Upland Software’s (NASDAQ:UPLD) third-quarter revenue figures

Cloud software provider Upland Software (NASDAQ:UPLD) reported third-quarter 2025 results that beat the market’s revenue expectations, but revenue fell 24.2% year over year to $50.53 million. On the other hand, next quarter’s revenue forecast of $49.4 million was less impressive, falling 2.7% below analyst estimates. Non-GAAP earnings of $0.30 per share were 73.1% above analyst consensus estimates.

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• Gain: $50.53 million vs. analyst estimates of $49.91 million (24.2% year-over-year decline, 1.2% better)

• Custom EPS: $0.30 vs. analyst estimates of $0.17 (73.1% better)

• Adjusted EBITDA: $16.03 million vs. analyst estimates of $15.96 million (31.7% margin, in line)

• Revenue guidance for Q4 CY2025 is $49.4 million at the midpoint, lower than analyst estimates of $50.79 million

• Full year EBITDA guidance is $58 million in the middle, lower than analyst estimates of $58.82 million

• Operating margin: 10.6%, compared to -5% in the same quarter last year

• Free cash flow margin: 13.2%, compared to 5% in the previous quarter

• Market capitalization: $55.24 million

“With our third quarter results, we are pleased to report continued positive core organic growth and significant expansion of our Adjusted EBITDA margin,” said Jack McDonald, Chairman and Chief Executive Officer of Upland.

Operating under the mantra of “land and expand,” Upland Software (NASDAQ:UPLD) offers cloud-based applications that help organizations manage projects, workflows and digital transformation across business functions.

A company’s long-term sales performance can be an indication of its overall quality. Any business can experience short-term success, but the best performers can continue to grow for years to come. Upland Software has struggled to consistently generate demand over the past five years as revenue fell 3.4% year over year. This wasn’t a great result and suggests it is a lower quality company.

At StockStory, we place the greatest emphasis on long-term growth, but within software, a half-decade historical view can ignore recent innovations or disruptive industry trends. Upland Software’s recent performance shows that demand has remained suppressed as revenue has fallen 12% annually over the past two years.

This quarter, Upland Software’s revenue fell 24.2% year over year to $50.53 million, but beat Wall Street estimates by 1.2%. The company’s management currently expects a 27.4% year-over-year revenue decline in the next quarter.

Looking further ahead, sell-side analysts expect sales to fall 13% over the next twelve months, similar to the two-year figure. This projection does not make us enthusiastic and implies that the newer products and services will not yet catalyze better revenue performance.

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Customer acquisition cost payback period (CAC) measures the months it takes a company to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a company can break even on its sales and marketing investments.

Upland Software is extremely efficient at acquiring new customers and the CAC payback period this quarter was 4.1 months. The rapid recovery in customer acquisition costs means the company can look to boost growth by increasing its sales and marketing investments.

It was good to see that Upland Software narrowly exceeded analyst revenue expectations this quarter. On the other hand, revenue expectations for the next quarter fell short and EBITDA expectations for the next quarter fell short of Wall Street estimates. Overall, this was a weaker quarter. The stock rose 2.5% to $1.95 immediately after the report.

So should you invest in Upland Software now? When making that decision, it is important to take into account the valuation, the business qualities and what happened in the last quarter. We cover that in our useful full research report which you can read here. It’s free for active Edge members.