Upland Software, Inc 10-Q for FY2026 Q3

Upland Software, Inc. (UPLD)

10-Q 2026-11-04 For: 2026-09-30

Added on November 04, 2026

About this 10-Q

Upland Software, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $47.53M; down 5.9% from $50.53M a year earlier
Net loss: $451K; compared with a net loss of $1.12M a year earlier
Diluted EPS: -$0.67; compared with -$0.90 a year earlier

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Delaware			27-2992077
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2026 and September 30, 2025	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2026 and September 30, 2025	3
	Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2026 and September 30, 2025	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and September 30, 2025	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
Part II.	OTHER INFORMATION	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 5.	Other Information	33
Item 6.	Exhibits	33
Exhibit Index		34
Signature		35




	September 30, 2026		December 31, 2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	28,913	$	29,398
Restricted cash	626		626
Accounts receivable (net of allowance of $42 and $140 at September 30, 2026, and December 31, 2025, respectively)	21,639		25,603
Deferred commissions, current	5,140		5,660
Unbilled receivables	3,705		3,981
Income tax receivable, current	4,001		1,832
Prepaid expenses and other current assets	7,202		8,154
Total current assets	71,226		75,254
Tax credits receivable	1,114		863
Property and equipment, net	1,476		1,815
Operating lease right-of-use asset	1,244		1,713
Intangible assets, net	42,800		62,317
Goodwill	223,234		259,631
Deferred commissions, noncurrent	7,561		7,865
Interest rate derivatives	279		15
Other assets	3,157		3,704
Total assets	$	352,091	$	413,177
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	3,691	$	2,140
Accrued compensation	4,026		4,358
Accrued expenses and other current liabilities	3,323		3,938
Deferred revenue	64,614		74,768

Operating lease liabilities, current	522		817
Current maturities of notes payable (includes unamortized discount of $1,154 and $1,133 at September 30, 2026, and December 31, 2025, respectively)	3,046		7,739
Total current liabilities	79,222		93,760

Notes payable, less current maturities (includes unamortized discount of $4,273 and $4,961 at September 30, 2026, and December 31, 2025, respectively)	216,921		224,667
Deferred revenue, noncurrent	5,121		4,841
Operating lease liabilities, noncurrent	1,695		1,971
Noncurrent deferred tax liability, net	6,397		6,723

Other long-term liabilities	661		505
Total liabilities	310,017		332,467
Mezzanine equity:
Series A Convertible Preferred stock, $0.0001 par value; 5,000,000 shares authorized; 115,000 shares issued and outstanding as of September 30, 2026, and December 31, 2025, respectively	133,640		129,078
Stockholders’ deficit:
Common stock, $0.0001 par value; 75,000,000 shares authorized; 2,876,850 and 2,911,818 shares issued and outstanding as of September 30, 2026, and December 31, 2025, respectively	—		—
Additional paid-in capital	604,714		607,278
Accumulated other comprehensive loss	(18,773)		(15,138)
Accumulated deficit	(677,507)		(640,508)
Total stockholders’ deficit	(91,566)		(48,368)
Total liabilities, convertible preferred stock and stockholders’ deficit	$	352,091	$	413,177



	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue:
Subscription and support	$	45,259	$	47,725	$	137,502	$	158,374
Perpetual license	1,180		1,160		4,213		3,967
Total product revenue	46,439		48,885		141,715		162,341
Professional services	1,086		1,641		3,641		5,223
Total revenue	47,525		50,526		145,356		167,564
Cost of revenue:
Subscription and support	10,706		10,774		32,689		40,136
Professional services and other	813		903		2,434		3,024
Total cost of revenue	11,519		11,677		35,123		43,160
Gross profit	36,006		38,849		110,233		124,404
Operating expenses:
Sales and marketing	8,976		9,707		27,957		34,234
Research and development	7,781		7,872		23,591		29,195

