Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 100

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 100
---
 in 2024. This increase is primarily due to a gain of $27.7 million on the troubled debt restructuring. In addition, a $2.9 million gain in the fair value of our Warrants was recorded in other income (expense), net during the current period, compared to a $7.8 million loss in the comparable period. The remaining amount of total other income (expense), net, is attributable to interest expense on our Notes, partially offset by interest income on our money market accounts, and the impact of currency rate fluctuations.

Total other income (expense), net decreased by 72% to income of $17.3 million for the nine months ended September 30, 2025 from income of $62.2 million for the comparable period in 2024. This decrease is primarily due to a gain of $27.7 million on the troubled debt restructuring, compared to a gain of $73.1 million on the extinguishment of the 2026 Notes during the comparable period. The decrease was partially offset by a $8.8 million gain in the fair value of our Warrants recorded in other income (expense), net during the current period, compared to a $7.8 million loss in the comparable period. The remaining amount of total other income (expense), net, is attributable to interest expense on our Notes, partially offset by interest income on our money market accounts, and the impact of currency rate fluctuations.

Provision for Income Taxes

Three Months Ended September 30,Nine Months Ended September 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Provision for income taxes$394 $509 $(115)(23)%$433 $2,129 $(1,696)(80)%

Provision for income taxes was $0.4 million and $0.4 million for the three and nine months ended September 30, 2025, compared to $0.5 million and $2.1 million for the comparable periods in 2024. Our consolidated effective tax rate was impacted by the statutory income tax rates applicable to each of the jurisdictions in which we operate, valuation allowance recorded against losses generated in the U.S. and Germany, a tax benefit related to an increase in tax receivables, and changes to unrecognized tax benefits in Israel. The overall tax provision recorded represents tax on non-U.S. earnings in the various jurisdictions in which we operate and the provision for U.S