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Upland Software (UPLD)
NASDAQ:UPLD

Upland Software (UPLD) AI Stock Analysis

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Upland Software

(NASDAQ:UPLD)

Rating:40Underperform
Price Target:
$1.50
▼(-23.86%Downside)
Upland Software's overall stock score reflects significant financial and technical challenges. The company's declining revenues, negative earnings, and high leverage are primary concerns, compounded by bearish technical indicators. Despite some positive signs from the recent earnings call, such as improved EBITDA margins and debt reduction, the stock remains fundamentally and technically weak.
Positive Factors
Earnings
Upland reported better-than-expected upside to revenue and EPS as the company continues to streamline the business.
Financial Performance
The company has guided adjusted EBITDA margin up by 400 basis points, showing improved financial metrics.
Growth Strategy
Steady execution and a more compelling picture emerging post mobile messaging divestiture.
Negative Factors
Future Revenue
Revenue declines are expected to extend into future years on divestitures and sunset revenue.
Market Challenges
Upland is winning fewer deals in a more scrutinized macroeconomic environment.
Revenue Impact
Upland divested another product line, Mobile Messaging, which was guided to negatively impact revenue by $25mm.

Upland Software (UPLD) vs. SPDR S&P 500 ETF (SPY)

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 the sale of software-as-a-service (SaaS) subscriptions. The company's revenue model focuses on recurring subscription fees, which provide access to its suite of cloud-based applications. Upland also earns from professional services, which include implementation, training, and support to ensure customer success. Key revenue streams include direct sales to large enterprises and partnerships with other technology and service providers that integrate or resell Upland's solutions. These strategic partnerships enhance the company's market reach and provide additional channels for revenue generation.

Upland Software Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: -16.88%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance, with strong financial metrics such as exceeding revenue and EBITDA expectations and successful debt reduction. However, challenges include flat core organic growth in Q1 and a projected revenue decline. The company's strategic focus on high-margin products and AI innovation is promising, but execution will be key moving forward.
Q1-2025 Updates
Positive Updates
Revenue and Adjusted EBITDA Beat Expectations
Q1 revenue and adjusted EBITDA exceeded guidance midpoints, with adjusted EBITDA reaching $13.1 million and a 21% margin, up from 20% in 2024.
Free Cash Flow Exceeds Expectations
Q1 free cash flow was $7.9 million, higher than expected.
New Customer Wins and Expansions
Upland welcomed 107 new customers, including 19 major ones, and expanded relationships with 245 existing customers, 26 of which were major expansions.
AI-Enabled Product Recognition
Upland earned 76 badges in G2’s Spring 2025 report across its solutions, with notable recognition for AI-enabled products like Upland BA Insight and Upland InterFAX.
Improved Debt Position
Upland paid down $34.2 million of debt in Q1 2025, in addition to $189 million in 2024, reducing net leverage to an expected 3.7x by year-end.
Adjusted EBITDA Margin Growth
Adjusted EBITDA margin expected to expand to 26% in Q2 and 27% for the full year 2025, compared to 20% in 2024.
Negative Updates
Flat Core Organic Growth in Q1
Core organic growth rate was flat in Q1, although it is expected to move to 2% in Q2.
Revenue Decline Due to Divestitures
Divestiture of mobile messaging product lines lowered 2025 revenue guidance midpoint by $25 million.
Projected Revenue Decline
For the full year 2025, a report total revenue decline of 20% at the midpoint from 2024 is expected.
Termination of Chief Sales Officer
The company terminated its Chief Sales Officer in April, leading to changes in go-to-market strategy.
Company Guidance
During Upland Software's Q1 2025 earnings call, the company reported beating both revenue and adjusted EBITDA guidance midpoints, with Q1 adjusted EBITDA at $13.1 million and a margin of 21%. Despite a flat core organic growth rate in Q1, the company anticipates a 2% increase in Q2 and further growth throughout 2025. The call highlighted a significant expansion in adjusted EBITDA margins to 26% projected for Q2 and further increases expected in the second half of the year. Free cash flow was reported at $7.9 million, surpassing expectations. The company welcomed 107 new customers, including 19 major ones, and expanded relationships with 245 existing customers. Upland also completed divestitures, reducing its 2025 revenue guidance by $25 million but maintaining adjusted EBITDA guidance. The company emphasized its focus on high-margin, high-growth markets, projecting a full-year adjusted EBITDA margin of 27% and a decline in total revenue of 20% from 2024.

