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Upland Software (UPLD)
NASDAQ:UPLD
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Upland Software
(NASDAQ:UPLD)
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Rating:52Neutral
Price Target:
$2.50
▼(-4.21% Downside)
Upland Software's overall stock score reflects a challenging financial position with high leverage and ongoing losses. Despite these issues, there are positive developments from the earnings call, including improved EBITDA margins and strategic growth in AI solutions. Technical indicators provide mixed signals, and valuation remains a concern due to negative earnings. The company's cautious optimism and strategic initiatives offer some potential for future improvement.
Positive Factors
AI-Powered Solutions Expansion
The expansion in AI-powered solutions positions Upland as a leader in innovative technology, enhancing its competitive edge and long-term growth potential.
Debt Refinancing
Successful debt refinancing improves financial stability and reduces near-term liquidity risks, allowing Upland to focus on strategic growth initiatives.
Customer Growth
The addition of new customers and expansion of existing relationships indicate strong market demand and potential for sustained revenue growth.
Negative Factors
Revenue Decline
A significant revenue decline due to divestitures highlights challenges in maintaining growth, potentially impacting long-term financial performance.
High Leverage
High leverage poses financial risks, limiting flexibility and increasing vulnerability to market fluctuations, which could hinder strategic initiatives.
Negative Profit Margins
Persistent negative profit margins indicate operational inefficiencies and financial instability, challenging Upland's ability to achieve profitability.
Upland Software (UPLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.66M
Dividend YieldN/A
Average Volume (3M)663.95K
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue Growth-12.09%
EPS Growth62.51%
CountryUS
Employees998
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.15
Shares Outstanding28,772,095
10 Day Avg. Volume176,173
30 Day Avg. Volume663,952
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.41
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda166.85
Forecast
1Y Price Target
$4.75Price Target Upside81.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Upland Software Business Overview & Revenue Model
Company DescriptionUpland Software, Inc. provides cloud-based enterprise work management software in the United States, the United Kingdom, Canada, and internationally. It offers a family of software applications under the Upland brand in the areas of marketing, sales, contact center, project management, information technology, business operations, and human resources and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves large global corporations, various government agencies, and small and medium-sized businesses, as well as financial, consulting, technology, manufacturing, media, telecommunication, political, healthcare, life sciences, retail and hospitality, and non-profit industries through direct and indirect sales organizations. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.
How the Company Makes MoneyUpland Software generates revenue primarily through a subscription-based model, offering its software solutions on a recurring basis to businesses. This model allows the company to secure consistent, predictable revenue streams from its customer base. Key revenue streams include subscription fees for its cloud-based applications, which are typically charged on a monthly or annual basis. Additionally, Upland earns revenue from professional services, such as implementation and consulting, which help clients effectively deploy and utilize their software solutions. The company also benefits from upselling and cross-selling opportunities within its existing customer base, expanding the use of its products. Strategic partnerships with other technology providers and integrations with various platforms further enhance Upland's offerings, contributing to its overall earnings growth.
Upland Software Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant positive strides with a return to positive core organic growth, increased adjusted EBITDA margins, successful debt refinancing, and expansion in AI solutions. However, challenges remain with revenue declines primarily due to divestitures and adjusted guidance. The overall sentiment is cautiously optimistic with a focus on growth and stabilization.Q2-2025 Updates
Positive Updates
Return to Positive Core Organic Growth
Upland Software has returned to positive core organic growth, marking a significant milestone in their focused growth strategy.
Adjusted EBITDA Margin Increase
Q2 2025 adjusted EBITDA of $13.6 million resulted in an adjusted EBITDA margin of 25%, a 500 basis point increase over Q2 2024.
Successful Debt Refinancing
Refinanced outstanding debt, extending maturity to 2031, and paid down an additional $18 million of principal, strengthening the balance sheet.
Expansion in AI-Powered Solutions
Upland earned 68 badges in G2's Summer 2025 reports, with AI-powered solutions like Panviva and RightAnswers receiving multiple recognitions.
Customer Growth and Expansion
Welcomed 100 new customers, including 12 major ones, and expanded relationships with 263 existing customers, with AI-powered products driving interest.
Negative Updates
Year-over-Year Revenue Decline
Reported a decline in total revenue of 25% at the midpoint for Q3 2025, primarily due to divestitures.
Lowered Full-Year Revenue Guidance
Lowered midpoint of full-year 2025 revenue guidance by $700,000 due to lower forecasted professional services revenue.
