Upland Software Inc. reported fourth‑quarter 2025 revenue of $49.3 million, a decline from the $54.0 million reported a year earlier, largely due to the divestiture of lower‑margin legacy assets. The company’s adjusted EBITDA margin rose to 31%, up from 22% in Q4 2024, reflecting the higher‑margin mix of its AI‑enabled knowledge‑management solutions and disciplined cost management.
"With our Q4 results, we are pleased to report that revenue, Adjusted EBITDA, and margins all came in as expected, while free cash flow was stronger than expected, bringing our 2025 free cash flow to $24.4 million," said Jack McDonald, Chairman and CEO. "Our AI product portfolio continues to gain traction, marked by continued major customer contract renewals, expansions, and new customer wins," he added.
Management reiterated its guidance for the first quarter of 2026, projecting revenue between $47.0 million and $50.0 million and an adjusted EBITDA margin of 26%. For full‑year 2026, the company expects revenue of $194.2 million to $206.2 million and an adjusted EBITDA margin of 28%.
The results underscore Upland’s strategic pivot toward AI‑powered solutions. While divestitures have reduced top‑line growth, the higher‑margin product mix and strong demand for AI‑enabled knowledge management have driven margin expansion, positioning the company for continued profitability as it focuses on its core, high‑margin offerings.
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