Core Insights - Upwork Inc. has outlined a long-term growth strategy and financial outlook, emphasizing its position to capture a larger share of the $1.3 trillion global digital knowledge work market through a focus on AI and SMBs [1][2] Financial Outlook - The company provided guidance for 2026 and growth targets for 2028, projecting a Gross Services Volume (GSV) growth rate of 4-6%, revenue growth rate of 6-8%, and an adjusted EBITDA margin of approximately 29% [4][5] - Long-term targets include a GSV CAGR of 7-9%, revenue CAGR of 13-15%, and adjusted EBITDA CAGR of around 20% [4][5] Strategic Building Blocks - **Transforming Human + AI Work**: The AI strategy includes expanding AI-powered workflows, accelerating AI categories of work, and integrating AI agents for better collaboration, with an expected $100 million in incremental GSV from these initiatives in 2025 [4] - **Accelerating SMB Growth**: Upwork is targeting the $530 billion SMB market with its Business Plus offering, designed to attract higher-spending SMB customers and improve retention rates [4] - **Unlocking Enterprise Expansion**: The launch of Lifted aims to tap into the $650 billion contingent labor market, providing a comprehensive solution for large organizations to manage contingent talent [4] Market Position - Upwork has facilitated over $30 billion in total transactions since its inception, positioning itself as a leader in connecting businesses with global, AI-enabled talent across various work types [7][8]

Financial Performance & Growth - Q3 2025 GSV reached $1,018 million, a 2% year-over-year increase[14] - Q3 2025 revenue was $202 million, a 4% year-over-year increase[14] - Q3 2025 adjusted EBITDA was $60 million, representing a 30% adjusted EBITDA margin[14] - The company targets a 7-9% CAGR for GSV, 13-15% CAGR for revenue, and approximately 20% CAGR for adjusted EBITDA over the next three years[66, 291] AI Integration & Impact - AI-related work is growing, with a 50% year-over-year increase in AI clients[23] - The company anticipates a $100 million increase in GSV in 2025 driven by expanding AI-powered workflows[50] - Annualized GSV from AI-related work is $300 million[54] - 70% of new job posts are touched by Uma, Upwork's Mindful AI[29, 236] Market Opportunity & Strategy - The company estimates a $13 trillion market opportunity in 2028 for contingent digital knowledge work[47] - The company is focused on three growth areas: transforming human + AI work, accelerating SMB growth, and unlocking enterprise expansion[48] - Business Plus sees strong organic growth, with 36% QoQ active client growth and 25x GSV per active client vs the marketplace average[113] - Lifted aims to access a larger share of the enterprise contingent labor market, targeting 10x FY26 Lifted GSV growth[261]

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]

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 inaugural monthly analysis of the freelance economy by Upwork reveals significant shifts in the U.S. labor market, highlighting the increasing demand for human-centric skills such as fact-checking and video editing [1][2][8] - The freelance economy, generating approximately $1.5 trillion in annual earnings, serves as a leading indicator for broader labor market trends, reflecting how businesses are adapting to changes [1][10] Hiring Trends - High-value work among large businesses increased by 31%, indicating a strategic use of flexible talent to fill key gaps and drive growth despite a softer overall labor market [3] - Demand for AI and machine learning skills surged by 40% among small and medium-sized businesses (SMBs), with video and animation skills also growing by 27%, suggesting that SMBs are leveraging technology to innovate [4] - The rise of the creator economy is evident, with 15% of jobs on Upwork driven by content creator demand, and a notable increase in AI skills required for these roles [6] Skill Demand - Categories vulnerable to disruption, such as writing, are experiencing growth, with demand for content writing and language tutoring increasing by 15% and 162% respectively, driven by high-value work [5] - The top in-demand AI-related skills in August 2025 include machine learning and Python, reflecting the evolving needs of businesses [7] Future of Work - The collaboration between AI and human talent is emphasized, with businesses hiring for skills that complement AI capabilities, such as quality control and creativity [8] - The Upwork Monthly Hiring Report aims to provide real-time insights into hiring trends, focusing on the freelance economy as a vital sector of the workforce [10]

