Total revenue for the third quarter of 2025 reached $50.5 million, a 24% decline from $66.7 million in the same period last year. The drop is largely attributable to the completion of divestitures of non‑core assets, which removed lower‑margin revenue streams from the top line while leaving the core subscription and support business largely intact. The company’s subscription and support revenue for the quarter was $47.7 million, matching the guidance range for the fourth quarter and underscoring the stability of its core recurring revenue.
GAAP net loss per share for the quarter was $0.09, in line with analyst expectations of a loss. Adjusted earnings per share, however, were $0.30, a beat of $0.13 or 73% over the consensus estimate of $0.17. The adjusted EPS beat was driven by disciplined cost management and the higher margin mix of AI‑enabled products, which offset the revenue decline and helped maintain profitability.
Adjusted EBITDA for Q3 2025 was $16.0 million, translating to a 32% margin—an increase of 11 percentage points from the 21% margin reported in Q3 2024. The margin expansion reflects a shift toward higher‑margin AI‑powered solutions, improved operational leverage, and the removal of lower‑margin legacy assets. Management noted that the divestitures lowered revenue guidance but had no material impact on adjusted EBITDA guidance, highlighting the company’s focus on profitability over top‑line growth.
For the fourth quarter, Upland guided revenue between $46.4 million and $52.4 million, with a midpoint of $49.4 million, slightly below analyst consensus of $50.8 million. Full‑year 2025 revenue guidance remains in the $214.0 million to $220.0 million range, a modest lift from the prior year’s guidance and a midpoint of $217.0 million, just shy of the $217.8 million consensus. Adjusted EBITDA guidance for the year is $56.5 million to $59.5 million, a 27% margin versus 20% in 2024, indicating confidence in continued margin expansion despite the revenue decline.
CEO Jack McDonald emphasized that the quarter demonstrated “continued positive core organic growth” and a “significant expansion of our Adjusted EBITDA margin.” He highlighted the traction of Upland’s AI product portfolio, citing new multi‑year customer wins with six‑ and seven‑figure contract values. The company’s strategy to focus on AI‑powered knowledge and content management solutions is expected to drive future revenue growth and profitability, while the debt refinancing and extended maturities provide additional financial flexibility.
The results reinforce Upland’s narrative that divestitures are delivering operational efficiencies and that the shift toward higher‑margin AI offerings is paying off. While revenue fell due to the removal of legacy assets, the company’s ability to maintain a strong core subscription base and expand margins suggests a resilient business model poised for sustainable growth in the AI‑centric software market.
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