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NEW YORK - LivePerson, Inc. (NASDAQ:LPSN), whose stock has declined over 41% year-to-date according to InvestingPro data, announced Monday the completion of its previously disclosed deleveraging transaction, reducing its debt by $226 million and capturing a $181 million debt discount that benefits shareholders. The debt reduction comes at a crucial time, as the company operates with a significant debt burden of $537.87 million.
The transaction extends the conversational AI provider’s debt maturity profile to December 2029, providing what the company describes as financial certainty and operational runway. InvestingPro analysis reveals the company’s financial health score as WEAK, with multiple factors affecting its performance. InvestingPro subscribers have access to over 10 additional key insights about LivePerson’s financial condition.
"The successful closing of this refinancing marks a new chapter for LivePerson," said John Sabino, CEO of LivePerson, in a press release statement.
The company has also implemented cost structure adjustments, including workforce reductions, which it says will align expenses with business performance. These measures are intended to strengthen LivePerson’s financial profile and position the company to generate positive cash flow in 2026. This restructuring comes as the company faces significant challenges, with revenue declining nearly 25% and an EBITDA of -$10.59 million in the last twelve months.
John Collins, CFO and COO of LivePerson, called the transaction "the successful culmination of a multi-year, strategic effort to deleverage our balance sheet."
The refinancing shifts enterprise value from debt holders to equity holders and aims to reinforce customer confidence in the company as a long-term strategic partner, according to the announcement.
LivePerson provides conversational AI technology that powers nearly a billion interactions monthly. The company recently expanded partnerships with Google Cloud and AWS, which it mentioned alongside the financial restructuring as part of its strategic positioning. For detailed analysis of LivePerson’s strategic initiatives and comprehensive financial metrics, investors can access the full Pro Research Report, available exclusively on InvestingPro, which covers this and 1,400+ other US stocks with expert insights and actionable intelligence.
The announcement represents the second phase of the company’s refinancing efforts, which LivePerson states will allow it to focus on strategic execution and innovation.
In other recent news, LivePerson Inc. reported its financial results for the second quarter of 2025, showing a mixed performance. The company’s earnings per share were -$0.17, slightly better than the projected -$0.19. However, its revenue of $59.6 million did not meet the expected $61.63 million. In response to a Nasdaq notice regarding compliance with the minimum bid price requirement, LivePerson has clarified a proposal for a potential reverse stock split. This proposal seeks shareholder approval to give the Board of Directors the authority to implement the split if necessary. Additionally, LivePerson announced its collaboration with Amazon Web Services to integrate Amazon Connect with its digital contact center platform. This integration aims to enhance customer service by combining LivePerson’s AI capabilities with Amazon Connect’s cloud services. These developments highlight the company’s ongoing strategic initiatives and financial performance.
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