# EDGAR Filing Document

**Accession Number:** 0001505155
**File Stem:** 0001505155-26-000036
**Filing Date:** 2026-5
**Character Count:** 176717
**Document Hash:** c60cae1a67469158d3f6ea8d445e3f07
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001505155-26-000036.hdr.sgml**: 20260501

**ACCESSION NUMBER**: 0001505155-26-000036

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 73

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260501

**DATE AS OF CHANGE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Upland Software, Inc.
- **CENTRAL INDEX KEY:** 0001505155
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 272992077
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36720
- **FILM NUMBER:** 26929362

**BUSINESS ADDRESS:**
- **STREET 1:** 900 S. CAPITAL OF TEXAS HWY
- **STREET 2:** LAS CIMAS IV, SUITE 300
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78746
- **BUSINESS PHONE:** 512-960-1010

**MAIL ADDRESS:**
- **STREET 1:** 900 S. CAPITAL OF TEXAS HWY
- **STREET 2:** LAS CIMAS IV, SUITE 300
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78746

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Silverback Acquisition Corp
- **DATE OF NAME CHANGE:** 20101105

?xml version='1.0' encoding='ASCII'? upld-20260331

<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549**

**FORM 10-Q** 

☒&nbsp;&nbsp;&nbsp;&nbsp;**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended March 31, 2026** 

**OR**

☐&nbsp;&nbsp;&nbsp;&nbsp;**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission file number 001-36720**

![Upland Logo - JPEG.jpg](upld-20260331_g1.jpg)

**UPLAND SOFTWARE, INC.** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **27-2992077** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |

---

**900 S. Capital of Texas Highway, Las Cimas IV Suite 300**

**Austin, Texas 78746**

(Address, including zip code, of registrant's principal executive offices)

**(512) 960-1010**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | &nbsp;&nbsp;**<u>Trading Symbol</u>** | &nbsp;&nbsp;**<u>Name of each exchange on which registered</u>** |
| Common Stock, par value $0.0001 per share | UPLD | The Nasdaq Global Market |
| Preferred Stock Purchase Rights | - | The Nasdaq Global Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ⌧ | Smaller reporting company | ⌧ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of April 29, 2026, 29,363,201 shares of the registrant's Common Stock were outstanding.

------

<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

**Upland Software, Inc.** 

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | &nbsp;&nbsp;**Page** |
| <u>[Part I.](#idb9f32c501c14260b18130ad7adee007_10)</u> | <u>[FINANCIAL INFORMATION](#idb9f32c501c14260b18130ad7adee007_10)</u> |  |
| &nbsp;&nbsp;<u>[Item 1.](#idb9f32c501c14260b18130ad7adee007_10)</u> | <u>[Financial Statements](#idb9f32c501c14260b18130ad7adee007_10)</u> |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025</u> | &nbsp;&nbsp;<u>[1](#idb9f32c501c14260b18130ad7adee007_13)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and March 31, 2025</u> | &nbsp;&nbsp;<u>[2](#idb9f32c501c14260b18130ad7adee007_19)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2026 and March 31, 2025</u> | &nbsp;&nbsp;<u>[3](#idb9f32c501c14260b18130ad7adee007_22)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>Condensed Consolidated Statements of Stockholders' Deficit for the Three Months Ended March 31, 2026 and March 31, 2025</u> | &nbsp;&nbsp;<u>[4](#idb9f32c501c14260b18130ad7adee007_25)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and March 31, 2025</u> | &nbsp;&nbsp;<u>[5](#idb9f32c501c14260b18130ad7adee007_34)</u> |
|  | <u>[Notes to](#idb9f32c501c14260b18130ad7adee007_37)[Unaudited](#idb9f32c501c14260b18130ad7adee007_37)[Condensed Consolidated Financial Statements](#idb9f32c501c14260b18130ad7adee007_37)</u> | &nbsp;&nbsp;<u>[6](#idb9f32c501c14260b18130ad7adee007_37)</u> |
| &nbsp;&nbsp;<u>[Item 2.](#idb9f32c501c14260b18130ad7adee007_121)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#idb9f32c501c14260b18130ad7adee007_121)</u> | &nbsp;&nbsp;<u>[18](#idb9f32c501c14260b18130ad7adee007_121)</u> |
| &nbsp;&nbsp;<u>[Item 3.](#idb9f32c501c14260b18130ad7adee007_148)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#idb9f32c501c14260b18130ad7adee007_148)</u> | &nbsp;&nbsp;<u>[27](#idb9f32c501c14260b18130ad7adee007_148)</u> |
| &nbsp;&nbsp;<u>[Item 4.](#idb9f32c501c14260b18130ad7adee007_151)</u> | <u>[Controls and Procedures](#idb9f32c501c14260b18130ad7adee007_151)</u> | &nbsp;&nbsp;<u>[27](#idb9f32c501c14260b18130ad7adee007_151)</u> |
| <u>[Part II.](#idb9f32c501c14260b18130ad7adee007_157)</u> | <u>[OTHER INFORMATION](#idb9f32c501c14260b18130ad7adee007_157)</u> | &nbsp;&nbsp;<u>[28](#idb9f32c501c14260b18130ad7adee007_157)</u> |
| &nbsp;&nbsp;<u>[Item 1.](#idb9f32c501c14260b18130ad7adee007_1699)</u> | <u>[Legal Proceedings](#idb9f32c501c14260b18130ad7adee007_1699)</u> | &nbsp;&nbsp;<u>[28](#idb9f32c501c14260b18130ad7adee007_1699)</u> |
| &nbsp;&nbsp;<u>[Item 1A.](#idb9f32c501c14260b18130ad7adee007_160)</u> | <u>[Risk Factors](#idb9f32c501c14260b18130ad7adee007_160)</u> | &nbsp;&nbsp;<u>[28](#idb9f32c501c14260b18130ad7adee007_160)</u> |
| &nbsp;&nbsp;<u>[Item 2.](#idb9f32c501c14260b18130ad7adee007_163)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#idb9f32c501c14260b18130ad7adee007_163)</u> | &nbsp;&nbsp;<u>[28](#idb9f32c501c14260b18130ad7adee007_163)</u> |
| &nbsp;&nbsp;<u>[Item 5.](#idb9f32c501c14260b18130ad7adee007_166)</u> | <u>[Other Information](#idb9f32c501c14260b18130ad7adee007_166)</u> | &nbsp;&nbsp;<u>[28](#idb9f32c501c14260b18130ad7adee007_166)</u> |
| &nbsp;&nbsp;<u>[Item 6.](#idb9f32c501c14260b18130ad7adee007_172)</u> | <u>[Exhibits](#idb9f32c501c14260b18130ad7adee007_172)</u> | &nbsp;&nbsp;<u>[29](#idb9f32c501c14260b18130ad7adee007_172)</u> |
| <u>[Exhibit Index](#idb9f32c501c14260b18130ad7adee007_175)</u> | <u>[Exhibit Index](#idb9f32c501c14260b18130ad7adee007_175)</u> | &nbsp;&nbsp;<u>[30](#idb9f32c501c14260b18130ad7adee007_175)</u> |
| <u>[Signature](#idb9f32c501c14260b18130ad7adee007_178)</u> | <u>[Signature](#idb9f32c501c14260b18130ad7adee007_178)</u> | &nbsp;&nbsp;<u>[31](#idb9f32c501c14260b18130ad7adee007_178)</u> |

---

------

<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

**Upland Software, Inc.** 

**Condensed Consolidated Balance Sheets** 

***(in thousands, except for share and per share amounts)***

**Item 1. Financial Statements**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| | (unaudited) | |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $29781 | $29398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 626 | 626 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable (net of allowance of $64 and $140 at March 31, 2026, and December 31, 2025, respectively) | 23622 | 25603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred commissions, current | 5448 | 5660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unbilled receivables | 4125 | 3981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable, current | 2789 | 1832 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 7123 | 8154 |
| Total current assets | 73514 | 75254 |
| Tax credits receivable | 841 | 863 |
| Property and equipment, net | 1672 | 1815 |
| Operating lease right-of-use asset | 1552 | 1713 |
| Intangible assets, net | 55358 | 62317 |
| Goodwill | 258276 | 259631 |
| Deferred commissions, noncurrent | 7866 | 7865 |
| Interest rate derivatives | 105 | 15 |
| Other assets | 3476 | 3704 |
| Total assets | $402660 | $413177 |
| **LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT** | **LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT** | **LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT** |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2291 | $2140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 3984 | 4358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 2324 | 3938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 73746 | 74768 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 759 | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of notes payable (includes unamortized discount of $1,164 and $1,133 at March 31, 2026, and December 31, 2025, respectively) | 4127 | 7739 |
| Total current liabilities | 87231 | 93760 |
| Notes payable, less current maturities (includes unamortized discount of $4,842 and $4,961 at March 31, 2026, and December 31, 2025, respectively) | 223545 | 224667 |
| Deferred revenue, noncurrent | 4692 | 4841 |
| Operating lease liabilities, noncurrent | 1849 | 1971 |
| Noncurrent deferred tax liability, net | 6631 | 6723 |
| Other long-term liabilities | 519 | 505 |
| Total liabilities | 324467 | 332467 |
| Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>Series A Convertible Preferred stock, $0.0001 par value; 5,000,000 shares authorized; 115,000 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively | 130581 | 129078 |
| Stockholders' deficit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 75,000,000 shares authorized; 29,363,201 and 29,118,178 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 606659 | 607275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (17312) | (15138) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (641738) | (640508) |
| Total stockholders' deficit | (52388) | (48368) |
| Total liabilities, convertible preferred stock and stockholders' deficit | $402660 | $413177 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**Upland Software, Inc.** 

**Condensed Consolidated Statements of Operations** 

**(unaudited)**

***(in thousands, except for share and per share amounts)***

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $46091 | $60182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Perpetual license | 1295 | 1608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total product revenue | 47386 | 61790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 1304 | 1865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 48690 | 63655 |
| Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | 11112 | 16950 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 822 | 1098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 11934 | 18048 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 36756 | 45607 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 9472 | 13756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 8044 | 11542 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 8538 | 11621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 5631 | 7995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestiture-related expenses | 22 | 1745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 31707 | 46659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | 5049 | (1052) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (4459) | (2443) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on divestitures of businesses |  | (23457) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (834) | (241) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (5293) | (26141) |
| Loss before benefit from (provision for) income taxes | (244) | (27193) |
| Benefit from (provision for) income taxes | (986) | 1345 |
| Net loss | $(1230) | $(25848) |
| Preferred stock dividends | (1503) | (1438) |
| Net loss attributable to common stockholders | $(2733) | $(27286) |
| Net loss per common share: |  |  |
| &nbsp;&nbsp;Net loss per common share, basic and diluted | $(0.09) | $(0.97) |
| &nbsp;&nbsp;Weighted-average common shares outstanding, basic and diluted | 29159015 | 28220936 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**Upland Software, Inc.**

**Condensed Consolidated Statements of Comprehensive Income (Loss)** 

**(unaudited)**

***(in thousands)***

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Net loss | $(1230) | $(25848) |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency translation adjustment | (1108) | 2264 |
| &nbsp;&nbsp;&nbsp;Realized foreign currency gain |  | 5715 |
| &nbsp;&nbsp;&nbsp;Unrealized translation gain on foreign currency denominated intercompany loans, net of taxes | 71 | 1498 |
| &nbsp;&nbsp;&nbsp;Interest rate swaps, net of reclassifications into earnings | (1137) | (3890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss): | $(2174) | $5587 |
| Comprehensive loss | $(3404) | $(20261) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**Upland Software, Inc.**

**Condensed Consolidated Statements of Stockholders' Deficit**

**(unaudited)**

***(in thousands, except share amounts)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity (Deficit)** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity (Deficit)** |
| Balance at December 31, 2025 | 115000 | $129078 | 29118178 | $3 | $607275 | $(15138) | $(640508) | $(48368) |
| &nbsp;&nbsp;Dividends accrued - Convertible Preferred Stock |  | 1503 |  |  | (1503) |  |  | (1503) |
| &nbsp;&nbsp;Issuance of stock under Company plans, net of shares withheld for tax |  |  | 245023 |  | (74) |  |  | (74) |
| &nbsp;&nbsp;Stock-based compensation |  |  |  |  | 961 |  |  | 961 |
| &nbsp;&nbsp;Unrealized foreign currency translation adjustment |  |  |  |  |  | (1108) |  | (1108) |
| &nbsp;&nbsp;Unrealized translation gain on intercompany loans with foreign subsidiaries |  |  |  |  |  | 71 |  | 71 |
| &nbsp;&nbsp;Interest rate swaps |  |  |  |  |  | (1137) |  | (1137) |
| &nbsp;&nbsp;Net loss |  |  |  |  |  |  | (1230) | (1230) |
| Balance at March 31, 2026 | 115000 | $130581 | 29363201 | $3 | $606659 | $(17312) | $(641738) | $(52388) |
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity (Deficit)** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity (Deficit)** |
| Balance at December 31, 2024 | 115000 | $123230 | 28168267 | $3 | $605286 | $(21990) | $(601604) | $(18305) |
| &nbsp;&nbsp;Dividends accrued - Convertible Preferred Stock |  | 1438 |  |  | (1438) |  |  | (1438) |
| &nbsp;&nbsp;Issuance of stock under Company plans, net of shares withheld for tax |  |  | 316012 |  | (494) |  |  | (494) |
| &nbsp;&nbsp;Stock-based compensation |  |  |  |  | 2675 |  |  | 2675 |
| &nbsp;&nbsp;Realized translation gain on divestitures of businesses |  |  |  |  |  | 5715 |  | 5715 |
| &nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | 2264 |  | 2264 |
| &nbsp;&nbsp;Unrealized translation gain on intercompany loans with foreign subsidiaries |  |  |  |  |  | 1498 |  | 1498 |
| &nbsp;&nbsp;Interest rate swaps |  |  |  |  |  | (3890) |  | (3890) |
| &nbsp;&nbsp;Net loss |  |  |  |  |  |  | (25848) | (25848) |
| Balance at March 31, 2025 | 115000 | $124668 | 28484279 | $3 | $606029 | $(16403) | $(627452) | $(37823) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

