Upland Software(UPLD) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2025 was $49.3 million, a decrease of 28% from $68.0 million in Q4 2024, primarily due to divestitures[5] - Subscription and support revenue was $46.7 million, a decrease of 27% from $64.3 million in Q4 2024, also primarily due to divestitures[5] - Total revenue for Q4 2025 was $49,312,000, a decrease of 27.5% compared to $68,027,000 in Q4 2024[31] - Subscription and support revenue was $46,699,000, down 27.4% from $64,332,000 year-over-year[31] - Upland expects Q1 2026 total revenue to be between $47.0 and $50.0 million, reflecting a 24% decline at the midpoint from Q1 2025[7] - For the full year 2026, Upland anticipates total revenue between $194.2 and $206.2 million, an 8% decline at the midpoint from 2025[8] Profitability and Income - GAAP net income was $1.1 million compared to a GAAP net loss of $3.4 million in Q4 2024, with net loss per share improving to $0.01 from $0.18[5] - Net loss attributable to common stockholders for the year was $44,752,000, compared to a loss of $118,324,000 in the previous year, showing a significant improvement[31] - Net income for Q4 2025 was $1,095, compared to a loss of $3,430 in Q4 2024, marking a significant turnaround[35] - Non-GAAP net income for the twelve months ended December 31, 2025, was $33,328, down from $42,623 in 2024, reflecting challenges in profitability[38] Operational Performance - Adjusted EBITDA was $15.3 million, or 31% of total revenue, compared to $14.9 million, or 22% of total revenue, in Q4 2024[5] - Adjusted EBITDA for Q4 2025 reached $15,314, up from $14,901 in Q4 2024, indicating a positive trend in operational performance[37] - First quarter 2026 Adjusted EBITDA is expected to be between $11.9 and $13.4 million, a 3% decline at the midpoint from Q1 2025[7] - Operating expenses for Q4 2025 were $30,545,000, down from $50,135,000 in Q4 2024, reflecting cost-cutting measures[31] Cash Flow and Assets - The company reported a cash and cash equivalents balance of $29,398,000, down from $56,426,000, indicating cash flow challenges[33] - Cash provided by operating activities for the twelve months ended December 31, 2025, was $25,800, compared to $24,239 in the previous year, showing growth in operational cash flow[40] - Free Cash Flow for Q4 2025 was $7,231, compared to $9,021 in Q4 2024, reflecting a decrease but still maintaining a strong cash position[40] - Total current assets decreased to $75,254,000 from $118,392,000, indicating a reduction in liquidity[33] Liabilities and Financial Obligations - Total liabilities decreased to $332,467,000 from $424,597,000, showing a reduction in financial obligations[33] - Cash paid for interest in Q4 2025 was $6,202, compared to $4,491 in Q4 2024, highlighting an increase in interest expenses[41] Customer Acquisition and Market Position - Upland welcomed 110 new customers in Q4 2025, including 15 major customers, and expanded relationships with 199 existing customers[6] - Upland Qvidian released its first annual report on AI adoption in the proposal industry, highlighting trends and challenges in AI implementation[10] - Upland was recognized as a Major Player in the IDC MarketScape for its AI-powered knowledge management solution, Upland RightAnswers[10] Strategic Initiatives - The company plans to continue focusing on integrating AI functionality into its products to drive measurable ROI[30] - Upland's 2025 Share Repurchase Plan is expected to be executed in a manner that aligns with the company's financial strategy[30] Other Financial Metrics - The company experienced a depreciation and amortization expense of $6,770 for Q4 2025, compared to $13,580 in Q4 2024, indicating a reduction in asset-related costs[37] - Total stock-based compensation expense for Q4 2025 was $1,036, down from $3,192 in Q4 2024, suggesting improved cost management[42] - The weighted average common shares outstanding for Q4 2025 was 28,928,331, compared to 27,605,490 in Q4 2024, indicating an increase in share count[38] - The company reported a loss on divestitures of businesses amounting to $24,364 for the twelve months ended December 31, 2025[38]