GICS Sector : Industrials
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.
Upwork's third-quarter 2025 earnings report was a resounding success, with the company reporting a record high revenue of $201.7 million, representing a significant growth. The adjusted EBITDA was $59.6 million, with an adjusted EBITDA margin of 29.6%. However, the actual EPS of $0.21 was slightly lower than the estimated $0.25. The company's Gross Services Volume (GSV) increased 2% year-over-year to $1.02 billion, driven by growth in AI-related projects, which saw a 53% increase in GSV.
Publication Date: Nov -17
The company's AI-native platform and targeted AI customer experience and product innovations were the key drivers of growth, with the number of clients engaging in AI-related projects increasing 45% year-over-year. The launch of the new enterprise subsidiary, Lifted, is expected to be meaningfully accretive to GSV, revenue, and adjusted EBITDA in 2027. Upwork's strategy to deepen its reach with small and medium-sized businesses (SMBs) also performed ahead of plans, with active clients on Business Plus growing 36% quarter-over-quarter.
Upwork increased its revenue and adjusted EBITDA outlook for the full year, with revenue guidance raised to $782 million to $787 million and adjusted EBITDA guidance increased to $222 million to $225 million. The company expects full-year 2025 non-GAAP diluted EPS to be between $1.35 and $1.37, an increase of 30% at the midpoint from 2024 non-GAAP EPS. For 2026, the company expects acceleration in GSV growth, driven by multiple growth drivers, including AI-related work, Business Plus plan expansion, and the Lifted strategy.
With a P/E Ratio of 8.88 and an EV/EBITDA of 17.18, the market seems to have a reasonable expectation of the company's growth prospects. The ROE of 41.05% and ROIC of 20.38% indicate a strong return on equity and invested capital. Analysts estimate next year's revenue growth at 5.6%, which is relatively modest compared to the company's historical growth rate. The Free Cash Flow Yield of 8.54% is also attractive, indicating a sustainable free cash flow generation.
Upwork Announces $300 Million Share Repurchase Program
Feb -18
Upwork to Present at The Citizens Technology Conference
Feb -17
Upwork's Path To $20: Recovery Or Pipe Dream?
Feb -11
Why Upwork Stock Plunged Today
Feb -11
Stock Market Today: Major Indexes Mixed; Dow Hits All-Time High for 3rd Straight Session; Delayed Retail Sales Data Comes in Below Expectations
Feb -10
Upwork: Down But Not Knocked Out (Rating Upgrade)
Feb -10
These Analysts Revise Their Forecasts On Upwork Following Q4 Results
Feb -10
Upwork Inc. (UPWK) Q4 2025 Earnings Call Transcript
Feb -10
Upwork's marketplace growth is driven by increasing adoption of remote work, rising demand for skilled freelancers, and expansion into new industries. Additionally, the platform's investments in AI-powered matching technology, enhanced user experience, and strategic partnerships have contributed to its 12% growth.
Upwork's Enterprise segment growth is driven by increasing adoption of remote work, expansion into new industries, and growing demand for skilled freelancers. The company's investments in sales and marketing, coupled with its platform's scalability and flexibility, have enabled it to capitalize on these trends, resulting in 10% growth.
A platform for freelancers to find work and collaborate with clients
A platform for clients to find and hire skilled freelancers
A platform for large enterprises to find and manage a scalable workforce
A service that helps clients manage payments to freelancers
A messaging platform for clients and freelancers to communicate
A tool that helps freelancers track time spent on projects
A certification program that verifies freelancers' skills
Upwork's services are specialized and require a high level of expertise, making it difficult for substitutes to emerge.
While clients have some bargaining power due to the competitive nature of the freelance market, Upwork's platform and reputation help to mitigate this power.
Freelancers have limited bargaining power due to the abundance of skilled professionals on the platform, making it easy for clients to find alternative suppliers.
While there are some barriers to entry, the online freelance market is relatively easy to enter, and new platforms could potentially emerge as competitors.
The online freelance market is highly competitive, with many established players and new entrants vying for market share.
| Value | |
|---|---|
| Debt Weight | 48.70% |
| Debt Cost | 3.95% |
| Equity Weight | 51.30% |
| Equity Cost | 12.20% |
| WACC | 8.18% |
| Leverage | 94.94% |
Value: 3.9
Growth: 8.6
Quality: 8.2
Yield: 0.0
Momentum: 7.0
Volatility: 2.7
1-Year Total Return ->
Value: 5.3
Growth: 4.4
Quality: 8.4
Yield: 4.0
Momentum: 1.0
Volatility: 3.7
1-Year Total Return ->
Value: 10.0
Growth: 3.3
Quality: 3.1
Yield: 0.0
Momentum: 2.0
Volatility: 4.7
1-Year Total Return ->
Value: 8.3
Growth: 0.8
Quality: 4.9
Yield: 0.0
Momentum: 0.5
Volatility: 5.3
1-Year Total Return ->
Value: 7.3
Growth: 2.9
Quality: 5.1
Yield: 0.0
Momentum: 0.0
Volatility: 3.3
1-Year Total Return ->
Value: 6.0
Growth: 3.6
Quality: 6.2
Yield: 0.0
Momentum: 0.5
Volatility: 2.3
1-Year Total Return ->