Upland Software Financial Statement Overview

Summary
Upland Software is facing significant financial headwinds, characterized by declining revenues, persistently negative profits, and a heavily leveraged balance sheet. While cash generation remains a relative strength, the company’s ability to manage its debt and return to profitability is uncertain.
Income Statement
45
Neutral
The income statement indicates challenges with profitability, as reflected in negative EBIT and net income figures over multiple periods. The gross profit margin is relatively stable, but declining revenues and negative growth rates highlight a concerning trend. The recent TTM data shows a slight improvement in EBITDA, but overall margins remain under pressure.
Balance Sheet
40
Negative
The balance sheet shows a weak financial position, with negative stockholders' equity in the latest TTM data, indicating potential solvency risks. The high debt-to-equity ratio and negative equity ratio highlight significant leverage concerns. The declining asset base and increasing liabilities further exacerbate financial stability issues.
Cash Flow
55
Neutral
Cash flow statements reveal some positive aspects, such as consistent positive operating cash flows and free cash flow over recent periods. However, the overall cash flow growth is limited, and high financing cash outflows signal potential liquidity challenges. The operating cash flow to net income ratio is favorable, suggesting effective cash management despite profitability issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue265.90M274.79M297.85M317.30M302.02M291.78M
Gross Profit176.43M193.70M201.49M213.56M202.56M193.33M
EBITDA10.33M-46.17M-96.99M15.14M18.00M22.04M
Net Income-43.89M-112.73M-179.87M-68.41M-58.21M-51.22M
Balance Sheet
Total Assets456.97M529.52M870.02M1.11B1.03B1.01B
Cash, Cash Equivalents and Short-Term Investments33.70M56.43M236.56M248.65M189.16M250.03M
Total Debt259.42M291.96M480.62M523.13M528.65M533.30M
Total Liabilities370.13M424.60M626.09M692.30M712.72M704.61M
Stockholders Equity-37.82M104.92M243.93M421.16M316.29M306.62M
Cash Flow
Free Cash Flow26.30M23.36M48.72M29.11M40.62M34.30M
Operating Cash Flow27.42M24.24M49.94M29.98M41.74M35.62M
Investing Cash Flow3.09M-882.00K-1.22M-63.22M-93.53M-68.97M
Financing Cash Flow-227.43M-202.31M-61.38M94.15M-8.18M107.90M

Upland Software Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.97
Price Trends
50DMA
2.15
Negative
100DMA
2.68
Negative
200DMA
3.03
Negative
Market Momentum
MACD
-0.08
Negative
RSI
51.33
Neutral
STOCH
89.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPLD, the sentiment is Neutral. The current price of 1.97 is above the 20-day moving average (MA) of 1.82, below the 50-day MA of 2.15, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UPLD.

Upland Software Risk Analysis

Upland Software disclosed 47 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$33.24B5.92-11.55%1.90%5.54%-20.14%
59
Neutral
$92.83M-30.88%18.51%-714.65%
59
Neutral
$97.45M-223.65%221.24%13.36%
53
Neutral
$84.61M-189.13%89.27%26.30%
45
Neutral
$92.14M-137.76%-23.04%11.60%
40
Underperform
$53.84M-208.78%-8.17%63.63%
$76.53M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UPLD
Upland Software
1.97
-0.69
-25.94%
LPSN
Liveperson
1.07
0.44
69.84%
TROO
TROOPS
0.69
-2.29
-76.85%
DUOT
Duos Technologies Group
7.84
5.07
183.03%
RSSS
Research Solutions
2.95
0.40
15.69%
PSQH
PSQ Holdings
2.17
-1.32
-37.82%

Upland Software Corporate Events

Executive/Board ChangesShareholder Meetings
Upland Software Holds Annual Meeting, Elects Directors
Neutral
Jun 4, 2025

On June 4, 2025, Upland Software held its Annual Meeting at its Austin, Texas offices, where stockholders voted on key proposals. The meeting saw the election of three Class II directors, the ratification of Ernst & Young, LLP as the independent auditor for the fiscal year ending December 31, 2025, and the approval of executive compensation on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership structure and financial oversight.

The most recent analyst rating on (UPLD) stock is a Sell with a $1.75 price target. To see the full list of analyst forecasts on Upland Software stock, see the UPLD Stock Forecast page.

Executive/Board Changes
Upland Software Eliminates Chief Sales Officer Role
Neutral
Apr 4, 2025

On April 1, 2025, Upland Software, Inc. eliminated the Chief Sales Officer position and terminated Oliver Yates, the CSO, without cause. Mr. Yates’s departure was not due to any disputes or disagreements with the company, including issues related to accounting or financial reporting, and he will receive severance as per his employment agreement.

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.Date of analysis: Jun 03, 2025