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Upwork
(NASDAQ:UPWK)
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Rating:70Outperform
Price Target:
$11.00
▲(24.58% Upside)
Action:Upgraded
Date:08/11/26
UPWK scores 70 primarily on improved profitability and strong cash generation, supported by a low earnings multiple. The score is held back by sharp TTM revenue weakness and management’s revenue guidance reduction tied to AI automation and SEO/search headwinds; technically, near-term momentum is positive but the longer-term trend remains weak versus the 200-day average.
Positive Factors
Strong free cash flow generation
Upwork converts earnings into cash at a high rate: TTM free cash flow of about $199M and FCF ~95% of net income indicate high earnings quality. Durable cash generation supports share repurchases, R&D and margin resilience even if revenue growth softens.
Negative Factors
Sharp TTM revenue decline
A steep TTM revenue decline (-41.5%) and reduced FY26 guide represent a structural top‑line shock. If durable, weaker GSV undermines scale economics that supported recent margin gains and could pressure future cash flow, forcing tradeoffs between growth investment and profit preservation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Upwork converts earnings into cash at a high rate: TTM free cash flow of about $199M and FCF ~95% of net income indicate high earnings quality. Durable cash generation supports share repurchases, R&D and margin resilience even if revenue growth softens.
Read all positive factors
Upwork Key Performance Indicators (KPIs)
Any
Active Clients
Measures the number of clients engaging with Upwork's platform, indicating user retention, platform appeal, and potential for recurring revenue.
Measures the number of clients engaging with Upwork's platform, indicating user retention, platform appeal, and potential for recurring revenue.
Data provided by:
The Fly
The FlyUpwork (UPWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)3.11M
Price to Earnings (P/E)10.8
Beta (1Y)1.21
Revenue Growth1.86%
EPS Growth-56.74%
CountryUS
Employees630
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.80
Shares Outstanding124,903,366
10 Day Avg. Volume3,232,038
30 Day Avg. Volume3,107,615
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)4.11
Price to Sales (P/S)3.29
P/FCF Ratio10.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.29Price Target Upside5.16% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)1.54
Revenue Forecast (FY)$776.03M
Upwork Business Overview & Revenue Model
Company Description
Upwork Inc., operating alongside its subsidiaries, provides a leading online work marketplace that connects businesses globally with independent professionals and agencies, spanning the United States, India, the Philippines, and other internationa...
How the Company Makes Money
Upwork generates revenue primarily by charging fees associated with transactions and services on its marketplace. A key revenue stream is fees tied to payments made from clients to freelancers for work performed via the platform (i.e., monetizing ...
Upwork Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced message: strong execution on profitability, margins, monetization, product innovation (MCP, ChatGPT/Claude integrations), and pockets of outsized growth (Business Plus, AI consulting, Enterprise/Lifted) were offset by material near-term top-line headwinds from accelerated AI-related automation and Google SEO/search changes that pressured GSV and active client acquisition. Management emphasized disciplined cost management, margin expansion, and strategic product investments while lowering full-year revenue guidance and preparing for continued search-related headwinds.Positive Updates
Revenue at High End of Guidance
Q2 revenue of $191.7 million was at the high end of guidance, supported by high-margin monetization levers and ads; revenue from these levers grew 15% year-over-year.
Negative Updates
Top-Line Headwinds and Guidance Reduction
Updated full-year 2026 revenue guidance lowered to $730 million–$750 million due to a heightened pace of AI-related automation and adverse labor market assumptions; Q3 revenue guide is $176M–$184M.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue at High End of Guidance
Q2 revenue of $191.7 million was at the high end of guidance, supported by high-margin monetization levers and ads; revenue from these levers grew 15% year-over-year.