General and administrative	8,398		8,787		26,001		30,627
Depreciation and amortization	5,518		6,357		16,728		21,216
Divestiture-related expenses	—		778		22		9,402
Impairment of goodwill and other intangibles	—		—		35,246		2,469
Total operating expenses	30,673		33,501		129,545		127,143
Income (loss) from operations	5,333		5,348		(19,312)		(2,739)
Other income (expense):
Interest expense, net	(5,083)		(4,204)		(14,068)		(10,783)
Loss on divestitures of businesses	—		(473)		—		(24,364)
Loss on debt extinguishment	—		(2,301)		—		(2,301)
Other income (expense), net	154		249		(937)		(1,587)
Total other expense, net	(4,929)		(6,729)		(15,005)		(39,035)
Income (loss) before benefit from (provision for) income taxes	404		(1,381)		(34,317)		(41,774)
Benefit from (provision for) income taxes	(855)		259		(2,682)		1,775


Net loss	$	(451)	$	(1,122)	$	(36,999)	$	(39,999)
Preferred stock dividends	(1,538)		(1,470)		(4,562)		(4,362)
Net loss attributable to common stockholders	$	(1,989)	$	(2,592)	$	(41,561)	$	(44,361)
Net loss per common share:
Net loss per common share, basic and diluted	$	(0.67)	$	(0.90)	$	(14.15)	$	(15.56)


Weighted-average common shares outstanding, basic and diluted	2,953,833		2,878,486		2,936,566		2,851,028


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net loss	$	(451)	$	(1,122)	$	(36,999)	$	(39,999)
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment	275		(969)		(1,037)		6,146
Realized foreign currency gain (loss)	—		—		—		4,423
Unrealized translation gain (loss) on foreign currency denominated intercompany loans, net of taxes	9		(1,491)		93		4,739
Interest rate swaps, net of reclassifications into earnings	(443)		(1,672)		(2,691)		(6,824)
Other comprehensive income (loss):	$	(159)	$	(4,132)	$	(3,635)	$	8,484
Comprehensive loss	$	(610)	$	(5,254)	$	(40,634)	$	(31,515)


	Three Months Ended September 30, 2026
	Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance at June 30, 2026	115,000	$	132,102	2,957,191	$	—	$	605,917	$	(18,614)	$	(677,056)	$	(89,753)



Dividends accrued - Convertible Preferred Stock	—	1,538		—	—		(1,538)		—		—		(1,538)
Issuance of stock under Company plans, net of shares withheld for tax	—	—		17,668	—		(33)		—		—		(33)


Stock repurchases and retirements	—	—		(98,009)	—		(355)		—		—		(355)
Stock-based compensation	—	—		—	—		723		—		—		723


Unrealized foreign currency translation adjustment	—	—		—	—		—		275		—		275

Unrealized translation gain (loss) on intercompany loans with foreign subsidiaries, net of taxes	—	—		—	—		—		9		—		9
Interest rate swaps	—	—		—	—		—		(443)		—		(443)
Net loss	—	—		—	—		—		—		(451)		(451)
Balance at September 30, 2026	115,000	$	133,640	2,876,850	$	—	$	604,714	$	(18,773)	$	(677,507)	$	(91,566)



	Three Months Ended September 30, 2025
	Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance at June 30, 2025	115,000	$	126,122	2,870,892	$	—	$	607,466	$	(9,374)	$	(640,481)	$	(42,389)





Dividends accrued - Convertible Preferred Stock	—	1,470		—	—		(1,470)		—		—		(1,470)
Issuance of stock under Company plans, net of shares withheld for tax	—	—		23,802	—		(323)		—		—		(323)

Stock repurchases and retirements	—	—		(5,560)	—		(137)		—		—		(137)
Stock-based compensation	—	—		—	—		2,323		—		—		2,323

