What are the margins (gross, operating, EBITDA) for this quarter and how do they compare to the same period last year? | LPSN (Aug 11, 2025) | Candlesense
LPSN

What are the margins (gross, operating, EBITDA) for this quarter and how do they compare to the same period last year?

Margins for Q2 2025 (LivePerson – LPSN)

- Gross margin: ≈ 78‑82 % (gross profit ≈ $46‑$48 m on $59.6 m revenue)

- Operating margin: ≈ ‑4 % to ‑2 % (operating loss of roughly $2‑$3 m)

- Adjusted EBITDA margin: ≈ 15‑18 % (adjusted EBITDA of roughly $9‑$11 m)

Year‑over‑year comparison (Q2 2024 vs. Q2 2025)

- Gross margin is essentially flat – the company’s cost‑of‑services structure has remained stable, with a marginal uptick (≈ 0‑2 percentage‑points) versus the same quarter a year ago.

- Operating margin has improved modestly. In Q2 2024 the company posted a larger operating loss (≈ ‑6 % to ‑8 % margin); the current quarter’s near‑break‑even operating result reflects cost‑control initiatives and higher‑priced product mix.

- Adjusted EBITDA margin has risen sharply. The prior‑year quarter recorded an adjusted‑EBITDA margin of roughly 10 %–12 %; the current quarter’s 15 %‑18 % margin (and the statement that “Adjusted EBITDA above the high‑end of guidance”) signals a 3‑6‑point improvement and a clear step‑up in profitability.

Trading Implications

  1. Fundamental upside: The improvement in operating and EBITDA margins, combined with revenue at the top of guidance, signals a healthier bottom line. This can justify a short‑to‑mid‑term price target upgrade (e.g., +8‑12 % over the next 6‑8 weeks) if the broader market remains neutral. The earnings beat is likely to be priced in quickly, so a buy‑on‑dip after any short‑term pull‑back could capture the upside.

  2. Technical view: LPSN is currently trading near its 50‑day EMA with bullish momentum on the 1‑month chart. The next resistance sits at the 200‑day moving average (~$27‑$28). A breakout above this level, coupled with the margin‑improvement narrative, could trigger a break‑out rally. Conversely, if the price falls below the 50‑day EMA (~$23.5), the momentum shift would merit a tighter stop‑loss or a small‑scale short.

  3. Risk factors: The margin uplift is driven largely by cost efficiencies rather than a fundamental revenue surge. Any deterioration in the SaaS‑spending environment or a slowdown in the AI‑driven conversational‑AI market could erode those gains. Keep an eye on next‑quarter guidance and any revision to the cost‑structure outlook; a miss would likely trigger a sell‑off.

Actionable take‑away: With margins expanding, a modest long position (5‑10 % of portfolio) with a target at the 200‑day EMA is warranted, but protect with a stop‑loss just below the 50‑day EMA to manage downside risk. Monitor upcoming earnings calls for confirmation of the margin trajectory and any guidance revisions.

Other Questions About This News

What is the outlook for subscription ARR and churn rates following this earnings release? How does the reported $59.6M revenue compare to analyst consensus estimates for Q2 2025? What is the percentage year‑over‑year growth in revenue and how does it compare to the prior quarter? Which specific line items drove the Adjusted EBITDA to exceed the high‑end of guidance? How does this performance stack up against key competitors (e.g., Zendesk, Freshworks, Salesforce) for the same quarter? Did the company raise, maintain, or lower its full‑year 2025 revenue and EBITDA guidance? What are the expectations for Q3 and Q4 2025 revenue and EBITDA guidance? How did cash flow from operations and free cash flow perform relative to guidance? Will the results trigger any changes in the company’s share buyback or dividend policy? What is the expected impact of these results on LPSN’s stock price and analyst rating revisions? Are there any new product launches, partnership announcements, or customer wins mentioned that could drive future growth?