Read all positive updates
Company Guidance
Upwork updated full‑year 2026 guidance to revenue of $730–$750 million, adjusted EBITDA of approximately $225–$235 million (about a 31% adjusted EBITDA margin at the midpoint), non‑GAAP diluted EPS of $1.38–$1.43, and full‑year stock‑based compensation of ~$60–$65 million; Q3 guidance is revenue of $176–$184 million, adjusted EBITDA of $50–$54 million (≈29% margin at the midpoint) and Q3 non‑GAAP diluted EPS of $0.31–$0.33. Management said the guide assumes a heightened pace of AI‑related automation and no labor‑market improvement, plans to increase paid marketing spend by roughly $5–$10 million in H2, expects to continue expanding take rate, is realizing roughly $40 million of savings in FY2026 from an annualized $70 million OpEx reduction, and continues to target ~25% year‑over‑year GSV growth for Lifted in 2026.Upwork Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 787.28M | 787.78M | 769.33M | 689.14M | 618.32M | 502.80M |
| Gross Profit | 607.84M | 613.03M | 595.23M | 518.69M | 457.92M | 367.29M |
| EBITDA | 169.86M | 163.45M | 110.78M | 61.59M | -73.73M | -40.13M |
| Net Income | 101.83M | 115.42M | 215.59M | 46.89M | -89.89M | -56.24M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.30B | 1.21B | 1.04B | 1.08B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 614.24M | 676.38M | 622.10M | 550.10M | 686.61M | 684.77M |
| Total Debt | 375.06M | 380.86M | 369.12M | 367.86M | 581.94M | 584.37M |
| Total Liabilities | 663.14M | 669.26M | 636.24M | 656.47M | 831.37M | 821.54M |
| Stockholders Equity | 611.27M | 630.32M | 575.38M | 381.07M | 248.88M | 259.52M |
Cash Flow | ||||||
| Free Cash Flow | 199.23M | 242.47M | 139.12M | 36.36M | 2.76M | 4.70M |
| Operating Cash Flow | 208.67M | 248.26M | 153.56M | 52.71M | 11.50M | 10.84M |
| Investing Cash Flow | 140.89M | -136.94M | 137.57M | 88.27M | -69.47M | -428.98M |
| Financing Cash Flow | -183.36M | -138.00M | -81.96M | -139.79M | 1.14M | 537.74M |
Upwork Risk Analysis
Upwork disclosed 48 risk factors in its most recent earnings report. Upwork reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Upwork Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.03B | 28.51 | 29.32% | 2.87% | -1.26% | -11.37% | |
70 Outperform | $1.05B | 10.83 | 16.70% | ― | 1.86% | -56.74% | |
61 Neutral | $4.25B | 38.07 | 9.18% | 6.69% | -4.95% | -34.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $165.88M | 121.88 | 1.28% | ― | -7.34% | ― | |
59 Neutral | $404.56M | 13.48 | -41.38% | ― | 0.41% | ― | |
54 Neutral | $560.52M | -2.09 | -27.06% | 1.98% | -9.63% | -4468.44% |
* Communication Services Sector Average
UPWK
Upwork
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Upwork Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Upwork CEO Assumes Interim Finance Duties During Leave
Neutral
Jul 17, 2026
On July 14, 2026, Upwork Inc. Chief Financial Officer and principal financial officer Erica Gessert began a temporary medical leave, with the company expecting her return in the fourth quarter of 2026. During her absence, President and Chief Execu...
Business Operations and StrategyPrivate Placements and Financing
Upwork Secures New $150 Million Revolving Credit Facility
Positive
Jun 23, 2026
Upwork Inc. operates an online freelancing and work marketplace that connects businesses with independent professionals and agencies, primarily serving clients seeking flexible, remote talent in areas such as technology, creative services and busi...
Executive/Board ChangesShareholder Meetings
Upwork Shareholders Approve New Directors and Governance Measures
Positive
Jun 5, 2026
At its June 4, 2026 annual meeting, Upwork stockholders approved the election of Claire Bramley and David Lissy as Class II directors and re-elected Gary Steele for three-year terms ending in 2029, following the previously disclosed departure of d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.