Upwork (UPWK) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.35
• Revenue Growth: 2.50%
• EPS Growth: 187.92%
• Country: US
• Employees: 600
• Sector: Communication Services
• Sector Strength: 97
• Industry: Staffing & Employment Services
• EPS (TTM): 0.36
• Shares Outstanding: 130,654,880
• 10 Day Avg. Volume: 4,112,931
• 30 Day Avg. Volume: 2,818,124
• PEG Ratio: 0.03
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 14.56
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 16.86
• 1Y Price Target: $23.00
• Price Target Upside: 31.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.24
• Revenue Forecast (FY): $773.23M

• Rating: 69 Neutral
• Price Target: $19.50 ▲(11.75% Upside)

Upwork's overall stock score is driven by strong earnings call performance and attractive valuation, indicating potential for growth. However, financial performance concerns, particularly in revenue growth and cash flow, along with mixed technical signals, suggest caution. The company's strategic focus on AI and enterprise expansion provides a positive outlook, but challenges in maintaining growth and managing past leverage must be addressed.

Positive Factors

AI-Driven Growth

The significant growth in AI-related projects highlights Upwork's strategic focus on AI, positioning it well in a tech-driven market, enhancing its competitive edge and long-term growth potential.

Expansion in SMB and Enterprise Segments

The expansion into SMB and enterprise segments, particularly through Lifted, opens new revenue streams and strengthens Upwork's market position in the large contingent work market.

Strong Profitability

Record profitability and high EBITDA margins indicate efficient operations and financial health, supporting sustainable growth and investment in strategic initiatives.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth poses a challenge for future expansion and could impact Upwork's ability to maintain its competitive advantage and market share.

Negative Free Cash Flow Growth

Declining free cash flow growth can strain liquidity and limit Upwork's ability to invest in growth opportunities, potentially affecting long-term financial stability.

Seasonal and Integration Challenges

Seasonal and integration challenges may disrupt revenue consistency and increase operational costs, impacting Upwork's ability to smoothly execute its strategic initiatives.

Upwork Business Overview & Revenue Model

Company Description

Upwork (UPWK) is a leading online platform that connects businesses with freelancers across various sectors, including writing, programming, design, marketing, and more. The platform facilitates remote work by enabling clients to post job listings and freelancers to offer their services, fostering a global marketplace for freelance work. Upwork's core services include job posting, freelancer profiles, project management tools, and payment processing, aimed at simplifying the hiring process for both clients and freelancers.

How the Company Makes Money

Upwork generates revenue primarily through a commission-based model, charging freelancers a percentage of their earnings on each contract. The fee structure is tiered, with lower rates for higher earnings, incentivizing freelancers to grow their businesses on the platform. Additionally, Upwork offers subscription plans for clients that provide enhanced features, such as better visibility for job listings and access to premium freelancers. The company also earns revenue through the sale of services like Upwork Pro and Upwork Enterprise, which cater to businesses seeking more tailored solutions. Strategic partnerships with companies that offer complementary services further contribute to Upwork's earnings, expanding its market reach and enhancing its service offerings.

Upwork Financial Statement Overview

Summary

Upwork demonstrates strong profitability and operational efficiency, with significant improvements in net profit margin and return on equity. However, the sharp decline in revenue growth and recent negative free cash flow growth highlight potential challenges. The company's leverage is under control, but past high debt levels should be monitored. Overall, Upwork is financially stable but must address growth and cash flow concerns to sustain its performance.

Income Statement

Upwork's income statement shows a strong gross profit margin consistently above 75%, indicating efficient cost management. The net profit margin has improved significantly to 31.75% in TTM, reflecting enhanced profitability. However, the revenue growth rate has sharply declined by 75.22% in TTM, which is a concern for future revenue prospects. EBIT and EBITDA margins have improved, showing better operational efficiency.

