Upland Software (UPLD) AI Stock Analysis

• Market Cap: $60.28M
• Dividend Yield: N/A
• Average Volume (3M): 165.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.47
• Revenue Growth: -7.74%
• EPS Growth: 28.24%
• Country: US
• Employees: 998
• Sector: Technology
• Sector Strength: 44
• Industry: Software - Application
• EPS (TTM): -4.13
• Shares Outstanding: 28,168,266
• 10 Day Avg. Volume: 136,655
• 30 Day Avg. Volume: 165,511
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 2.60
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.25
• Price Target Upside: 93.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Upland Software faces financial instability with high leverage and persistent losses. While the company is making strides in operational efficiency and product innovation, these efforts are outweighed by declining revenues and negative equity. The technical indicators suggest a bearish trend, and valuation metrics highlight the risk associated with this investment. The mixed earnings call offers some hope for 2025, but the financial challenges and current market conditions present significant concerns.

Positive Factors

Debt Management

The company paid down $177M of debt, reducing annualized interest expense by about $7M, which should improve cash generation potential.

Financial Performance

Upland reported steady results with recurring revenue exceeding guidance and core organic growth showing improvement.

Profitability

Upland expects to expand EBITDA margins by a significant margin and use cash generation to pay down debt.

Negative Factors

Asset Divestment

Divesting two non-core assets resulted in a revenue headwind to future reported revenue results.

Macroeconomic Challenges

Upland is winning fewer deals in a more scrutinized macroeconomic environment.

Revenue Decline

Total revenue and subscription revenue have declined, partly due to the planned runoff of legacy assets.

Upland Software Business Overview & Revenue Model

Company Description

Upland Software, Inc. provides cloud-based enterprise work management software in the United States, the United Kingdom, Canada, and internationally. It offers a family of software applications under the Upland brand in the areas of marketing, sales, contact center, project management, information technology, business operations, and human resources and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves large global corporations, various government agencies, and small and medium-sized businesses, as well as financial, consulting, technology, manufacturing, media, telecommunication, political, healthcare, life sciences, retail and hospitality, and non-profit industries through direct and indirect sales organizations. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.

How the Company Makes Money

Upland Software generates revenue primarily through a subscription-based model, offering its software solutions as a service (SaaS) to businesses. Customers pay recurring fees to access Upland's suite of enterprise work management tools, which entails ongoing updates and customer support. Additionally, the company may earn revenue through professional services such as consulting, training, and implementation support, which help clients effectively integrate and utilize its software solutions. Upland's revenue is further bolstered by strategic partnerships and acquisitions that expand its product offerings and customer base, allowing it to enhance its market presence and drive growth.

Upland Software Financial Statement Overview

Summary

Upland Software is facing financial challenges with declining revenues, persistent losses, and negative equity. These factors indicate potential risks to financial stability. While the company shows strength in gross profit margins and cash management, the overall financial health is concerning due to high leverage and negative profitability metrics. Strategic measures are needed to address these financial strains to ensure long-term viability.

Income Statement

Upland Software has faced a decline in revenue over the past years, with a notable decrease from $317.3 million in 2022 to $274.8 million in 2024. Gross profit margin stands at 70.5% for 2024, indicating cost efficiency in production. However, the company struggles with profitability, reflected by negative EBIT and net income margins, with a net loss of $118.3 million in 2024. This trend shows financial strain and challenges in managing expenses relative to revenue.

Balance Sheet

The balance sheet reveals a worrying situation with negative stockholders' equity of -$18.3 million in 2024, indicating liabilities exceeding assets. The debt-to-equity ratio cannot be calculated due to negative equity, which signals high financial leverage. The equity ratio is also negative, further highlighting potential solvency issues. These factors suggest significant financial risk and instability.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow generation, with $23.4 million in 2024, although operating cash flow has decreased from $49.9 million in 2023 to $24.2 million in 2024. The free cash flow to net income ratio is positive, indicating effective cash management despite losses. However, the decrease in operating cash flow suggests declining cash-generating capacity, which could impact future operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
274.79M	297.85M	317.30M	302.02M	291.78M
	Gross Profit
193.70M	201.49M	213.56M	202.56M	193.33M
	EBIT
-102.30M	-163.92M	-6.95M	-13.70M	3.15M
	EBITDA
-46.17M	-96.99M	15.14M	18.00M	22.04M
	Net Income Common Stockholders
-118.32M	-179.87M	-68.41M	-58.21M	-51.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.43M	236.56M	248.65M	189.16M	250.03M
	Total Assets
529.52M	870.02M	1.11B	1.03B	1.01B
	Total Debt
291.96M	480.62M	523.13M	528.65M	533.30M
	Net Debt
235.53M	244.06M	274.48M	339.49M	283.28M
	Total Liabilities
424.60M	626.09M	692.30M	712.72M	704.61M
	Stockholders Equity
-18.30M	243.93M	421.16M	316.29M	306.62M
Cash Flow		Free Cash Flow
23.36M	48.72M	29.11M	40.62M	34.30M
	Operating Cash Flow
24.24M	49.94M	29.98M	41.74M	35.62M
	Investing Cash Flow
-882.00K	-1.22M	-63.22M	-93.53M	-68.97M
	Financing Cash Flow
-202.31M	-61.38M	94.15M	-8.18M	107.90M

Upland Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPLD, the sentiment is Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 3.18, and below the 200-day MA of 3.06, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UPLD.

Upland Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSSS	59 Neutral	$86.74M	―	-32.33%	―	18.51%	-714.65%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
PSQH	51 Neutral	$80.68M	―	-309.46%	―	385.52%	-33.32%
DUOT	45 Neutral	$65.49M	―	-282.24%	―	-2.55%	10.18%
UPLD	43 Neutral	$60.28M	―	-208.78%	―	-7.74%	28.24%
LPSN	42 Neutral	$64.97M	―	-137.76%	―	-22.27%	-20.58%

Upland Software Corporate Events

Upland Software Eliminates Chief Sales Officer Role

On April 1, 2025, Upland Software, Inc. eliminated the Chief Sales Officer position and terminated Oliver Yates, the CSO, without cause. Mr. Yates’s departure was not due to any disputes or disagreements with the company, including issues related to accounting or financial reporting, and he will receive severance as per his employment agreement.