LivePerson Inc. (NASDAQ:LPSN), a leader in conversational AI and digital transformation, recently reported its Q3 2025 earnings. The company is known for its innovative solutions in customer engagement, helping businesses enhance their digital communication strategies. Despite its strong market presence, LivePerson faces competition from other tech companies in the AI and digital transformation space.
On November 12, 2025, LivePerson reported an earnings per share (EPS) of -$4.55, which was significantly below the estimated EPS of -$2.30. This resulted in a negative surprise of 68.52%, as highlighted by Zacks. The loss per share increased from the $1.05 reported in the same quarter last year, indicating a challenging financial period for the company.
Despite the earnings miss, LivePerson's revenue for the quarter was $60.15 million, surpassing the estimated $57.11 million. This revenue exceeded the Zacks Consensus Estimate by 5.83%, although it marked a decline from the $74.24 million reported in the same period the previous year. The decrease in revenue is attributed to customer cancellations and downsells.
LivePerson's financial metrics reveal a challenging landscape. The company has a negative price-to-earnings (P/E) ratio of approximately -0.29, indicating losses relative to its share price. The price-to-sales ratio is about 0.15, suggesting investors pay 15 cents for every dollar of sales. The enterprise value to sales ratio stands at 1.22, reflecting the company's valuation relative to its revenue.
Despite these challenges, LivePerson continues to secure new business. In the third quarter, the company signed 28 deals, including 26 with existing customers and 2 with new clients. The average revenue per enterprise and mid-market customer increased by 5.6% to $665,000, based on recurring revenue. This growth in customer engagement highlights LivePerson's ongoing efforts to strengthen its market position.
