Upland Software (UPLD) investor relations material

Executive summary

• Revenue declined 8% year-over-year to $49.1 million for Q2 2026, mainly due to 2025 divestitures and sunset assets.

• Net loss widened to $35.3 million from $13.0 million in Q2 2025, driven by a $35.2 million goodwill impairment.

• Adjusted EBITDA was $12.8 million (26% margin), slightly down from $13.6 million (25% margin) year-over-year.

• Non-GAAP net income rose 18% to $6.6 million year-over-year.

• A 1-for-10 reverse stock split was completed in June 2026 to regain Nasdaq compliance.

Financial highlights

• Subscription and support revenue fell 9% year-over-year to $46.2 million; professional services revenue dropped 27%.

• Gross margin remained strong at 76% for Q2 2026.

• Operating expenses increased to $67.2 million, mainly due to the $35.2 million goodwill impairment.

• Cash and equivalents totaled $31.7 million at quarter-end, with $229.6 million in debt outstanding.

• Operating cash flow increased to $5.4 million from $3.3 million year-over-year.

Outlook and guidance

• Q3 2026 revenue expected between $45.7–$48.7 million, a 7% year-over-year decline at midpoint.

• Full-year 2026 revenue guidance is $190.1–$196.1 million, down 11% at midpoint from 2025.

• Q3 2026 Adjusted EBITDA forecasted at $11.9–$13.4 million, a 21% year-over-year decline at midpoint.

• Management expects continued pressure on revenue due to prior divestitures and sunset assets.

• Core organic growth rate was negative 0.39% for Q2 2026, reflecting ongoing revenue headwinds.