Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA with revenue growth of 2.4% and an adjusted EBITDA margin of 29% [7][20] - Q4 saw year-over-year growth of 3% in GSV, 4% in revenue, and a 27% adjusted EBITDA margin [7][20] - Average GSV per active client increased by 7% year-over-year in Q4 to over $5,100, while overall spend per contract rose by 10% year-over-year [21][22] - The churn rate declined in 2025, reaching its lowest level in over eight quarters in Q4, which was over 130 basis points lower than Q4 2024 [22] Business Line Data and Key Metrics Changes - The Business Plus solution for SMBs grew active clients by 49% sequentially in Q4, with 38% of these clients being new to the platform [12][22] - Revenue from Freelancer Plus grew by 29% year-over-year, contributing to a total ads and monetization revenue growth of 24% year-over-year [23] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans as the company shifted to the new Lifted strategy [23] Market Data and Key Metrics Changes - GSV from AI-related work surpassed $300 million on an annualized basis in Q4, up more than 50% from the prior year, driven by categories like Generative AI and creative production [10][11] - The number of clients engaging in AI work increased over 50% year-over-year, with GSV from these clients exceeding the average spend per client by about three times [11] Company Strategy and Development Direction - The company aims to capitalize on a $1.3 trillion market opportunity by positioning itself as a leader in the AI era, focusing on flexible, skills-based talent [8][19] - The strategy includes enhancing the AI-native marketplace, expanding the Business Plus offering, and ramping up the Lifted platform for enterprise clients [15][18] - The company plans to double GSV from Business Plus to represent over 5% of total annual GSV in 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, anticipating GSV growth of 4%-6% and revenue growth of 6%-8% [26][27] - The company expects to see sequential increases in GSV, total take rate, and revenue throughout 2026, particularly in the second half as Lifted completes its integration [27][28] - Management highlighted the importance of human-agent collaboration, indicating that combining human judgment with AI capabilities leads to superior outcomes [81][82] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support organic growth initiatives, M&A, and share repurchases [26] - Non-GAAP operating expenses were $107 million in Q4, maintaining a consistent percentage of revenue compared to Q4 2024 [25] Q&A Session Summary Question: Insights on 2026 investments and growth contributions - Management indicated that investments in AI features, Business Plus expansion, and Lifted are expected to ramp up throughout 2026, contributing to GSV and revenue growth [34] Question: AI search and recommendation functionality - The company has launched features like Uma Recruiter to enhance client hiring efficiency and is seeing positive impacts from these investments [40] Question: Active client trends and marketing initiatives - Management noted a decrease in churn rates and positive top-of-funnel yields, which are expected to drive active client growth [56] Question: AI talent availability on the platform - The company reported no significant talent gaps in the AI category and is actively working to attract more AI talent through partnerships [58] Question: Enterprise client demand and milestones - Management is focused on acquiring a small number of high-quality enterprise clients to meet growth goals, with a healthy pipeline of interest from existing customers [63][90]

Upwork (NasdaqGS:UPWK) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Company ParticipantsEric Sheridan - Managing DirectorErica Gessert - CFOGary Fuges - VP of Investor RelationsHayden Brown - President and CEOJohn Byun - SVP of Equity ResearchMatt Condon - Director of Equity ResearchRohit Kulkarni - Managing DirectorRon Josey - Managing DirectorConference Call ParticipantsBernie McTernan - Senior AnalystBrad Erickson - Equity AnalystJosh Chan - Executive Director and Equity Research AnalystMaria Ripp ...

Upwork (NasdaqGS:UPWK) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Speaker11Hello and thank you for standing by. Welcome to Upwork Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, pl ...

Upwork Investor Presentation Undue reliance should not be placed on the forward-looking statements in this presentation. Neither we nor any other person makes any representation or warranty as to the accuracy or completeness of the information herein. This presentation is made solely for informational purposes. Upwork, the Upwork logo, Lifted, "UmaTM, Upwork's Mindful AI," and other registered or common law trade names, trademarks, or service marks of Upwork appearing in this presentation are the property o ...

Record full-year 2025 revenue of $787.8 million Fourth-quarter revenue of $198.4 million and GAAP net income of $15.6 million Fourth-quarter adjusted EBITDA of $52.9 million or 27% adjusted EBITDA margin Full-year 2025 GAAP net income of $115.4 million and record adjusted EBITDA of $225.6 million or 29% adjusted EBITDA margin PALO ALTO, Calif., Feb. 09, 2026 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s human and AI-powered work marketplace, today announced its financial results for the fourth ...

Hiring data shows AI becoming part of everyday work, while demand for human expertise remains strongPALO ALTO, Calif., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s human and AI-powered work marketplace, today released its annual In-Demand Skills report, finding that as demand for top AI-enabled skills more than doubled year-over-year, hiring for human expertise remains strong across work categories. Now in its sixth year, the report finds that demand for the most in-demand skill ...

