Upland Software (UPLD) Q4 2025 Earnings Transcript

Financial Performance - Q4 2025 adjusted EBITDA was $15.3 million, resulting in an adjusted EBITDA margin of 31%, an increase from 22% in Q4 2024 [4][10] - Free cash flow for Q4 was $7.2 million, contributing to a full-year free cash flow of $24.4 million, exceeding the target of $20 million [4][11] - Annual net dollar retention rate was 96% in 2025, consistent with the prior year [1] Customer Metrics - Upland Software welcomed 110 new customers in Q4, including 15 major customers, and expanded relationships with 199 existing customers, with 27 major expansions [4][5] - The core organic growth rate was flat in Q4 2025, with a target of 1% to 2% growth for 2026, showing an improving trend from negative growth in previous years [1][14] Product Recognition - Upland Software earned 49 badges in G2's Winter 2026 market reports, indicating strong customer validation [5] - The company was recognized as a Major Player in the IDC MarketScape Worldwide General-Purpose Knowledge Discovery Software, 2025 Vendor Assessment [5] - Inclusion in the Gartner Market Guide for RFP Response Management Applications highlights the impact of Upland's AI-powered software [6] Leadership Transition - Sean Nathaniel will join Upland Software as the new CEO, transitioning from Jack McDonald, who will become Chairman [7][9] - Nathaniel's experience with AI initiatives and familiarity with the company's products and customers is expected to drive future growth [8][9] Guidance and Future Outlook - For Q1 2026, total revenue is expected to be between $47 million and $50 million, reflecting a 24% decline at the midpoint due to divestitures [12] - Full-year 2026 total revenue is projected to be between $194.2 million and $206.2 million, indicating an 8% decline at the midpoint from 2025 [13] - Adjusted EBITDA for 2026 is expected to be between $52.6 million and $58.6 million, with a margin of 28% at the midpoint [13][15]