Core Insights - Upwork reported record revenue and adjusted EBITDA for 2025, driven by growth in AI-related work and the Business Plus offering for small businesses [4][6][3] Financial Performance - In Q4, Upwork achieved a 3% year-over-year growth in gross services volume (GSV) and a 4% increase in revenue, with adjusted EBITDA margin at 27% [2] - For the full year 2025, Upwork reported over $4 billion in GSV, $788 million in revenue, and $226 million in adjusted EBITDA, marking record highs [3][6] - Q4 GSV exceeded $1 billion, with average GSV per active client rising 7% year-over-year to over $5,100 [2][6] Client Metrics - The company ended Q4 with 785,000 active clients, with churn improving to its lowest level in over eight quarters [1] - Active Business Plus clients grew 49% sequentially in Q4, with these clients spending nearly 2.5 times more than the marketplace average [11][12] AI Integration and Growth - AI-related work grew over 50% year-over-year, generating an annualized GSV of over $300 million in Q4 [6][8] - AI-native features contributed approximately $100 million in incremental GSV in 2025, with significant growth in categories like Generative AI [7][8] Business Plus and Enterprise Strategy - Business Plus saw a 24% increase in GSV quarter-over-quarter in Q4, with management targeting it to double in GSV by 2026 [12][18] - The Lifted platform, aimed at enterprise clients, is expected to drive significant growth, with a target of 25% GSV growth for the enterprise business in 2026 [13][15] Margins and Cash Flow - Gross margin was 78.0% in Q4 and 77.8% for the full year 2025, with non-GAAP operating expenses at 54% of revenue in Q4 [16] - Free cash flow for Q4 was $57 million, with the company repurchasing about 2 million shares for $34 million [17] 2026 Outlook - For 2026, Upwork guided GSV growth of 4% to 6% and revenue between $835 million and $850 million [6][18] - Q1 2026 revenue is expected to be between $192 million and $197 million, with adjusted EBITDA margin projected at 23% to 24% [19]