Needham upgraded Upland Software Inc. (NASDAQ:UPLD) from Hold to Buy with a $4.50 price target, highlighting improving fundamentals and cash flow clarity.

The firm said it made the upgrade after investor meetings with CFO Mike Hill, noting that Upland has streamlined its product portfolio, reinstated field sales, and refinanced its debt. These changes have stabilized the business and provided visibility into cash generation.

Upland is expected to deliver more than $20 million in annual free cash flow, with shares trading at under 4x free cash flow and 5x fiscal 2026 earnings. Needham argued that using cash to pay down high-interest debt would drive 10% or greater annual free cash flow growth even without revenue or margin expansion.

The analysts added that de-leveraging could attract new investor interest following the recent debt refinancing, which removed near-term liquidity concerns.