UPLD · Upland Software, Inc.

Upland Software's Q1 2026 results reflect a strategic shift following 2025 divestitures, which drove a 24% decline in total revenue to $48.7 million and 23% drop in subscription revenue to $46.1 million. Despite lower top-line figures, profitability improved markedly with GAAP net loss narrowing to $1.2 million from $25.8 million year-over-year, and EPS loss shrinking to $0.09 per share from $0.97. Adjusted EBITDA held steady at $12.7 million but expanded to 26% of revenue from 21%, signaling better operational efficiency in the core AI-powered knowledge and content management business. Cash generation remained robust, with operating cash flow of $5.6 million and free cash flow of $5.5 million, supporting $29.8 million in cash on hand. New CEO Sean Nathaniel noted beating guidance midpoints for revenue, recurring revenue, and Adjusted EBITDA, emphasizing AI solutions like Upland Panviva, RightAnswers, and BA Insight as core intelligence layers for agentic enterprises. Business highlights included 107 new customers (7 major), 189 expansions (16 major), and product launches such as AI Conversational Search and Text-to-Vote. Guidance projects Q2 revenue of $47.1-$50.1 million (9% YoY decline at midpoint) and full-year $192.5-$201.5 million (9% decline), with Adjusted EBITDA margins stable at 26-27%, primarily attributable to divestiture impacts. Management's focus on AI innovation and customer wins positions the company for growth in high-value enterprise segments amid portfolio optimization.