PALO ALTO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Upwork Inc. (NASDAQ:UPWK), the world's human and AI-powered work marketplace, today announced its financial results for the first quarter of 2026.
"This was a dynamic first quarter, where we delivered strong profitability while navigating a challenging demand environment," said Hayden Brown, president and CEO of Upwork Inc. "The nature of work continues to shift as AI advances, and we continue to build Upwork for where work is headed. With momentum in our AI, SMB, and Enterprise growth pillars, we are confident in our strategy and are taking the necessary steps today to further sharpen our execution."
"We are managing the business with a level of discipline, rigor, and agility that enables us to increase our bottom line outlook," said Erica Gessert, CFO of Upwork Inc. "As our growth pillars continue to scale, we expect them to increasingly overshadow the cyclical and near-term factors currently impacting the business."
First Quarter 2026 Financial Highlights
GSV(1) was $987.1 million, approximately flat year-over-year
Revenue grew 1% year-over-year to $195.5 million
Active clients(1) of 784,000
GSV per active client(1) of $5,138 increased 5% year-over-year
GAAP Net income was $31.5 million, a decrease of 17% year-over-year
GAAP Diluted earnings per share was $0.24, compared to diluted earnings per share of $0.27 in the first quarter of 2025
Adjusted EBITDA(2) was $57.4 million, up 3% year-over-year
Cash provided by operating activities was $23.0 million, compared to cash provided by operating activities of $37.0 million in the first quarter of 2025
Free cash flow(2) was $12.9 million, compared to free cash flow of $30.8 million in the first quarter of 2025
Share repurchase program returned $107.9 million to shareholders in the first quarter of 2026 with the repurchase of 8.1 million shares. On February 18, 2026, the Company announced a new $300 million repurchase authorization. As of March 31, 2026, the Company had $256.1 million in remaining authorization in its repurchase program.
First Quarter 2026 and Recent Operational Highlights
Building the World's Human and AI-Powered Work Marketplace
Brought the global Upwork Marketplace to ChatGPT via an Upwork app that enables businesses to describe their project needs, discover relevant talent, and draft job posts directly in ChatGPT, so they can find experts faster, right where they're starting work.
Upwork Updates Spring 2026 featured a number of AI-powered innovations driven by Uma™, Upwork's AI work agent, focused on helping small and medium-sized businesses (SMB) more efficiently find, hire, and work with independent talent.
Launched a redesigned, AI-native homepage and platform experience that simplifies navigation and surfaces in-demand skills, making it easier for customers to discover relevant talent and opportunities.
Growing AI Work on the Marketplace
GSV from AI-related work increased more than 40% year-over-year in Q1 2026.
GSV from AI Integration & Automation, the largest AI-related work sub-category, grew more than 50% year-over-year in Q1 2026.
Winning Bigger with SMB
Q1 2026 GSV from Upwork Business Plus offering for SMB increased 34% quarter-over-quarter.
Q1 2026 Business Plus active clients grew 35% quarter-over-quarter.
39% of active clients on Business Plus in Q1 2026 were net-new customers to Upwork.
Unlocking the Enterprise Opportunity
Achieved technology and operations integration milestones that position Lifted to begin migrating its first wave of enterprise customers onto its new platform by the end of June.
Go-to-market drove significant sales pipeline expansion with new and existing enterprise clients.
Revolving Credit Facility Update
Upwork is announcing today that it has secured a commitment letter to add a revolving credit facility in the aggregate principal amount of $150 million. The Company expects to finalize the credit agreement in the coming weeks.
Restructuring Plan
Today, Upwork is also announcing a restructuring plan that includes a reduction of the Company's total workforce by approximately 24%. Upwork is taking these actions to build a more efficient operating model and position the Company for profitable growth as the nature of work evolves. The Company expects execution of the restructuring plan to be substantially complete in the fourth quarter of 2026.
In connection with these actions, the Company estimates that it will incur approximately $16 million to $23 million in pre-tax restructuring charges to its GAAP financial results, consisting primarily of severance and other one-time termination costs for the Company's impacted workforce. Upwork expects most of these charges to be cash expenditures and to be recognized over the next two to three quarters, with the majority of these charges being recognized in the second quarter of 2026.
A message to Upwork employees from Hayden Brown, president and CEO, regarding today's announcement is available on Upwork's press page at https://www.upwork.com/press/releases.
Financial Guidance & Outlook
Upwork's guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for the second quarter of 2026 is:
Revenue: $187 million to $193 million
Adjusted EBITDA: $56 million to $59 million
Diluted weighted-average shares outstanding: 130 million to 133 million
Non-GAAP diluted EPS: $0.35 to $0.37
Upwork's guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for full year 2026 is:
Revenue: $760 million to $790 million
Adjusted EBITDA: $250 million to $260 million
Diluted weighted-average shares outstanding: 132 million to 135 million
Non-GAAP diluted EPS: $1.50 to $1.55
UPWORK INC.Key Financial and Operational Metrics(In thousands, except percentages and basis points)(Unaudited)
Three Months Ended March 31,
2026
2025
Change
GSV(1)
$
987,110
$
987,712
(0.1)%
Marketplace revenue(1)
$
170,705
$
166,293
3
%
Enterprise revenue(1)
$
24,778
$
26,413
(6
)%
Gross profit
$
150,842
$
150,900
—
%
Gross profit margin
77
%
78
%
-114 bps
Operating expenses
$
118,124
$
112,210
5
%
Net income
$
31,461
$
37,730
(17)%
Adjusted EBITDA(2)
$
57,426
$
56,011
3
%
Profit margin
16
%
20
%
-349 bps
Adjusted EBITDA margin(2)
29
%
29
%
31 bps
Cash provided by operating activities
$
23,019
$
36,965
(38)%
Free cash flow(2)
$
12,905
$
30,790
(58)%
As of March 31,
(In thousands)
2026
2025
% Change
Active clients(1)
784
812
(3)%
(1) See Key Definitions in our first quarter 2026 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.
First Quarter 2026 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 first quarter 2026 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 first quarter 2026 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 second 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 expectations regarding financing activities, our plans with respect to share repurchases, the expected impact and timing of cost-saving initiatives, the expected impact and timing of strategic initiatives, including the migration of customers to Lifted, our enterprise-focused subsidiary, 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 Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 13, 2026, 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 Quarterly Report on Form 10-Q for the three months ended March 31, 2026, when filed.
Upwork, Lifted, UmaTM, 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.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)(Unaudited)
Three Months EndedMarch 31,
2026
2025
Revenue
Marketplace
$
170,705
$
166,293
Enterprise
24,778
26,413
Total revenue
195,483
192,706
Cost of revenue
44,641
41,806
Gross profit
150,842
150,900
Operating expenses
Research and development
43,307
46,152
Sales and marketing
37,437
35,751
General and administrative
35,158
28,048
Provision for transaction losses
2,222
2,259
Total operating expenses
118,124
112,210
Income from operations
32,718
38,690
Other income, net
4,992
6,317
Income before income taxes
37,710
45,007
Income tax provision
(6,249
)
(7,277
)
Net income
$
31,461
$
37,730
Net income per share:
Basic
$
0.25
$
0.28
Diluted
$
0.24
$
0.27
Weighted-average shares used to compute net income per share:
Basic
128,116
135,208
Diluted
135,656
142,777
UPWORK INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)
March 31, 2026
December 31, 2025
ASSETS
Current assets
Cash and cash equivalents
$
328,400
$
294,356
Marketable securities
251,334
