Upland Software's Q3 revenue falls due to customer churn

Overview

• AI-powered software firm's Q3 revenue fell 6% yr/yr

• Adjusted EBITDA margin improved sequentially

• Revenue decline driven by 2025 divestitures and Q3 2026 customer churn

Outlook

• Upland sees Q4 2026 revenue between $44.7 mln and $47.7 mln

• Company expects Q4 2026 adjusted EBITDA between $12.5 mln and $14.0 mln

• Upland targets adjusted EBITDA margin of about 35% in H1 2028

Result Drivers

• CUSTOMER CHURN - Co said Q3 revenue decline was partly due to customer churn events

• DIVESTITURES - Co attributed lower yr/yr revenue to divestitures completed in 2025

• NEW CUSTOMERS AND EXPANSIONS - Co said it added 77 new customers and expanded relationships with 185 existing customers in Q3

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "buy"

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

• Wall Street's median 12-month price target for Upland Software Inc is $10.00, about 134.2% above its November 3 closing price of $4.27

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

Reuters Recommended Reads

• Nov 3 - Chegg Q3 revenue falls as legacy business declines

• Nov 3 - UK's Clarivate Q3 revenue falls 9%, misses estimates

• Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)