---

| | | |
|:---|:---|:---|
| **Upland Software, Inc.** | **Upland Software, Inc.** | **Upland Software, Inc.** |
| **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** |
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(1230) | $(25848) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6624 | 9661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 4 | (3078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred costs | 1687 | 2735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency re-measurement loss | 882 | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest, net and other income, net | (899) | (1186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock-based compensation expense | 961 | 2675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash loss on divestitures of businesses |  | 23457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash loss on retirement of fixed assets | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1865 | 7971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (145) | (2519) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (1529) | (1967) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 164 | (7198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (1905) | 2494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (878) | 646 |
| Net cash provided by operating activities | 5603 | 8305 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (81) | (424) |
| &nbsp;&nbsp;&nbsp;&nbsp;Collections on note receivable | 177 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the divestitures of businesses, net of cash transferred |  | 4213 |
| Net cash provided by investing activities | 96 | 3789 |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on notes payable | (4822) | (34226) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of debt issuance costs | (213) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid related to net share settlement of equity awards | (74) | (494) |
| Net cash used in financing activities | (5109) | (34723) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (207) | (92) |
| Change in cash, cash equivalents and restricted cash | 383 | (22721) |
| Cash, cash equivalents and restricted cash, beginning of period | 30024 | 57052 |
| Cash, cash equivalents and restricted cash, end of period | $30407 | $34331 |
| **Supplemental disclosures of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest, net of interest rate derivatives | $5814 | $4162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for taxes, net of refunds | $2869 | $1976 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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**Upland Software, Inc.**

**Notes to Unaudited Condensed Consolidated Financial Statements**

**(unaudited)** 

**1. Organization and Nature of Operations** 

Upland Software, Inc., together with its wholly owned subsidiaries ("Upland," "we," "us," "our," or the "Company"), a Delaware corporation headquartered in Austin, Texas, is a leader in AI-powered knowledge and content management software. Our solutions help enterprises unlock critical knowledge, automate content workflows, and drive measurable ROI—enhancing customer and employee experiences while supporting regulatory compliance. More than 1,100 enterprise customers rely on Upland to solve complex challenges and provide a trusted path for AI adoption. The Company's customers operate in a wide variety of industries, including financial services, consulting services, technology, manufacturing, media, telecommunications, government, insurance, non-profit, healthcare, life sciences, retail, and hospitality.

**2. Basis of Presentation and Summary of Significant Accounting Policies** 

**Basis of Presentation** 

These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Upland Software, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. No material changes have been made to the Company's significant accounting policies disclosed in Note 2, *Basis of Presentation and Summary of Significant Accounting Policies*, in the Company's Annual Report.

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. In the opinion of management of the Company, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, in all material respects, and include all adjustments of a normal recurring nature necessary for a fair presentation. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or for any other period.

The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2025 Annual Report on Form 10-K.

**Use of Estimates** 

The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include those related to revenue recognition, deferred commissions, allowance for credit losses, stock-based compensation, impairment of goodwill, intangibles and long-lived assets, the useful lives of intangible assets and property and equipment, the fair value of the Company's interest rate derivatives and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from those estimates.

Upland is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of May 1, 2026, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

**Restricted Cash**

The Company is required to maintain a letter of credit as collateral during the term of an operating lease for office space. As of March 31, 2026 and December 31, 2025, we had $0.6 million of restricted cash deposited in a restricted account as collateral for the letter of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands):

---

| | | |
|:---|:---|:---|
| | **3/31/2026** | **12/31/2025** |
| Cash and cash equivalents | $29781 | $29398 |
| Restricted cash | 626 | 626 |
| Total cash, cash equivalents and restricted cash | $30407 | $30024 |

---

------

**Concentrations of Credit Risk and Significant Customers**

Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents, accounts receivable, and other assets. The Company's cash and cash equivalents are placed with high quality financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts, and the Company does not believe it is exposed to any significant credit risk related to cash and cash equivalents. The Company provides credit, in the normal course of business, to a number of its customers and generally does not require collateral. To manage accounts receivable credit risk, the Company performs periodic credit evaluations of its customers and maintains current expected credit losses which considers such factors as historical loss information, geographic location of customers, current market conditions, and reasonable and supportable forecasts.

No individual customer represented more than 10% of total revenues for the three months ended March 31, 2026 or March 31, 2025 and no individual customer represented more than 10% of accounts receivable as of March 31, 2026 or December 31, 2025.

**Recent Accounting Pronouncements**

*Recently issued accounting pronouncements - Adopted*

In July 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025-05 *Measurement of Credit Losses for Accounts Receivable and Contract Assets* related to credit losses for accounts receivable and contract assets. ASU 2025-05 provides a practical expedient permitting an entity to assume that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. This ASU is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. The Company adopted the standard on January 1, 2026, on a prospective basis and elected to apply the practical expedient to its estimate of expected credit losses for current accounts receivable and current contract assets. The adoption did not have a material impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04, *Debt-Debt with Conversions and Other Options*. ASU 2024-04 is intended to clarify requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features or convertible debt instruments that are not currently convertible, should be accounted for as an induced conversion. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company adopted this guidance effective January 1, 2026. The adoption did not have a material impact on the Company's consolidated financial statements.

*Recently issued accounting pronouncements - Not Adopted*

In September 2025, the FASB issued accounting standards update ("ASU") 2025-07 *Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.* ASU 2025-07 expands the scope exception for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. This improvement is expected to result in more contracts and embedded features being excluded from the scope of Topic 815. This ASU is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 *Intangibles—Goodwill and Other—Internal-Use Software Targeted Improvements to the Accounting for Internal-Use Software* related to accounting for internal-use software costs. ASU 2025-06 improves the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. This ASU is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures*. ASU 2024-03 (as clarified by ASU 2025-01) is intended to improve disclosures about a public business entity's expense and provide more detailed information to investors about the types of expenses in commonly presented expense captions. This ASU is effective for public companies with annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements.

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**3. Fair Value Measurements** 

The Company recognizes financial instruments in accordance with the authoritative guidance on fair value measurements and disclosures for financial assets and liabilities. This guidance defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. The guidance also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.

These tiers include Level 1, defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions.

The Company's financial instruments consist principally of cash and cash equivalents, money market funds, accounts receivable, accounts payable, interest rate derivatives, and debt. The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value, primarily due to short maturities.

Assets measured at fair value on a recurring basis are summarized below (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** |
|  | ***(unaudited)*** | ***(unaudited)*** | ***(unaudited)*** | ***(unaudited)*** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash equivalents - money market funds | $17010 | $— | $— | $17010 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives |  | 105 |  | 105 |
| &nbsp;&nbsp;&nbsp;Total | $17010 | $105 | $— | $17115 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** | | | | |
| &nbsp;&nbsp;&nbsp;Cash equivalents - money market funds | $18551 | $— | $— | $18551 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives |  | 15 |  | 15 |
| &nbsp;&nbsp;&nbsp;Total | $18551 | $15 | $— | $18566 |

---

Money market funds included in cash and cash equivalents are highly-liquid investments and are measured at fair value using quoted market prices and active markets, therefore are categorized as Level 1.

The fair value of the Company's interest rate derivatives are measured at the end of each interim reporting period based on the then assessed fair value. As the fair value measure is based on the market approach, they are categorized as Level 2.

The Company believes the carrying value of its long-term debt at March 31, 2026 approximates its fair value based on its variable interest rate feature and interest rates currently available to the Company. The estimated fair value of the Company's debt, before debt discount, at March 31, 2026 and December 31, 2025 was $233.7 million and $238.5 million, respectively, based on valuation methodologies using interest rates currently available to the Company which are Level 2 inputs.

The Company's non-financial assets, such as property and equipment, goodwill and intangible assets, are recorded at fair value upon a business combination and are remeasured at fair value only if an impairment charge is recognized. The Company uses unobservable inputs to the valuation methodologies that are significant to the fair value measurements, and the valuations require management's judgment due to the absence of quoted market prices. The Company determines the fair value of its held and used assets, goodwill and intangible assets using an income, cost or market approach as determined reasonable. As the fair value measures are based on unobservable inputs, they are categorized as Level 3.

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 **4. Goodwill and Other Intangible Assets** 

Changes in the Company's goodwill balance for the three months ended March 31, 2026 are summarized in the table below (in thousands):

---

| | |
|:---|:---|
| Balance at December 31, 2025 | $259631 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (1355) |
| Balance at March 31, 2026 | $258276 |

---

The Company reviews its goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable.

Intangible assets, net include the estimated acquisition-date fair values of customer relationships, marketing-related assets, and developed technology that the Company recorded as part of its historical business acquisitions. The following is a summary of the Company's intangible assets, net (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Estimated Useful<br>Life (Years)** | **Gross<br>Carrying Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** |
| **<u>March 31, 2026:</u>** | | | | |
| Customer relationships | 7-10 | $200273 | $150432 | $49841 |
| Trade name | 9.6-10 | 1189 | 907 | 282 |
| Developed technology | 4-9 | 32021 | 26873 | 5148 |
| Favorable leases | 6.3 | 265 | 178 | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets |  | $233748 | $178390 | $55358 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Estimated Useful<br>Life (Years)** | **Gross<br>Carrying Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** |
| **<u>December 31, 2025:</u>** | | | | |
| Customer relationships | 7-10 | $201918 | $146221 | $55697 |
| Trade name | 9.6-10 | 1196 | 889 | 307 |
| Developed technology | 4-9 | 32340 | 26126 | 6214 |
| Favorable leases | 6.3 | 270 | 171 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets |  | $235724 | $173407 | $62317 |

---

The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in either a diminished fair value or revised useful life. No impairments of intangibles were recorded during the three months ended March 31, 2026 or the three months ended March 31, 2025.

Total amortization expense was $6.4 million during the three months ended March 31, 2026, and $9.4 million for the three months ended March 31, 2025, respectively.

**5. Income Taxes** 

The Company's income tax provision for the three months ended March 31, 2026 and March 31, 2025 reflects its estimate of the effective tax rates expected to be applicable for the full years, adjusted for any discrete events that are recorded in the period in which they occur. The estimates are re-evaluated each quarter based on the estimated tax expense for the full year.

The income tax provision of $1.0 million for the three months ended March 31, 2026 is primarily related to the income taxes associated with non-U.S. operations.

The income tax benefit of $1.3 million for the three months ended March 31, 2025 is largely comprised of the tax benefit due to divestitures of businesses during this period. This tax benefit is offset by income taxes associated with U.S. and non-U.S. operations.

The Company historically incurred operating losses in the United States prior to 2021 and given its cumulative losses and limited history of profits, has recorded a valuation allowance against its United States net deferred tax assets at March 31, 2026 and December 31, 2025, respectively.

The Company has reflected uncertain tax positions primarily within its long-term taxes payable and a portion within deferred tax assets for which the balance is immaterial at March 31, 2026. The Company and its subsidiaries file tax returns in the U.S. federal jurisdiction, several U.S. state jurisdictions and several foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years ending before December 31, 2022 and is no longer subject to state and local or foreign income tax

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examinations by tax authorities for years ending before December 31, 2019. U.S. operating losses generated in years prior to 2022 remain open to adjustment until the statute of limitations closes for the tax year in which the net operating losses are utilized.

**6. Debt** 

Long-term debt consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Senior secured loans (includes unamortized discount and debt costs of $6,006 and $6,094 based on an imputed interest rate of 10.4% and 10.4%, at March 31, 2026 and December 31, 2025, respectively) | $227672 | $232406 |
| Less current maturities | (4127) | (7739) |
| Total long-term debt | $223545 | $224667 |

---

On July 25, 2025, the Company entered into a Credit Agreement (the "Credit Agreement") which provided for (i) a senior secured term loan facility in the aggregate principal amount of $240.0 million (the "Term Loan") and (ii) a senior secured revolving credit facility in the aggregate principal amount of $30.0 million (the "Revolving Facility" and together with the Term Loan, the "Credit Facilities").

