock split, set to take effect on October 13, to comply with Nasdaq’s minimum bid price requirements and avert delisting. The move, which reduces authorized shares by 93% and includes cash compensation for fractional shares, has intensified concerns about the company’s financial stability, as reverse splits are often linked to struggling firms.

The reverse split underscores LivePerson’s urgent need to address regulatory compliance amid broader financial challenges. Institutional activity in late September, including modest purchases by Everence Capital Management and ExodusPoint Capital Management, offered limited reassurance to investors. Meanwhile, analyst ratings remained mixed, with a “Hold” consensus from Barclays and Craig-Hallum, though Roth Capital and Craig-Hallum upgraded the stock in August, reflecting pockets of optimism. Despite a brief rally in August following Q2 2023 earnings that beat estimates, the stock has fallen 64% year-to-date as of August, highlighting persistent underperformance.

Leadership transitions further clouded investor sentiment. The appointment of an interim CEO in August and the founder’s departure from the CEO role in July signaled management instability, fueling uncertainty. While LivePerson’s recognition in the Gartner Hype Cycle and a Best E-Commerce Technology award in September generated positive PR, such accolades had minimal impact on its valuation. The company’s ability to stabilize its share price will depend on the success of the reverse split, operational improvements, and restoring investor confidence through transparent communication.

With the reverse split as the most material catalyst, LivePerson faces a critical juncture. The move highlights structural vulnerabilities, though short-term institutional interest and analyst upgrades suggest some market skepticism is being tempered with cautious optimism. Sustained recovery, however, will require addressing long-term viability concerns and demonstrating clear strategic direction.