Upland Software announced its financial and operating results for the first quarter of 2025, reporting total revenue of $63.7 million. This represents a 10% decrease compared to $70.7 million in Q1 2024, primarily due to the expected runoff of "Sunset Assets" and divested businesses. Subscription and support revenue also decreased by 10% year-over-year to $60.2 million.
The company exceeded its revenue and Adjusted EBITDA guidance midpoints for the quarter. Adjusted EBITDA was $13.1 million, resulting in a 21% margin, an increase from 19% in Q1 2024. Net loss for the quarter was $25.8 million, an improvement from $96.1 million in Q1 2024.
Upland provided guidance for Q2 2025, expecting total revenue between $50.3 million and $56.3 million, and Adjusted EBITDA between $12.1 million and $15.1 million, implying a 26% margin at the midpoint. For the full year 2025, total revenue is projected between $209.5 million and $227.5 million, with Adjusted EBITDA between $55.0 million and $64.0 million, for a 27% margin.
Management highlighted that the core organic growth rate was flat in Q1 2025 but is projected to reach 2% in Q2 2025. The Net Dollar Retention Rate for the core business, excluding mobile messaging divestitures, would have been 99% at the end of 2024, with a target of 98% by the end of 2025.
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