Upland Software(UPLD) - 2025 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 2025 was $50.5 million, a decrease of 24% from $66.7 million in Q3 2024, primarily due to divestitures[5] - Subscription and support revenue was $47.7 million, down 25% from $63.8 million in Q3 2024, also primarily due to divestitures[5] - For Q4 2025, total revenue is expected to be between $46.4 million and $52.4 million, reflecting a year-over-year decline of 27% at the midpoint[6] - Full year 2025 total revenue is projected to be between $214.0 million and $220.0 million, indicating a 21% decline at the midpoint from 2024[7] - Total revenue for Q3 2025 was $50,526,000, a decrease of 24.2% compared to $66,692,000 in Q3 2024[29] Profitability Metrics - Adjusted EBITDA was $16.0 million, representing 32% of total revenue, compared to $14.0 million or 21% of total revenue in Q3 2024[5] - Adjusted EBITDA for the full year 2025 is expected to be between $56.5 million and $59.5 million, a 4% increase at the midpoint from 2024[7] - Adjusted EBITDA for Q3 2025 was $16,032 thousand, up from $14,000 thousand in Q3 2024, representing an increase of about 14.5%[35] - Gross profit for Q3 2025 was $38,849,000, representing a gross margin of 76.7% compared to 70.4% in Q3 2024[29] Net Loss and Expenses - GAAP net loss was $1.1 million, an improvement from a net loss of $1.7 million in Q3 2024, with a loss per share of $0.09 compared to $0.12 in Q3 2024[5] - Net loss for Q3 2025 was $1,122,000, an improvement from a net loss of $1,733,000 in Q3 2024[29] - Operating expenses for Q3 2025 totaled $33,501,000, a decrease from $50,298,000 in Q3 2024[29] - The company reported a loss on divestitures of businesses amounting to $24,364 thousand for the nine months ended September 30, 2025[36] - The company incurred $2,301 thousand in loss on debt extinguishment for Q3 2025, with no such loss reported in Q3 2024[35] Cash Flow and Assets - Free Cash Flow for Q3 2025 was $6,681 thousand, compared to $4,202 thousand in Q3 2024, indicating a growth of approximately 58.9%[38] - Cash and cash equivalents were $22,755,000, down from $56,426,000 at the end of 2024[31] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $23,381 thousand, down from $59,739 thousand at the end of Q3 2024[33] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $18,482 thousand, compared to $14,898 thousand for the same period in 2024, an increase of approximately 23.0%[33] Customer Acquisition and Market Presence - Upland welcomed 97 new customers in Q3 2025, including 14 major customers, and expanded relationships with 168 existing customers[4] - Upland RightAnswers and Upland BA Insight are now available in AWS Marketplace, enhancing customer access to AI solutions[8] Debt and Liabilities - The company's debt was successfully refinanced, extending maturity to July 2031 and securing a $30 million revolver for liquidity[5] - Total current assets decreased to $65,100,000 from $118,392,000 as of December 31, 2024[31] - Total liabilities decreased to $328,764,000 from $424,597,000 as of December 31, 2024[31]