Upland Software (UPLD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $63.7M, down 10% year-over-year, mainly due to divestitures and declines in sunset assets.

• Adjusted EBITDA was $13.1M (21% margin), flat in dollars but up from 19% margin year-over-year.

• Net loss attributable to common shareholders narrowed to $25.8M from $96.1M year-over-year; net loss per share improved to $0.97 from $3.37.

• 107 new customers and 245 expansions, including significant wins in AI-enabled products.

• Divestiture of mobile messaging product lines sharpened focus on higher-margin, higher-growth markets.

Financial highlights

• Subscription and support revenue fell 10% to $60.2M; perpetual license revenue rose 9% to $1.6M; professional services revenue declined 15% to $1.9M.

• Gross profit margin was 72%, up from 70% in Q1 2024.

• Q1 free cash flow was $7.9M, benefiting from $1.2M related to interest rate swap sales.

• Net debt at Q1 end was $226M, with $34M in cash and gross debt of $259M.

• Operating cash flow rose to $8.3M from $5.1M year-over-year.

Outlook and guidance

• Q2 2025 revenue expected between $50.3M–$56.3M; Adjusted EBITDA between $12.1M–$15.1M; margin expected at 26%.

• Full-year 2025 revenue guidance is $209.5M–$227.5M, down 20% year-over-year due to divestitures.

• Full-year Adjusted EBITDA expected at $55M–$64M, up 7% at midpoint; margin expected to reach 27%.

• Core organic growth projected at 2% in Q2, increasing in the second half of 2025.

• Sale of mobile messaging product lines reduced 2025 revenue guidance by ~$25M but did not impact Adjusted EBITDA guidance.