LivePerson clarifies reverse stock split proposal in response to Nasdaq notice

LivePerson Inc. (NASDAQ:LPSN), a technology company with a market capitalization of approximately $95 million and currently trading at $0.96 per share, issued a statement Thursday clarifying details about a proposed authorization for a potential reverse stock split, as outlined in its preliminary proxy statement filed with the Securities and Exchange Commission on Wednesday. According to InvestingPro data, the company has been experiencing significant financial challenges, with a weak overall financial health score.

The company said the proposal seeks shareholder approval to grant the Board of Directors authority to implement a reverse stock split if deemed necessary. This proposal is primarily in response to a notice received from Nasdaq on May 1 regarding LivePerson’s compliance with the exchange’s minimum bid price requirement.

LivePerson stated that no decision has been made on whether a reverse stock split will be carried out. The Board will only proceed if it determines that such an action is in the best interests of the company and its shareholders at the relevant time.

As of Thursday, the company reported that its common stock had closed at or above $1.00 per share for the previous eight consecutive trading days. This recent price movement comes amid considerable stock volatility, with InvestingPro data showing the stock has traded between $0.61 and $2.08 over the past 52 weeks, while carrying a significant debt burden of over $537 million.

The clarification follows investor questions about the reverse stock split proposal, which is set to be discussed at an upcoming special meeting of shareholders. The company noted that the proxy statement and accompanying proxy card are in preliminary form and that a definitive version will be filed and distributed to shareholders entitled to vote at the meeting.

LivePerson also reminded investors that information regarding its directors, executive officers, and their holdings is available in the proxy statement filed with the SEC.

The information in this article is based on a press release statement and the company’s Form 8-K filing with the SEC.

In other recent news, LivePerson reported its financial results for the second quarter of 2025, showing a mixed performance. The company’s earnings per share were -$0.17, slightly surpassing the projected -$0.19. However, its revenue of $59.6 million did not meet the expected $61.63 million. In another development, LivePerson announced an integration with Amazon Web Services to unify customer service operations. This collaboration aims to merge LivePerson’s conversational AI with Amazon Connect’s cloud contact center services. These recent developments highlight the company’s strategic efforts to enhance its offerings and address financial challenges.

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