Needham lowers Urgent.ly stock price target to $8 from $12 on Q2 results

Published 13/08/2025, 13:04
Needham lowers Urgent.ly stock price target to $8 from $12 on Q2 results

Investing.com - Needham has lowered its price target on Urgent.ly (NASDAQ:ULY) stock to $8.00 from $12.00 while maintaining a Buy rating following the company’s second-quarter results. The stock currently trades at $5.08, down over 58% in the past year. According to InvestingPro analysis, the company appears slightly undervalued at current levels.

The research firm cited Urgent.ly’s technological advantages over competitors, recent contract wins, and favorable year-over-year comparisons as factors that position the company to win new business and grow revenues in the near term.

Needham expects Urgent.ly to maintain stable gross margins and continue disciplined operational expense management as it moves past higher expense levels from the previous year.

The firm’s long-term estimates remain conservative compared to Urgent.ly’s own revenue growth and gross margin guidance, with Needham identifying the balance sheet as the only remaining headline issue for the company.

The new $8 price target represents a 10x multiple on Needham’s fiscal year 2026 adjusted EBITDA estimate, with the firm suggesting Urgent.ly will be in a stronger position to secure new capital at lower rates in 2026.

In other recent news, Urgent.ly Inc. reported its financial results for the second quarter of 2025, significantly missing earnings per share (EPS) forecasts. The company posted an EPS of -$4.50, which was far below the projected -$0.18, marking a notable earnings surprise. Revenue for the quarter was $31.7 million, representing an 8% decline compared to the same period last year. Despite these results, the company’s stock remained stable in aftermarket trading. These recent developments are crucial for investors to consider.

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