Upwork (UPWK) AI Stock Analysis

• Market Cap: $2.69B
• Dividend Yield: N/A
• Average Volume (3M): 4.37M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.27
• 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: 3,070,127
• 30 Day Avg. Volume: 4,366,341
• 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: 0.86
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 16.38
• 1Y Price Target: $23.33
• Price Target Upside: 9.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): $786.68M

• Rating: 72 Outperform
• Price Target: $22.50 ▲(5.68% Upside)

Upwork's overall stock score is driven by strong earnings call results and technical indicators suggesting bullish momentum. Financial performance is solid but tempered by concerns over declining revenue growth and cash flow. The valuation indicates potential for appreciation, supported by strategic initiatives in AI and enterprise expansion.

Positive Factors

AI-Driven Growth

Upwork's focus on AI technologies is driving significant growth, enhancing its service offerings and competitive edge in the freelancing market.

Expansion in SMB and Enterprise Segments

Expanding into SMB and enterprise segments positions Upwork to capture a larger share of the contingent work market, supporting long-term revenue growth.

Positive Financial Guidance

Raising financial guidance reflects management's confidence in sustained growth and operational improvements, reinforcing investor confidence.

Negative Factors

Declining Revenue Growth

A sharp decline in revenue growth raises concerns about Upwork's ability to maintain its market position and expand its client base effectively.

Negative Free Cash Flow Growth

Declining free cash flow growth could impact Upwork's liquidity and its ability to invest in strategic initiatives, potentially hindering long-term growth.

Seasonal and Integration Challenges

Seasonal and integration challenges may affect short-term performance, highlighting the need for effective management of operational complexities.

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 provides access to talent with various skills across a range of categories, including sales and marketing, customer service, data science and analytics, design and creative, web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company's work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Basic, Upwork Plus, Upwork Enterprise, and Upwork Payroll, as well as managed and internet escrow agency services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.

How the Company Makes Money

Upwork generates revenue primarily through a service fee model, where it charges freelancers a percentage of their earnings for each contract completed on the platform. This fee structure is tiered based on the total billings a freelancer has with a client, incentivizing long-term relationships. Additionally, Upwork earns revenue from premium memberships that provide enhanced visibility and features for freelancers and clients. The company also offers enterprise solutions and talent sourcing services for larger organizations, which contribute to its earnings. Key partnerships with payment processors and integration of tools for project management further facilitate its revenue model.

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	141.71M	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: 21.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 21.29 is above the 20-day moving average (MA) of 20.40, above the 50-day MA of 18.23, and above the 200-day MA of 15.54, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.32 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	72 Outperform	$2.69B	12.16	47.52%	―	2.50%	187.92%
KFRC	66 Neutral	$556.20M	13.70	27.19%	5.02%	-5.91%	-23.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZIP	55 Neutral	$391.86M	-9.85	―	―	-10.14%	-1381.34%
IPDN	51 Neutral	$8.35M	-0.81	-78.12%	―	-7.26%	-1.37%
DHX	50 Neutral	$71.68M	-5.05	-12.89%	―	-9.13%	-1032.39%
KELYA	46 Neutral	$311.76M	-1.94	-13.11%	3.48%	0.46%	-477.90%

Upwork Corporate Events

Upwork Appoints New Chief Accounting Officer

On December 8, 2025, Upwork Inc. announced the appointment of Sabrina Mekhalfa as its Chief Accounting Officer, effective December 15, 2025. This strategic appointment is accompanied by a comprehensive compensation package, including a base salary, bonuses, and stock options, reflecting Upwork’s commitment to strengthening its financial leadership. The move is expected to enhance the company’s operational efficiency and bolster its market position.