Upwork (UPWK)
NASDAQ:UPWK
Want to see UPWK full AI Analyst Report?
Top Page
Upwork
(NASDAQ:UPWK)
Select Model
Select Model
Rating:61Neutral
Price Target:
$9.50
▼(-15.71% Downside)
Action:ReiteratedDate:05/12/26
The score is supported by improved profitability and strong free cash flow, reinforced by earnings-call guidance pointing to higher margins via restructuring. These positives are tempered by a major revenue contraction risk and notably bearish technicals (price below key moving averages and negative MACD), while valuation is moderately supportive at a ~11x P/E.
Positive Factors
Cash generation strength
Upwork’s operating cash flow and free cash flow were strong in 2024–2025 and FCF broadly tracks net income (~1x). Durable cash generation supports deleveraging, optional capital allocation (buybacks/M&A) and reinvestment into product and AI, strengthening financial resilience over months.
Negative Factors
Steep recent revenue decline
A ~24.5% TTM revenue drop is a material structural headwind: it undermines the sustainability of recent margin and cash-flow improvements, increases sensitivity to further macro weakness, and may force additional cost actions or reduced reinvestment if GSV and client demand do not recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Upwork’s operating cash flow and free cash flow were strong in 2024–2025 and FCF broadly tracks net income (~1x). Durable cash generation supports deleveraging, optional capital allocation (buybacks/M&A) and reinvestment into product and AI, strengthening financial resilience over months.
Read all positive factors
Upwork (UPWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)3.07M
Price to Earnings (P/E)11.2
Beta (1Y)1.22
Revenue Growth2.52%
EPS Growth-52.38%
CountryUS
Employees600
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.84
Shares Outstanding123,518,135
10 Day Avg. Volume3,062,314
30 Day Avg. Volume3,070,881
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)4.11
Price to Sales (P/S)3.29
P/FCF Ratio10.68
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda7.02
Forecast
1Y Price Target
$11.45Price Target Upside1.57% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)1.38
Revenue Forecast (FY)$830.79M
Upwork Business Overview & Revenue Model
Company Description
Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company's work marketplace...
How the Company Makes Money
Upwork generates revenue primarily by monetizing transactions and services on its marketplace. A key revenue stream is fees tied to work performed and paid through the platform (often described as a take rate on gross services volume), where Upwor...
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call balanced notable operational and product progress—strong profitability (Q1 adjusted EBITDA beat), meaningful cost reductions, rapid SMB and AI-related growth, and enterprise pipeline gains—against near-term demand softness concentrated in the smallest contracts, a lowered/widened revenue outlook, and a sizable workforce reduction with related one-time costs. Management is confident in longer-term AI and enterprise opportunities and has strengthened profitability guidance despite top-line uncertainty.Positive Updates
Adjusted EBITDA Beat and Strong Profitability
Reported a $10 million adjusted EBITDA beat for Q1; raised full-year 2026 adjusted EBITDA guidance to $250M–$260M (approx. 33% margin) and now expect to reach the 35% adjusted EBITDA margin target in the back half of 2026 (more than 2 years ahead of schedule). Q2 adjusted EBITDA guide of $56M–$59M (30%–31% margin).
Negative Updates
Lowered and Wider Revenue Guidance
Full-year 2026 revenue guidance was lowered and widened to $760M–$790M, reflecting increased uncertainty and softer marketplace demand; Q2 revenue guide set at $187M–$193M.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Strong Profitability
Reported a $10 million adjusted EBITDA beat for Q1; raised full-year 2026 adjusted EBITDA guidance to $250M–$260M (approx. 33% margin) and now expect to reach the 35% adjusted EBITDA margin target in the back half of 2026 (more than 2 years ahead of schedule). Q2 adjusted EBITDA guide of $56M–$59M (30%–31% margin).
