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Upwork
(NASDAQ:UPWK)
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Rating:63Neutral
Price Target:
$9.50
▼(-15.71% Downside)
Action:Reiterated
Date:06/24/26
The score is driven primarily by improved profitability, solid free cash flow, and a healthier leverage profile, supported by a low P/E multiple. These positives are tempered by a sharp TTM revenue contraction and a weak technical setup with the stock trading below major moving averages. The latest earnings call adds mixed signals: stronger margin guidance and cost actions, but softer demand and reduced revenue outlook.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow across 2024–TTM provides durable internal funding for debt reduction, product investment, M&A or share actions. Reliable cash conversion cushions the business through demand cycles and supports strategic optionality without relying on equity raises.
Negative Factors
Steep TTM revenue contraction
A sharp trailing twelve‑month revenue decline materially raises execution risk: sustaining margins and cash flow becomes harder if top-line weakness persists. Structural recovery in demand is required for margin gains to prove durable rather than a one‑time cost-driven improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow across 2024–TTM provides durable internal funding for debt reduction, product investment, M&A or share actions. Reliable cash conversion cushions the business through demand cycles and supports strategic optionality without relying on equity raises.
Read all positive factors
Upwork Key Performance Indicators (KPIs)
Any
Active Clients
Measures the number of clients engaging with Upwork's platform, indicating user retention, platform appeal, and potential for recurring revenue.
Measures the number of clients engaging with Upwork's platform, indicating user retention, platform appeal, and potential for recurring revenue.
Data provided by:
The Fly
The FlyUpwork (UPWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)3.12M
Price to Earnings (P/E)10.8
Beta (1Y)1.21
Revenue Growth2.52%
EPS Growth-52.38%
CountryUS
Employees630
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.84
Shares Outstanding123,518,135
10 Day Avg. Volume3,054,307
30 Day Avg. Volume3,119,877
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)4.11
Price to Sales (P/S)3.29
P/FCF Ratio10.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.44Price Target Upside1.49% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.55
Revenue Forecast (FY)$776.03M
Upwork Business Overview & Revenue Model
Company Description
Upwork Inc., operating alongside its subsidiaries, provides a leading online work marketplace that connects businesses globally with independent professionals and agencies, spanning the United States, India, the Philippines, and other internationa...
How the Company Makes Money
Upwork generates revenue primarily by charging fees associated with transactions and services on its marketplace. A key revenue stream is fees tied to payments made from clients to freelancers for work performed via the platform (i.e., monetizing ...
Upwork Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call balanced notable operational and product progress—strong profitability (Q1 adjusted EBITDA beat), meaningful cost reductions, rapid SMB and AI-related growth, and enterprise pipeline gains—against near-term demand softness concentrated in the smallest contracts, a lowered/widened revenue outlook, and a sizable workforce reduction with related one-time costs. Management is confident in longer-term AI and enterprise opportunities and has strengthened profitability guidance despite top-line uncertainty.Positive Updates
Adjusted EBITDA Beat and Strong Profitability
Reported a $10 million adjusted EBITDA beat for Q1; raised full-year 2026 adjusted EBITDA guidance to $250M–$260M (approx. 33% margin) and now expect to reach the 35% adjusted EBITDA margin target in the back half of 2026 (more than 2 years ahead of schedule). Q2 adjusted EBITDA guide of $56M–$59M (30%–31% margin).
Negative Updates
Lowered and Wider Revenue Guidance
Full-year 2026 revenue guidance was lowered and widened to $760M–$790M, reflecting increased uncertainty and softer marketplace demand; Q2 revenue guide set at $187M–$193M.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Strong Profitability
Reported a $10 million adjusted EBITDA beat for Q1; raised full-year 2026 adjusted EBITDA guidance to $250M–$260M (approx. 33% margin) and now expect to reach the 35% adjusted EBITDA margin target in the back half of 2026 (more than 2 years ahead of schedule). Q2 adjusted EBITDA guide of $56M–$59M (30%–31% margin).