The Term Loan matures on July 25, 2031 and bears an interest rate of the secured overnight financing rate, which shall not be less than 1.5%, plus a margin of 6.0% per annum (with step downs and a potential step up at specified leverage levels). At March 31, 2026, the floating interest rate was 9.7%*.*

Payments on the Term Loan are due quarterly in amounts equal to (a) 2.50% per annum of the original principal amount of the Term Loan commencing beginning December 31, 2025 through September 30, 2026, (b) 1.75% per annum of the original principal amount of the Term Loan commencing December 31, 2026 through September 30, 2027, and (c) 1.00% per annum of the original principal amount of the Term Loan commencing December 31, 2027 and continuing each fiscal quarter thereafter, with the balance payable on the maturity date. Excess Cash Flow payments due under the terms of the Credit Agreement were $0.2 million and $3.3 million at March 31, 2026 and December 31, 2025, respectively, and are included in current maturities of long-term debt in the condensed consolidated balance sheets.

The Revolving Facility matures on July 25, 2031 and bears the same interest rate as the Term Loan. No amounts were outstanding under the Revolving Facility as of March 31, 2026.

The Credit Facilities contains customary representations, warranties, covenants, including financial covenant, and events of default. The Credit Facilities are secured by substantially all of the Company's assets, subject to certain exclusions. The Term Loan also includes (i) a covenant tested quarterly which limits the consolidated secured leverage ratio to 6.0 to 1.0 or under and (ii) certain other changes to the terms of the Credit Agreement, including with respect to certain negative covenants. The Revolving Facility is subject to the same covenants and terms as the Term Loan. As of March 31, 2026, the Company was in compliance with all covenants under the Credit Facilities.

The Company's previous senior secured credit agreement provided for 7 year, senior secured term loans which were repaid July 25, 2025 with the proceeds of the Term Loan.

Lender fees and third party costs associated with the Term Loan are recorded as a direct deduction from the long-term debt and lender fees and third party costs associated with the Revolving Facility are recorded in other assets in the condensed consolidated balance sheets. All lender fees and third party costs are amortized into interest expense, net over the contractual term of the Credit Agreement.

*Interest rate derivatives* 

In 2019 the Company entered into floating-to-fixed interest rate swap agreements to limit exposure to interest rate risk related to their debt through the maturity of the previous senior secured term loans, August 6, 2026. At the time the Company entered into the interest rate swap agreements, the Company designated all of the swaps as cash flow hedges. In August 2024, the Company de-designated all of the interest rate swaps and the realized and unrealized gains previously recognized as a component of accumulated other comprehensive loss are being amortized to interest expense, net as interest is accrued or prepayments are made on the Company's debt. Subsequent to the de-designation, changes in the fair value of the interest rate swaps were recorded to interest expense, net. On July 18, 2025, the Company sold all of its remaining floating-to-fixed interest rate swap agreements.

Effective September 30, 2025, the Company entered into an interest rate cap agreement to limit exposure to interest rate risk, effectively capping the secured overnight financing rate at 4.5% related to $120.0 million of their outstanding debt. The interest rate cap is reported at fair value and is included in interest rate derivatives on the condensed consolidated balance sheets, and the change in the fair value of the interest rate cap is reported in interest expense, net on the condensed consolidated statements of operations.

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The impact of the Company's interest rate swaps on its condensed consolidated statements of comprehensive loss for the three months ended March 31, 2026 and March 31, 2025 was as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Amounts reclassified from accumulated other comprehensive loss to interest expense, net | $(1137) | $(3890) |

---

The impact of the Company's interest rate derivatives on its condensed consolidated statements of operations for the three months ended March 31, 2026 and March 31, 2025 was as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Unrealized gain (loss) in fair value of interest rate derivatives | $90 | $(2164) |
| Amounts reclassified from accumulated other comprehensive loss to interest expense, net | 1137 | 3890 |
| Cash payments on interest rate swaps |  | 1663 |
| Total income (expense) from interest rate derivatives in interest expense, net | $1227 | $3389 |

---

Cash interest costs averaged 9.7% and 5.9% for the three months ended March 31, 2026 and 2025, respectively.

**7. Net Loss Per Share** 

The Company computes net loss per share of common stock, par value $0.0001 per share ("Common Stock") and Series A Preferred Stock, par value $0.0001 per share ("Series A Preferred Stock") using the two-class method. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its Series A Preferred Stock to be a participating security, as its holders are entitled to fully participate in any dividends or other distributions declared or paid on its Common Stock on an as-converted basis.

The following table sets forth the computations of net loss per share (in thousands, except share and per share amounts):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Numerator: |  |  |
| Net Loss | $(1230) | $(25848) |
| Preferred stock dividends and accretion | (1503) | (1438) |
| Net loss attributable to common stockholders | $(2733) | $(27286) |
| Denominator: |  |  |
| Weighted–average common shares outstanding, basic and diluted | 29159015 | 28220936 |
| Net loss per common share, basic and diluted | $(0.09) | $(0.97) |

---

Due to the net losses for the three months ended March 31, 2026 and March 31, 2025, respectively, basic and diluted net loss per share were the same. The Company uses the application of the if-converted method for calculating diluted earnings per share on its Series A Preferred Stock. The Company applies the treasury stock method for calculating diluted earnings per share on its stock options, restricted stock units and performance-based restricted stock units.

Contingently issuable shares associated with outstanding performance-based restricted stock units (each, a "PSU") were not included in the basic earnings per share calculations for the periods presented, as the applicable vesting conditions had not been satisfied.

------

Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be antidilutive. Performance-based restricted stock units are considered dilutive when the related performance criteria have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows:

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Stock options | 71632 | 103561 |
| Restricted stock units | 2081670 | 2679178 |
| Performance restricted stock units | 250000 | 350000 |
| Series A Preferred Stock on an if-converted basis<sup>(1)</sup> | 7722133 | 7384195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total anti–dilutive common share equivalents | 10125435 | 10516934 |

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(1) As of March 31, 2026, the Series A Preferred Stock plus accumulated dividends totaled $135.1 million. The Series A Preferred Stock has a conversion price of $17.50 per share, as detailed in "*Note 9. Mezzanine Equity*".

**8. Commitments and Contingencies** 

**Purchase Commitments**

The Company has purchase commitments related to hosting services, third-party technology used in the Company's solutions and for other services the Company purchases as part of normal operations. In certain cases these arrangements require a minimum annual purchase commitment.

**Litigation**

In the normal course of business, the Company is involved in various lawsuits and legal proceedings. The Company does not anticipate that any current or pending legal proceedings will have a material adverse effect on the Company's condensed consolidated balance sheets or condensed consolidated statements of operations.

**Letter of Credit**

In conjunction with an operating lease agreement, the Company provided a $0.6 million letter of credit in conformance with the contractual provisions of the lease. The letter of credit expires July 2029. The amount underlying such letter of credit is reflected as restricted cash in the Company's consolidated balance sheets as of March 31, 2026.

**9. Mezzanine Equity**

**Series A Convertible Preferred Stock**

As of March 31, 2026 and December 31, 2025, there were 115,000 shares of Series A Preferred Stock of the Company, par value $0.0001 per share, issued and outstanding. The Series A Preferred Stock was issued on August 23, 2022 for an aggregate purchase price $115.0 million. In connection with the issuance of the Series A Preferred Stock, the Company incurred direct and incremental expenses of $4.6 million comprised of transaction fees, and financial advisory and legal expenses which reduced the carrying value of the Series A Preferred Stock. Holders of the Series A Preferred Stock have certain customary registration rights with respect to any shares of Series A Preferred Stock or the Common Stock of the Company issuable upon conversion of the Series A Preferred Stock, including rights with respect to the filing of a shelf registration statement, underwritten offering rights and piggy back rights.

***<u>Dividend Provisions</u>*** 

The Series A Preferred Stock ranks senior to the Company's Common Stock with respect to payment of dividends and rights on the distribution of assets on any liquidation, dissolution or winding up of the affairs of the Company. The Series A Preferred Stock has an Initial Liquidation Preference of $1,000 per share, representing an aggregate Liquidation Preference (as defined below) of $1,000 upon issuance. Holders of the Series A Preferred Stock are entitled to the dividend at the rate of 4.5% per annum, within the first seven years after August 23, 2022 regardless of whether declared or assets are legally available for the payment. Such dividends shall accrue and compound quarterly in arrears from the date of issuance of the shares. The dividend rate will increase to 7.0% on the seven-year anniversary of August 23, 2022. The dividend can be paid, in the Company's sole discretion, in cash or dividend in kind by adding to the Liquidation Preference of each share of Series A Preferred Stock outstanding. On June 7, 2023, the stockholders of the Company authorized, for purposes of complying with Nasdaq Listing Rules 5635(b) and (d), the issuance of shares of Common Stock underlying shares of Series A Preferred Stock in an amount equal to or in excess of 20% of the Common Stock outstanding immediately prior to the issuance of such Series A Preferred Stock (including upon the operation of anti-dilution provisions contained

------

in the Certificate of Designation designating the terms of such Series A Preferred Stock). The Series A Preferred Stock is also entitled to fully participate in any dividends paid to the holders of Common Stock in cash, in stock or otherwise, on an as-converted basis. The Series A Preferred Stock had accrued unpaid dividends of $20.1 million as of March 31, 2026, representing 1,150,705 Common Stock shares upon conversion at $17.50 per share.

***<u>Liquidation Rights</u>***

In the event of any Liquidation, holders of the Series A Preferred Stock are entitled to receive an amount per share equal to the greater of (1) the Initial Liquidation Preference per share plus any accrued or declared but unpaid dividends on such shares (the "Liquidation Preference") or (2) the amount payable if the Series A Preferred Stock were converted into Common Stock. The Series A Preferred Stock will have distribution and liquidation rights senior to all other equity interests of the Company. As of March 31, 2026, the Liquidation Preference of the Series A Preferred Stock plus accrued and unpaid dividends was $135.1 million.

***<u>Optional Redemption</u>*** 

On or after the 7th anniversary of the original issue date of the Series A Preferred Stock, the Company has the right to redeem any outstanding shares of the Series A Preferred Stock for a cash purchase price equal to 105% of the Liquidation Preference plus accrued and unpaid dividends as of the date of redemption.

***<u>Deemed Liquidation Event Redemption</u>***

Upon a fundamental change, holders of the Series A Preferred Stock have the right to require the Company to repurchase any or all of its Series A Preferred Stock for cash equal to the greater of (1) 105% of the Liquidation Preference plus the present value of the dividend payments the holders would have been entitled to through the fifth anniversary of the issue date and (2) the amount that such Preferred Stock would have been entitled to receive as if converted into common shares immediately prior to the fundamental change.

A fundamental change ("Deemed Liquidation Event") is defined as either the direct or indirect sale, lease, transfer, conveyance or other disposition of all or substantially all the properties or assets of the Company and its subsidiaries to any third party or the consummation of any transaction, the result of which is that any third party or group of third parties become the beneficial owner of more than 50% of the voting power of the Company.

***<u>Voting Rights</u>***

The Series A Preferred Stock will vote together with the common shares on all matters and not as a separate class (except as specifically provided in the Certificate of Designation or as otherwise required by law) on an as-converted basis. The holders of the Series A Preferred Stock will have the right to elect one member of the Board of Directors of the Company (the "Board of Directors") for so long as holders of the Series A Preferred Stock own in the aggregate at least 5% of the shares of Common Stock on a fully diluted basis. In addition, the holders of the Series A Preferred Stock will have the right to elect one non-voting observer to the Board of Directors for so long as they hold at least 10% of the shares of Convertible Preferred Stock outstanding as of the date of the issue date.

***<u>Conversion Feature</u>***

The Series A Preferred Stock may be converted, at any time in whole or in part at the option of the holder into a number of shares of Common Stock equal to the quotient obtained by dividing the sum of the Liquidation Preference plus all accrued and unpaid dividends by the conversion price of $17.50 (the "Conversion Price"). The Conversion Price is subject to adjustment in certain events.

***<u>Anti-Dilution Provisions</u>***

The Series A Preferred Stock has customary anti-dilution provisions for stock splits, stock dividends, mergers, sales of significant assets, and reorganization events and recapitalization transactions or similar events, and weighted average anti-dilution protection, subject to customary exceptions for issuances pursuant to current or future equity-based incentive plans or arrangements (including upon the exercise of employee stock options).

**10. Stockholders' Deficit** 

**Common Stock**

The common stock has a par value of $0.0001 per share. Each share of common stock is entitled to one vote at all meetings of stockholders. The number of authorized shares of common stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of shares of capital stock of the Company representing a majority of the votes represented by all outstanding shares of capital stock of the Company entitled to vote. The holders of common stock are also entitled to receive dividends, when, if and as declared by the board of directors, whenever funds are legally available therefore, subject to the priority rights of any outstanding preferred stock.

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**Share Repurchase Programs**

On August 15, 2025, the Board of Directors authorized a stock repurchase program (the "2025 Share Repurchase Plan") in the aggregate amount of up to $10 million (inclusive of any taxes payable as a result of such repurchase) that would allow the Company to repurchase shares of its issued and outstanding common stock, par value $0.0001 per share. The authorization does not have a specified expiration date. Accordingly, unless terminated earlier by resolution of the Board, the 2025 Share Repurchase Plan will expire when the Company has repurchased all shares authorized for repurchase thereunder. The Company is not obligated to acquire any particular amount of Common Stock and may modify or suspend the repurchases at any time in the Company's discretion.

In the three months ended March 31, 2026, the Company did not purchase shares as part of the 2025 Stock Repurchase Plan. As of March 31, 2026, $9.9 million was still available for share repurchases under the 2025 Share Repurchase Plan.