Core Insights - Upwork Inc. has launched Lifted, a subsidiary designed to provide a comprehensive solution for enterprises to source, contract, manage, and pay global contingent talent in a compliant manner [1][2] - Lifted aims to eliminate the trade-offs traditionally faced by businesses between flexibility and compliance, speed and scale, or digital ease and enterprise rigor [2] - The platform is built to address the complexities of modern workforce models, offering a tech-enabled solution that integrates with existing systems and supports various contingent workforce models [2][3] Company Overview - Upwork Inc. connects companies with global, AI-enabled talent across all contingent work models through its marketplace and Lifted subsidiary [4] - The Upwork Marketplace has facilitated over $25 billion in economic opportunities for talent worldwide, showcasing its significant impact on the labor market [6] Lifted's Features - Lifted provides a contract- and country-agnostic platform that unifies the management of independent contractors, agents of record, employers of record, staff augmentation, and statement of work engagements [2][3] - The platform is supported by acquisitions of Bubty and Ascen, enhancing its capabilities in workforce management and compliance [3] - Lifted enables enterprises to access a talent pool of over 250,000 AI experts, allowing for efficient management of extended workforces [3][8] Market Position - More than 25,000 hiring managers currently utilize Lifted for their contingent workforce needs, with over 500 new projects initiated weekly [8] - Lifted supports a wide range of contract types and work engagements, making it suitable for enterprise-grade workflows [8]

Executive Leadership Changes - Upwork has appointed Anthony Kappus as its first chief operating officer (COO), effective September 2, 2025, to lead various operational teams [1][2] - Andrew Rabinovich has expanded his role to chief technology officer (CTO), overseeing engineering, IT, and AI initiatives [1][3] - Jacob McQuown has been promoted to chief legal officer (CLO), focusing on legal, compliance, and policy programs [1][4] Strategic Vision and Growth - The leadership team is expected to drive excellence across Upwork's operations, enhancing the company's position in the human and AI-powered work marketplace [2] - Kappus brings over a decade of operational expertise from Redfin, where he led digital revenue and corporate development [2] - Rabinovich's leadership in AI and machine learning is pivotal as Upwork evolves into an AI-native platform, contributing to significant growth [3][4] AI Integration and Economic Impact - Upwork's AI initiatives, particularly the development of Uma™, have led to an increase of over $80 million in gross services volume (GSV) in 2025 [3] - The company has facilitated more than $25 billion in economic opportunity for talent globally, showcasing its impact on the workforce [6]

Financial Performance - Company achieved record revenue of $194.9 million in Q2 2025, representing a 1% year-over-year growth [6][26] - GAAP net income reached $32.7 million, up 47% year-over-year, with a diluted earnings per share of $0.24 compared to $0.17 in Q2 2024 [6][26] - Adjusted EBITDA was $57.1 million, reflecting a 40% year-over-year increase and a 29% adjusted EBITDA margin [6][26] Operational Highlights - Active clients totaled 796,000, with a Gross Services Volume (GSV) per active client of $5,002, which increased by 5% year-over-year [6][26] - The company announced the acquisition of Bubty and an agreement to acquire Ascen, enhancing its offerings for large enterprises [6][10] - AI-related work GSV accelerated to 30% year-over-year growth in Q2 2025, compared to 25% in Q1 2025 [10][6] Strategic Initiatives - The acquisitions of Bubty and Ascen are expected to position the company to capitalize on a $650 billion Enterprise Total Addressable Market (TAM) opportunity [6][10] - Continued strength in advertising and monetization strategies, with revenue increasing 17% year-over-year [10] - Investments in AI infrastructure are ramping up, with AI now contributing to over 35% of deployed engineering code [10][6] Financial Guidance - The company raised its full-year guidance for both revenue and adjusted EBITDA, projecting revenue between $765 million to $775 million and adjusted EBITDA between $206 million to $214 million for FY 2025 [10][6] - Guidance for Q3 2025 includes revenue of $190 million to $195 million and adjusted EBITDA of $47 million to $51 million [10][6]

