Upwork Inc ( (UPWK) ) has released its Q3 earnings. Here is a breakdown of the information Upwork Inc presented to its investors.
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Upwork Inc., a leading global work marketplace, connects businesses with skilled talent through its AI-powered platform, catering to freelance, fractional, and payrolled work across various sectors. In its third quarter of 2025, Upwork achieved record revenue of $201.7 million, marking a 4% year-over-year growth, alongside a GAAP net income of $29.3 million and a record adjusted EBITDA of $59.6 million, reflecting a 30% margin. The company also announced a $100 million share repurchase authorization, demonstrating confidence in its financial health and future prospects.
Key financial metrics for the quarter included a 2% year-over-year growth in Gross Services Volume (GSV) and a 5% increase in GSV per active client. Upwork’s AI-related work saw significant traction, with a 53% year-over-year growth in GSV, driven by a 65% increase in Generative AI work and a 71% rise in Prompt Engineering. The company’s Business Plus offering for SMBs also showed robust growth, with a 33% quarter-over-quarter increase in GSV.
Operational highlights featured the evolution of Uma™, Upwork’s Mindful AI, which enhanced customer engagement and productivity. The launch of Lifted, an enterprise-focused subsidiary, aimed to provide comprehensive contingent work solutions, further expanded Upwork’s market reach. Revenue from Ads & Monetization grew by 19% year-over-year, bolstered by increases in Connects and Freelancer Plus subscription revenues.
Looking ahead, Upwork has raised its full-year 2025 guidance for both revenue and adjusted EBITDA, projecting sustained growth driven by strategic investments in AI and enterprise solutions. The company’s management remains optimistic about achieving its long-term target of a 35% adjusted EBITDA margin, reinforcing its commitment to delivering value to shareholders and clients alike.