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AUSTIN, Texas - Upland Software, Inc. (NASDAQ:UPLD) announced Monday it has secured a $240 million, six-year term loan from private credit direct lender Sound Point Capital, extending its debt maturity to 2031. The refinancing package also includes a $30 million revolving credit facility to enhance the company’s liquidity position. According to InvestingPro data, this refinancing comes at a crucial time as the company’s current ratio stands at 0.83, indicating short-term obligations exceed liquid assets.
The new credit agreement replaces Upland’s existing debt structure, providing the AI-powered knowledge and content management software provider with extended financial flexibility. The company’s total debt stood at $259.42 million as of Q1 2025, with a debt-to-capital ratio of 59%.
"This refinancing enhances our financial flexibility, allowing us to invest further in our AI-powered knowledge and content management software solutions," said Jack McDonald, Chief Executive Officer and Chairman of Upland Software, in a press release statement. While the company maintains a strong gross profit margin of 71%, InvestingPro analysis shows the stock has declined over 57% in the past six months, with analysts recently revising earnings expectations downward.
Andrew Eversfield, Co-Head of Sound Point Direct Lending, noted that the lender’s "one-stop lending platform was the optimal solution for Upland Software’s next phase of growth."
Morrison & Foerster LLP served as legal advisor to Upland Software during the transaction, while Paul Hastings LLP advised Sound Point Capital.
Upland Software, which serves more than 1,100 enterprise customers, specializes in AI-powered knowledge and content management software solutions. The company’s products help enterprises automate content workflows and enhance customer and employee experiences. With annual revenue of $267.7 million and an EBITDA of $40.9 million, detailed analysis of Upland’s financial health and growth prospects is available in the comprehensive Pro Research Report on InvestingPro, along with additional exclusive insights and real-time metrics.
Sound Point Capital, founded in 2008, is an alternative asset management firm specializing in credit strategies. The New York-based firm currently manages over $43 billion in assets.
In other recent news, Upland Software reported its Q1 2025 earnings, which surpassed expectations. The company achieved revenue that exceeded forecasts, demonstrating strong financial performance alongside robust adjusted EBITDA and free cash flow. Additionally, Upland Software announced a significant leadership change as President and Chief Operating Officer Karen Cummings will retire, with Daniel Doman stepping into the role of Chief Product and Operating Officer. In a strategic move, Upland divested its Mobile Messaging product line, netting $10 million and reducing its full-year 2025 revenue by $25 million, though it is not expected to impact adjusted EBITDA. Needham maintained a Hold rating on Upland Software, acknowledging the company’s efforts to streamline operations and refine its product portfolio. Furthermore, Upland’s BA Insight platform is now available in the AWS Marketplace, enhancing access to its AI enablement and enterprise search solutions. These developments reflect Upland Software’s strategic adjustments and operational focus in the current market environment.
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