Financial Data and Key Metrics Changes - Q4 2025 revenue, adjusted EBITDA, and margins met expectations, with a core organic growth rate flat due to tough comparisons from Q4 2024 [5] - Annual net dollar retention rate was 96% in 2025, consistent with the prior year [5] - Q4 2025 adjusted EBITDA was $15.3 million, resulting in an adjusted EBITDA margin of 31%, an increase from 22% in Q4 2024 [12] Business Line Data and Key Metrics Changes - Upland welcomed 110 new customers in Q4, including 15 major customers, and expanded relationships with 199 existing customers, 27 of which were major expansions [6] - The product portfolio is focused on AI-powered solutions, with significant recognition in industry reports, indicating strong performance in knowledge management solutions [7][8] Market Data and Key Metrics Changes - The company reported a strong cash flow, with Q4 free cash flow of $7.2 million, contributing to a full-year total of $24.4 million, exceeding the $20 million target [6][13] - The company’s net debt at the end of Q4 was approximately $209 million, with a net debt leverage of 3.6 times trailing adjusted EBITDA [13] Company Strategy and Development Direction - The company is transitioning to a more focused strategy around knowledge and content management, with a positive multi-year growth trend in core organic growth rates [17] - The new CEO, Sean Nathaniel, is expected to enhance the execution of AI initiatives and drive operational intelligence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed a need for improved sales execution in Q4, with a decent pipeline for 2026, particularly in core knowledge management products [23] - The company anticipates a decline in total revenue for Q1 2026 due to prior divestitures, with guidance for adjusted EBITDA margins expected to be 26% [14][15] Other Important Information - The company has been recognized in various industry assessments, highlighting its AI-powered solutions and their relevance in the market [7][8] - The transition in leadership is seen as a strategic move to align with the company's focus on AI and operational efficiency [28][30] Q&A Session Summary Question: Customer metrics and sales execution - Management acknowledged a stronger Q3 but expressed disappointment in Q4 bookings performance, noting a decent pipeline for 2026 [22][23] Question: EBITDA margin guidance - Management explained that typical seasonal factors lead to lower margins at the beginning of the year, contributing to the guidance of 28% [24] Question: Leadership transition rationale - The change in CEO was driven by the need for a product-centric and AI-focused leader to align with the company's evolving strategy [28] Question: Go-to-market strategy execution - Management indicated that significant changes have been made, and the business is on firmer footing to drive growth [30] Question: Revenue mix and AI defensibility - The majority of revenue now comes from AI-enabled growth products, with a focus on systems of record and enabling technology [36][39]