**Tax Benefit Preservation Plan and Preferred Stock Purchase Rights**

Effective June 5, 2024, the Company entered into the 2024 Tax Benefit Preservation Plan with Broadridge Corporate Issuer Solutions, LLC, as Rights Agent (the "2024 Tax Benefit Preservation Plan"). By adopting the 2024 Tax Benefit Preservation Plan, the Company is seeking to protect its ability to use its net operating loss carryforwards ("NOLs") and other tax attributes to offset potential future income tax liabilities. The Company's ability to use such NOLs and other tax attributes would be substantially limited if the Company experiences an "ownership change," as defined in Section 382 of the Internal Revenue Code. The 2024 Tax Benefit Preservation Plan is intended to make it more difficult for the Company to undergo an ownership change by deterring any person from acquiring 4.9% or more of the outstanding shares of stock without the approval of the Board of Directors.

As part of the 2024 Tax Benefit Preservation Plan, the Board declared a dividend of one preferred stock purchase right (a "2024 Right" and collectively the "2024 Rights") for each outstanding share of Common Stock payable as of June 15, 2024. In connection with the 2024 Tax Benefit Preservation Plan, 27,030,605 2024 Rights were issued. The description and terms of the 2024 Rights are set forth in the 2024 Tax Benefit Preservation Plan. The 2024 Rights trade with, and are inseparable from, the Common Stock, and the record holders of shares of Common Stock are the record holders of the 2024 Rights. The 2024 Rights are not exercisable until the Distribution Date, as defined in the 2024 Tax Benefit Preservation Plan.

After the Distribution Date, each 2024 Right will be exercisable to purchase from the Company one one-thousandth of a share of Series B Junior Participating Preferred Stock, par value $0.0001 per share, of the Company (the "Series B Preferred"), at a purchase price of $15.25 per one one-thousandth of a share of Series B Preferred, subject to adjustment as provided in the 2024 Tax Benefit Preservation Plan. Until a 2024 Right is exercised or exchanged, the holder thereof, as such, will have no rights as a stockholder of the Company by virtue of holding such Right, including, without limitation, the right to vote and to receive dividends. The Board may adjust the Purchase Price, the number of shares of Series B Preferred issuable and the number of outstanding 2024 Rights to prevent dilution that may occur from a stock dividend, a stock split, a reclassification of the Series B Preferred or Common Stock or certain other specified transactions. No adjustments to the Purchase Price of less than 1% are required to be made.

Each one one-thousandth of a share of Series B Preferred, if issued:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Will not be redeemable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Will entitle holders to quarterly dividend payments of $0.001 per one one-thousandth of a share of Series B Preferred, or an amount equal to the dividend paid on one share of Common Stock, whichever is greater.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Will entitle holders upon liquidation either to receive $0.001 per one one-thousandth of a share of Series B Preferred, or an amount equal to the payment made on one share of Common Stock, whichever is greater.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Will have the same voting power as one share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If shares of Common Stock are exchanged as a result of a merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of Common Stock.

**Accumulated Other Comprehensive Income (Loss)**

Comprehensive income consists of two elements, net loss and other comprehensive income (loss). Other comprehensive income (loss) items are recorded in the stockholders' deficit section of the condensed consolidated balance sheets and are excluded from net loss. Other comprehensive income consists primarily of unrealized foreign currency translation adjustments for subsidiaries with functional currencies other than the U.S. dollar, unrealized translation gains (losses) on intercompany loans with foreign subsidiaries when repayment of those loans is not anticipated in the foreseeable future, and gains (losses) on interest rate swaps, net of amounts reclassified into interest expense, net.

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The following table shows the components of accumulated other comprehensive loss, net of income taxes, ("AOCI") in the stockholders' deficit section of the condensed consolidated balance sheets at the dates indicated (in thousands):

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Unrealized foreign currency translation adjustment, net of realized amounts reclassified into loss from divestitures of businesses | $(16331) | $(15223) |
| Unrealized translation losses on intercompany loans with foreign subsidiaries, net of taxes | (2534) | (2605) |
| Unrealized gains on interest rate swaps, net of amounts reclassified into interest expense, net | 1553 | 2690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accumulated other comprehensive loss | $(17312) | $(15138) |

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The unrealized translation losses on intercompany loans considered long-term in nature with foreign subsidiaries as of March 31, 2026 and December 31, 2025 are net of income tax of $1.4 million and $1.5 million, respectively.

The functional currency of foreign subsidiaries are the local currencies. Results of operations for foreign subsidiaries are translated into United States dollars ("USD") using the average exchange rates on a monthly basis during the year. The assets and liabilities of those subsidiaries are translated into USD using the exchange rates in effect at the balance sheet date. The related translation adjustments are recorded in a separate component of stockholders' deficit in AOCI.

The income tax expense/benefit allocated to each component of other comprehensive income for all periods and components is not material. The Company reclassifies taxes from AOCI to earnings as the items to which the tax effects relate are similarly reclassified.

**Stock-Based Compensation**

The Company's stock-based compensation generally includes awards of restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). Key employees, officers and directors of the Company and its consultants or advisors are eligible to receive awards.

The following table summarizes PSU and RSU activity during the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
| | **Number of Units** | **Weighted-Average Grant Date Fair Value** |
| Unvested restricted units outstanding as of December 31, 2025 | 1949383 | $4.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 935000 | 0.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested | (382294) | 3.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (170419) | 3.50 |
| Unvested restricted units outstanding as of March 31, 2026 | 2331670 | $3.57 |

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The PSU and RSU activity table above includes 250,000 PSUs granted in 2025 based on a 100% target payout and still outstanding at March 31, 2026.

Compensation cost related to awards is based on the fair market value at the time of the grant. The fair value of the RSUs is determined based on the grant date fair value of the award. Compensation expense for RSUs is recognized over the required service period of the grant. The PSUs vest upon the achievement of specified market performance thresholds. The PSUs have a vesting condition that is tied to the Company's total shareholder return based on the Company's stock performance up to a maximum of 300%, depending on the specified performance condition and the level of achievement obtained. The fair value of PSUs is determined using the Monte Carlo simulation model. Compensation expense for PSUs is recognized over the requisite service period and is not subject to adjustment regardless of whether the PSUs meet the performance metric.

The Company recognizes stock-based compensation expense from all awards in the following expense categories included in the condensed consolidated statements of income (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Cost of revenue | $86 | $121 |
| Research and development | 83 | 290 |
| Sales and marketing | 30 | 252 |
| General and administrative | 762 | 2012 |
| &nbsp;&nbsp;&nbsp;Total | $961 | $2675 |

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**11. Revenue Recognition**

**Deferred Commissions**

Sales commissions earned by our sales force, and related payroll taxes, are considered incremental and recoverable costs of obtaining a contract with a customer. Deferred commissions and other costs for new customer contracts are capitalized upon contract signing and amortized on a systematic basis that is consistent with the transfer of goods and services over the expected life of the customer relationships, which has been determined to be approximately 6 years. Commissions paid on renewal contracts are not commensurate with commissions paid on new customer contracts, as such, deferred commissions related to renewals are capitalized and amortized over the estimated average contractual renewal term of 18 months. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred commissions are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable consistent with the Company's long-lived assets policy. No indicators of impairment were identified during the three months ended March 31, 2026.

Amortization of deferred commissions in excess of commissions capitalized for the three months ended March 31, 2026 the three months ended March 31, 2025 was $0.2 million and $0.7 million, respectively.

**Deferred Revenue**

Deferred revenue represents either customer advance payments or billings for which the aforementioned revenue recognition criteria have not yet been met.

Deferred revenue is mainly unearned revenue related to subscription services and support services. During the three months ended March 31, 2026, we recognized $30.9 million and $0.6 million of subscription services and professional services revenue, respectively, that was included in the deferred revenue balances at the beginning of the period.

**Remaining Performance Obligations**

As of March 31, 2026, approximately $165.2 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 68% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

**12. Divestitures**

During the three months ended March 31, 2026, the Company did not execute any divestitures. Proceeds for divestitures completed in 2025 included a secured promissory note in the original principal amount of $5.5 million to be repaid quarterly over 5 years bearing interest at 10% annually through maturity in July 2030. At March 31, 2026, the book value of the note receivable was $2.8 million including a reserve for potential credit loss. The Company monitors the collectability of the note and will record adjustments to the estimated net realizable value as deemed necessary until the note is settled. At March 31, 2026, the current portion of the promissory note less associated reserve was $0.8 million and is recorded in prepaid and other current assets on the Company's condensed consolidated balance sheets and the long-term portion of the promissory note less associated reserve was $3.6 million and is recorded in other assets on the Company's condensed consolidated balance sheets.

The Company's interest in this note receivable is a variable interest and the underlying entity is a variable interest entity ("VIE"). The Company is not the primary beneficiary of this VIE because the Company does not individually have the power to direct the activities that are most significant to the entity and accordingly, the VIE is not consolidated.

As part of the divestitures, the Company entered into a transition services agreement ("TSA") with the buyers to assist them in the transition of certain functions, including, but not limited to, information technology, finance and accounting, for an initial period of 60-120 days unless extended by mutual agreement. As of March 31, 2026 and March 31, 2025, the Company has $0.2 million and $2.0 million, respectively, in TSA receivables and escrow due from the buyers recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets.

During the three months ended March 31, 2025, the Company completed the divestitures of certain product lines for combined consideration of $5.5 million and up to $4.0 million in earn-outs over 2 years. The combined net loss on divestitures was $23.5 million for the three months ended March 31, 2025. The Company incurred divestiture-related expenses of $1.7 million during the three months ended March 31, 2025 which are recorded in divestiture-related expenses on the Company's condensed consolidated statements of operations.

**13. Segment Information**

The Company's Chief Executive Officer is considered to be the Company's chief operating decision-maker ("CODM"). The CODM manages the business as a multi-product cloud-based software application business that utilizes a singular operating model to deliver a

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consistently high level of operating performance to customers regardless of their geography or IT environment. Operating results are reviewed by the CODM primarily at the consolidated entity level for purposes of making resource allocation decisions and for evaluating financial performance. Accordingly, the Company has determined that it is a single operating and reporting segment structure. The key measure of profit or loss utilized by the CODM to assess performance of and allocate resources within the Company's single operating segment is net loss. This measure is presented on the condensed consolidated statements of operations. Significant segment expenses included in net loss are cost of revenue, sales and marketing expenses, research and development expenses, general and administrative expenses, depreciation and amortization, interest expense, net and other income (expense), which are presented on the condensed consolidated statements of operations. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.

**14. Subsequent Events**

As previously disclosed by the Company in its Current Report on Form 8-K filed with the SEC on April 10, 2026, on April 7, 2026, the Company received a notification letter (the "Deficiency Notice") from the Nasdaq Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company's common stock has been below the minimum $1.00 per share required for continued listing on The Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (Rule "5450(a)(1)"). The Deficiency Notice is a notice of deficiency, not delisting, and does not currently affect the listing or trading of the Company's common stock on the Nasdaq Global Market. The Company's common stock will continue to trade on the Nasdaq Global Market under the symbol "UPLD" at this time.

The Company intends to actively monitor the closing bid price of its common stock and to consider plans for regaining compliance with Rule 5450(a)(1). While the Company plans to review all available options, there can be no assurance that it will be able to regain compliance with the applicable rules during the 180-day compliance period ending on October 5, 2026, any additional compliance period, or at all.

Additional information regarding the Deficiency Notice can be found in the Company's Current Report on Form 8-K filed with the SEC on April 10, 2026.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

**Forward Looking Statements** 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical information, this Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements may be identified by the use of forward-looking words such as "anticipate," "believe," "may," "will," "continue," "seek," "estimate," "intend," "hope," "predict," "could," "should," "would," "project," "plan," "expect" or the negative or plural of these words or similar expressions, although not all forward-looking statements contain these words.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described in the section titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

**Overview** 

Upland Software, Inc. is a leader in AI-powered knowledge and content management software. Our solutions help enterprises unlock critical knowledge, automate content workflows, and drive measurable ROI—enhancing customer and employee experiences while supporting regulatory compliance. More than 1,100 enterprise customers rely on Upland to solve complex challenges and provide a trusted path for AI adoption.

**Key Metrics and Non-GAAP Financial Measures**

In addition to the GAAP financial measures described below in *"Results of Operations,"* we regularly review the following key metrics and non-GAAP financial measures to evaluate and identify trends in our business, measure our performance, prepare financial projections and make strategic decisions.

***Core Organic Growth Rate***

We use Core Organic Growth Rate as a key performance measure to assess our consolidated operating performance over time and for planning and forecasting purposes. Core Organic Growth Rate is the percentage change between two reported periods in subscription and support revenue, excluding subscription and support revenue from Sunset Assets, subscription and support revenue from divestitures, and Overage Charges, each as defined below. We calculate our year-over-year Core Organic Growth Rate as though all acquisitions or dispositions closed as of the end of the latest period were closed as of the first day of the prior year period presented. Core Organic Growth Rate does not represent actual organic revenue generated by our business as it stood at the beginning of the respective period.

For the three-month period ended March 31, 2026, our Core Organic Growth Rate was 0.25%.

