The earnings call highlighted Upwork's strong start to 2025 with record revenue and adjusted EBITDA, driven by AI initiatives and increased engagement. However, there were some macroeconomic headwinds affecting customer activity and a flat performance in enterprise revenue. Despite these challenges, the company's outlook remains confident, supported by strategic investments in AI and enterprise solutions.

Company Guidance -

Q3 2025

During Upwork's First Quarter 2025 earnings call, the company reported a strong start to the year, surpassing expectations with revenue of $192.7 million, exceeding the high end of their guidance range. The adjusted EBITDA reached a record high of $56 million, with an adjusted EBITDA margin of 29%. The gross margin stood at 78.3%. Upwork's core marketplace showed resilience, as Gross Services Volume (GSV) per active client grew year-over-year for the first time in six quarters, and active clients on their Business Plus offering more than doubled. Despite some macroeconomic pressures, the company reiterated its full-year revenue guidance of $740 to $760 million and increased its full-year adjusted EBITDA guidance to a range of $190 million to $200 million. Furthermore, Upwork highlighted the significant role of AI in their operations, with 80,000 AI specialists on their platform and a 25% year-over-year growth in AI-related GSV, contributing to a 63% lift in engagement with their AI-powered features.

Record Revenue and Adjusted EBITDA

Upwork reported a record first quarter revenue of $192.7 million, exceeding the high end of their guidance range. Adjusted EBITDA reached an all-time high of $56 million with an adjusted EBITDA margin of 29%.

AI Initiatives and Engagement

Upwork has 80,000 AI specialists on their platform, with AI-related work growing 25% year-over-year. Engagement with Uma, Upwork's AI feature, increased by 52% quarter-over-quarter.

Increase in Business Plus and Enterprise Clients

Business Plus clients more than doubled quarter over quarter. 40% of active Business Plus clients are new customers, indicating strong adoption of the offering.

Strong Margin and Cash Flow Performance

Non-GAAP gross margin reached a record high of 78.3%, and Upwork reported a GAAP net income increase of 105% year-over-year. Free cash flow was $30.8 million.

Upwork (UPWK) Earnings, Revenues Date & History

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UPWK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	0.27 / -	0.29	―	―	―
Aug 06, 2025	2025 (Q2)	0.28 / 0.35	0.26	34.62% (+0.09)
May 05, 2025	2025 (Q1)	0.27 / 0.34	0.22	54.55% (+0.12)
Feb 12, 2025	2024 (Q4)	0.25 / 0.30	0.2	50.00% (+0.10)
Nov 06, 2024	2024 (Q3)	0.26 / 0.29	0.21	38.10% (+0.08)
Aug 07, 2024	2024 (Q2)	0.23 / 0.26	0.1	160.00% (+0.16)
May 01, 2024	2024 (Q1)	0.18 / 0.22	-0.01	2300.00% (+0.23)
Feb 14, 2024	2023 (Q4)	0.17 / 0.20	0.04	400.00% (+0.16)
Nov 07, 2023	2023 (Q3)	0.10 / 0.21	-0.03	800.00% (+0.24)
Aug 02, 2023	2023 (Q2)	>-0.01 / 0.10	-0.04	350.00% (+0.14)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

UPWK Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 05, 2025	$13.32	$15.72	+18.02%
Feb 12, 2025	$15.53	$16.56	+6.63%
Nov 06, 2024	$14.58	$16.25	+11.45%
Aug 07, 2024	$10.46	$9.37	-10.42%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.