Upland Software (UPLD) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $50.5 million, down 24% year-over-year due to divestitures, but core organic subscription and support revenue grew 2.6%.

• Adjusted EBITDA for Q3 2025 was $16.0 million (32% margin), up from $14.0 million in Q3 2024, meeting guidance midpoint and reflecting improved operational efficiency.

• Net loss for Q3 2025 was $1.1 million, improved from $1.7 million in Q3 2024; net loss for the nine months was $40.0 million, compared to $109.3 million in the prior year.

• Welcomed 97 new customers, including 14 major ones, and expanded 168 existing relationships, 13 of which were major expansions.

• Product innovation and AI enablement drove significant new deals, including a $2M multi-year agreement with a Fortune 100 tech company and a $1M deal with a global pharmaceutical firm.

Financial highlights

• Subscription and support revenue for Q3 2025 was $47.7 million, down 25% year-over-year, but core products saw a $1.1 million increase.

• Gross profit margin improved to 77% in Q3 2025 from 70% in Q3 2024, driven by cost reductions in divested and sunset assets.

• Free cash flow for Q3 was $6.7M; GAAP operating cash flow was $6.9M.

• Operating expenses decreased across all categories, with sales and marketing down 41%, R&D down 31%, and G&A down 20% year-over-year for Q3 2025.

• Full-year 2025 target free cash flow is $20M, with a 10% increase targeted for 2026.

Outlook and guidance

• Q4 2025 revenue expected between $46.4M–$52.4M, a 27% year-over-year decline due to divestitures.

• Q4 adjusted EBITDA expected between $13.8M–$16.8M, with a 31% margin at midpoint (up 900 bps YoY).

• Full-year 2025 revenue guidance is $214M–$220M, down 21% YoY, with adjusted EBITDA of $56.5M–$59.5M (up 4% YoY).

• Adjusted EBITDA margin expected to expand to 27% for 2025, with targets of 29%+ in 2026 and 31%+ in 2027.

• Management expects continued focus on higher-margin, higher-growth product lines following divestitures.