Upwork (UPWK) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.51
• Revenue Growth: 3.92%
• EPS Growth: 231.82%
• Country: US
• Employees: 600
• Sector: Communication Services
• Sector Strength: 91
• Industry: Staffing & Employment Services
• EPS (TTM): 0.35
• Shares Outstanding: 132,606,580
• 10 Day Avg. Volume: 4,641,995
• 30 Day Avg. Volume: 3,233,944
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 2.69
• Enterprise Value/Ebitda: 13.21
• 1Y Price Target: $18.38
• Price Target Upside: 32.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $16.00 ▲(15.44% Upside)

Upwork's overall stock score of 80 reflects its strong financial performance, positive earnings call, and strategic corporate events. The company's robust revenue growth and strategic focus on AI and enterprise solutions are significant strengths. Technical analysis and valuation also support a positive outlook, although macroeconomic uncertainties and enterprise revenue pressures present challenges.

Positive Factors

AI Growth

The company is showing signs of bending the curve with now back to back quarters of sequential improvement in declines driven by AI category growth.

Financial Performance

Upwork's Q2 results came in ahead of expectations, as the company saw relative strength in its core marketplace offering.

Strategic Acquisitions

Upwork announced two strategic acquisitions - Bubty and Ascen - that bolster its efforts to build an end-to-end contingent workforce solution for large enterprises.

Negative Factors

Client Growth Decline

Upwork's active clients declined by 23K in Q4, bringing total active clients to 832K, down 2% y/y and slightly below CGe at 835K.

Enterprise Business Challenges

The Enterprise business declined sequentially in Q2, in part reflecting budget cuts and layoffs at large clients.

Macroeconomic Environment

Overall, the macroeconomic environment continues to weigh on results with gross services volume declining year over year.

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 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 financial health with impressive revenue growth, high profit margins, and robust cash flow generation. The balance sheet shows moderate leverage, but overall profitability and cash flow metrics are commendable.

Income Statement

Upwork's income statement shows strong performance with a notable gross profit margin of 77.8% and a net profit margin of 31.7% in TTM. The company has demonstrated impressive revenue growth, particularly in the latest period, with a 23.5% increase. EBIT and EBITDA margins have also improved significantly, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.61, indicating a balanced approach to leveraging. Return on equity is robust at 44.8%, showcasing effective use of equity to generate profits. However, the equity ratio stands at 48.2%, suggesting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 21.4% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.79, reflecting efficient conversion of income into cash. The free cash flow to net income ratio is high at 0.94, underscoring effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.90M	769.33M	689.14M	618.32M	502.80M	373.63M
Gross Profit	601.62M	595.23M	518.69M	457.92M	367.29M	269.36M
EBITDA	122.68M	82.86M	1.46M	-81.49M	-40.13M	-7.91M
Net Income	245.38M	215.59M	46.89M	-89.89M	-56.24M	-22.87M
Balance Sheet
Total Assets	1.26B	1.21B	1.04B	1.08B	1.08B	529.23M
Cash, Cash Equivalents and Short-Term Investments	634.58M	622.10M	550.10M	686.61M	684.77M	169.65M
Total Debt	370.85M	369.12M	367.86M	581.94M	584.37M	31.23M
Total Liabilities	653.06M	636.24M	656.47M	831.37M	821.54M	229.92M
Stockholders Equity	608.65M	575.38M	381.07M	248.88M	259.52M	299.31M
Cash Flow
Free Cash Flow	207.21M	150.03M	10.87M	-2.17M	4.70M	8.00M
Operating Cash Flow	220.10M	153.56M	27.22M	6.56M	10.84M	22.36M
Investing Cash Flow	-75.63M	137.57M	88.27M	-69.47M	-428.98M	-4.15M
Financing Cash Flow	-43.41M	-81.96M	-114.30M	6.08M	537.74M	54.64M

Upwork Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.86 is above the 20-day moving average (MA) of 13.03, above the 50-day MA of 13.38, and below the 200-day MA of 14.79, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.58 is Negative, 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	80 Outperform	$1.83B	8.04	50.61%	―	3.92%	231.82%
KFRC	66 Neutral	$599.82M	13.63	29.14%	4.78%	-5.77%	-11.93%
Sector *	56 Neutral	HK$68.17B	0.44	-5.00%	4.98%	-0.83%	-12.65%
KELYA	51 Neutral	$494.22M	11.43	-0.49%	2.11%	0.97%	-112.75%
DHX	48 Neutral	$105.14M	268.89	-8.83%	―	-8.31%	-445.30%
ZIP	47 Neutral	$378.10M	225.24	-2897.28%	―	-16.20%	-222.75%
IPDN	45 Neutral	$5.60M	―	-68.25%	―	-11.76%	48.03%

Upwork Corporate Events

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.

Upwork Announces Resignation of Chief Accounting Officer

On July 21, 2025, Upwork Inc. announced the resignation of Olivier Marie from his position as Chief Accounting Officer, effective August 19, 2025. His departure is not due to any disagreements with the company. Following his resignation, Erica Gessert, the Chief Financial Officer, will temporarily take over as the interim principal accounting officer without any additional compensation or changes to her current role.

Upwork Announces New Board Members at Annual Meeting

On June 5, 2025, Upwork Inc. held its annual stockholder meeting where significant changes to its board of directors were made. Elizabeth Nelson did not stand for re-election, and Gregory C. Gretsch retired, leading to the appointment of Dana L. Evan and Glenn Kelman as new directors. The meeting also saw the approval of three proposals, including the election of directors, ratification of PricewaterhouseCoopers LLP as the accounting firm, and an advisory vote on executive compensation, indicating strong shareholder support for the company’s governance and strategic direction.