This article first appeared on GuruFocus.
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Income guidance: Expected Q4 2025 revenue between $46.4 million and $52.4 million; Full-year 2025 revenue is expected to be between $214 million and $220 million.
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Adjusted EBITDA: Adjusted EBITDA in Q3 2025 was $16 million with a margin of 32%; expected full-year 2025 adjusted EBITDA between $56.5 million and $59.5 million.
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Free cash flow: Free cash flow in the third quarter of 2025 was $6.7 million; The full year 2025 target is approximately $20 million.
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Net debt leverage: Net debt leverage ratio reduced to 3.8x; target of 3.7x by the end of 2025.
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Customer growth: 97 new customers in Q3 2025, including 14 major customers; extensive relationships with 168 existing customers.
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Debt refinancing: The debt maturity was extended by six years to July 2031; added a $30 million revolver.
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Gross margin: Gross margins in the third quarter of 2025 increased compared to the second quarter due to higher margins in the ongoing product lines.
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Product recognition: Earned 49 badges in G2’s market reports in Fall 2025; recognized in Forrester’s customer service solutions landscape.
Release date: November 6, 2025
For the full earnings call transcript, please refer to the full earnings call transcript.
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Upland Software Inc (NASDAQ:UPLD) exceeded the midpoint of revenue expectations and met the midpoint of adjusted EBITDA for the third quarter of 2025.
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The company achieved a core organic growth rate of 3% in the third quarter of 2025.
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Upland Software Inc (NASDAQ:UPLD) successfully refinanced its debt, extending its maturity by six years to July 2031, and adding a $30 million revolver, boosting liquidity.
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The company welcomed 97 new customers, including 14 major ones, and expanded relationships with 168 existing customers, including 13 major expansions.
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Upland Software Inc (NASDAQ:UPLD) earned 49 badges in G2’s Fall 2025 Market Reports, reflecting strong momentum across its product portfolio.
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Upland Software Inc (NASDAQ:UPLD) reported a 27% year-over-year decline in total revenue for the fourth quarter of 2025, mainly due to divestitures.
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The company reduced total revenue for full year 2025 and adjusted EBITDA guidance by $800,000 due to lower expected perpetual licensing revenue.
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Upland Software Inc (NASDAQ:UPLD) experienced a decline in perpetual licensing revenue, which impacted its financial performance.
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The company faces challenges in maintaining consistent quarterly growth as results can fluctuate.
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Despite improvements, Upland Software Inc (NASDAQ:UPLD) is still targeting modest core organic growth of 3% for full-year 2026, indicating gradual progress.
Q: What gives Upland Software confidence in achieving their growth targets of 3% next year and 5% beyond? A: Jack McDonald, CEO, explained that while one quarter may not show a trend, the long-term trend is positive. The company has seen bigger deals, such as a multi-year $2 million deal with a Fortune 100 tech company and a $1 million deal with a global pharmaceutical company. These deals, along with partnerships with major players like Microsoft and Amazon, provide optimism for future growth.
Q: Can you clarify the $800,000 reduction in Q4 guidance regarding licensing revenue? A: Michael Hill, CFO, stated that the reduction is primarily due to perpetual licensing revenues that were initially forecast but are not expected to materialize. This also includes a small portion of professional services revenue, which impacts operating profit on EBITDA.
Q: How does the presence of Upland’s products in the AWS market impact installed base growth versus net new customers? A: Jack McDonald noted that the AWS marketplace supports both existing and new customer growth. It improves discoverability and simplifies purchasing, which benefits both existing customers looking to expand and new customers discovering Upland’s solutions.
Q: What improvements have been made in sales execution and development to drive growth? A: Jack McDonald highlighted several improvements, including upgrading the sales force, improving SEO strategies, and using intent data for better targeting. On the development side, the establishment of a Center of Excellence in India and the integration of AI into products have significantly improved innovation and product reliability.
Q: Was the drop in perpetual license revenue due to a competitive loss or a shift in customer strategy? A: Jack McDonald clarified that the reduction was not due to a single customer or loss of competition. It was an overall decline in expected perpetual license revenue, which normally shows an increase in the fourth quarter but not this year.
For the full earnings call transcript, please refer to the full earnings call transcript.
