Upland Software Reports 23% Revenue Decline and $13M Net Loss in Q2 2025

Upland Software, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $53.4 million, down 23% from $69.3 million in the same period last year. The decrease was primarily attributed to expected declines in revenue from divested product lines, which accounted for approximately $14.8 million, and a reduction in revenue from Sunset Assets. Subscription and support revenue also fell to $50.5 million from $65.5 million year-over-year, reflecting a 23% decrease. For the first half of 2025, total revenue was $117.0 million, down 16% from $140.1 million in the first half of 2024.

The company's net loss for the second quarter was $13.0 million, compared to a loss of $11.4 million in the prior year, resulting in a net loss per share of $0.51. The six-month net loss totaled $38.9 million, a significant improvement from a loss of $107.6 million in the same period last year, largely due to a substantial goodwill impairment recorded in 2024. Operating expenses decreased to $47.0 million from $54.2 million year-over-year, driven by reductions in sales and marketing, research and development, and general and administrative expenses.

Upland Software has been actively restructuring its operations, including the divestiture of certain product lines, which has led to a reduction in both revenue and associated costs. The company reported divestiture-related expenses of $6.9 million in the second quarter, which included professional fees and a one-time termination fee related to a legacy vendor contract. The divestitures are part of a strategic shift to focus on higher-margin and higher-growth potential product lines.

As of June 30, 2025, Upland had total assets of $441.7 million, down from $529.5 million at the end of 2024. The company’s cash and cash equivalents decreased to $41.0 million from $56.4 million, primarily due to debt repayments totaling $35.6 million during the first half of the year. Upland's long-term debt stood at $252.5 million, down from $287.0 million at the end of 2024. The company has also entered into a new credit agreement to refinance its existing debt, which includes a $240 million term loan and a $30 million revolving credit facility.

Looking ahead, Upland Software anticipates continued challenges in revenue generation due to the impact of divestitures and market conditions. However, the company remains focused on enhancing its core product offerings and improving operational efficiency. The management expressed optimism about future growth opportunities, particularly in AI-powered knowledge and content management solutions, as it seeks to stabilize its financial performance and regain market traction.