Mon, May 12, 1:15 PM (43 days ago)
**Upland Software, Inc. (UPLD) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $63.7 million, down 10% YoY, primarily due to declines in subscription and support revenue from divested and sunset assets. - **Profit Margins:** Gross margin was 72%, down from 70% YoY. Operating loss was $1.1 million, an improvement from a $91.6 million loss in Q1 2024. - **Cash Flow:** Operating cash flow was $8.3 million, up from $5.1 million in Q1 2024. Investing activities provided $3.8 million, while financing activities used $34.7 million, mainly due to debt repayments. **Key Metrics & Trends:** - **Core Organic Growth Rate:** 0.2% YoY, indicating stable underlying business performance. - **Adjusted EBITDA:** $13.1 million, stable compared to Q1 2024. - **Divestitures:** Completed divestitures of certain product lines for $5.5 million and up to $4.0 million in earn-outs, resulting in a $23.5 million net loss on divestitures. **Uncertainties & Future Operations:** - **Market Risks:** Exposure to interest rate, foreign exchange, and inflation risks. No hedging strategies in place. - **Liquidity:** $33.7 million in cash and cash equivalents, with $259.4 million in outstanding debt maturing in August 2026. - **Future Plans:** Potential acquisitions, international expansion, and AI integration into products. **Impact on Operations:** - **Divestitures:** Reduced revenue and operating expenses but increased divestiture-related costs. - **Debt Repayment:** Significant debt repayments impacted cash flow but reduced interest expenses. - **Foreign Exchange:** Fluctuations in foreign exchange rates could affect revenue and operating results. **Conclusion:** Upland Software's Q1 2025 results show a challenging quarter with revenue declines due to divestitures and sunset assets. However, the company demonstrated improved operating margins and positive cash flow from operations. The focus on core organic growth, potential acquisitions, and AI integration may drive future growth, but market risks and debt maturities pose uncertainties.