Read all positive updates
Company Guidance
Upwork narrowed and updated 2026 guidance: full‑year revenue of $760–$790 million, adjusted EBITDA of ~$250–$260 million (≈33% margin) and non‑GAAP diluted EPS of $1.50–$1.55, with stock‑based compensation of ~$60–$65 million; Q2 guidance is $187–$193 million revenue, $56–$59 million adjusted EBITDA (30–31% margin) and Q2 non‑GAAP EPS of $0.35–$0.37. Management announced a restructuring expected to reduce costs by an estimated $70 million annualized (≈24% workforce reduction), drive roughly $40 million of incremental 2026 savings, and incur one‑time charges of $16–$23 million (mostly this quarter). They now expect to reach a 35% adjusted EBITDA margin in H2 (more than two years ahead of plan), while assuming continued product growth (Lifted GSV guide of 25% and Business+ GSV up 34% Q/Q); other disclosed metrics included a marketplace take rate of 19.4%, AI work = 8% of GSV (AI‑at‑risk GSV ≈10%, down from 11% a year ago), AI GSV >$300M annualized growing >40% YoY, 11% of job posts in the AI category, and ~20% of the enterprise net‑new pipeline tied to AI.Upwork Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 790.56M | 787.78M | 769.33M | 689.14M | 618.32M | 502.80M |
| Gross Profit | 612.97M | 613.03M | 595.23M | 518.69M | 457.92M | 367.29M |
| EBITDA | 174.18M | 163.45M | 110.78M | 61.59M | -73.73M | -40.13M |
| Net Income | 109.16M | 115.42M | 215.59M | 46.89M | -89.89M | -56.24M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.30B | 1.21B | 1.04B | 1.08B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 579.73M | 676.38M | 622.10M | 550.10M | 686.61M | 684.77M |
| Total Debt | 379.48M | 380.86M | 369.12M | 367.86M | 581.94M | 584.37M |
| Total Liabilities | 672.33M | 669.26M | 636.24M | 656.47M | 831.37M | 821.54M |
| Stockholders Equity | 569.63M | 630.32M | 575.38M | 381.07M | 248.88M | 259.52M |
Cash Flow | ||||||
| Free Cash Flow | 224.11M | 242.47M | 139.12M | 36.36M | 2.76M | 4.70M |
| Operating Cash Flow | 234.31M | 248.26M | 153.56M | 52.71M | 11.50M | 10.84M |
| Investing Cash Flow | -13.50M | -136.94M | 137.57M | 88.27M | -69.47M | -428.98M |
| Financing Cash Flow | -209.12M | -138.00M | -81.96M | -139.79M | 1.14M | 537.74M |
Upwork Technical Analysis
Neutral
11.27
Price Trends
8.70
Positive
10.13
Negative
14.24
Negative
Market Momentum
0.13
Negative
53.54
Neutral
77.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPWK, the sentiment is Neutral. The current price of 11.27 is above the 20-day moving average (MA) of 8.66, above the 50-day MA of 8.70, and below the 200-day MA of 14.24, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UPWK.
Upwork Risk Analysis
Upwork disclosed 48 risk factors in its most recent earnings report. Upwork reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Upwork Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.04B | 30.03 | 27.22% | 5.12% | -3.91% | -22.90% | |
65 Neutral | $177.11M | -89.91 | -2.30% | ― | -9.39% | 72.47% | |
63 Neutral | $1.12B | 10.79 | 17.92% | ― | 2.52% | -52.38% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $555.03M | -2.02 | -24.58% | 3.53% | -7.30% | -1239.34% | |
51 Neutral | $322.83M | -14.15 | 32.87% | ― | -3.33% | -45.12% | |
41 Neutral | $5.35M | -0.22 | -78.12% | ― | 1.26% | -4.09% |
* Communication Services Sector Average
UPWK
Upwork
9.06
-4.32
-32.29%
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IPDN
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0.42
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Upwork Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Upwork CEO Assumes Interim Finance Duties During Leave
Neutral
Jul 17, 2026
On July 14, 2026, Upwork Inc. Chief Financial Officer and principal financial officer Erica Gessert began a temporary medical leave, with the company expecting her return in the fourth quarter of 2026. During her absence, President and Chief Execu...
Business Operations and StrategyPrivate Placements and Financing
Upwork Secures New $150 Million Revolving Credit Facility
Positive
Jun 23, 2026
Upwork Inc. operates an online freelancing and work marketplace that connects businesses with independent professionals and agencies, primarily serving clients seeking flexible, remote talent in areas such as technology, creative services and busi...
Executive/Board ChangesShareholder Meetings
Upwork Shareholders Approve New Directors and Governance Measures
Positive
Jun 5, 2026
At its June 4, 2026 annual meeting, Upwork stockholders approved the election of Claire Bramley and David Lissy as Class II directors and re-elected Gary Steele for three-year terms ending in 2029, following the previously disclosed departure of d...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Upwork Announces Major Workforce Restructuring Amid Profit Focus
Negative
May 7, 2026
On May 7, 2026, Upwork reported first-quarter 2026 results showing revenue up 1% year-over-year to $195.5 million, flat GSV of $987.1 million, and GAAP net income down 17% to $31.5 million, while adjusted EBITDA rose 3% to $57.4 million and GSV pe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.