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UPWK

Upwork Inc.

UPWK

Upwork Inc. • NASDAQ
$19.73 ▲ 0.79% (+0.15)
Market Cap $2.58 B
52w High $20.54
52w Low $11.13
Dividend Yield 0%
P/E 11.34
Volume 2.21M
Outstanding Shares 130.66M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $201.73M ▲ $126.129M ▲ $29.335M ▼ 14.542% ▼ $0.22 ▼ $39.821M ▲
Q2-2025 $194.939M ▲ $118.942M ▲ $32.726M ▼ 16.788% ▼ $0.25 ▼ $38.627M ▼
Q1-2025 $192.706M ▲ $112.21M ▼ $37.73M ▼ 19.579% ▼ $0.28 ▼ $43.753M ▲
Q4-2024 $191.483M ▼ $135.259M ▲ $147.166M ▲ 76.856% ▲ $1.1 ▲ $19.505M ▼
Q3-2024 $193.776M $129.575M $27.758M 14.325% $0.21 $24.04M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $643.097M ▲ $1.311B ▲ $683.083M ▲ $628.126M ▲
Q2-2025 $634.579M ▲ $1.262B ▲ $653.062M ▲ $608.654M ▲
Q1-2025 $622.068M ▼ $1.24B ▲ $645.724M ▲ $594.342M ▲
Q4-2024 $622.101M ▲ $1.212B ▲ $636.236M ▼ $575.377M ▲
Q3-2024 $601.183M $1.063B $651.488M $411.171M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $29.335M ▼ $75.079M ▲ $-81.497M ▼ $-24.474M ▲ $-30.232M ▼ $69.431M ▼
Q2-2025 $32.726M ▼ $72.514M ▲ $-51.45M ▼ $-38.352M ▼ $-17.288M ▼ $70.133M ▲
Q1-2025 $37.73M ▼ $36.965M ▲ $-5.223M ▲ $-13.144M ▼ $18.598M ▲ $30.79M ▲
Q4-2024 $147.166M ▲ $8.489M ▼ $-21.039M ▼ $11.277M ▲ $-1.273M ▼ $4.624M ▼
Q3-2024 $27.758M $91.057M $2.078M $7.882M $101.017M $86.89M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Enterprise
Enterprise
 $0 ▲$30.00M ▲$20.00M ▼$30.00M ▲
Marketplace
Marketplace
 $0 ▲$170.00M ▲$170.00M ▲$170.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Upwork’s income statement shows a classic “grow-then-optimize” story. Revenue has climbed steadily each year, roughly doubling over the past five years, which signals strong demand for its marketplace. Gross profit has risen even faster than sales, suggesting the core platform is high-margin and scales well. On profitability, the company spent several years in the red as it invested in growth, but it has now crossed into clear profitability at the operating and net income levels. The recent jump in net income looks bigger than the underlying operating improvement, which could include some non‑recurring or below-the-line benefits, so the sustainability of that level is something to watch. Overall, the trend is positive: a growing, now-profitable business that appears to be shifting focus from pure growth toward more disciplined earnings and efficiency.

Balance Sheet

Balance Sheet The balance sheet reflects a platform business moving from “build-out” phase toward a more solid footing. Total assets have grown meaningfully compared with five years ago, but not explosively, which fits an asset-light, software-driven model. Cash levels dipped for a few years as the company invested, then recovered sharply most recently, giving Upwork more financial flexibility. Debt has increased significantly versus its early years and now represents a notable part of the capital structure, though it has started to edge down. Shareholders’ equity has rebuilt strongly after earlier dilution and losses, helped by the return to profitability. In short, Upwork has more debt than in the past but now also has more cash and a stronger equity base, which together point to a healthier, though still leveraged, balance sheet compared with its early public-company years.

Cash Flow

Cash Flow Cash flow has moved in the right direction and now better matches the improving earnings picture. Operating cash flow has been positive throughout the period, but it used to be modest relative to the size of the business. In the most recent year, it stepped up meaningfully, indicating that profits are increasingly being backed by actual cash coming in, not just accounting gains. Free cash flow has followed a similar pattern: small but positive for several years, then clearly stronger recently. Capital spending remains low and predictable, consistent with a marketplace and software platform rather than a heavy industrial or manufacturing business. Put simply, Upwork is turning more of its growth into real, spendable cash, which reduces financial risk and gives it more optionality for future investments or debt management.