Company Guidance
During the Upland Software Second Quarter 2025 earnings call, the company reported surpassing its revenue and adjusted EBITDA guidance midpoint, achieving an adjusted EBITDA of $13.6 million with a margin of 25%, marking a 500 basis point increase from the previous year. Upland announced a return to positive core organic growth and projected an adjusted EBITDA margin exceeding 30% in Q3 2025. The company welcomed 100 new customers and expanded relationships with 263 existing ones. Upland completed a debt refinancing, extending its maturity to July 2031, and paid down an additional $18 million in debt principal, resulting in a net leverage of approximately 3.9x. The guidance for the second half of 2025 includes core organic growth of about 3%, with a full-year adjusted EBITDA margin expected to be around 27%, a 700 basis point increase from the prior year. These improvements are attributed to Upland's focus on AI enablement and streamlining its product portfolio.Upland Software Financial Statement Overview
Summary
Upland Software is experiencing financial difficulties with declining revenues and persistent losses. The company has a high leverage ratio and negative return on equity, indicating financial instability. While there is some positive cash flow from operations, it is insufficient to cover net losses.Income Statement
Upland Software's income statement reveals a challenging financial situation. The company has experienced declining revenue over the TTM period with a negative revenue growth rate of -5.96%. The gross profit margin remains relatively strong at 71.78%, indicating efficient cost management. However, the net profit margin is deeply negative at -18.07%, reflecting significant losses. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and high fixed costs.45
Neutral
Balance Sheet
The balance sheet indicates a high level of leverage with a debt-to-equity ratio of 3.09, which poses a risk in terms of financial stability. The return on equity is negative, highlighting the company's inability to generate profits from shareholders' investments. The equity ratio is low, suggesting a heavy reliance on debt financing. Overall, the balance sheet reflects financial vulnerability and potential liquidity concerns.40
Negative
Cash Flow
The cash flow statement shows a decline in free cash flow growth by -9.66% in the TTM period, which is concerning. However, the operating cash flow to net income ratio of 0.28 indicates that the company is generating positive cash flow from operations, albeit not sufficient to cover net losses. The free cash flow to net income ratio is relatively high at 0.94, suggesting some level of cash flow efficiency despite the net losses.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 251.76M | 274.79M | 297.85M | 317.30M | 302.02M | 291.78M |
| Gross Profit | 180.71M | 193.70M | 201.49M | 213.56M | 202.56M | 193.33M |
| EBITDA | 2.39M | -46.17M | -96.99M | 15.14M | 18.00M | 22.04M |
| Net Income | -45.49M | -112.73M | -179.87M | -68.41M | -58.21M | -51.22M |
Balance Sheet | ||||||
| Total Assets | 441.72M | 529.52M | 870.02M | 1.11B | 1.03B | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 41.01M | 56.43M | 236.56M | 248.65M | 189.16M | 250.03M |
| Total Debt | 258.67M | 291.96M | 480.62M | 523.13M | 528.65M | 533.30M |
| Total Liabilities | 357.99M | 424.60M | 626.09M | 692.30M | 712.72M | 704.61M |
| Stockholders Equity | 83.73M | 104.92M | 243.93M | 421.16M | 316.29M | 306.62M |
Cash Flow | ||||||
| Free Cash Flow | 23.76M | 23.36M | 48.72M | 29.11M | 40.62M | 34.30M |
| Operating Cash Flow | 25.24M | 24.24M | 49.94M | 29.98M | 41.74M | 35.62M |
| Investing Cash Flow | 7.58M | -882.00K | -1.22M | -63.22M | -93.53M | -68.97M |
| Financing Cash Flow | -224.27M | -202.31M | -61.38M | 94.15M | -8.18M | 107.90M |
Upland Software Technical Analysis
Positive
2.61
Price Trends
2.32
Positive
2.21
Positive
2.92
Negative
Market Momentum
0.05
Positive
56.21
Neutral
87.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPLD, the sentiment is Positive. The current price of 2.61 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.32, and below the 200-day MA of 2.92, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UPLD.
Upland Software Risk Analysis
Upland Software disclosed 48 risk factors in its most recent earnings report. Upland Software reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Upland Software Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | 130.00M | 115.12 | ― | ― | 9.94% | ― | |
52 Neutral | $73.66M | ― | -208.78% | ― | -12.09% | 62.51% | |
52 Neutral | 146.00M | -7.02 | -219.87% | ― | 172.93% | 34.97% | |
44 Neutral | 129.93M | -2.08 | -207.96% | ― | 93.83% | 23.31% | |
43 Neutral | 96.61M | -0.32 | 206.62% | ― | -24.89% | -72.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
UPLD
Upland Software
2.61
0.03
1.16%
LPSN
Liveperson
0.64
-0.42
-39.62%
TROO
TROOPS
1.14
-1.92
-62.75%
DUOT
Duos Technologies Group
7.52
4.97
194.90%
RSSS
Research Solutions
3.96
1.21
44.00%
PSQH
PSQ Holdings
2.83
0.42
17.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.