Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - In Q3 2025, Upwork achieved a record revenue of $201.7 million, marking the first time quarterly revenue exceeded $200 million [5][18] - GAAP net income for Q3 was $29.3 million, a 6% increase compared to Q3 2024 [18] - Adjusted EBITDA reached an all-time high of $59.6 million, with an adjusted EBITDA margin of 29.6% [6][18] - Free cash flow for Q3 was a record $69.4 million, with cash, cash equivalents, and marketable securities totaling approximately $643 million at the end of the quarter [18] Business Line Data and Key Metrics Changes - Gross Services Volume (GSV) for Q3 was $1.02 billion, reflecting a 2% year-over-year growth, driven by both marketplace and enterprise businesses [13][18] - Average GSV per active client rose 5% year-over-year, remaining over $5,000, indicating success in attracting high-value relationships [13] - Marketplace revenue grew 4% year-over-year, while enterprise revenue increased by 3% year-over-year [15][16] Market Data and Key Metrics Changes - The number of clients engaging in AI-related projects increased by 45% year-over-year, with GSV from AI-related work growing 53% year-over-year [10][18] - The AI-enabled talent base on Upwork expanded by 41% compared to the previous year [10] Company Strategy and Development Direction - Upwork is transforming its marketplace into an AI-native platform, with significant enhancements to its AI tools, such as UMA, which has improved client and talent interactions [8][9] - The launch of the new subsidiary, Lyft, aims to unlock the $650 billion contingent work market by providing comprehensive talent sourcing and workforce management solutions [11][12] - The company is focusing on deepening its reach with small and medium-sized businesses (SMBs) through tailored offerings like Upwork Business Plus, which saw a 36% quarter-over-quarter growth in active clients [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued GSV growth, particularly in the AI category, and expects acceleration in this metric in 2026 [5][10] - The company anticipates that the integration of acquired assets will enhance its enterprise offering and contribute to significant GSV growth starting in the latter half of 2026 [24][25] - Management reiterated a long-term adjusted EBITDA margin target of 35%, despite expected dilution from investments in Lyft [39] Other Important Information - Upwork is increasing its full-year revenue guidance to a range of $782-$787 million, primarily due to the strength of its marketplace business [19] - The company is also increasing its full-year adjusted EBITDA guidance to a range of $222-$225 million, representing a more than six-point margin expansion versus 2024 [19] Q&A Session Summary Question: Integration of acquired assets and enterprise offering outlook - Management noted strong early indicators from the integration of acquired assets, with increased interest from both new and existing customers, and expects significant GSV growth impact from the Lyft strategy starting in late 2026 [24][25] Question: Drivers of AI-related GSV acceleration - The primary driver of the $100 million incremental GSV was the rebuilding of the search and recommendation stack, leveraging technology from recent acquisitions [28] Question: Broader macro backdrop and freelancer demand - The macro environment has remained stable, with GSV growth driven by successful AI and SMB initiatives, and management sees further opportunities for GSV growth [34] Question: Variable freelance fee testing and UMA proposal writer - Dynamic pricing is still in early stages, with minimal contribution in Q3, while UMA's proposal writer has improved conversion rates, enhancing the overall marketplace experience [62][66]

Financial Performance - Upwork's Q3 2025 revenue reached a record high of $201.7 million, a 4% year-over-year increase[21, 55] - The marketplace take rate grew to 19.8%, a 2% year-over-year increase[21, 55] - Adjusted EBITDA for Q3 2025 was $59.6 million, representing a 38% year-over-year increase and a record adjusted EBITDA margin of 29.6%[25, 55] - Upwork generated strong free cash flow of $69.4 million in Q3 2025[25] - The company's cash, cash equivalents, and marketable securities totaled approximately $643 million at the end of Q3 2025[25] Growth Drivers - GSV from AI-related work increased by 53% year-over-year in Q3 2025[15, 36] - Business Plus GSV grew 33% quarter-over-quarter in Q3 2025[16, 46] - The average GSV per active client was over $5,000 in Q3 2025, a 5% year-over-year increase[15, 19] Strategic Initiatives - Upwork launched Lifted, an enterprise-focused subsidiary, in Q3 2025 to capture a greater share of the $650 billion contingent workforce TAM[3, 37] - Lifted expanded Upwork's enterprise offering through the acquisitions of Bubty and Ascen[3, 39] - Business Plus active clients increased 36% quarter-over-quarter in Q3 2025[46]

Upwork, Inc. (NASDAQ:UPWK) shares rallied after the company released its third-quarter earnings report after Monday's closing bell. Upwork beat analyst estimates on the top and bottom lines. Here's a look at the details in the report. UPWK stock is moving. See the real-time price action here.The Details: Upwork reported quarterly earnings of 36 cents per share, which beat the Street estimate of 29 cents.Quarterly revenue came in at $201.73 million, which beat the analyst consensus estimate of $193.34 millio ...

