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. 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 declined to $176 million; and net revenue retention was 78%, down from 80% in Q3. The company ended Q4 with $95 million of cash. For 2026, management guided revenue to $195 million-$207 million and adjusted EBITDA to a loss of $4 million to a gain of $7 million; Q1 revenue was guided to $53 million-$55 million and Q1 adjusted EBITDA to $2 million-$5 million. Management said it expects positive net new ARR in the second half of 2026, but still expects revenue to decline through the year and does not expect adjusted EBITDA less CapEx to be positive in 2026.

John Sabino framed 2026 as a transition from rebuilding to execution, saying the company is focusing on customer retention, product innovation, and partnerships to move toward future growth. He highlighted Syntrix as a broader assurance layer for governable AI, saying it addresses trust, compliance, and performance gaps that slow enterprise AI deployments. His tone was cautiously optimistic: he described 2025 as a defining year, said the foundation is now stronger, but also stressed there is still work to do on retention, capital structure, and scaling new channels.

John Collins emphasized that Q4’s bottom-line strength was mainly the result of the prior quarter’s restructuring and a materially improved cost structure, not just one-time benefits. He said total revenue of $59.3 million and adjusted EBITDA of $10.8 million beat guidance, with upside driven primarily by higher variable revenue and disciplined execution. Collins also gave several operating metrics: 40 deals signed in the quarter, including 4 new logos and 36 expansions; recurring revenue at 89% of total revenue; NRR at 78%; and cash of $95 million. On guidance, he said Q1 is likely the high point for EBITDA in 2026 because the company plans to reinvest in product and commercial execution, and he said the company expects slightly negative free cash flow and no positive adjusted EBITDA less CapEx this year.

Analysts focused on how LivePerson can reconcile positive net new ARR in the second half with full-year revenue still declining. Management explained that historical customer losses are still flowing through 2026 revenue, so the benefit from second-half ARR improvement will be offset by prior attrition. Questions also pushed on Syntrix’s market need, pricing, and pipeline; Sabino said the product arose from customer demand for simulation and, more broadly, from enterprise needs around assurance, governance, and compliance for AI deployments. On Google Cloud Marketplace, management said it is currently mainly a retention lever, but could open access to CIO-level stakeholders and create new growth opportunities over time.