LivePerson

LPSN

Software - Application · Technology

Price

$1.68

-0.04 (-2.33%)

Market Cap

$20.7M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+86.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 4.6M (2021) → 8.6M (2025)

LivePerson makes software that helps businesses talk to their customers through chat, text messages, and AI-powered chatbots. Instead of calling a phone number, customers can message a company directly — on its website or app — and get help faster. Big companies in banking, retail, and telecommunications are the main customers, using LivePerson's platform to handle millions of customer service conversations.

LivePerson charges businesses a subscription fee to use its platform, which means it earns recurring revenue each month or year. The company operates globally, with customers across North America, Europe, and beyond, and generates roughly a few hundred million dollars in annual revenue. Its main competitive advantage is its large library of conversation data and AI tools built specifically for customer service, but the company has been losing money and faces stiff competition from larger software players like Salesforce and Google, which is the central risk to its long-term survival.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-12.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+68.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$55M/ year

↓ Declining (-31% vs prior year)

22.4% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

12.6%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$101M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

LivePerson's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

63.8%

Premium pricing power — 63.8% gross margin

Operating Margin

-3.1%

Losing money on operations — -3.1%

ROCE

-0.5%

Weak — -0.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-19.2%

Shrinking sales (-19.2% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-12.2%

Burning cash (-12.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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