Exhibit 99.1 Upwork Reports Third Quarter 2025 Financial Results Achieves record quarterly revenue of $201.7 million in Q3 2025 Generates GAAP net income of $29.3 million and record adjusted EBITDA of $59.6 million, resulting in 15% profit margin and all-time high 30% adjusted EBITDA margin Raises FY2025 revenue and adjusted EBITDA guidance PALO ALTO, Calif. – November 3, 2025 – Upwork Inc. (Nasdaq: UPWK), the world's human and AI-powered work marketplace, today announced its financial results for the third ...

Core Insights - Upwork Inc. achieved record quarterly revenue of $201.7 million in Q3 2025, with a GAAP net income of $29.3 million and an adjusted EBITDA of $59.6 million, resulting in a profit margin of 15% and an adjusted EBITDA margin of 30% [1][2][6] Financial Performance - Revenue grew by 4% year-over-year to $201.7 million, while net income increased by 6% year-over-year to $29.3 million [6][21] - Adjusted EBITDA rose by 38% year-over-year to $59.6 million, with a record adjusted EBITDA margin of 30% [6][34] - Free cash flow for the quarter was $69.4 million, up 22% from $56.8 million in Q3 2024 [6][10] Operational Highlights - Active clients reached 794,000, with a Gross Services Volume (GSV) of $1.018 billion, reflecting a 2% year-over-year growth [6][8] - GSV per active client increased by 5% year-over-year to $5,036 [6] - GSV from AI-related work accelerated to 53% year-over-year growth in Q3 2025, compared to 30% in Q2 2025 [6][9] Strategic Initiatives - The company launched Lifted, a new enterprise-focused subsidiary, aimed at providing comprehensive contingent work solutions for large enterprises [9][15] - Upwork's AI tool, Uma™, has evolved to enhance customer engagement and productivity, contributing to the overall growth in GSV from AI-related projects [6][9] Guidance and Outlook - Upwork raised its full-year guidance for both revenue and adjusted EBITDA, projecting revenue between $782 million to $787 million and adjusted EBITDA between $222 million to $225 million for FY2025 [9][10]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements [1] Upgrades Summary - Argus upgraded Warner Bros. Discovery (WBD) to Buy from Hold with a price target of $27, citing potential bidding wars that could increase offers [2] - H.C. Wainwright upgraded Core Scientific (CORZ) to Buy from Neutral with a price target of $25, anticipating that the proposed takeover by CoreWeave (CRWV) will not pass the shareholder vote [2] - UBS upgraded Upwork (UPWK) to Buy from Neutral with an unchanged price target of $21, expecting a return to positive services volume growth in the next two quarters due to improved web traffic and a shift towards higher-value services [2] - RBC Capital upgraded Cadence Bank (CADE) to Outperform from Sector Perform with a new price target of $47, increased from $43, aligning with Huntington (HBAN) following their merger announcement [2] - BofA upgraded RB Global (RBA) to Buy from Neutral with a price target of $120, believing the risk-reward profile has become more favorable after a recent share price pullback [2]

Core Thesis - Upwork Inc. is viewed positively due to its operational performance, margin expansion, and strategic initiatives, despite limited market attention [2][5][6] Financial Performance - As of September 30th, Upwork's share price was $18.57, with trailing and forward P/E ratios of 11.13 and 14.39 respectively [1] - The company has achieved a revenue growth rate of 22% CAGR over the past three years, although the most recent quarter showed negligible year-over-year growth [2] - Adjusted EBITDA margins improved significantly from 11% in FY2024 to 22%, with Q2 2025 margins reaching approximately 29%, and management targeting 35% in the near term [3] Strategic Initiatives - Upwork's strategy focuses on advertising/monetization, enterprise solutions, and AI-driven initiatives, all of which are performing well [4] - The enterprise segment is particularly promising, with recent acquisitions and a new subsidiary aimed at large clients, positioning Upwork to capture enterprise staffing demand [4] Investment Opportunity - Even without a significant revenue rebound, the margin expansion provides a strong investment case, indicating a resilient free cash flow profile [5] - The current valuation reflects muted growth expectations, suggesting a favorable risk/reward dynamic for investors [4][5] - Upwork presents a compelling opportunity for investors seeking operational efficiency, undervaluation, and potential for future growth [5][6]

Core Insights - Upwork Inc. will report its financial results for Q3 2025 on November 3, 2025, after market close, followed by a Q&A conference call at 2:00 p.m. Pacific Time [1] - A live webcast of the call will be available on the Upwork Investor Relations website, with an audio replay accessible for one week and archived for approximately one year [2] Company Overview - Upwork Inc. connects businesses with global, AI-enabled talent across various contingent work types, including freelance, fractional, and payrolled [3] - The Upwork Marketplace provides on-demand access to highly skilled talent, while Lifted offers solutions for enterprise organizations to manage talent sourcing and payments [3] - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every era of work [4]

Core Insights - The article discusses the undervaluation of certain growth stocks within the gig economy, highlighting that investor sentiment is currently bearish due to perceived risks associated with artificial intelligence [1] Group 1 - The comparison focuses on identifying which of the gig economy platforms represents a better investment opportunity despite their undervaluation [1] - Investor concerns are primarily driven by the potential impact of artificial intelligence on these platforms, leading to a cautious outlook [1] - Stock prices referenced are from the afternoon of October 8, 2025, indicating a specific timeframe for the analysis [1]