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Sep 30
Upland Q3 2025 Earnings Report
Upland Software reported its third quarter 2025 financial results, showing a decrease in total revenue but an increase in Adjusted EBITDA and free cash flow.
Key Takeaways
Upland Software reported total revenue of $50.5 million for Q3 2025, a 24% decrease year-over-year primarily due to divestitures. Despite the revenue decline, the company achieved a significant expansion in Adjusted EBITDA margin to 32% and increased free cash flow to $6.7 million.
Total revenue for Q3 2025 was $50.5 million, a 24% decrease from Q3 2024, mainly due to divestitures.
Adjusted EBITDA significantly increased to $16.0 million, representing 32% of total revenue, up from 21% in Q3 2024.
GAAP net loss improved to $1.1 million compared to a GAAP net loss of $1.7 million in the prior year's quarter.
Free cash flow rose to $6.7 million, an increase from $4.2 million in the third quarter of 2024.
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 Q4 2025, Upland expects total revenue between $46.4 million and $52.4 million, with subscription and support revenue between $44.1 million and $49.1 million. Adjusted EBITDA is projected to be between $13.8 million and $16.8 million, with an Adjusted EBITDA margin of 31% at the midpoint.
Positive Outlook
- Fourth quarter 2025 Adjusted EBITDA is expected to increase by 3% at the midpoint compared to Q4 2024.
- Fourth quarter 2025 Adjusted EBITDA margin is expected to be 31% at the midpoint, an increase of 900 basis points from Q4 2024.
- Full year 2025 Adjusted EBITDA is expected to increase by 4% at the midpoint compared to full year 2024.
- Full year 2025 Adjusted EBITDA margin is expected to be 27% at the midpoint, an increase of 700 basis points from full year 2024.
- The company successfully refinanced its debt, extending maturity by six years to July 2031 and securing a $30 million revolver for ample liquidity.
Challenges Ahead
- Expected total revenue for Q4 2025 represents a decline of 27% at the midpoint from Q4 2024.
- Expected subscription and support revenue for Q4 2025 also shows a decline.
- The year-over-year revenue decline is primarily attributed to divestitures completed earlier in the year.
- Full year 2025 total revenue is expected to decline by 21% at the midpoint from full year 2024.
- Full year 2025 subscription and support revenue is also expected to decline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income