Core Organic Growth Rates are not necessarily indicative of either future results of operations or actual results that might have been achieved had certain Sunset Asset classifications not been made or had certain acquisitions or dispositions been consummated on the first day of the prior year period presented. We believe that this metric is useful to management and investors in analyzing our financial and operational performance period-over-period along with evaluating the growth of our business normalized for the impact of acquisitions and dispositions, as well as adjusting for the exclusion of non-core Sunset Assets and non-committed Overage Charges.

*Related Defined Terms*

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In connection with periodic reviews of our business, we have decided to discontinue the availability of certain non-strategic product offerings and a limited number of non-strategic customer contracts (collectively referred to as "Sunset Assets"). It is possible that during future periodic reviews of our business we may determine to add additional non-strategic product offerings or non-strategic customer contracts to Sunset Assets or remove certain product offerings or customer contracts from the classification of Sunset Assets. In either case, we will adjust the revenues attributable to Sunset Assets and properly reflect the year over year change for such addition or removal.

Overage Charges are subscription and support revenues earned in addition to contractual minimum customer commitments as a result of the usage volume of services including text and e-mail messaging and third-party pass-through costs that exceed the levels stipulated in contracts with the Company.

The following table represents a reconciliation of total revenue, the most comparable GAAP measure, to core organic revenue for each of the periods indicated.

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
|  | *(dollars in thousands)* | *(dollars in thousands)* |
| **Reconciliation of total revenue to core organic revenue:** | **Reconciliation of total revenue to core organic revenue:** |  |
| Total revenue | $48690 | $63655 |
| Less: |  |  |
| &nbsp;&nbsp;Perpetual license revenue | 1295 | 1608 |
| &nbsp;&nbsp;Professional services revenue | 1304 | 1865 |
| &nbsp;&nbsp;Subscription and support revenue from Sunset Assets | 1901 | 2368 |
| &nbsp;&nbsp;Subscription and support revenue from divestitures |  | 12433 |
| &nbsp;&nbsp;Overage Charges | 27 | 1328 |
| Core organic revenue | $44163 | $44053 |

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***Adjusted EBITDA***

We monitor our Adjusted EBITDA to help us evaluate the effectiveness and efficiency of our operations. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss), calculated in accordance with GAAP, adjusted for depreciation and amortization expense, net interest expense, loss on debt extinguishment, net other expense (income), benefit from (provision for) income taxes, stock-based compensation expense, acquisition and divestiture related expense, purchase accounting deferred revenue discount, gains and losses on divestitures of businesses, and impairment charges.

The following table represents a reconciliation of net loss from continuing operations, the most comparable GAAP measure, to Adjusted EBITDA for each of the periods indicated.

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
|  | *(dollars in thousands)* | *(dollars in thousands)* |
| **Reconciliation of Net Loss to Adjusted EBITDA:** | **Reconciliation of Net Loss to Adjusted EBITDA:** | **Reconciliation of Net Loss to Adjusted EBITDA:** |
| Net loss | $(1230) | $(25848) |
| Add: |  |  |
| &nbsp;&nbsp;Depreciation and amortization expense | 6624 | 9661 |
| &nbsp;&nbsp;Interest expense (income), net | 4459 | 2443 |
| &nbsp;&nbsp;Other expense (income), net | 834 | 241 |
| &nbsp;&nbsp;Provision for (benefit from) income taxes | 986 | (1345) |
| &nbsp;&nbsp;Stock-based compensation expense | 961 | 2675 |
| &nbsp;&nbsp;Divestiture-related expenses | 22 | 1745 |
| &nbsp;&nbsp;Non-recurring litigation costs | 1 | 18 |
| &nbsp;&nbsp;Purchase accounting deferred revenue discount | 13 | 35 |
| &nbsp;&nbsp;Loss on divestitures of businesses |  | 23457 |
| Adjusted EBITDA | $12670 | $13082 |

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We believe that Adjusted EBITDA provides useful information to management, investors and others in understanding and evaluating our operating results for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance without regard to items that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, in the preparation of our annual operating budget, as a measure of our operating performance, to assess the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance because Adjusted EBITDA eliminates the impact of items that we do not consider indicative of our core operating performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA provides more consistency and comparability with our past financial performance, facilitates period-to-period comparisons of our operations and also facilitates comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Adjusted EBITDA should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP. The use of Adjusted EBITDA as an analytical tool has limitations such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impairment of goodwill and other intangibles and depreciation and amortization are non-cash charges, and the assets being depreciated or amortized, which contribute to the generation of revenue, will often have to be replaced in the future and Adjusted EBITDA does not reflect cash requirements for such replacements; however, much of the depreciation and amortization relates to amortization of acquired intangible assets as well as the goodwill as a result of business combination purchase accounting adjustments, which will not need to be replaced in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA may not reflect changes in, or cash requirements for, our working capital needs or contractual commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA does not reflect the potentially dilutive impact of stock-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA does not reflect interest or tax payments that could reduce cash available for use; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other companies, including companies in our industry, might calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Adjusted EBITDA together with other financial performance measures, including various cash flow metrics, net loss and our other GAAP results.

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**Results of Operations**

***Consolidated Statements of Operations Data***

The following table set forth our results of operations for the specified periods, as well as our results of operations for the specified periods as a percentage of revenue. The period-to-period comparisons of results of operations are not necessarily indicative of results for future periods.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2026** | **2025** | **2025** |
| | <u>Amount</u> | <u>Percent of Revenue</u> | <u>Amount</u> | <u>Percent of Revenue</u> |
|  | *(dollars in thousands, except share and per share data)* | *(dollars in thousands, except share and per share data)* | *(dollars in thousands, except share and per share data)* | *(dollars in thousands, except share and per share data)* |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription and support | 46091 | 95% | 60182 | 95% |
| &nbsp;&nbsp;&nbsp;Perpetual license | 1295 | 3% | 1608 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total product revenue | 47386 | 98% | 61790 | 98% |
| &nbsp;&nbsp;&nbsp;Professional services | 1304 | 2% | 1865 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 48690 | 100% | 63655 | 100% |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;Subscription and support <sup>(1)(3)</sup> | 11112 | 23% | 16950 | 27% |
| &nbsp;&nbsp;Professional services and other <sup>(1)</sup> | 822 | 2% | 1098 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 11934 | 25% | 18048 | 28% |
| &nbsp;&nbsp;&nbsp;Gross profit | 36756 | 75% | 45607 | 72% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Sales and marketing <sup>(1)</sup> | 9472 | 19% | 13756 | 22% |
| &nbsp;&nbsp;Research and development <sup>(1)</sup> | 8044 | 16% | 11542 | 18% |
| &nbsp;&nbsp;General and administrative <sup>(1)(2)</sup> | 8538 | 18% | 11621 | 18% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5631 | 12% | 7995 | 13% |
| &nbsp;&nbsp;&nbsp;Divestiture-related expenses | 22 | —% | 1745 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 31707 | 65% | 46659 | 73% |
| &nbsp;&nbsp;&nbsp;Income (loss) from operations | 5049 | 10% | (1052) | (1)% |
| Other expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (4459) | (9)% | (2443) | (4)% |
| &nbsp;&nbsp;&nbsp;Loss on divestitures of businesses |  | —% | (23457) | (37)% |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | (834) | (2)% | (241) | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (5293) | (11)% | (26141) | (41)% |
| Loss before benefit from (provision for) income taxes | (244) | (1)% | (27193) | (42)% |
| &nbsp;&nbsp;&nbsp;Benefit from (provision for) income taxes | (986) | (2)% | 1345 | 1% |
| Loss from operations | (1230) | (3)% | (25848) | (41)% |
| Preferred stock dividends and accretion | (1503) | (3)% | (1438) | (2)% |
| Net loss attributable to common shareholders | (2733) | (6)% | (27286) | (43)% |
| Net loss per common share: |  |  |  |  |
| Net loss per common share, basic and diluted | (0.09) |  | (0.97) |  |
| Weighted-average common shares outstanding, basic and diluted | 29159015 |  | 28220936 |  |
| <sup>(1)</sup> Includes stock-based compensation detailed under Share-based Compensation in "*Item 1. Financial Statements—Note 10. Stockholders' Deficit"*. | <sup>(1)</sup> Includes stock-based compensation detailed under Share-based Compensation in "*Item 1. Financial Statements—Note 10. Stockholders' Deficit"*. | <sup>(1)</sup> Includes stock-based compensation detailed under Share-based Compensation in "*Item 1. Financial Statements—Note 10. Stockholders' Deficit"*. | <sup>(1)</sup> Includes stock-based compensation detailed under Share-based Compensation in "*Item 1. Financial Statements—Note 10. Stockholders' Deficit"*. | <sup>(1)</sup> Includes stock-based compensation detailed under Share-based Compensation in "*Item 1. Financial Statements—Note 10. Stockholders' Deficit"*. |
| <sup>(2)</sup> Includes general and administrative stock-based compensation of $0.8 million and $2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. General and administrative expense excluding stock-based compensation as a percentage of total revenues was 16% and 15% for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(2)</sup> Includes general and administrative stock-based compensation of $0.8 million and $2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. General and administrative expense excluding stock-based compensation as a percentage of total revenues was 16% and 15% for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(2)</sup> Includes general and administrative stock-based compensation of $0.8 million and $2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. General and administrative expense excluding stock-based compensation as a percentage of total revenues was 16% and 15% for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(2)</sup> Includes general and administrative stock-based compensation of $0.8 million and $2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. General and administrative expense excluding stock-based compensation as a percentage of total revenues was 16% and 15% for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(2)</sup> Includes general and administrative stock-based compensation of $0.8 million and $2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. General and administrative expense excluding stock-based compensation as a percentage of total revenues was 16% and 15% for the three months ended March 31, 2026 and March 31, 2025, respectively. |
| <sup>(3)</sup> Includes depreciation and amortization of $1.0 million and $1.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(3)</sup> Includes depreciation and amortization of $1.0 million and $1.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(3)</sup> Includes depreciation and amortization of $1.0 million and $1.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(3)</sup> Includes depreciation and amortization of $1.0 million and $1.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. | <sup>(3)</sup> Includes depreciation and amortization of $1.0 million and $1.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. |

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**Comparison of the Three Months Ended March 31, 2026 and 2025** 

See *Note 12. Divestitures* regarding product lines divested in the three months ended March 31, 2025.

***Revenue***

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription and support | $46091 | $60182 | (23)% |
| &nbsp;&nbsp;&nbsp;Perpetual license | 1295 | 1608 | (19)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total product revenue | 47386 | 61790 | (23)% |
| &nbsp;&nbsp;&nbsp;Professional services | 1304 | 1865 | (30)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $48690 | $63655 | (24)% |

---

*For the Three Months Ended March 31, 2026*

Total revenue was $48.7 million in the three months ended March 31, 2026, compared to $63.7 million in the three months ended March 31, 2025, a decrease of $15.0 million, or 24%. This decrease is primarily due to the expected declines in revenue related to divested product lines of $14.0 million and Sunset Assets of $0.5 million. Declines in perpetual license revenue of $0.3 million and professional services revenue of $0.3 million in core products were partially offset by an increase in subscription and support revenue of $0.1 million related to core products.

**Cost of Revenue**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Cost of revenue: |  |  |  |
| &nbsp;&nbsp;Subscription and support <sup>(1)</sup> | $11112 | $16950 | (34)% |
| &nbsp;&nbsp;&nbsp;Professional services and other | 822 | 1098 | (25)% |
| &nbsp;&nbsp;&nbsp;Total cost of revenue | 11934 | 18048 | (34)% |
| &nbsp;&nbsp;&nbsp;Gross profit | $36756 | $45607 | (19)% |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes amortization and stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes amortization and stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes amortization and stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes amortization and stock-based compensation expense as follows: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | $993 | $1666 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $86 | $121 |  |

---

*For the Three Months Ended March 31, 2026*

Cost of subscription and support revenue was $11.1 million in the three months ended March 31, 2026, compared to $17.0 million in the three months ended March 31, 2025, a decrease of $5.9 million, or 34%. The decrease related to divested product lines was $5.7 million attributable to infrastructure costs, variable telecom carrier costs, personnel costs and non-cash amortization of divested intangibles. The decrease related to Sunset assets was $0.2 million, primarily attributable to personnel-related costs. A decrease of $0.3 million in non-cash amortization of intangibles in our on-going product lines was offset by a $0.3 million increase in infrastructure costs.

Cost of professional services and other revenue was $0.8 million in the three months ended March 31, 2026, compared to $1.1 million in the three months ended March 31, 2025, a decrease of $0.3 million, or 25%. The decrease in cost of professional services and other revenue was comprised of a decrease in personnel-related expenses of $0.1 million in our divested product lines and $0.2 million in our on-going product lines due to lower professional services revenue in our core products.

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**Operating Expenses**

***Sales and Marketing Expense***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| &nbsp;&nbsp;Sales and marketing <sup>(1)</sup> | $9472 | $13756 | (31)% |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $30 | $252 |  |

---

*For the Three Months Ended March 31, 2026*

Sales and marketing expense was $9.5 million in the three months ended March 31, 2026, compared to $13.8 million in the three months ended March 31, 2025, a decrease of $4.3 million, or 31%. The decrease related to divested product lines was $2.9 million in personnel-related costs. The remaining decrease was due to declines in personnel-related costs of $0.1 million related to our Sunset Assets, and declines in personnel-related costs of $1.3 million related to our core product lines.

