LivePerson to implement 1-for-15 reverse stock split and reduce authorized shares

Published 08/10/2025, 22:38
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LivePerson Inc. (NASDAQ:LPSN), currently trading at $0.54 and down over 64% year-to-date, announced Wednesday that it will implement a 1-for-15 reverse stock split of its common stock, following approval by shareholders at a special meeting held October 2. According to InvestingPro data, the company’s stock has shown significant volatility, with its market capitalization currently standing at approximately $81 million. The company’s board of directors set the reverse split ratio at 1-for-15, within the previously approved range of 1-for-5 to 1-for-20.

According to a statement based on a SEC filing, the reverse stock split and a proportional reduction in authorized common shares are expected to take effect before market open on Monday, October 13, 2025. At the effective time, every 15 shares of issued and outstanding common stock will be automatically combined into one share. The number of authorized shares of common stock will decrease from 300,000,000 to 20,000,000. The par value of the common stock will remain at $0.001 per share. InvestingPro analysis reveals the company operates with a significant debt burden, with a concerning debt-to-capital ratio of 0.87 and a weak overall financial health score.

The reverse split will also lead to proportionate adjustments to the company’s equity plans, outstanding equity awards, warrants, convertible notes, and rights under the Tax Benefits Preservation Plan. No fractional shares will be issued; shareholders entitled to receive a fractional share will receive a cash payment in lieu of the fraction.

LivePerson’s common stock is expected to begin trading on a split-adjusted basis on the Nasdaq Global Select Market at the market open on October 13 under the existing ticker symbol “LPSN.” The new CUSIP number for the post-split common stock will be 538146 309.

The company stated that the reverse stock split will not affect the number of authorized preferred shares.

This information is based on a press release statement and details disclosed in a Form 8-K filing with the Securities and Exchange Commission. For a comprehensive understanding of LivePerson’s financial situation and future prospects, including 12 additional key ProTips and detailed financial metrics, investors can access the full company analysis through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.

In other recent news, LivePerson Inc. reported its second-quarter 2025 financial results, showing a mixed performance. The company’s earnings per share were -$0.17, slightly better than analysts’ forecast of -$0.19, but its revenue of $59.6 million fell short of the expected $61.63 million. Shareholders approved amendments to increase the authorized shares from 200 million to 300 million and authorized a reverse stock split, with the specific ratio to be determined by the board before October 2026. LivePerson also completed a deleveraging transaction, reducing its debt by $226 million and securing a $181 million debt discount, extending its debt maturity to December 2029. Additionally, the company clarified its reverse stock split proposal in response to a Nasdaq notice regarding compliance with the minimum bid price requirement. In a move to enhance its customer service offerings, LivePerson announced a collaboration with Amazon Web Services to integrate Amazon Connect with its platform. These developments highlight LivePerson’s efforts to strengthen its financial position and expand its technological capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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