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LPSN: Reverse Split Will Support Future Profitability And Share Price Upside

AI Partnership Expansion And Reverse Stock Split Will Reshape Shareholder Outlook

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LPSN
AnalystConsensusTarget
Not Invested
Published 05 Apr 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-61.5%
7D
-10.2%

Analysts have modestly raised their price target on LivePerson to 8 dollars from 8 dollars, citing a slightly improved long term profit margin outlook and a marginally lower expected future earnings multiple, even as revenue growth expectations remain unchanged.

What's in the News

  • Issued 2025 guidance calling for fourth quarter revenue of 50.5 million dollars to 55.5 million dollars, implying a 31 percent to 24 percent year over year decline, and full year 2025 revenue of 235 million dollars to 240 million dollars, down 25 percent to 23 percent year over year (company guidance).
  • Launched Conversation Simulator, a vendor agnostic GenAI testing and governance platform that uses synthetic customers to stress test AI agents, surface compliance and accuracy risks, and monitor for LLM drift before deployment (product announcement).
  • Shareholders approved a reverse stock split at a 1 for 15 ratio, along with a corresponding reduction in authorized common shares. The split is expected to take effect prior to market open on October 13, 2025 (special meeting and corporate filing).
  • Stockholders also approved an amendment to increase authorized common stock from 200 million to 300 million shares via a charter change filed with the Delaware Secretary of State on October 3, 2025 (corporate filing).

Valuation Changes

  • Fair Value: Unchanged at 8.0 dollars per share, indicating no revision to the fundamental valuation estimate.
  • Discount Rate: Steady at 12.5 percent, reflecting an unchanged view of the company’s risk profile and cost of capital.
  • Revenue Growth: Effectively unchanged at approximately negative 18.7 percent, with only a rounding level adjustment to the forecast decline.
  • Net Profit Margin: Increased slightly from about 12.35 percent to roughly 12.42 percent, signaling a modest improvement in long term profitability expectations.
  • Future P/E: Decreased slightly from about 9.33 times to roughly 9.27 times, implying a marginally lower expected earnings multiple on forward profits.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.