Upland Software 2025 Q2 Earnings Misses Targets as Net Loss Widens 13.9%

Upland Software (UPLD) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Upland Software's fiscal 2025 Q2 earnings results missed analyst expectations, with revenue declining significantly year-over-year. The guidance for future quarters also reflects a continued downward trend, indicating a challenging outlook for the company. Despite these setbacks, the adjusted EBITDA margin showed improvement, suggesting some operational efficiencies. Upland remains focused on its growth strategy, backed by its recent debt refinancing to improve liquidity and extend debt maturity.

Revenue

The total revenue for Upland Software decreased by 23.0% in 2025 Q2, amounting to $53.38 million, down from $69.34 million in 2024 Q2.

Earnings/Net Income

Upland Software's losses deepened to $0.51 per share in 2025 Q2 from a loss of $0.47 per share in 2024 Q2, marking an 8.5% wider loss. The company's net loss also widened to $-13.03 million in 2025 Q2, representing a 13.9% increase from the $-11.44 million loss recorded in 2024 Q2. This performance indicates continued financial challenges.

Price Action

The stock price of Upland Software fell 3.76% during the latest trading day, but climbed 5.13% during the most recent full trading week and month-to-date.

Post Earnings Price Action Review

Investors employing the strategy of purchasing Upland Software shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days have experienced significant underperformance over the past three years. The strategy delivered a return of -94.50%, vastly underperforming the benchmark return of 85.57%, resulting in an excess return of -180.07%. The strategy's compound annual growth rate (CAGR) was -44.26%, indicating substantial losses over the period. Interestingly, the strategy had a maximum drawdown of 0.00%, suggesting that while there was no further downside during the holding period, the upfront loss was significant, highlighting the strategy's inefficacy in generating positive returns.

CEO Commentary

Upland Software's Chairman and CEO, Jack McDonald, emphasized a return to positive core organic growth, highlighting a 500 basis point year-over-year increase in adjusted EBITDA margin from 20% to 25%. He noted continued momentum in AI product wins and expressed confidence following successful refinancing that extends debt maturity to July 2031, involving an $18 million principal paydown and the establishment of a new revolving credit facility. This refinancing strengthens the balance sheet, enhances liquidity, and supports Upland's growth strategy.

Guidance

Upland expects reported total revenue for the quarter ending September 30, 2025, to be between $46.8 million and $52.8 million, with subscription and support revenue anticipated between $44.6 million and $49.6 million, reflecting a year-over-year decline of 25% at the midpoint. For the full year ending December 31, 2025, total revenue is projected to be between $211.8 million and $223.8 million, indicating a 21% decline at the midpoint. Adjusted EBITDA for the third quarter is expected to be between $14.5 million and $17.5 million, with a margin increase to 32% at the midpoint.

Additional News

Upland Software recently completed a debt refinancing agreement with Sound Point Capital, including a $240 million six-year term loan, extending debt maturity to 2031, and a $30 million revolving credit facility. This refinancing strengthens Upland's financial position and provides additional flexibility to invest in AI-powered knowledge and content management software solutions. Additionally, Upland announced its BA Insight platform's availability in AWS Marketplace's new AI Agents and Tools category, enabling organizations to integrate enterprise knowledge with AI systems through 95+ connectors and knowledge enrichment tools. Lastly, Upland Software earned 68 badges in G2’s Summer 2025 market reports across its product portfolio, highlighting the strong market performance of its AI-powered solutions.