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Mar 31
Upland Q1 2025 Earnings Report
Reported financial and operating results for the first quarter of 2025
Key Takeaways
Upland Software reported a decrease in total revenue for Q1 2025 compared to the previous year, but showed significant improvement in GAAP net loss and positive free cash flow. Adjusted EBITDA remained stable, and the company beat its guidance midpoints for revenue and Adjusted EBITDA. The company also completed a divestiture subsequent to the quarter end to sharpen focus.
Total revenue for Q1 2025 was $63.7 million, a 10% decrease year-over-year.
GAAP net loss improved significantly to $25.8 million in Q1 2025 from $96.1 million in Q1 2024.
Adjusted EBITDA was stable at $13.1 million, representing 21% of total revenue.
Free cash flow was positive at $7.9 million for the quarter.
Upland
Upland
Upland Revenue by Segment
Revenue by Segment
Subscription and Support Revenue
CapyFin.comPerpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
For Q2 2025, Upland expects total revenue between $50.3 and $56.3 million and Adjusted EBITDA between $12.1 and $15.1 million. For the full year 2025, total revenue is expected between $209.5 and $227.5 million and Adjusted EBITDA between $55.0 and $64.0 million. The guidance reflects the impact of the mobile messaging product lines divestiture.
Positive Outlook
- Q1 2025 beat Revenue and Adjusted EBITDA guidance midpoints.
- Core Organic Growth Rate is expected to increase throughout 2025.
- Adjusted EBITDA margin is expected to expand throughout 2025.
- Q2 2025 Adjusted EBITDA midpoint is flat year-over-year despite revenue decline.
- Full year 2025 Adjusted EBITDA midpoint is a 7% increase year-over-year.
Challenges Ahead
- Q2 2025 total revenue midpoint is a 23% decline year-over-year.
- Full year 2025 total revenue midpoint is a 20% decline year-over-year.
- The divestiture of mobile messaging product lines lowered the full year 2025 revenue guidance midpoint by approximately $25.0 million.
- GAAP net loss is expected to continue in Q2 and Full Year 2025 (implied by Adjusted EBITDA being positive while net loss was negative in Q1).
Revenue & Expenses
Visualization of income flow from segment revenue to net income