Fourth-quarter revenue of $198.4 million and GAAP net income of $15.6 million
Fourth-quarter adjusted EBITDA of $52.9 million or 27% adjusted EBITDA margin
Full-year 2025 GAAP net income of $115.4 million and record adjusted EBITDA of $225.6 million or 29% adjusted EBITDA margin
PALO ALTO, Calif., Feb. 09, 2026 (GLOBE NEWSWIRE) -- Upwork Inc. (NASDAQ:UPWK), the world's human and AI-powered work marketplace, today announced its financial results for the fourth quarter and full year of 2025.
"2025 marked the year we rebuilt Upwork for the age of human-plus-AI collaboration, turning global change into a definitive tailwind, all while demonstrating strong financial performance," said Hayden Brown, president and CEO, Upwork Inc. "We enter 2026 as the leader of a new category, serving as the operational backbone for businesses navigating this new AI era of work. This is our most exciting chapter yet as we tackle the $1.3 trillion market opportunity for flexible digital knowledge work1 and execute on our vision to build a generation-defining company."
"In 2025, we delivered on our commitments to return to GSV growth, achieving this goal two quarters earlier than planned, while also achieving record annual revenue and adjusted EBITDA margin," said Erica Gessert, CFO, Upwork Inc. "We expect 2026 to be a year of accelerating growth. Our diversified growth path across AI, SMB and Enterprise gives us confidence in our guidance of 4% to 6% GSV growth and 6% to 8% revenue growth for the year."
Fourth Quarter & Full Year 2025 Financial Highlights
Revenue grew 4% year over year to $198.4 million in the fourth quarter of 2025
Revenue grew 2% year over year to $787.8 million for full year 2025
Active clients2 were 785,000 as of December 31, 2025
GSV per active client2 was $5,129 in the fourth quarter of 2025, an increase of 7% year over year
GAAP Net income was $15.6 million in the fourth quarter of 2025, compared to $147.2 million in the fourth quarter of 20243
GAAP Net income was $115.4 million in 2025, compared to $215.6 million in 20243
GAAP Diluted earnings per share was $0.12 in the fourth quarter of 2025, compared to $1.03 in the fourth quarter of 20243
GAAP Diluted earnings per share was $0.84 in 2025, compared to $1.52 in 20243
Adjusted EBITDA4 was $52.9 million in the fourth quarter of 2025, a 5% increase compared to $50.2 million in the fourth quarter of 20245
Adjusted EBITDA4 was $225.6 million in 2025, a 35% increase compared to $167.6 million in 20245
Cash provided by operating activities was $63.7 million in the fourth quarter of 2025, compared to $38.6 million in the fourth quarter of 2024
Cash provided by operating activities was $248.3 million in 2025, compared to $153.6 million in 2024
Free cash flow4 was $57.3 million in the fourth quarter of 2025, compared to $34.7 million in the fourth quarter of 2024
Free cash flow4 was $223.1 million in 2025, compared to $139.1 million in 2024
Share repurchase program returned $136 million to shareholders in 2025 with the purchase of 9.3 million shares, including the purchase of 2.0 million shares in the fourth quarter for $34 million. As of December 31, 2025, the company had $64 million in remaining authorization in its repurchase program.
_______________1 Estimated 2028 market size from Upwork Market Study, a commissioned third-party study that estimates the size of the flexible digital knowledge work market based on data from, among other sources, the Bureau of Labor Statistics, World Bank, and International Labour Organization (October 2025).2 See Key Definitions in our fourth quarter and full year 2025 earnings presentation.3 GAAP net income and diluted earnings per share for the three and twelve months ended December 31, 2024, include a non-cash income tax benefit of $140.3 million related to the release of a valuation allowance on certain deferred tax assets.4 An explanation of non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures can be found in the "Non-GAAP Financial Measures" section and the subsequent tables at the end of this press release.5 For each of the three and twelve months ended December 31, 2024, adjusted EBITDA does not include restructuring charges related to the restructuring plan that was announced on October 23, 2024, or the Restructuring Plan.
Fourth Quarter 2025 Operational Highlights
Building the World's Human and AI-Powered Work Marketplace
Drove over $100 million in incremental GSV in 2025 through search and recommendation improvements, largely driven by AI.
Introduced Uma™ AI-generated work summaries in Q4 2025, which boosted spend per client.
Announced a partnership with OpenAI to offer AI training, certifications, and upskilling to global independent professionals on the Upwork Marketplace, the first of many upcoming partnerships that deepen Upwork's commitment to helping talent succeed in this new era of work.
Growing AI Work on the Marketplace
GSV from AI-related work surpassed $300 million on an annualized basis in Q4 2025, up more than 50% from the prior year.
GSV from AI Integration & Automation work grew more than 90% year over year in Q4 2025.
GSV from Generative AI & Creative Production increased by 50% year over year in Q4 2025.