Read all positive updates
Company Guidance
Upwork narrowed and updated 2026 guidance: full‑year revenue of $760–$790 million, adjusted EBITDA of ~$250–$260 million (≈33% margin) and non‑GAAP diluted EPS of $1.50–$1.55, with stock‑based compensation of ~$60–$65 million; Q2 guidance is $187–$193 million revenue, $56–$59 million adjusted EBITDA (30–31% margin) and Q2 non‑GAAP EPS of $0.35–$0.37. Management announced a restructuring expected to reduce costs by an estimated $70 million annualized (≈24% workforce reduction), drive roughly $40 million of incremental 2026 savings, and incur one‑time charges of $16–$23 million (mostly this quarter). They now expect to reach a 35% adjusted EBITDA margin in H2 (more than two years ahead of plan), while assuming continued product growth (Lifted GSV guide of 25% and Business+ GSV up 34% Q/Q); other disclosed metrics included a marketplace take rate of 19.4%, AI work = 8% of GSV (AI‑at‑risk GSV ≈10%, down from 11% a year ago), AI GSV >$300M annualized growing >40% YoY, 11% of job posts in the AI category, and ~20% of the enterprise net‑new pipeline tied to AI.Upwork Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 790.56M | 787.78M | 769.33M | 689.14M | 618.32M | 502.80M |
| Gross Profit | 612.97M | 613.03M | 595.23M | 518.69M | 457.92M | 367.29M |
| EBITDA | 161.91M | 163.45M | 82.86M | 1.46M | -81.49M | -40.13M |
| Net Income | 109.16M | 115.42M | 215.59M | 46.89M | -89.89M | -56.24M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.30B | 1.21B | 1.04B | 1.08B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 579.73M | 676.38M | 622.10M | 550.10M | 686.61M | 684.77M |
| Total Debt | 375.43M | 380.86M | 369.12M | 367.86M | 581.94M | 584.37M |
| Total Liabilities | 672.33M | 669.26M | 636.24M | 656.47M | 831.37M | 821.54M |
| Stockholders Equity | 569.63M | 630.32M | 575.38M | 381.07M | 248.88M | 259.52M |
Cash Flow | ||||||
| Free Cash Flow | 224.11M | 242.47M | 139.12M | 36.36M | 2.76M | 4.70M |
| Operating Cash Flow | 234.31M | 248.26M | 153.56M | 52.71M | 11.50M | 10.84M |
| Investing Cash Flow | -13.50M | -136.94M | 137.57M | 88.27M | -69.47M | -428.98M |
| Financing Cash Flow | -209.12M | -138.00M | -81.96M | -139.79M | 1.14M | 537.74M |
Upwork Technical Analysis
Neutral
11.27
Price Trends
12.55
Negative
16.41
Negative
16.03
Negative
Market Momentum
-0.47
Negative
45.47
Neutral
58.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPWK, the sentiment is Neutral. The current price of 11.27 is above the 20-day moving average (MA) of 11.05, below the 50-day MA of 12.55, and below the 200-day MA of 16.03, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UPWK.
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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $774.98M | 15.89 | 27.22% | 5.12% | -3.91% | -22.90% | |
61 Neutral | $1.09B | 11.16 | 17.92% | ― | 2.52% | -52.38% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $151.63M | 18.99 | -2.30% | ― | -9.39% | 72.47% | |
56 Neutral | $357.54M | -13.06 | -22.10% | 3.53% | -7.30% | -1239.34% | |
51 Neutral | $305.58M | -8.12 | 32.87% | ― | -3.33% | -45.12% | |
41 Neutral | $7.08M | -0.30 | -78.12% | ― | -2.73% | 2.51% |
* Communication Services Sector Average
UPWK
Upwork
8.35
-9.15
-52.29%
DHX
DHI Group
3.64
1.64
82.00%
KELYA
Kelly Services
9.84
-2.20
-18.24%
KFRC
Kforce
40.72
1.13
2.85%
IPDN
Professional Diversity
0.61
-1.08
-63.96%
ZIP
ZipRecruiter
3.70
-1.19
-24.34%
Upwork Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Upwork Announces Major Workforce Restructuring Amid Profit Focus
Negative
May 7, 2026
On May 7, 2026, Upwork reported first-quarter 2026 results showing revenue up 1% year-over-year to $195.5 million, flat GSV of $987.1 million, and GAAP net income down 17% to $31.5 million, while adjusted EBITDA rose 3% to $57.4 million and GSV pe...
Business Operations and StrategyExecutive/Board Changes
Upwork Restructures Marketplace Leadership After Executive Resignation
Neutral
Mar 18, 2026
On March 12, 2026, Upwork Inc. and David T. Bottoms, GM of Marketplace, agreed to his resignation, with Bottoms remaining employed through April 3, 2026, and a formal separation agreement executed on March 17, 2026. Under this agreement, Bottoms w...
Business Operations and StrategyStock Buyback
Upwork Announces Flexible $300 Million Share Repurchase Program
Positive
Feb 18, 2026
On February 18, 2026, Upwork Inc. announced that its board of directors had authorized a new share repurchase program allowing the company to buy back up to $300 million of its outstanding common stock. The authorization permits repurchases on the...
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.