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Sep 30, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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