Upland Software (UPLD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $47.5M, down 6% YoY and above the guidance midpoint; Adjusted EBITDA was $12.6M, or 27% of revenue, versus $16.0M and 32% a year earlier.

• Strategy: simplify and deleverage through early 2027, stabilize and expand in 2027, then grow from 2028; target ~35% Adjusted EBITDA margin in 1H28.

• Priorities include retention, channel expansion, AI-driven use cases and operating-margin improvement, supported by an installed base of 1,100+ enterprise customers.

Financial highlights

• Q3 revenue was $47.5M, down 6% YoY; subscription and support revenue was $45.3M, down 5% and 95% of total revenue.

• Of the $3.0M revenue decline, $0.6M came from divested product lines and Sunset Assets; $2.4M came from core products, including churn-related subscription and services declines.

• Q3 professional services revenue fell 34% to $1.1M, while perpetual license revenue rose 2% to $1.2M; gross profit was $36.0M and operating income was $5.3M.

• GAAP net loss narrowed to $0.5M from $1.1M; net loss attributable to common shareholders was $2.0M, or $0.67 per diluted share. Non-GAAP net income was $6.4M versus $10.8M.

• Q3 operating cash flow was $2.8M and free cash flow $2.7M, versus $6.9M and $6.7M; 9M operating and free cash flow were $13.7M and $13.5M.

Outlook and guidance

• Q4 revenue guidance is $44.7M-$47.7M, including subscription and support revenue of $42.3M-$44.8M; the total-revenue midpoint implies a 6% YoY decline.

• Q4 Adjusted EBITDA guidance is $12.5M-$14.0M; midpoint margin is 29% versus 31% a year earlier.

• FY26 revenue guidance is $190.1M-$193.1M, including subscription and support revenue of $179.8M-$182.3M; the total-revenue midpoint implies a 12% YoY decline.

• FY26 Adjusted EBITDA guidance is $50.5M-$52.0M, with ~27% midpoint margin; formal 2027 guidance is planned with FY26 results in March.

• Remaining performance obligations were $164.4M at September 30, with ~65% expected to be recognized over the next 12 months; available cash, operating cash generation and the $30M revolver were expected to cover cash needs.