***Research and Development Expense***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Research and development <sup>(1)</sup> | $8044 | $11542 | (30)% |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $83 | $290 |  |

---

*For the Three Months Ended March 31, 2026*

Research and development expense was $8.0 million in the three months ended March 31, 2026, compared to $11.5 million in the three months ended March 31, 2025, a decrease of $3.5 million, or 30%. The decrease in research and development expense is primarily attributable to a $2.1 million decrease in personnel-related costs in our divested product lines and a $1.4 million decrease in personnel-related and contractor costs in our remaining product lines. The decrease in research and development expense in our core product lines reflects the 2025 termination of our out-sourced research and development contract and the continued use of our India Center of Excellence.

***General and Administrative Expense***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| General and administrative <sup>(1)</sup> | $8538 | $11621 | (27)% |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes stock-based compensation expense as follows: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | $762 | $2012 |  |

---

*For the Three Months Ended March 31, 2026*

General and administrative expense was $8.5 million in the three months ended March 31, 2026, compared to $11.6 million in the three months ended March 31, 2025, a decrease of $3.1 million, or 27%. This decrease is primarily due to a decrease of $2.5 million in personnel-related costs related to our on-going product lines due to decreased headcount including a decrease of $1.2 million in non-cash stock-based compensation expense. Software costs related to core product lines declined $0.2 million due to cost savings and professional fees declined $0.1 million. The decrease related to our divested product lines was $0.3 million.

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***Depreciation and Amortization Expense***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Depreciation and amortization: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | $213 | $260 | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 5418 | 7735 | (30)% |
| Total depreciation and amortization | $5631 | $7995 | (30)% |

---

*For the Three Months Ended March 31, 2026*

Depreciation and amortization expense was $5.6 million in the three months ended March 31, 2026, compared to $8.0 million in the three months ended March 31, 2025, a decrease of $2.4 million, or 30%. $0.7 million of the decrease resulted from the decline in amortization from intangible assets associated with Sunset Assets and $1.7 million of the decrease resulted from the decline in amortization from intangible assets associated with our divested product lines.

***Divestiture-related Expenses***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Divestiture-related expenses | $22 | $1745 | (100)% |

---

*For the Three Months Ended March 31, 2026*

Divestiture-related expenses were nominal in the three months ended March 31, 2026, compared to $1.7 million in the three months ended March 31, 2025. In conjunction with the divestitures completed in the first quarter of 2025, we incurred $1.7 million in legal, accounting and other professional fees. Limited divestiture-related expenses were incurred in the three months ended March 31, 2026 as final expenses were incurred related to the 2025 divestitures and no divestitures were executed in 2026.

***Other Expense***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Other expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | $(4459) | $(2443) | (83)% |
| &nbsp;&nbsp;&nbsp;Loss on divestitures of businesses |  | (23457) | (100)% |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | (834) | (241) | 246% |
| Total other expense | $(5293) | $(26141) | (80)% |

---

*For the Three Months Ended March 31, 2026*

Interest expense, net was $4.5 million in the three months ended March 31, 2026 compared to $2.4 million in the three months ended March 31, 2025, an increase of $2.1 million in net interest expense. This was primarily due to the effects of our interest rate derivatives which reduced interest expense by $1.2 million in the three months ended March 31, 2026 and by $3.4 million in the three months ended March 31, 2025, resulting in a $2.2 million year over year increase in interest expense. In addition, interest income for the three months ended March 31, 2026 declined $0.1 million from interest income in the three months ended March 31, 2025 due to lower cash and cash equivalents. These increases were offset by a $0.1 million decline in interest expense, driven by the decrease in our outstanding debt balance, which more than offset the impact of higher interest rates, as well as a $0.2 million reduction related to the amortization of deferred financing costs.

No divestitures were closed in the three months ended March 31, 2026. In the three months ended March 31, 2025, we finalized the divestitures of certain product lines in order to focus on our higher margin and higher growth potential product lines.

Other income (expense), net recognized during the three months ended March 31, 2026 and 2025 was related primarily to foreign currency exchange fluctuations.

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***Benefit from Income Taxes***

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **% Change** |
|  | *(dollars in thousands)* | *(dollars in thousands)* | *(dollars in thousands)* |
| Benefit from (provision for) income taxes | $(986) | $1345 | (173)% |

---

*For the Three Months Ended March 31, 2026*

The provision for income taxes was $1.0 million in the three months ended March 31, 2026, compared to a benefit from income taxes of $1.3 million in the three months ended March 31, 2025, resulting in an additional expense from income taxes of $2.3 million. The provision for income taxes for the three months ended March 31, 2026 relates primarily to income tax from non-U.S. operations. The benefit from income taxes in the three months ended March 31, 2025 relates primarily to the deferred tax benefit from the business divestitures in the first quarter of 2025. This tax benefit is partially offset by the income tax from non-U.S. and U.S. operations.

**Liquidity and Capital Resources** 

We have financed our operations primarily through cash generated from operating activities, the raising of capital including sales of our Common Stock or our convertible preferred stock, and borrowings under credit facilities.

As of March 31, 2026, we had $30.4 million of cash, cash equivalents and restricted cash and $233.7 million of debt outstanding under our Credit Agreement. As of December 31, 2025, we had $30.0 million of cash, cash equivalents and restricted cash and $238.5 million of borrowings outstanding under our previous senior secured credit facility. The $0.4 million increase in cash, cash equivalents and restricted cash from December 31, 2025 to March 31, 2026 was primarily due to $5.6 million in cash inflows from operations netted with $4.8 million in debt repayments made in the three months ended March 31, 2026. Other uses of cash included $0.1 million in purchases of leasehold improvements and equipment and $0.2 million negative effect of exchange rates during the three months ended March 31, 2026.

Our cash and cash equivalents held by our foreign subsidiaries was $13.2 million as of March 31, 2026 and $10.0 million as of December 31, 2025. Our intent is to either permanently reinvest these funds outside the U.S. or use these funds to repay certain long-term intercompany loans. We do not provide for federal income taxes on the undistributed earnings of our foreign subsidiaries.

We believe our available cash and cash equivalents, together with our positive cash flows from operations and the liquidity provided by our $30 million revolving credit facility will be sufficient to meet our anticipated cash needs.

The following table summarizes our cash flows for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
|  | *(dollars in thousands)* | *(dollars in thousands)* |
| Consolidated Statements of Cash Flows data: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | $5603 | $8305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 96 | 3789 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (5109) | (34723) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (207) | (92) |
| Change in cash, cash equivalents and restricted cash | 383 | (22721) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash, beginning of period | 30024 | 57052 |
| Cash, cash equivalents and restricted cash, end of period | $30407 | $34331 |

---

***Cash Flows from Operating Activities***

Cash provided by operating activities is significantly influenced by the amount of cash we invest in personnel and infrastructure to support the growth of our business. Our working capital consists primarily of cash, receivables from customers, prepaid assets, unbilled professional services, deferred commissions, accounts payable, accrued compensation and other accrued expenses, lease liabilities, and deferred revenues. The volume of professional services rendered, the volume and timing of customer bookings and contract renewals, and the related timing of collections on those bookings and renewals, as well as the timing of spending commitments and payments of our accounts payable, accrued expenses, accrued payroll and related benefits, all affect these account balances.

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Cash provided by operating activities was $5.6 million for the three months ended March 31, 2026 compared to cash provided by operating activities of $8.3 million for the three months ended March 31, 2025, a decrease of approximately $2.7 million. This decrease was primarily due to a reduction in accrued compensation and other accrued expenses combined with reduced accounts receivable due to the divestitures completed in 2025.

A substantial source of cash is invoicing for subscriptions and support fees in advance, which is recorded as deferred revenue, and is included on our condensed consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of booked fees for our software subscriptions and support, which is amortized into revenue in accordance with our revenue recognition policy. We assess our liquidity, in part, through an analysis of new subscriptions invoiced, expected cash receipts on new and existing subscriptions, and our ongoing operating expense requirements.

***Cash Flows from Investing Activities***

Historically, our investing activities have consisted of routine purchases of office equipment. Other activities, such as divestitures of businesses including the collections on note receivable from divested product lines, and purchases of other fixed assets, may affect our cash flows from investing activities in such periods as these transactions occur.

Cash provided by investing activities was $0.1 million for the three months ended March 31, 2026 compared to cash provided by investing activities of $3.8 million for the three months ended March 31, 2025, a decrease of $3.7 million. Cash activity consisted of $0.2 million in collections on the note receivable related to divestitures and $0.1 million in purchases of leasehold improvements and equipment for the three months ended March 31, 2026 compared to cash proceeds from divestitures of businesses of $4.2 million and $0.4 million in purchases of leasehold improvements and equipment for the three months ended March 31, 2025.

***Cash Flows from Financing Activities***

Historically, our primary financing activities have consisted of capital raises, proceeds from debt obligations, repayments and servicing of our debt obligations, share repurchases and share based employee payroll tax payment activity.

Cash used in financing activities was $5.1 million for the three months ended March 31, 2026 compared to $34.7 million for the three months ended March 31, 2025, a decrease of $29.6 million of cash used primarily due to $4.8 million in payments on our outstanding debt in the three months ended March 31, 2026 as compared to $34.2 million in payments made in the three months ended March 31, 2025.

**Critical Accounting Policies and the Use of Estimates** 

We prepare our condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The preparation of our condensed consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. We believe that the accounting policy discussed below is critical to understanding our historical and future performance, as this policy relates to a more significant area involving management's judgments and estimates.

***Goodwill Impairment***

We assess goodwill for impairment annually on October 1st, or more frequently when an event occurs which could cause the carrying value of the Company to exceed the estimated fair value of the Company.

As we operate as one reporting unit, the goodwill impairment evaluation is performed at the consolidated entity level by comparing the estimated fair value of the Company to its carrying value. We first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying value. Qualitative factors considered include: industry and market considerations; macroeconomic conditions; and other relevant events and factors. Based on the qualitative assessment, if it is determined that it is more likely than not that the Company's fair value is less than its carrying value, then we perform a quantitative analysis using a fair-value-based approach to determine if the fair value of our reporting unit is less than its carrying value. Performing a quantitative goodwill impairment test includes the determination of the fair value of a reporting unit and involves significant estimates and assumptions. These estimates and assumptions include, among others, revenue growth rates and operating margins used to calculate projected future cash flows, weighted average cost of capital, and future economic and market conditions. See "*Note* 4. Goodwill and Other Intangible Assets for more information.

We are not aware of any specific event or circumstance that would require updates to our estimates or judgments or require us to revise the carrying value of our assets or liabilities as of May 1, 2026, the date of issuance of this Quarterly Report on Form 10-Q. Estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

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**Other Key Accounting Policies** 

Our unaudited interim financial statements and other financial information for the three months ended March 31, 2026, as presented herein and in "*Item 1. Financial Statements*" to this Quarterly Report on Form 10-Q, reflect no material changes in our critical accounting policies and estimates as set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"). Please refer to our Annual Report for a detailed description of our critical accounting policies that involve significant management judgment.

We evaluate our estimates, judgments and assumptions on an ongoing basis, and while we believe that our estimates, judgments and assumptions are reasonable, they are based upon information available at the time. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.

**Recent Accounting Pronouncements**

For information with respect to recent accounting pronouncements and the impact of these pronouncements on our condensed consolidated financial statements, refer to *"Note 2. Basis of Presentation and Summary of Significant Accounting Policies—Recent Accounting Pronouncements"* to our condensed consolidated financial statements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk** 

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.

**Item 4. Controls and Procedures** 

***Evaluation of Disclosure Controls and Procedures***

The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act refers to controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date. Our management has concluded that the condensed consolidated financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented in conformity with GAAP.

***Changes in Internal Control over Financial Reporting***

There were no changes to our internal control over financial reporting (as defined in Rules 13a- 15(f) and 15d- 15(f) of the Exchange Act) during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II – OTHER INFORMATION**

**Item 1. Legal Proceedings**

For discussion regarding our legal proceedings, if any, please refer to *Note 8. Commitments and Contingencies* in our unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

**Item 1A. Risk Factors** 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our 2025 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. There have been no material changes during 2026 to the risk factors that were included in the Company's Annual Report on Form 10-K, other than as set forth below.

***Our failure to meet the continued listing requirements of Nasdaq could result in a delisting of our common stock, which could negatively impact the market price and liquidity of our common stock and our ability to access the capital markets.***

Our common stock is listed on the NASDAQ Global Market, or Nasdaq. In order to maintain this listing, we must satisfy the continued listing requirements and standards of Nasdaq, including a minimum closing bid price requirement for our common stock of $1.00 per share. On April 7, 2026, we received a notification letter from Nasdaq notifying us that, for the last 30 consecutive business days, the closing bid price for our common stock has been below the minimum $1.00 per share required for continued listing on Nasdaq pursuant to Nasdaq Listing Rule 5450(a)(1) ("Rule 5450(a)(1)"). We have 180 calendar days, or until October 5, 2026, to regain compliance with Rule 5450(a)(1) by maintaining a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days, subject to Nasdaq's discretion. If we do not regain compliance with Rule 5450(a)(1) by October 5, 2026, we may be afforded a second 180 calendar day period to regain compliance, subject to meeting applicable listing standards and written notice of our intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split if necessary.