Core Insights - Upwork Inc. reported strong first-quarter 2025 financial results, exceeding analyst expectations, which led to a notable stock increase [1][2] - The company's performance raises questions about the long-term expansion of the freelance economy and Upwork's potential to benefit from changing work models [1] Financial Performance - Revenue for Q1 2025 rose 1% year-over-year (YOY) to $192.7 million, modestly surpassing estimates [2] - GAAP net income surged to $37.7 million ($0.27 per diluted share), up from $18.4 million ($0.13) a year earlier [3] - Adjusted EBITDA increased by 68% YOY to $56.0 million, with margins expanding from 17% to 29% [3] - Free cash flow more than doubled to $30.8 million [3] - Full-year adjusted EBITDA guidance was raised to $190–$200 million, while revenue forecast remained at $740–$760 million [3] Operational Metrics - Gross Services Volume (GSV) dipped 2.1% YOY to $987.7 million, but GSV per active client rose 3% to $4,912 [4] - Total client base declined 7% to 812,000, indicating deeper engagement and higher spending per user [4] Strategic Initiatives - Upwork's growth was driven by strategic initiatives in artificial intelligence (AI), enterprise solutions, and enhanced monetization [5] - The AI-powered work companion, Uma™, has seen significant user engagement growth, contributing to improved user experience and spending [6] - The Upwork Business Plus client base has grown significantly, with many clients being new to the platform [7] - Diverse monetization strategies, including revenue growth from ads, premium subscriptions, and the sale of "Connects," have yielded positive results [8] Industry Context - Upwork's success reflects a dynamic global labor market increasingly embracing flexible and independent work models [9] - The "Future Workforce Index" indicates that 28% of U.S. skilled knowledge workers operate independently, generating an estimated $1.5 trillion in earnings [9] - The company's mission aligns with the shift towards freelance arrangements, emphasizing the creation of economic opportunities [10] Future Outlook - Upwork's performance serves as an indicator of the broader acceptance of the freelance model among talent and businesses [11] - The positive market reaction to Upwork's earnings report suggests renewed confidence in its ability to capitalize on technological shifts [12] - Trends such as increased remote work adoption and demand for specialized skills provide a supportive macro environment for Upwork [13]

Financial Performance - Upwork Inc. achieved record first-quarter revenue of $192.7 million, with a GAAP net income of $37.7 million and adjusted EBITDA of $56.0 million, resulting in a profit margin of 20% and an adjusted EBITDA margin of 29% [1][2][6] - Revenue grew by 1% year-over-year, while net income more than doubled from $18.4 million in Q1 2024 to $37.7 million in Q1 2025 [6][20] - Adjusted EBITDA increased by 68% year-over-year from $33.3 million in Q1 2024 to $56.0 million in Q1 2025 [6][33] Operational Highlights - Active clients reached 812,000, with Gross Services Volume (GSV) per active client increasing by 3% year-over-year to $4,912, marking positive growth for the first time in six quarters [6][10] - The company reported a 150% increase in cash provided by operating activities, totaling $37.0 million in Q1 2025 compared to $14.8 million in Q1 2024 [6][23] - Free cash flow also saw significant growth, rising to $30.8 million in Q1 2025 from $12.1 million in Q1 2024 [6][36] AI and Product Development - Upwork's strategic investments in AI are enhancing customer productivity and engagement, with Uma™, Upwork's Mindful AI, seeing a 52% increase in user engagement in Q1 2025 compared to Q4 2024 [4][6] - GSV from AI-related work grew by 25% year-over-year, while GSV from prompt engineering increased by 52% year-over-year [6][9] - The company plans to launch several high-impact features in Q2 2025 aimed at increasing engagement and revenue [6][9] Financial Guidance - Upwork reiterated its FY2025 revenue guidance and raised its full-year adjusted EBITDA guidance, reflecting confidence in ongoing profitability and market share expansion [1][2][9] - For Q2 2025, the revenue guidance is set between $184 million to $189 million, with adjusted EBITDA guidance of $45 million to $49 million [9][10]