Upland Software | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 50.53 M

Revenue: As of FY2025 Q3, the actual value is USD 50.53 M, beating the estimate of USD 49.86 M.

EPS: As of FY2025 Q3, the actual value is USD -0.09, beating the estimate of USD -0.0933.

EBIT: As of FY2025 Q3, the actual value is USD 2.823 M.

Segment Revenue

• Subscription and Support Revenue: $47.7 million for the three months ended September 30, 2025, compared to $63.8 million for the same period in 2024, a decrease of 25%.
• Perpetual License Revenue: $1.2 million for the three months ended September 30, 2025, compared to $1.1 million for the same period in 2024, an increase of 5%.
• Professional Services Revenue: $1.6 million for the three months ended September 30, 2025, compared to $1.8 million for the same period in 2024, a decrease of 10%.

Operational Metrics

• Net Loss: - $1.1 million for the three months ended September 30, 2025, compared to - $1.7 million for the same period in 2024.
• Gross Profit: $38.8 million for the three months ended September 30, 2025, compared to $47.0 million for the same period in 2024, a decrease of 17%.
• Operating Expenses: $33.5 million for the three months ended September 30, 2025, compared to $50.3 million for the same period in 2024, a decrease of 33%.

Cash Flow

• Net Cash Provided by Operating Activities: $18.5 million for the nine months ended September 30, 2025, compared to $14.9 million for the same period in 2024.
• Net Cash Used in Financing Activities: - $61.6 million for the nine months ended September 30, 2025, compared to - $192.8 million for the same period in 2024.

Unique Metrics

• Core Organic Growth Rate: 2.6% for the three-month period ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company is focusing on higher margin and higher growth potential product lines, as evidenced by the divestiture of certain product lines.
• Non-Core Business: The company completed divestitures of certain product lines for combined total consideration of $15.5 million with up to $4.0 million in earn-outs over the next 2 years.