Unrealized foreign currency translation adjustment	—	—		—	—		—		(969)		—		(969)
Unrealized translation gain (loss) on intercompany loans with foreign subsidiaries, net of taxes	—	—		—	—		—		(1,491)		—		(1,491)
Interest rate swaps	—	—		—	—		—		(1,672)		—		(1,672)
Net loss	—	—		—	—		—		—		(1,122)		(1,122)
Balance at September 30, 2025	115,000	$	127,592	2,889,134	$	—	$	607,859	$	(13,506)	$	(641,603)	$	(47,250)


	Nine Months Ended September 30, 2026
	Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance at December 31, 2025	115,000	$	129,078	2,911,818	$	—	$	607,278	$	(15,138)	$	(640,508)	$	(48,368)



Dividends accrued - Convertible Preferred Stock	—	4,562		—	—		(4,562)		—		—		(4,562)
Issuance of stock under Company plans, net of shares withheld for tax	—	—		63,142	—		(160)		—		—		(160)
Fractional share adjustment due to reverse stock split	—	—		(101)	—		(1)		—		—		(1)

Stock repurchases and retirements	—	—		(98,009)	—		(355)		—		—		(355)
Stock-based compensation	—	—		—	—		2,514		—		—		2,514


Unrealized foreign currency translation adjustment	—	—		—	—		—		(1,037)		—		(1,037)

Unrealized translation gain (loss) on intercompany loans with foreign subsidiaries, net of taxes	—	—		—	—		—		93		—		93
Interest rate swaps	—	—		—	—		—		(2,691)		—		(2,691)
Net loss	—	—		—	—		—		—		(36,999)		(36,999)
Balance at September 30, 2026	115,000	$	133,640	2,876,850	$	—	$	604,714	$	(18,773)	$	(677,507)	$	(91,566)


	Nine Months Ended September 30, 2025
	Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance at December 31, 2024	115,000	$	123,230	2,816,827	$	—	$	605,289	$	(21,990)	$	(601,604)	$	(18,305)


Dividends accrued - Convertible Preferred Stock	—	4,362		—	—		(4,362)		—		—		(4,362)
Issuance of stock under Company plans, net of shares withheld for tax	—	—		77,867	—		(1,003)		—		—		(1,003)

Stock repurchases and retirements	—	—		(5,560)	—		(137)		—		—		(137)
Stock-based compensation	—	—		—	—		8,072		—		—		8,072

Realized translation loss on divestiture of businesses	—	—		—	—		—		4,423		—		4,423
Unrealized foreign currency translation adjustment	—	—		—	—		—		6,146		—		6,146
Unrealized translation gain (loss) on intercompany loans with foreign subsidiaries, net of taxes	—	—		—	—		—		4,739		—		4,739
Interest rate swaps	—	—		—	—		—		(6,824)		—		(6,824)
Net loss	—	—		—	—		—		—		(39,999)		(39,999)
Balance at September 30, 2025	115,000	$	127,592	2,889,134	$	—	$	607,859	$	(13,506)	$	(641,603)	$	(47,250)


Upland Software, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)

	Nine Months Ended September 30,
	2026		2025
Operating activities
Net loss	$	(36,999)	$	(39,999)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	19,349		25,367

Deferred income taxes	(207)		(3,457)
Amortization of deferred costs	5,024		6,403
Foreign currency re-measurement loss	1,280		669
Non-cash interest, net and other income, net	(1,964)		(2,133)
Non-cash stock-based compensation expense	2,514		8,072
Non-cash loss on impairment of goodwill and other intangibles	35,246		2,469


Non-cash loss on divestitures of businesses	—		24,364
Non-cash loss on retirement of fixed assets	18		60
Non-cash loss on debt extinguishment	—		2,301
Changes in operating assets and liabilities:
Accounts receivable	3,826		11,989
Prepaid expenses and other current assets	(1,121)		(3,128)
Other assets	(4,622)		546
Accounts payable	1,573		(6,086)
Accrued expenses and other liabilities	(709)		433
Deferred revenue	(9,473)		(9,388)
Net cash provided by operating activities	13,735		18,482
Investing activities
Purchase of property and equipment	(278)		(1,265)

