Upland Software, Inc. Q3 FY2025 earnings call

Key Points

• Q3 2025: Beat revenue guidance midpoint and met adjusted EBITDA guidance midpoint. Core organic growth rate was 3%. Adjusted EBITDA was $16 million with a margin of 32% and free cash flow of $6.7 million. Welcomed 97 new customers (including 14 major) and expanded relationships with 168 existing customers (13 major expansions).
• Debt Refinancing: Successfully refinanced debt, extending maturity to July 2031 and adding a $30 million revolver. Net debt leverage at 3.8x, on track to reach 3.7x by year-end.
• Product Achievements: Earned 49 badges in G2's Fall 2025 market reports. Upland RightAnswers and BA Insight available in AWS Marketplace. Recognized in Forrester's Customer Service Solutions Landscape. Product innovations across InterFAX, Adestra, Second Street.
• Major Deals: Closed $2 million multiyear deal with Fortune 100 tech company and $1 million multiyear deal with global pharmaceutical company using AI-powered products.

No detailed breakdown of product segment financial performance and revenue contribution % provided in the transcript.

Guidance for Q3 2025 (ended Dec 31, 2025)

• Reported total revenue: $46.4M - $52.4M (subscription/support: $44.1M - $49.1M).
• Fourth quarter 2025 adjusted EBITDA: $13.8M - $16.8M (midpoint +3% vs Q4 2024). Fourth quarter adjusted EBITDA margin: 31% midpoint.

Full Year 2025

• Reported total revenue: $214M - $220M (subscription/support: $202.5M - $207.5M).
• Adjusted EBITDA: $56.5M - $59.5M (midpoint +4% vs 2024). Full year adjusted EBITDA margin: 27% midpoint.
• Lowered full year 2025 total revenue and adjusted EBITDA guidance by $800k due to lower perpetual license revenue.
• Core organic growth target: 3% next year, 5%+ thereafter. Adjusted EBITDA margin target: 29%+ next year, 31%+ 2027, long-term 32%. Free cash flow target: $20M 2025, $22M 2026.

No specific risks detailed beyond the standard safe harbor statement regarding forward-looking statements and risks in periodic reports.

Q: Scott Berg asked about core organic growth, fourth quarter guidance, and gross revenue retention.

A: John McDonald and Michael Hill discussed growth trends, license revenue impact, and retention rates.

Q: DJ Hynes inquired about growth from installed base vs net new and AWS Marketplace impact.

A: John McDonald talked about retention rates and AWS Marketplace's role in growth.

Q: Jeff Van Rhee asked about perpetual license reduction, sales process, and product development.

A: Michael Hill and John McDonald addressed license revenue, sales process, and product innovation.