Balance Sheet

The balance sheet reveals a healthy debt-to-equity ratio of 0.61 in TTM, indicating manageable leverage. Return on equity has improved to 44.83%, showcasing strong profitability relative to shareholders' equity. The equity ratio stands at 47.91%, reflecting a stable capital structure. However, past high leverage ratios pose a potential risk if not managed properly.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 11.28% in TTM, which could impact liquidity. The operating cash flow to net income ratio is 0.79, indicating good cash generation relative to net income. The free cash flow to net income ratio is strong at 0.94, suggesting efficient cash flow management. However, the recent decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	780.86M	769.33M	689.14M	618.32M	502.80M	373.63M
Gross Profit	607.14M	595.23M	518.69M	457.92M	367.29M	269.36M
EBITDA	137.69M	82.86M	1.46M	-81.49M	-40.13M	-7.91M
Net Income	246.96M	215.59M	46.89M	-89.89M	-56.24M	-22.87M
Balance Sheet
Total Assets	1.31B	1.21B	1.04B	1.08B	1.08B	529.23M
Cash, Cash Equivalents and Short-Term Investments	643.10M	622.10M	550.10M	686.61M	684.77M	169.65M
Total Debt	371.10M	369.12M	367.86M	581.94M	584.37M	34.95M
Total Liabilities	683.08M	636.24M	656.47M	831.37M	821.54M	229.92M
Stockholders Equity	628.13M	575.38M	381.07M	248.88M	259.52M	299.31M
Cash Flow
Free Cash Flow	174.98M	139.12M	36.36M	2.76M	4.70M	8.00M
Operating Cash Flow	193.05M	153.56M	52.71M	11.50M	10.84M	22.36M
Investing Cash Flow	-159.21M	137.57M	88.27M	-69.47M	-428.98M	-4.15M
Financing Cash Flow	-64.69M	-81.96M	-139.79M	1.14M	537.74M	54.64M

Upwork Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPWK, the sentiment is Positive. The current price of 17.45 is above the 20-day moving average (MA) of 16.56, above the 50-day MA of 17.19, and above the 200-day MA of 15.01, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UPWK.

Upwork Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPWK	69 Neutral	$2.11B	9.97	47.52%	―	2.50%	187.92%
KFRC	66 Neutral	$587.36M	14.11	27.19%	6.13%	-5.91%	-23.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KELYA	47 Neutral	$337.10M	―	-13.11%	3.12%	0.46%	-477.90%
DHX	45 Neutral	$90.74M	-9.17	-8.83%	―	-8.31%	-445.30%
ZIP	45 Neutral	$373.90M	―	―	―	-10.14%	-1381.34%
IPDN	41 Neutral	$11.53M	―	-68.25%	―	-11.76%	48.03%

Upwork Corporate Events

Upwork Inc. Reports Record Earnings and AI Growth

The recent earnings call for Upwork Inc. was marked by a strong performance, showcasing record-breaking revenue and profitability. The company reported significant growth driven by AI and new business initiatives, despite facing some seasonal and integration challenges. The overall sentiment was favorable, reflecting a positive outlook and strategic advancements.

Upwork Inc. Reports Record Q3 2025 Financial Results

Upwork Inc., a leading global work marketplace, connects businesses with skilled talent through its AI-powered platform, catering to freelance, fractional, and payrolled work across various sectors. In its third quarter of 2025, Upwork achieved record revenue of $201.7 million, marking a 4% year-over-year growth, alongside a GAAP net income of $29.3 million and a record adjusted EBITDA of $59.6 million, reflecting a 30% margin. The company also announced a $100 million share repurchase authorization, demonstrating confidence in its financial health and future prospects.

Upwork Announces $100 Million Share Buyback Program

On September 3, 2025, Upwork Inc. announced a new $100 million share repurchase program, marking the third such authorization since November 2023. This move reflects the company’s strong financial performance and commitment to enhancing shareholder value, as it continues to grow its market share and global service volume.

The most recent analyst rating on (UPWK) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Upwork stock, see the UPWK Stock Forecast page.

Upwork Appoints Anthony Kappus as COO

On August 12, 2025, Upwork announced the appointment of Anthony Kappus as its first Chief Operating Officer, effective September 2, 2025. Kappus, previously with Redfin Corporation, will oversee various operational functions to support Upwork’s growth in the AI-powered work marketplace. This strategic move is part of a broader leadership restructuring, with Andrew Rabinovich and Jacob McQuown taking on expanded roles as CTO and CLO, respectively. These changes aim to enhance Upwork’s position as a leader in AI-driven work solutions, reflecting its commitment to innovation and growth in the industry.

The most recent analyst rating on (UPWK) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Upwork stock, see the UPWK Stock Forecast page.

Upwork Inc’s Earnings Call Highlights AI-Driven Growth

Upwork Inc’s recent earnings call painted a picture of robust financial health and strategic growth, primarily fueled by advancements in AI and strategic acquisitions. Despite acknowledging some challenges in the enterprise segment and broader macroeconomic uncertainties, the overall sentiment was overwhelmingly positive, underscoring a strong strategic position and an optimistic outlook for the future.

Upwork Inc. Reports Strong Q2 2025 Financial Results

Upwork Inc. is the world’s largest work marketplace that connects businesses with highly skilled, AI-enabled independent talent globally, offering a platform that supports over 10,000 skills across various sectors including AI, software development, and marketing.