Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 9

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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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. state and local impacts. The total tax expense associated with non-U.S. jurisdictions is relatively consistent between periods.

43

Liquidity and Capital Resources

The following describes the Company’s cash flows for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,20252024(In thousands)Condensed Consolidated Statements of Cash Flows Data:Net cash used in operating activities$(20,781)$(12,015)Net cash used in investing activities(11,215)(23,505)Net cash used in financing activities$(45,852)$(34,862)

As of September 30, 2025, we had $106.7 million in cash and cash equivalents, a decrease of $76.6 million from December 31, 2024. The decrease is primarily attributable to cash paid of $45.0 million related to the troubled debt restructuring, various uses of cash for operating purposes, and purchases of property and equipment.

Cash Flows from Operating Activities

Net cash used in operating activities was $20.8 million for the nine months ended September 30, 2025. Our net loss of $21.1 million includes the effect of non-cash expenses of depreciation of $16.6 million, stock-based compensation of $11.6 million, interest expense of $13.8 million, and amortization of debt issuance costs and accretion of