Competitive Edge

Competitive Edge Upwork occupies a leading position in online freelance staffing, underpinned by a large, global two-sided marketplace. Its scale gives it a strong network effect: more clients attract more freelancers, and vice versa, which is difficult for smaller or newer rivals to match. The platform is designed for a wide range of work—from short, simple tasks to long-term, complex projects—which differentiates it from more “gig-style” competitors that focus mainly on one-off jobs. Trust features such as identity checks, escrow payments, and reputation scores increase switching costs for both sides of the marketplace. At the same time, the competitive landscape is intense. Upwork faces pressure from other freelance platforms, traditional staffing firms, enterprise workforce vendors, and emerging AI-driven talent solutions. Price competition, marketing intensity, and the risk of disintermediation (clients and freelancers moving off-platform) remain ongoing challenges. Overall, Upwork’s scale and brand are clear advantages, but maintaining and widening that moat will depend on continued execution in enterprise, SMBs, and AI-enabled services.

Innovation and R&D

Innovation and R&D Innovation is a central part of Upwork’s strategy, with a strong recent emphasis on artificial intelligence and higher-value client segments. The flagship AI initiative is Uma, an in‑platform assistant that helps with job posting, candidate matching, proposal crafting, and meeting summaries. By using years of transaction data, Uma aims to speed up hiring decisions and improve match quality, which can deepen engagement and raise the value of the marketplace for both clients and freelancers. On the product side, Upwork has layered targeted offerings: Business Plus for small and mid-sized businesses, Freelancer Plus for freelancers, and Enterprise solutions including the new Lifted subsidiary. Lifted is especially notable, as it aims to handle complex compliance and workforce management needs for large companies—moving Upwork further into the traditional contingent labor market. Future plans focus on expanding AI agents, deepening enterprise penetration, and scaling Business Plus, with particular attention to fast-growing AI-related project categories. The opportunity is significant, but also comes with execution risk and direct competition from other AI-native platforms and established enterprise vendors.

Summary

Upwork has transitioned from a fast-growing but loss-making marketplace into a business that combines steady top-line growth with emerging, and now visible, profitability and stronger cash generation. Financially, revenue and gross profit have grown consistently, losses have turned into profits, and cash flows now support the earnings story. The balance sheet carries more debt than in the past but also more cash and equity, reflecting both earlier investment and a recent move toward healthier fundamentals. Strategically, Upwork benefits from scale, brand recognition, and a self-reinforcing network of clients and freelancers. Its push into AI (via Uma), enterprise solutions (including Lifted), and curated offerings for SMBs and freelancers aims to push it up the value chain and deepen its moat. Key things to watch include: the durability of recent profit and cash flow improvements, the pace of enterprise and SMB adoption, the effectiveness of Uma and other AI initiatives versus competitors, and how the company manages its debt as it continues to grow. The long-term story is about whether Upwork can turn its marketplace leadership and AI investments into sustained, high-quality earnings in a highly competitive and evolving world of work.

NEWS

November 24, 2025 · 6:01 PM UTC

Sandisk Set to Join S&P 500; Upwork, First Interstate BancSystem, PTC Therapeutics to Join S&P SmallCap 600

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November 19, 2025 · 4:05 PM UTC

Upwork to Present at UBS Global Technology and AI Conference

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November 18, 2025 · 12:03 PM UTC

Upwork Introduces “The New Upwork” at 2025 Investor Day, Detailing Long-Term Growth Strategy

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November 13, 2025 · 9:00 AM UTC

Upwork Human+Agent Productivity Index Reveals Up to 70% Boost in Work Completion from Human and AI Agent Collaboration vs. Agents Working Alone

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November 12, 2025 · 5:00 AM UTC

Upwork Announces Forthcoming Lisbon Office to Scale AI Innovation and Expand Global Technical Team

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