Upwork's February 4th In-Demand Skills 2026 report found that demand for top AI-enabled skills more than doubled year-over-year in 2025, and that hiring for human expertise remains strong across work categories.
Winning Bigger with SMBs
Q4 2025 GSV from Upwork Business Plus offering for SMBs increased 24% quarter over quarter.
Q4 2025 Business Plus active clients grew 49% quarter over quarter.
38% of active clients on Business Plus in Q4 2025 were net-new customers to Upwork.
Unlocking the Enterprise Opportunity
Continued team and platform integration work and finalized the go-to-market strategy for Lifted, Upwork's wholly owned subsidiary purpose-built to serve enterprise clients, which was launched in August 2025.
Won two Lifted clients who are new to the Upwork family of companies.
Financial Guidance & OutlookUpwork's guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for the first quarter of 2026 is:
Revenue: $192 million to $197 million
Adjusted EBITDA: $45 million to $47 million
Diluted weighted-average shares outstanding: 136 million to 139 million
Non-GAAP diluted EPS: $0.26 to $0.28
Upwork's guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for full year 2026 is:
Revenue: $835 million to $850 million
Adjusted EBITDA: $240 million to $250 million
Diluted weighted-average shares outstanding: 137 million to 140 million
Non-GAAP diluted EPS: $1.43 to $1.48
UPWORK INC.Key Financial and Operational Metrics(Unaudited)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
(In thousands, except percentages )
2025
2024
% Change
2025
2024
% Change
GSV(1)
$
1,020,332
$
992,776
3
%
$
4,028,386
$
4,008,107
1
%
Marketplace revenue(1)
$
171,358
$
163,655
5
%
$
682,883
$
662,108
3
%
Enterprise revenue(1)
$
27,051
$
27,828
(3)
%
$
104,901
$
107,217
(2)
%
Gross profit
$
154,738
$
148,842
4
%
$
613,032
$
595,231
3
%
Gross profit margin
78
%
78
%
26 bps
78
%
77
%
45 bps
Operating expenses
$
126,444
$
135,259
(7)
%
$
483,725
$
530,025
(9)
%
Net income
$
15,634
$
147,166
(89)
%
$
115,425
$
215,586
(46)
%
Adjusted EBITDA(2)
$
52,857
$
50,206
5
%
$
225,556
$
167,593
35
%
Profit margin
8
%
77
%
-6,898 bps
15
%
28
%
-1,337 bps
Adjusted EBITDA margin(2)
27
%
26
%
42 bps
29
%
22
%
685 bps
Cash provided by operating activities
$
63,701
$
38,582
65
%
$
248,259
$
153,563
62
%
Free cash flow(2)
$
57,273
$
34,717
65
%
$
223,120
$
139,119
60
%
As of December 31,
(In thousands)
2025
2024
% Change
Active clients(1)
785
832
(6)%
(1) See Key Definitions in our fourth quarter and full year 2025 earnings presentation.
(2) An explanation of non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures can be found in the "Non-GAAP Financial Measures" section and the subsequent tables at the end of this press release.
Fourth Quarter and Full Year 2025 Financial Results Conference Call and WebcastUpwork will host a conference call today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the company's fourth quarter and full year 2025 financial results. An audio webcast archive will be available following the live event for approximately one year at investors.upwork.com. Please visit the Upwork Investor Relations website at investors.upwork.com/financial-information/quarterly-results to view Upwork's fourth quarter and full year 2025 earnings presentation.
Disclosure InformationWe use our Investor Relations website (investors.upwork.com), our Blog (upwork.com/blog), our X handle (twitter.com/Upwork), Hayden Brown's X handle (twitter.com/hydnbrwn) and LinkedIn profile (linkedin.com/in/haydenlbrown), and Erica Gessert's LinkedIn profile (linkedin.com/in/erica-gessert) as means of disseminating or providing notification of, among other things, news or announcements regarding our business or financial performance, investor events, press releases, and earnings releases, and as means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
About UpworkUpwork Inc.'s (NASDAQ:UPWK) family of companies connects businesses with global, AI-enabled talent across every contingent work type including freelance, fractional, and payrolled. This portfolio includes the Upwork Marketplace, which connects businesses with on-demand access to highly skilled talent across the globe, and Lifted, which provides a purpose-built solution for enterprise organizations to source, contract, manage, and pay talent across the full spectrum of contingent work. From Fortune 100 enterprises to entrepreneurs, businesses rely on Upwork Inc. to find and hire expert talent, leverage AI-powered work solutions, and drive business transformation. With access to professionals spanning more than 10,000 skills across AI & machine learning, software development, sales & marketing, customer support, finance & accounting, and more, the Upwork family of companies enables businesses of all sizes to scale, innovate, and transform their workforces for the age of AI and beyond.
Since its founding, Upwork Inc. has facilitated more than $30 billion in total transactions and services as it fulfills its purpose to create opportunity in every era of work. Learn more about the Upwork Marketplace at upwork.com and follow on LinkedIn, Facebook, Instagram, TikTok, and X; and learn more about Lifted at go-lifted.com and follow on LinkedIn.
