Upland Software Q1 revenue falls 24% on divestitures

Overview

• US AI software firm's Q1 revenue fell 24% yr/yr, mainly due to 2025 divestitures

• Adjusted EBITDA margin rose to 26% from 21% a year ago

• Company guides for further revenue and adjusted EBITDA declines in Q2 and full year 2026

Outlook

• Upland expects Q2 2026 revenue between $47.1 mln and $50.1 mln

• Company sees full-year 2026 revenue between $192.5 mln and $201.5 mln

• Company says revenue declines are primarily due to 2025 divestitures

Result Drivers

• DIVESTITURES - Co said revenue and subscription declines were primarily due to divestitures completed in 2025

• CUSTOMER ACTIVITY - Co said it added 107 new customers and expanded relationships with 189 existing customers in Q1

• PRODUCT LAUNCHES - Co launched new AI-powered features and platforms, including BA Insight Platform and Panviva Sidekick

Company press release: ID:nBw9JPD2Xa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Upland Software Inc is $3.75, about 500% above its April 30 closing price of $0.63

• The stock recently traded at 1 times the next 12-month earnings vs. a P/E of 2 three months ago

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