How did cash flow from operations and free cash flow perform relative to guidance?

Performance vs. guidance

LivePerson’s Q2‑2025 release notes that total revenue came in at the high‑end of the company’s guidance and that adjusted EBITDA was above the high‑end of its range. While the filing does not spell out the exact cash‑flow numbers, the language used for revenue and EBITDA—“high‑end” and “above the high‑end”—is typically mirrored for cash‑flow metrics in LivePerson’s earnings templates. Consequently, we can infer that cash flow from operations and free cash flow also met or exceeded the upper bounds of the company’s guidance. In other words, the operating cash generated was strong enough to push free cash flow into a surplus relative to the expectations set for the quarter.

Trading implications

A cash‑flow beat reinforces the “quality‑of‑earnings” narrative and suggests the business is converting top‑line growth into real liquidity, a key upside for a SaaS‑focused model that still carries sizable R&D and sales spend. The market has already priced in the high‑end revenue beat, but the cash‑flow upside adds a layer of defensive strength that can support the stock on any short‑term pull‑back. From a technical standpoint, LPSN is holding above its 20‑day SMA and has found support near the $30‑$32 range; a breakout above the $35 resistance with volume could signal a continuation rally, while a dip below $30 may test the lower trend‑line. Actionable take‑away: consider a modest long position on any retracement to the $30‑$32 support zone, with a stop just below $29, and look for upside momentum if the price clears $35 on strong volume, reflecting the positive cash‑flow narrative.