Upland Software(UPLD) - 2025 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 2025 was $53.4 million, a decrease of 23% from $69.3 million in Q2 2024, primarily due to divestitures[6] - Subscription and support revenue was $50.5 million, down 23% from $65.5 million in Q2 2024, also primarily due to divestitures[6] - GAAP net loss was $13.0 million, compared to a loss of $11.4 million in Q2 2024, with a net loss per share of $0.51[6] - Net loss for Q2 2025 was $13.0 million, compared to a net loss of $11.4 million in Q2 2024[32] - Gross profit for the first half of 2025 was $85.6 million, a decline from $98.6 million in the same period of 2024[32] - Total operating expenses for Q2 2025 were $47.0 million, down from $54.2 million in Q2 2024[32] - The company reported a net loss per common share of $0.51 for Q2 2025, compared to $0.47 in Q2 2024[32] - Net loss for Q2 2025 was $13,029 thousand, compared to a net loss of $11,439 thousand in Q2 2024, representing a 13.9% increase in losses year-over-year[36] - Adjusted EBITDA for Q2 2025 was $13,585 thousand, slightly down from $13,635 thousand in Q2 2024, indicating a decrease of 0.4%[38] - Non-GAAP net income for Q2 2025 was $5,580 thousand, compared to $6,694 thousand in Q2 2024, reflecting a decrease of 16.7%[40] Future Projections - Upland expects Q3 2025 total revenue to be between $46.8 million and $52.8 million, reflecting a 25% decline at the midpoint from Q3 2024[7] - For the full year 2025, total revenue is expected to be between $211.8 million and $223.8 million, a 21% decline at the midpoint from 2024[8] - Third quarter 2025 Adjusted EBITDA is projected to be between $14.5 million and $17.5 million, a 14% increase at the midpoint from Q3 2024[7] Customer and Market Performance - Upland welcomed 100 new customers in Q2 2025, including 12 major customers, and expanded relationships with 263 existing customers[5] - Upland earned 68 badges in G2's Summer 2025 market reports, reflecting strong performance across its AI-powered product portfolio[9] Financial Position - Cash and cash equivalents decreased to $41.0 million as of June 30, 2025, from $56.4 million at the end of 2024[34] - Total assets decreased to $441.7 million as of June 30, 2025, compared to $529.5 million at the end of 2024[34] - Total liabilities were $358.0 million as of June 30, 2025, down from $424.6 million at the end of 2024[34] - Deferred revenue was $72.3 million as of June 30, 2025, a decrease from $93.7 million at the end of 2024[34] Cash Flow and Expenses - Free Cash Flow for the six months ended June 30, 2025, was $10,536 thousand, compared to $10,134 thousand for the same period in 2024, reflecting a 4% increase[42] - The company reported a net cash provided by operating activities of $3,289 thousand for Q2 2025, compared to $5,470 thousand in Q2 2024, a decline of 40%[36] - Stock-based compensation expense for Q2 2025 was $3,074 thousand, down from $5,133 thousand in Q2 2024, a reduction of 40%[44] - Total depreciation and amortization expense for Q2 2025 was $8,155 thousand, compared to $13,797 thousand in Q2 2024, a decrease of 41%[38] Debt and Financing - Upland completed a refinancing of its outstanding Term Loans, establishing a new $240 million term loan and a $30 million revolving credit facility, maturing July 24, 2031[9] Divestitures - The company recognized a non-cash loss on divestitures of businesses amounting to $434 thousand in Q2 2025, with a significant loss of $23,891 thousand recognized in the first half of 2025[40] Shareholder Information - The weighted average common shares outstanding for basic calculations in Q2 2025 was 28,518,839, compared to 27,348,672 in Q2 2024, an increase of 4.3%[40]