Core Insights - Upwork Inc. will report its financial results for Q4 and the full year of 2025 on February 9, 2026, after market close [1] - A Q&A conference call will be held on the same day at 2:00 p.m. Pacific Time [1] Company Overview - Upwork Inc. connects businesses with global, AI-enabled talent across various contingent work types, including freelance and payrolled [3] - The Upwork Marketplace provides on-demand access to skilled talent, while Lifted offers solutions for enterprise organizations to manage talent [3] - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every work era [4]

Core Insights - The Upwork Monthly Hiring Report indicates a shift in hiring focus towards operational execution as businesses prepare for potential volatility in 2026 [1][2][4] - Demand for project management and accounting roles has significantly increased, particularly among small and medium-sized businesses (SMBs) [3][4] Hiring Trends - Operational roles, especially Project Management, saw a month-over-month increase of 70% in hiring, while Virtual Assistance and Accounting & Bookkeeping rose by 18% and 9% respectively [3][4] - Hiring activity in December was primarily driven by SMBs, reflecting a strategic focus on roles that enhance execution rather than experimentation [2][3] Market Conditions - Less than one-third of business leaders viewed macro conditions as favorable in December, leading to a more cautious approach in hiring [2] - The report suggests that companies are prioritizing roles that support coordination, quality control, and reliable execution in everyday operations [4] Skills Demand - The most in-demand skills in December included Project Management (+23%), Accounting & Bookkeeping (+15%), and Virtual Admin Assistance (+3%) [6] - Some categories related to experimentation, such as Ecommerce Development and Branding & Logo Design, experienced declines in hiring activity [6] Future Outlook - The digital knowledge work market is projected to reach $1.3 trillion by 2028, indicating significant growth potential in the sector [1][9]

Core Insights - The Upwork Monthly Hiring Report for November 2025 highlights a growing demand for human-centered skills as businesses scale AI systems, with 39% of companies identifying skill gaps as a top challenge heading into 2026 [1][2][8] Hiring Trends - Quality assurance testing increased by 19% month-over-month, indicating businesses are adding human capacity to enhance confidence in digital and AI system adoption [2][6] - There is a notable rise in demand for communication and creative skills, particularly a 48% increase in language tutoring and interpretation, as companies seek to apply a human touch to their projects [3][6] - Hiring in marketing and e-commerce continues to grow as businesses prepare for the holiday season, with steady demand for talent to support marketing strategies and e-commerce infrastructure [4][6] In-Demand Skills - The top AI-enabled skills in November 2025 include: - Quality assurance testing (19% growth) - AI & machine learning (16% growth) - Language tutoring & interpretation (48% growth) - Audio & music production (20% growth) - Photography (14% growth) [6][7] - 85% of businesses report that digital fluency and AI literacy skills are becoming increasingly important [6] Future Hiring Plans - 40% of businesses plan to hire independent digital marketing professionals in the next three months, reflecting a strategic focus on enhancing marketing capabilities [6][8]

Upwork Conference Call Summary Company Overview - **Company**: Upwork (NasdaqGS: UPWK) - **Industry**: Online freelance marketplace connecting freelancers with SMB and enterprise clients globally - **Key Speaker**: Erica Gessert, CFO Key Points Company Introduction - Upwork is described as the world's human and AI work marketplace, connecting global talent with businesses of all sizes, offering over 130 job types and thousands of skills [7][8] GSV Growth Trajectory - Upwork experienced a return to Gross Services Volume (GSV) growth after a period of stagnation, attributed to investments in three key growth catalysts: AI, SMB growth, and enterprise strategy [8][9] - GSV growth was previously negative due to post-pandemic adjustments in the human capital industry, while Upwork remained relatively flat [8] AI Growth Opportunities - The AI category on Upwork's platform is currently at a run rate of approximately $300 million, growing over 50% annually [10] - AI is enhancing the hiring experience by automating job postings and proposals, leading to a $100 million GSV lift in 2025 [11] - Substitution effects from AI were noted in writing and translation jobs, with lower-value jobs ($300 and less) decreasing from 5% to 3.5% of total volume [14][15] SMB and Enterprise Strategy - Upwork is focusing on the SMB category, with a new Business Plus product that has seen a 36% year-over-year GSV growth [21] - The enterprise strategy aims to capture a larger share of the contingent labor market, previously accessing only 10% of enterprise spending [26] - Recent acquisitions (Ascend and Bubty) are expected to enhance Upwork's offerings in the enterprise market, targeting a $650 billion total addressable market (TAM) [27] Financial Guidance - Upwork guided for 4%-6% GSV growth in 2026, following a 2% growth in Q3 2025, indicating a positive inflection point [32][33] - The company anticipates 7%-9% GSV growth for the subsequent three years, driven by AI and enterprise strategies [33] Take Rate and Revenue Strategy - Upwork's current take rate is approximately 19.6%, which is lower than industry averages, indicating potential for growth [46] - The Business Plus product has a higher take rate of 10%, contributing to both volume and revenue growth [46] Margin Improvement - Upwork has improved its margins from 11% two years ago to just under 29% currently, with ongoing optimization efforts [57][58] - The business is characterized as having an 80% gross margin, with further cost optimization opportunities available [59] Competitive Landscape - Upwork differentiates itself by offering a global talent pool of 18 million freelancers, enabling labor arbitrage for enterprises [63][65] - The platform specializes in longer-term, complex projects, contrasting with competitors like Fiverr, which focus on lower-value transactions [76] Capital Allocation - Upwork is actively engaging in capital allocation strategies, including organic investments, acquisitions, and stock buybacks to reduce share count [78] Conclusion - Upwork is positioned for growth through strategic investments in AI, SMB, and enterprise markets, with a strong focus on improving GSV and margins while navigating macroeconomic challenges [31][66]