Contact:Investor Relations[email protected]
Safe Harbor:
This press release of Upwork Inc. (together with its wholly owned subsidiaries, the "Company," "we," "us," or "our") contains "forward-looking" statements within the meaning of the federal securities laws. Forward-looking statements include all statements other than statements of historical fact, including any statements regarding our future operating results and financial position, including expected financial results for the first quarter and full year 2026, information or predictions concerning the future of our business or strategy, future market opportunity and market size, future products, features, or functionality, anticipated events and trends, potential growth or growth prospects, competitive position, technological and market trends, industry environment, the economy, our plans with respect to share repurchases, the expected impact and timing of strategic initiatives, including the launch of Lifted, our enterprise-focused subsidiary, and its acquisitions of Bubty B.V. ("Bubty") and Ascen Inc. ("Ascen"), and other future conditions.
We have based these forward-looking statements largely on our current expectations and projections as of the date hereof about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short and long-term business operations and objectives, and financial needs. As such, they are subject to inherent uncertainties, known and unknown risks, and changes in circumstances that are difficult to predict and in many cases outside our control, and you should not place undue reliance on such forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. We make no representation that the plans, intentions, expectations, or results disclosed in these forward-looking statements will be achieved or that future events and circumstances will occur, and actual results or events may differ materially and adversely from our expectations. The forward-looking statements are made as of the date hereof, and we do not undertake, and expressly disclaim, any obligation to update or revise any forward-looking statements, conform these statements to actual results, or make changes in our expectations, except as required by law. Additional information regarding the risks and uncertainties that could cause actual results to differ materially from our expectations is included under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended September 30, 2025, filed with the SEC on November 4, 2025, and in our other SEC filings, which are available on our Investor Relations website at investors.upwork.com and on the SEC's website at www.sec.gov. Additional information will also be set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, when filed.
Upwork, Lifted, "Uma™, Upwork's Mindful AI," and other registered or common law trade names, trademarks, or service marks of Upwork appearing in this press release are the property of Upwork. This press release may also contain additional trade names, trademarks, and service marks of other companies, including names and brands. All third-party trademarks are property of their respective owners, and any references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law.
UPWORK INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)(Unaudited)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
2025
2024
2025
2024
Revenue:
Marketplace
$
171,358
$
163,655
$
682,883
$
662,108
Enterprise
27,051
27,828
104,901
107,217
Total revenue
198,409
191,483
787,784
769,325
Cost of revenue
43,671
42,641
174,752
174,094
Gross profit
154,738
148,842
613,032
595,231
Operating expenses
Research and development
47,055
53,491
185,544
209,283
Sales and marketing
36,005
43,934
143,412
185,211
General and administrative
41,665
35,602
146,629
128,803
Provision for transaction losses
1,719
2,232
8,140
6,728
Total operating expenses
126,444
135,259
483,725
530,025
Income from operations
28,294
13,583
129,307
65,206
Other income, net
5,757
4,788
23,869
25,221
Income before income taxes
34,051
18,371
153,176
90,427
Income tax (provision) benefit
(18,417
)
128,795
(37,751
)
125,159
Net income
$
15,634
$
147,166
$
115,425
$
215,586
Net income per share:
Basic
$
0.12
$
1.10
$
0.87
$
1.61
Diluted
$
0.12
$
1.03
$
0.84
$
1.52
Weighted-average shares used to compute net income per share:
Basic
130,619
134,265
132,485
133,621
Diluted
139,414
143,098
140,660
143,152
UPWORK INC.CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)
December 31, 2025
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents
$
294,356
$
305,757
Marketable securities
378,425
316,344
Funds held in escrow, including funds in transit
180,752
195,736
Trade and client receivables, net
76,236
75,490
Prepaid expenses and other current assets
21,064
17,727
Total current assets
950,833
911,054
Property and equipment, net
44,421
30,056
Goodwill
149,192
121,064
Intangible assets, net
37,161
12,989
Operating lease asset
5,011
5,752
Deferred tax asset
111,495
128,779
Other assets, noncurrent
1,467
1,919
Total assets
$
1,299,580
$
1,211,613
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
7,858
$
6,128
Escrow funds payable
180,752
195,736
Debt, current
359,770
—
Accrued expenses and other current liabilities
94,023
59,300
Deferred revenue
7,765
7,269
Total current liabilities
650,168
268,433
Debt, noncurrent
—
357,928
Operating lease liability, noncurrent
9,707
9,567
Other liabilities, noncurrent
9,390
308
Total liabilities
669,265
636,236
Stockholders' equity
Common stock
13
14
Additional paid-in capital
592,599
653,575
Accumulated and other comprehensive income
754
264
Accumulated deficit
36,949
(78,476
)
Total stockholders' equity
630,315
575,377
Total liabilities and stockholders' equity
$
