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Dec 31, 2025
Upland Q4 2025 Earnings Report
Upland Software reported its fourth quarter 2025 financial results, showing a transition period following strategic divestitures.
Key Takeaways
Upland Software reported Q4 2025 revenue of $49.3 million, a 28% decrease year-over-year primarily due to divestitures. Despite the revenue decline, the company achieved GAAP net income of $1.1 million and maintained strong Adjusted EBITDA margins of 31%, while its AI product portfolio continues to gain traction with new customer wins.
Total revenue decreased 28% year-over-year to $49.3 million, largely impacted by divestitures completed in early 2025.
The company returned to GAAP profitability with a net income of $1.1 million, compared to a net loss in the prior year period.
Adjusted EBITDA margin expanded significantly to 31% from 22% in Q4 2024, reflecting improved operational efficiency.
Upland added 110 new customers and expanded relationships with 199 existing customers during the quarter.
Revenue by Segment
Forward Guidance
Upland expects a year-over-year revenue decline in 2026 due to divestitures but anticipates margin expansion.
Positive Outlook
- Q1 2026 Adjusted EBITDA margin expected to increase to 26% (up 500 bps).
- Full year 2026 Adjusted EBITDA margin expected to reach 28%.
- Continued traction in AI product portfolio and major customer renewals.
- Strong free cash flow performance in 2025 providing a solid foundation.
- Expected growth in AI-powered knowledge management solutions like RightAnswers.
Challenges Ahead
- Q1 2026 total revenue expected to decline 24% at the midpoint.
- Full year 2026 total revenue expected to decline 8% at the midpoint.
- Revenue decline primarily driven by divestitures completed in 2025.
- Q1 2026 Adjusted EBITDA expected to decline 3% at the midpoint.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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