Core Insights - Upland Software reported Q2 2025 results reflecting a strategic shift towards core operations, with GAAP revenue of $53.4 million slightly exceeding analyst expectations of $53.2 million, while non-GAAP EPS was $0.15, marking a year-over-year revenue decline of 22.9% [1][2][5] - The company is focusing on high-margin core businesses, resulting in a significant drop in free cash flow to $2.7 million from $5.2 million a year earlier [1][2][6] Financial Performance - GAAP revenue for Q2 2025 was $53.4 million, down from $69.3 million in Q2 2024, a decrease of 22.9% [2][5] - Non-GAAP EPS decreased by 21.1% year-over-year, from $0.19 in Q2 2024 to $0.15 in Q2 2025 [2] - Adjusted EBITDA remained stable at $13.6 million, with an improved margin rising from 20% in Q2 2024 to 25% in Q2 2025 [2][6] - Free cash flow declined by 48.9% year-over-year, from $5.2 million to $2.7 million [2][6] Business Strategy - Upland Software is concentrating on product families where it has a competitive edge, particularly through AI integration across its applications [3][4] - The company aims to drive product innovation, customer retention, and maintain a stable recurring revenue model, with a focus on cross-selling and new account growth [4][10] Customer Metrics - Upland added 100 new customers, including 12 major accounts, and expanded relationships with 263 existing clients, although this growth slightly lags behind earlier in the year [9] - The company reported a net dollar retention rate of 96% as of December 31, 2024, with a pro forma figure of 99% for the current business [9][10] Future Guidance - For Q3 2025, Upland expects total revenue between $46.8 million and $52.8 million, with adjusted EBITDA projected between $14.5 million and $17.5 million [12] - For FY2025, the company forecasts total revenue of $211.8 million to $223.8 million, with adjusted EBITDA expected in the range of $55.8 million to $61.8 million, indicating a projected adjusted EBITDA margin increase to 27% [13]