If the closing bid price of our common stock continues to trade below $1.00 per share, we intend to implement a reverse stock split to attempt to regain compliance, as disclosed in our definitive proxy statement filed with the SEC on April 20, 2026. However, a reverse stock split requires stockholder approval, and there can be no assurance that our stockholders will approve the proposal or that a reverse stock split, if effected, would result in our regaining or maintaining compliance with Nasdaq's continued listing requirements.

If we are unable to regain compliance within the applicable cure period, including any available extension, our common stock would be subject to delisting from Nasdaq. Further, even if we regain compliance, we may not be able to sustain compliance with Rule 5450(a)(1) in the long term. A delisting could significantly reduce the liquidity and market price of our common stock, limit investors' ability to buy and sell our common stock, reduce analyst coverage, and negatively affect our ability to access the capital markets or complete strategic transactions on favorable terms, or at all. Delisting could also trigger certain contractual provisions or investor concerns that may further adversely affect us.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

***Issuer Purchases of Equity Securities***

On August 15, 2025, the Board of Directors authorized a stock repurchase program (the "2025 Share Repurchase Plan" as defined in Note *10. Stockholders' Deficit*) in the aggregate amount of up to $10,000,000 (inclusive of any taxes payable as a result of such repurchase). The authorization does not have a specified expiration date. Accordingly, unless terminated earlier by resolution of the Board, the 2025 Share Repurchase Plan will expire when the Company has repurchased all shares authorized for repurchase thereunder. The Company is not obligated to acquire any particular amount of Common Stock and may modify or suspend the repurchases at any time in the Company's discretion.

There were no purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act during the three months ended March 31, 2026. As of March 31, 2026, $9.9 million was still available for share repurchases under the 2025 Share Repurchase Plan.

**Item 5. Other Information**

***Rule 10b5-1 Trading Plans***

On March 9, 2026, Timothy Mattox, who serves on the Company's Board of Directors, adopted a written plan for the sale of up to 58,481 shares of the Company's Common Stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The written plan will expire on August 14, 2026, or on any earlier date on which all of the shares have been sold.

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<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

During the three months ended March 31, 2026, none of our other officers (as defined in Rule 16a-1(f)) or directors adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K under the Securities Act).

**Item 6. Exhibits** 

See the Exhibit Index immediately following this page, which is incorporated herein by reference.

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<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

**EXHIBIT INDEX** 

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| | |
|:---|:---|
| **Exhibit Number** | &nbsp;&nbsp;&nbsp;**Exhibit Description** |
| **Exhibit Number** | &nbsp;&nbsp;&nbsp;**Exhibit Description** |
| <u>[10.1\*](https://www.sec.gov/Archives/edgar/data/1505155/000150515526000001/transitionagreementdatedfe.htm)</u> | &nbsp;&nbsp;<u>[Transition Agreement, dated February 25, 2026, by and between Upland Software, Inc. and John T. McDonald (incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on February 25, 2026).](https://www.sec.gov/Archives/edgar/data/1505155/000150515526000001/transitionagreementdatedfe.htm)</u> |
| <u>[10.2\*+](ceoofferletter-seannathani.htm)</u> | &nbsp;&nbsp;<u>[Offer Letter, dated February 21, 2026, by and between Upland Software, Inc. and Sean Nathaniel](ceoofferletter-seannathani.htm)</u> |
| <u>[31.1\*](q126exhibit311.htm)</u> | &nbsp;&nbsp;<u>[Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q126exhibit311.htm)</u> |
| <u>[31.2\*](q126exhibit312.htm)</u> | &nbsp;&nbsp;<u>[Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q126exhibit312.htm)</u> |
| <u>[32.1\*\*](q126exhibit321.htm)</u> | &nbsp;&nbsp;<u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q126exhibit321.htm)</u> |
| <u>[32.2\*\*](q126exhibit322.htm)</u> | &nbsp;&nbsp;<u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q126exhibit322.htm)</u> |
| 101\* | &nbsp;&nbsp;Inline XBRL (Extensible Business Reporting Language). The following materials from this Quarterly Report on Form 10-Q for the periods ended March 31, 2026, formatted in Inline XBRL: (i) condensed consolidated balance sheets of Upland Software, Inc., (ii) condensed consolidated statements of operations of Upland Software, Inc., (iii) condensed consolidated statements of comprehensive income (loss) of Upland Software, Inc., (iv) condensed consolidated statement of stockholders' deficit of Upland Software, Inc., (v) condensed consolidated statements of cash flows of Upland Software, Inc. and (vi) notes to unaudited condensed consolidated financial statements of Upland Software, Inc. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. |
| 104\* | &nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\*&nbsp;&nbsp;&nbsp;&nbsp; Filed herewith.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Furnished herewith.

+&nbsp;&nbsp;&nbsp;&nbsp;Certain personal information in this exhibit has been omitted in accordance with Regulation S-K Item 601(a)(6).

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<u>[**Table of Contents**](#idb9f32c501c14260b18130ad7adee007_7)</u>

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | UPLAND SOFTWARE, INC. |
| Dated: May 1, 2026 | /s/ Michael D. Hill |
| | Michael D. Hill |
| | Chief Financial Officer |

---

## Exhibit 10.2

**Certain information has been excluded from this agreement (indicated by "[\*\*\*]") because Upland Software, Inc. has determined that such information (i) is not material and (ii) constitutes personal information.**

![image_0.jpg](image_0.jpg)

401 Congress Avenue

Suite 1850

Austin, TX 78701

833-UPLAND-1

![image_1.jpg](image_1.jpg)

February 21, 2026

Sean Nathaniel

[\*\*\*]

Dear Sean,

We are very pleased to offer you the position of **Chief Executive Officer** with Upland Software, Inc. (the "<u>Company</u>"), working in our Austin office, starting on **May 1, 2026** and reporting to the Board of Directors (the "<u>Board</u>"). If you accept our offer, your compensation and benefits will be as outlined in the attached <u>Compensation Schedule</u>. The offer letter and Compensation Schedule are referred to herein as the "<u>Agreement</u>." We are very excited about you joining and look forward to a beneficial and productive relationship!

Part of your employment with the Company includes your reviewing and signing the Company's Employee Proprietary Information Agreement ("<u>EPIA</u>"), which is attached to this Agreement. Few documents you sign at the Company will be as important as this one, which focuses on your obligations as an employee to (i) protect all confidential, proprietary, or trade secret information that you receive here or that you may have received from other employers, (ii) assign rights to any technology developed during your employment at the Company, (iii) refrain from competitive activities and (iv) preserve the goodwill of the Company, its employees and customers. The EPIA requires that you agree not to bring any third-party confidential information to the Company, including that of your former employers, and that in performing your duties for the Company you will not in any way utilize any such information. Likewise, we also ask that, if you have not already done so, you disclose to the Company any agreements relating to your former employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed.

The Company reserves the right to conduct background investigations and/or successful reference checks on all of its potential employees. Therefore, your job offer is contingent upon a clearance of such a background investigation and/or reference check. In addition, for purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated.

You should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice.

This offer will remain open **for 24 hours from delivery.** To accept the Company's offer, please sign and date this Agreement in the space provided below and return it with your signed EPIA. Please note that we must receive your signed EPIA before your first day of employment. This Agreement, along with the EPIA and Compensation Schedule, set forth the terms of your employment with the Company and supersedes any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or

MF-367068666

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pre-employment negotiations, whether written or oral. This Agreement, including, but not limited to, its at-will employment provision, may not be modified or amended except by a written agreement signed by the Board and you.

By signing this Agreement (including electronically), I understand and agree that if the Company gives me an accidental overpayment, a loan or a wage advance and I have not repaid the accidental overpayment, loan or wage advance by the time I leave the Company, I understand and agree that the balance of such overpayments, loans or advances will be deducted from my final paycheck and/or final payment that I am entitled to receive, to the fullest extent permitted by law. I also agree that the cost of replacing or repairing any Company supplies, materials equipment, or other property that I damage or fail to return may be deducted from my paycheck, including my final paycheck and/or final payment that I am entitled to receive, as permitted by law. I also agree to reimburse the Company for any personal charges made to corporate credit cards, and if I do not reimburse the Company, I authorize the Company to deduct such amounts for personal charges to corporate credit cards from my paycheck, including my final paycheck and/or final payment that I am entitled to receive, unless otherwise prohibited by law.

We look forward to your favorable reply and to working with you at Upland Software, Inc.

Kindest Regards,

/s/ David May

David May

Lead Independent Director

Agreed to and accepted:

Signature:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Sean Nathaniel&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Printed Name: Sean Nathaniel

Date:&nbsp;&nbsp;&nbsp;&nbsp;<u>February 22, 2026&nbsp;&nbsp;&nbsp;&nbsp;</u>

Enclosures: Employee Proprietary Information Agreement

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**<u>Compensation Schedule</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**<u>Salary</u>**<u>:</u> Your gross annual base salary will be **$600,000.00** per year (the "<u>Base Salary</u>"). The Base Salary will be paid in regular installments in accordance with the Company's normal payroll practices (subject to required withholding). While employed by the Company, your compensation shall be reviewed by the Board from time to time and at least once every twelve (12) months. Any increase or decrease in Base Salary (together with the then existing Base Salary) shall serve as the "Base Salary" under this Agreement. The first and last payment will be adjusted, if necessary, to reflect a commencement or termination date other than the first or last working day of a pay period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**<u>Bonus:</u>** During your employment, you will be eligible to receive an annual bonus of up to **$400,000** (prorated for your time in service to the Company for FY2026), less applicable withholdings, upon achievement of performance objectives to be determined by the Board or the Compensation Committee of the Board in its sole discretion, which shall be based upon, among other things, achievement of revenue, acquisition and EBITDA targets. Any annual bonus will be earned only if the Company achieves the annual performance objectives during the designated time period, you are continuously employed by the Company through and including the last day of the bonus year, and you are not terminated for Cause before the date the annual bonus is paid. The Company shall pay such annual bonus at the same time as bonuses are normally paid to senior management, unless the Board approves an exception for payment of a particular bonus on a case by case basis, but in any event, any earned annual bonus shall be paid no later than two (2) months and fifteen (15) days after the end of the Company's taxable year in which such annual bonus was earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**<u>Equity Awards:</u>** As a material inducement to your acceptance of this employment offer, subject to approval by the Board or the Compensation Committee of the Board, you will be granted (i) Restricted Stock Units ("<u>RSUs</u>") relating to 500,000 of the Company's common shares, which, subject to your continued service with the Company (except as provided in Section 4(b) below), will vest with respect to 1/12<sup>th</sup> of the full RSU award on each quarterly anniversary of the grant date, with any fractional RSUs rolling over into the next quarter and with the final quarterly tranche vesting on the day prior to the 3<sup>rd</sup> anniversary of the grant date, and (ii) Performance-Based Restricted Stock Units ("<u>PRSUs</u>"), which, subject to your continued service with the Company and achievement of applicable performance goals (in each case, except as provided in Section 4(b) below), will vest with respect to 133,333 PRSUs upon achievement of "target" performance and 500,000 PRSUs upon achievement of "maximum" performance. The Performance metrics and goals applicable to the PRSUs will be determined by the Board or the Compensation Committee and reflected in your PRSU award agreement; provided, that, upon a Change in Control (as that term is defined in the Company's 2024 Omnibus Incentive Plan (the "<u>Plan</u>")), if the Change in Control occurs (a) on or before the first anniversary of the grant date, all then unvested PSUs will vest immediately prior to the Change in Control at the maximum level, and (b) after the first anniversary of the grant date, all then unvested PSUs will vest immediately prior to the Change in Control based on the actual level of achievement against the performance goals measured through the Change in Control (based on the per-share consideration payable in the Change in Control, to the extent the performance goals relate to stock price) rather than being measured through the last day of the performance period. The RSUs and PRSUs are granted as inducement awards under NASDAQ Listing Rule 5635(c)(4). Accordingly, they will be granted outside of the Plan, and the RSUs and PRSUs shall not count against the share reserve under the Plan and the awards will not be covered by the Plan's Form S-8 Registration Statement. However, the Award will be governed in all respects as if issued under the Plan. The RSUs and PRSUs shall be governed in all respects by the terms of the Plan, and RSU and PRSU award agreements between you and the Company, with the form of such award agreements being materially consistent with the forms of award agreements most recently used by the Company for executive equity awards, subject to any modifications needed to reflect the vesting terms described above. You will be eligible for future annual grants of additional equity awards pursuant to the process applicable to other members of the executive leadership team, with the terms of any such grants to be