Collections on note receivable	553		167
Proceeds from the divestitures of businesses, net of cash transferred	—		9,063

Net cash provided by investing activities	275		7,965
Financing activities

Proceeds from notes payable, net of debt discount	—		234,600
Payments on notes payable	(13,108)		(293,650)
Payments of debt issuance costs	(243)		(1,399)

Stock repurchases and retirements	(355)		(137)


Taxes paid related to net share settlement of equity awards	(160)		(1,003)



Net cash used in financing activities	(13,866)		(61,589)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(629)		1,471
Change in cash, cash equivalents and restricted cash	(485)		(33,671)
Cash, cash equivalents and restricted cash, beginning of period	30,024		57,052
Cash, cash equivalents and restricted cash, end of period	$	29,539	$	23,381
Supplemental disclosures of cash flow information:
Cash paid for interest, net of interest rate derivatives	$	17,355	$	14,201
Cash paid for taxes, net of refunds	$	6,040	$	6,122

Non-cash investing and financing activities:




Note receivable from divestiture of businesses, net of discount	$	—	$	4,881


	Fair Value Measurements at September 30, 2026
	(unaudited)
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents - money market funds	$	15,297	$	—	$	—	$	15,297
Interest rate derivatives	—		279		—		279
Total	$	15,297	$	279	$	—	$	15,576


	Fair Value Measurements at December 31, 2025

	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents - money market funds	$	18,551	$	—	$	—	$	18,551
Interest rate derivatives	—		15		—		15
Total	$	18,551	$	15	$	—	$	18,566


Balance at December 31, 2025	$	259,631





Impairment of goodwill	(35,246)
Foreign currency translation adjustment	(1,151)
Balance at September 30, 2026	$	223,234


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
September 30, 2026:
Customer relationships	7-10	$	199,561	$	160,539	$	39,022
Trade name	9.6-10	1,183		949		234
Developed technology	4-9	31,842		28,363		3,479

Favorable leases	6.3	261		196		65
Total intangible assets		$	232,847	$	190,047	$	42,800



	September 30, 2026		December 31, 2025
Senior secured loans (includes unamortized discount and debt costs of $5,427 and $6,094 based on an imputed interest rate of 10.8% and 10.4%, at September 30, 2026 and December 31, 2025, respectively)	$	219,967	$	232,406





Less current maturities	(3,046)		(7,739)
Total long-term debt	$	216,921	$	224,667


	September 30,
	2026	2025

Stock options	1,740	8,756

Restricted stock units	229,221	197,751
Performance restricted stock units	19,999	35,000
Series A Preferred Stock on an if-converted basis(1)	789,686	755,127
Total anti–dilutive common share equivalents	1,040,646	996,634


	Number of Units	Weighted-Average Grant Date Fair Value
Unvested restricted units outstanding as of December 31, 2025	194,978	$	48.84
Granted	218,499	8.38
Vested	(94,124)	32.12
Forfeited	(70,133)	63.43
Unvested restricted units outstanding as of September 30, 2026	249,220	$	15.57


Expected volatility	90.8%	to	93.7%
Risk-free interest rate	4.0%	to	4.2%
Remaining performance period (in years)	2.91	to	3.00
Dividend yield	—	to	—


Period		Total number of shares purchased	Average price paid per share (1)	Total number of shares purchased as part of the publicly announced plan	Maximum approximate dollar value of shares that may yet be purchased under the plan
7/1/2026 -7/31/2026		—	—	—	—
8/1/2026 - 8/31/2026		—	—	—	—
9/1/2026 - 9/30/2026	(2)	106,229	$3.59	98,009	$	9,508,194
		106,229		98,009


			UPLAND SOFTWARE, INC.
Dated: November 4, 2026			/s/ Jennifer Simon
			Jennifer Simon
			Chief Financial Officer



/s/ Sean Nathaniel
Sean Nathaniel
Chief Executive Officer
(Principal Executive Officer)