LivePerson, Inc.

LivePerson reported Q4 revenue of $59.3 million, above the high end of guidance, and adjusted EBITDA of $10.8 million, also above the high end of guidance, both helped by higher variable revenue and a lower cost base. Hosted services revenue was $51 million, down 15% year over year, and professional services revenue was $8.3 million, down 36% year over year. Average revenue per customer was $680,000, up 9% year over year; recurring revenue was $52.9 million, or 89% of total revenue; RPO was $176 million; net revenue retention was 78%; and cash ended the quarter at $95 million. For 2026, the company guided revenue to $195 million-$207 million and adjusted EBITDA to a loss of $4 million to a gain of $7 million. For Q1 2026, it expects revenue of $53 million-$55 million and adjusted EBITDA of $2 million-$5 million. Management said it expects positive net new ARR in the second half of 2026, but revenue will still decline through the year because prior customer losses are still flowing through the P&L.

John Sabino framed 2026 as a shift from rebuilding to execution, saying the company has improved its balance sheet, cost structure, and operations and is now focused on customer retention, product innovation, and partnerships. He highlighted Syntrix as a response to the market’s need for AI assurance and governance, and said the product is already gaining traction with paying enterprise customers. His tone was constructive but measured, emphasizing that there is still work to do on retention, growth, and capital structure.

John Collins said Q4 results reflected the cost restructuring executed in the prior quarter plus ongoing operational discipline, with upside driven mainly by higher variable revenue. He noted that deal activity included 40 signed deals, 4 new logos, and 36 expansions, while over 40% of renewals included expanding commitments. He also guided to 2026 revenue of $195 million-$207 million, adjusted EBITDA of negative $4 million to positive $7 million, and said adjusted EBITDA less CapEx is not expected to be positive in 2026; cash ended Q4 at $95 million. He added that Q1 is expected to be the high point for adjusted EBITDA because the company will increase investment in product and commercial execution.

Analysts focused on how positive net new ARR can coexist with declining revenue, and Collins explained that historical customer losses are still flowing through 2026 revenue even as net ARR turns positive in the second half. Questions on Syntrix centered on pricing and demand; Sabino said pricing is conversation-based/consumption-based, early use cases look like both an upsell and a retention lever, and the pipeline includes dozens of opportunities. On Google Cloud Marketplace, management said it is currently mainly a retention channel but should expose the company to new stakeholders, including CIOs, and could become a source of future growth as more revenue flows through the channel by end-2026.