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determined in the sole discretion of the Board or the Compensation Committee of the Board. Additionally, we expect that you would be recommended to the Compensation Committee of the Board of Directors to receive an additional 500,000 RSUs for each of FY 2027 and 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**<u>Severance:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**For Cause Termination by the Company; Voluntary Termination without Good Reason by You**. The Company may terminate your employment for Cause immediately by giving you written notice. You can terminate your employment at any time without Good Reason by giving the Company 60 days' advance written notice. If the Company terminates your employment for Cause or if you terminate your employment without Good Reason, then you will: (i) receive the earned but unpaid Base Salary and, other than upon a termination for Cause, any annual bonus relating to the year preceding the year of termination that was earned, but, as of the termination date, had not yet been paid; (ii) any accrued but unpaid vacation pay for the fiscal year during which the termination occurs and unreimbursed expense reimbursement (4(a)(i)-(ii) are the "<u>Accrued Obligations</u>"); and (iii) not receive any other compensation or benefits from the Company except as may be required by law or in accordance with established Company plans and policies; *provided, however,* nothing herein shall be deemed to alter or affect your vested rights in any pension, 401(k) or other benefit plan with the Company, if any. You will be paid all of the Accrued Obligations on the Company's first payroll date after your date of termination from employment or earlier if required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Termination Without Cause by the Company; Termination For Good Reason by You.** The Company can terminate your employment without Cause at any time by giving you written notice. You may resign your employment for Good Reason by following the procedures in the Good Reason definition below. If the Company terminates your employment without Cause or if you terminate your employment for Good Reason, then, subject to your compliance with all requirements in Section 4(d), (i) you shall be entitled to receive severance in the form of continuation of your Base Salary in effect on the effective date of termination for a period of twelve (12) months after the date of such termination to be paid periodically, following the Release Effective Date, in accordance with the Company's normal payroll practices; (ii) (A) the portion of your then outstanding and unvested RSUs (and any other Company equity awards with vesting tied solely to continued service) that would have vested had you remained employed for twelve (12) months after the date of such termination shall vest as of the termination date (with any remaining portion forfeited) and (b) your PSUS (and any other Company equity awards with vesting tied to achievement of performance goals) shall remain outstanding and you will remain eligible to vest in a prorated portion of such awards, with such prorated portion equal to the product of (x) the number of PSUs (or other performance-based units) earned based on actual performance over the full performance period (or through the date of a Change in Control, if earlier), multiplied by (y) a fraction, the numerator of which is the number of days from and including the grant date through and including the date of termination and the denominator of which is the total number of days in the performance period (with any remaining portion forfeited); and (iii) if you timely elect continued coverage under COBRA for you or your covered dependents under the Company's group health plans, the Company shall reimburse you for the employer-portion of the COBRA premiums, with the employer portion of such premiums being equal to the employer portion of the regular premiums the Company was paying for your (and your covered dependents, if applicable) health insurance coverage in effect for you (and your covered dependents, if applicable) on the termination date until the earliest of: (a) the twelve (12) month anniversary of the date of termination; (b) the date you commence new employment or self-employment that offers substantially equivalent health care coverage (and you agree to notify the Company of such other employment prior to the effective date thereof); or (c) the date you cease to be eligible for COBRA continuation coverage

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for any reason. Notwithstanding the foregoing, upon your material breach of this Agreement or the EPIA, the Company shall no longer be obligated to pay any amounts set forth in clauses 4(b)(i)-(iii), and you shall not be entitled to receive any further monthly installments of the severance payments set forth in clauses 4(b)(i)-(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Death or Disability.** Upon termination of your employment for either death or Disability, you or your estate, as the case may be, shall be entitled to receive the Accrued Obligations, but you and your estate will not be eligible for any of the payments set forth in clauses 4(b)(i)-(iii). Further, subject to your compliance with all requirements in Section 4(d), any equity grants which are unvested at the time of the termination of the your employment due to death or Disability shall automatically accelerate and become fully vested effective upon the date of such termination (with performance-based equity awards vesting at the target level). Upon termination of your employment due to death or Disability pursuant to this Section 4(c), you or your estate, as the case may be, shall have no further rights to any compensation or any other benefits under this Agreement except as explicitly provided herein. All other benefits, if any, due after your termination for death or Disability shall be determined in accordance with established Company plans and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Requirements for Severance.** You (and your estate as the case may be) shall receive the payments in Section 4(b)(i)-(iii) and acceleration of any equity for death or disability of this Agreement only if: (i) following the date of your termination of employment from the Company, you have signed and delivered to the Company a separation agreement containing a standard release of claims, in the form presented by and acceptable to the Board, which cannot be revoked in whole or part by such date (the date that the release can no longer be revoked is referred to as the "<u>Release Effective Date</u>"); and (ii) if you hold any other positions with the Company or any affiliate, including a position on the Board, you resign such position(s) to be effective no later than the date of your termination date (or such other date as requested by the Board); (iii) you return all Company property; (iv) you comply with your post-termination obligations under this Agreement and the EPIA; and (v) you comply with the terms of the separation agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**<u>Definitions:</u>** For purposes of this Agreement, the following terms shall have the meaning ascribed to each such term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Cause.** "<u>Cause</u>" means (i) your willful failure to perform the duties and obligations of your position with the Company; (ii) any material act of personal dishonesty, fraud or misrepresentation taken by you which was intended to result in substantial gain or personal enrichment of you at the expense of the Company; (iii) your violation of a federal or state law or regulation applicable to the Company's business which violation was or is reasonably likely to be materially injurious to the Company; (iv) your conviction of, or plea of nolo contendere or guilty to, a felony under the laws of the United States or any State, excluding felonies for minor traffic violation and vicarious liability (so long as you did not know of the felony and did not willfully violate the law); (v) your material breach of the terms of this Agreement or the EPIA; or (vi) your material violation of any written Company policy applicable to senior executives, including without limitation policies relating to harassment, discrimination, workplace conduct, ethics or compliance. The Board may place you on paid leave for up to thirty (30) days while it is determining whether there is a basis to terminate your employment for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Disability.** "<u>Disability</u>" means your inability to perform your duties due to your physical or mental incapacity, as reasonably determined by the Board or its designee, for an aggregate of 180 days (whether consecutive or not) in any 365 consecutive day period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Good Reason.** "<u>Good Reason</u>" means, (i) without your consent, a material reduction of your duties or responsibilities relative to your duties or responsibilities as in effect immediately prior to such reduction; *provided*, *however*, any reduction in your duties or responsibilities resulting solely from the Company being acquired by and made a part of a larger entity (as, for example, when a chief executive officer becomes the chief executive officer of a subsidiary of the acquiring corporation following a change of control but is not the chief executive officer of the acquiring corporation) shall not constitute Good Reason; (ii) without your written consent, a material reduction in your Base Salary as in effect immediately prior to such reduction, unless such reduction is part of a reduction in expenses generally affecting senior executives of the Company; (iii) without your consent, a material reduction by the Company in the kind or level of employee benefits to which you were entitled immediately prior to such reduction, with the result that your overall benefits package is materially reduced, unless such reduction is part of a reduction in benefits generally affecting senior executives of the Company; or (iv) without your consent, your relocation to a facility or a location more than twenty-five (25) miles from your present working location (currently Austin, Texas). Good Reason shall not exist unless you provide: (i) notice to the Company within ninety (90) days of the initial existence of the condition triggering Good Reason and (ii) the Company the opportunity of at least thirty (30) days to cure such condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**<u>Tax Code Compliance</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Section 409A.** The Company intends that all payments made under this Agreement comply with, or are exempt from, the requirements of Section 409Aof the Internal Revenue Code of 1986, as amended, and any guidance promulgated thereunder *(*"<u>Section 409A</u>"*)* so that none of the payments or benefits will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. If, at the time of your termination of employment, you are a "specified employee" within the meaning of Section 409A and the severance benefits payable under this Agreement, when considered together With any other severance payments or separation benefits, are considered nonqualified deferred compensation under Section 409A (together, the "<u>Deferred Payments</u>"), payment of such Deferred Payments will be delayed to the extent necessary to avoid the imposition of the additional tax imposed under Section 409A, which generally means that you will receive payment on the first payroll date that occurs on or after the date that is six (6) months and one (1) day following your termination of employment. You and the Company agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A. In no event will the Company reimburse you for any taxes that may be imposed on you as a result of Section 409A. Notwithstanding any provision to the contrary in this Agreement, with respect to any amounts under this Agreement that are determined to be deferred compensation for purposes of Section 409A and payable as a result of your termination of employment, you shall not be deemed to have terminated employment unless and until you have experienced a "separation from service" (as that term is used in Section 409A). Payments pursuant to this Agreement are intended to constitute separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i) and payments of continued salary pursuant to Section 4(b) are intended to constitute a series of separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii). Any reimbursements or in-kind benefits provided to or for your benefit that constitute deferred compensation for purposes of Section 409A shall be provided in a manner that complies with Treasury Regulation Section 1.409A-3(i)(1)(iv). Accordingly, (a) all such reimbursements will be made not later than the last day of the calendar year after the calendar year in which the expenses were incurred, (b) any right to such reimbursements or in-kind

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benefits will not be subject to liquidation or exchange for another benefit, and (c) the amount of the expenses eligible for reimbursement, or the amount of any in-kind benefit provided, during any taxable year will not affect the amount of expenses eligible for reimbursement, or the in-kind benefits provided, in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**280G.** In the event that the severance and other benefits provided for in this Agreement or otherwise payable to you (i) constitute "parachute payments" within the meaning of Section 280G of the Code and (ii) but for this Section 6(b), would be subject to the excise tax imposed by Section 4999 of the Code, then your severance and other benefits will be either: (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such severance and other benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by you on an after-tax basis, of the greatest amount of severance and other benefits, notwithstanding that all or some portion of such severance and other benefits may be taxable under Section 4999 of the Code. Unless the Company and you otherwise agree in writing, any determination required under this Section 6(b) will be made in writing by the Company's independent public accountants immediately prior to a change of control transaction (the "<u>Accountants</u>"), whose determination will be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this Section 6(b), the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 6(b). The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 6(b). In the event the Accountants determine that this Section 6(b) requires a reduction in your severance or other benefits, the reduction will occur in the following order: reduction of cash payments; reduction of employee benefits; cancellation of accelerated vesting of equity awards; cancellation of equity awards that are considered to be contingent upon the change of control transaction. If you fail to make an appropriate reduction election within the reasonable time period determined by the Board, in its sole discretion, the order of reduction shall be determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**<u>Notices</u>:** All notices, requests, and other communications hereunder must be in writing and will be deemed to have been duly given only if (i) delivered personally or by overnight courier, (ii) delivered by facsimile transmission with delivery confirmation, or (iii) mailed (postage prepaid by certified or registered mail, return receipt requested) (effective three business days following mailing) to you at the address set forth on the first page hereof or to the Company at the Company's then-current principal executive office. An electronic communication ("<u>Electronic Notice</u>") shall be deemed written notice for purposes of this Agreement if sent with return receipt requested to the electronic mail address specified by the receiving party. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form ("<u>Nonelectronic Notice</u>") which shall be sent to the requesting party within five (5) days after receipt of the written request for Nonelectronic Notice. Any party from time to time may change its address, facsimile number, electronic mail address, or other information for the purpose of notices to that party by giving written notice specifying such change to the other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**<u>Benefits</u>**<u>:</u> The Company offers employees and their eligible dependents a comprehensive benefits package, including medical, dental, life and disability insurance. In addition, you will have the opportunity to participate in a 401(k) savings plan. Benefits are all effective on your first day of

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employment with the Company. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**<u>Holidays Open Time off and Holidays</u>**<u>:</u> The Company provides Open Time Off and observes ten (10) paid holidays per year. Open Time Off would include flexibility for time off for any potential family leave, to be coordinated with your manager at the time of the leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**<u>Position and Duties:</u>** You will serve as Chief Executive Officer of the Company. During your employment, you will render such business and professional services in the performance of your duties as are customarily associated with your positions within the Company and you agree to perform such other duties and functions as shall from time to time be reasonably assigned or delegated to you by the Board of Directors (the "<u>Board</u>"). You will perform your duties faithfully and to the best of your ability and will devote your full business efforts and time to the Company. During your employment, you shall not engage in any other employment, occupation or consulting activity with remuneration without the prior written consent of the Board. Additionally, it is our expectation that you will be added to the Board as a Director on or after January 1, 2027, once Tim Mattox qualifies as an independent director, which allows the Company to comply with Nasdaq requirements regarding director independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.**<u>At-Will Employment</u>:** You and the Company agree and acknowledge your employment with the Company constitutes "at-will" employment. You and the Company further agree and acknowledge that this employment relationship may be terminated at any time, with or without Cause or Good Reason, at the option of either you or the Company. You understand and agree that neither your job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of your employment with the Company.

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION PURSUANT TO RULES 13A-14(A) AND 15D-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Sean Nathaniel, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Upland Software, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2026

---

| |
|:---|
| /s/ Sean Nathaniel |
| Sean Nathaniel |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION PURSUANT TO RULES 13A-14(A) AND 15D-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael D. Hill, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Upland Software, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2026

---

| |
|:---|
| /s/ Michael D. Hill |
| Michael D. Hill |
| Chief Financial Officer |
| (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1** 

**CERTIFICATION PURSUANT TO** 

**18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report of Upland Software, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Sean Nathaniel, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 1, 2026

---

| |
|:---|
| /s/ Sean Nathaniel |
| Sean Nathaniel |
| Chief Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2** 

**CERTIFICATION PURSUANT TO** 

**18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report of Upland Software, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael D. Hill, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 1, 2026

---

| |
|:---|
| /s/ Michael D. Hill |
| Michael D. Hill |
| Chief Financial Officer |

---

<br>