diff --git a/CHANGELOG.md b/CHANGELOG.md
index 205b4caeb6..dbb49e39ed 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,15 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [0.40.0] - 2025-03-06
+
+This release reverts the usage of the polkadot-sdk umbrella crate, which was causing issues such as an increased number of dependencies in Cargo.lock. For more details, see #1925.
+
+Additionally, this update bumps the Polkadot SDK-related dependencies to their latest versions, ensuring compatibility and stability.
+
+### Fixed
+- Remove usage of polkadot-sdk umbrella crate ([#1926](https://github.com/paritytech/subxt/pull/1926))
+
 ## [0.39.0] - 2025-02-04
 
 This release is mostly bug fixes and changes. The only change that should be a breaking change is removing the `substrate-compat` feature flag (see [#1850](https://github.com/paritytech/subxt/pull/1850)), which we'll go into more detail about.
diff --git a/Cargo.lock b/Cargo.lock
index 53750c411d..9b3677f5e3 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -292,7 +292,7 @@ checksum = "96d30a06541fbafbc7f82ed10c06164cfbd2c401138f6addd8404629c4b16711"
 
 [[package]]
 name = "artifacts"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "substrate-runner",
 ]
@@ -1892,7 +1892,7 @@ dependencies = [
 
 [[package]]
 name = "generate-custom-metadata"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "frame-metadata",
  "parity-scale-codec",
@@ -2399,7 +2399,7 @@ dependencies = [
 
 [[package]]
 name = "integration-tests"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "assert_matches",
  "cfg_aliases",
@@ -5158,7 +5158,7 @@ dependencies = [
 
 [[package]]
 name = "substrate-runner"
-version = "0.39.0"
+version = "0.40.0"
 
 [[package]]
 name = "subtle"
@@ -5168,7 +5168,7 @@ checksum = "81cdd64d312baedb58e21336b31bc043b77e01cc99033ce76ef539f78e965ebc"
 
 [[package]]
 name = "subxt"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "assert_matches",
  "async-trait",
@@ -5215,7 +5215,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-cli"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "clap",
  "color-eyre",
@@ -5245,7 +5245,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-codegen"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "frame-metadata",
  "getrandom",
@@ -5262,7 +5262,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-core"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "assert_matches",
  "base58",
@@ -5296,7 +5296,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-lightclient"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "futures",
  "futures-timer",
@@ -5321,7 +5321,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-macro"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "darling",
  "parity-scale-codec",
@@ -5340,7 +5340,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-metadata"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "bitvec",
  "criterion",
@@ -5355,7 +5355,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-signer"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "base64 0.22.1",
  "bip32",
@@ -5388,7 +5388,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-test-macro"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "quote",
  "syn 2.0.87",
@@ -5396,7 +5396,7 @@ dependencies = [
 
 [[package]]
 name = "subxt-utils-fetchmetadata"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "frame-metadata",
  "hex",
@@ -5464,7 +5464,7 @@ dependencies = [
 
 [[package]]
 name = "test-runtime"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "hex",
  "impl-serde",
@@ -5879,7 +5879,7 @@ checksum = "42ff0bf0c66b8238c6f3b578df37d0b7848e55df8577b3f74f92a69acceeb825"
 
 [[package]]
 name = "ui-tests"
-version = "0.39.0"
+version = "0.40.0"
 dependencies = [
  "frame-metadata",
  "generate-custom-metadata",
diff --git a/Cargo.toml b/Cargo.toml
index f266593c0d..e73761f1dd 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -34,7 +34,7 @@ resolver = "2"
 [workspace.package]
 authors = ["Parity Technologies <admin@parity.io>"]
 edition = "2021"
-version = "0.39.0"
+version = "0.40.0"
 rust-version = "1.81.0"
 license = "Apache-2.0 OR GPL-3.0"
 repository = "https://github.com/paritytech/subxt"
@@ -147,14 +147,14 @@ sp-state-machine = { version = "0.44.0", default-features = false }
 sp-runtime = { version = "40.0.1", default-features = false }
 
 # Subxt workspace crates:
-subxt = { version = "0.39.0", path = "subxt", default-features = false }
-subxt-core = { version = "0.39.0", path = "core", default-features = false }
-subxt-macro = { version = "0.39.0", path = "macro" }
-subxt-metadata = { version = "0.39.0", path = "metadata", default-features = false }
-subxt-codegen = { version = "0.39.0", path = "codegen" }
-subxt-signer = { version = "0.39.0", path = "signer", default-features = false }
-subxt-lightclient = { version = "0.39.0", path = "lightclient", default-features = false }
-subxt-utils-fetchmetadata = { version = "0.39.0", path = "utils/fetch-metadata", default-features = false }
+subxt = { version = "0.40.0", path = "subxt", default-features = false }
+subxt-core = { version = "0.40.0", path = "core", default-features = false }
+subxt-macro = { version = "0.40.0", path = "macro" }
+subxt-metadata = { version = "0.40.0", path = "metadata", default-features = false }
+subxt-codegen = { version = "0.40.0", path = "codegen" }
+subxt-signer = { version = "0.40.0", path = "signer", default-features = false }
+subxt-lightclient = { version = "0.40.0", path = "lightclient", default-features = false }
+subxt-utils-fetchmetadata = { version = "0.40.0", path = "utils/fetch-metadata", default-features = false }
 test-runtime = { path = "testing/test-runtime" }
 substrate-runner = { path = "testing/substrate-runner" }