Upwork (NASDAQ:UPWK) Issues Earnings Results

Upwork (NASDAQ:UPWK) issued its quarterly earnings data on Monday. The company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.07, FiscalAI reports. The firm had revenue of $191.66 million for the quarter. Upwork had a net margin of 12.94% and a return on equity of 16.71%. The business’s quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.35 EPS. Upwork updated its FY 2026 guidance to 1.380-1.430 EPS and its Q3 2026 guidance to 0.310-0.330 EPS.

Here are the key takeaways from Upwork’s conference call:

• Q2 profitability exceeded expectations: Revenue reached $191.7 million, the high end of guidance, while adjusted EBITDA of $64.1 million surpassed the company’s forecast, supported by disciplined cost management and a 33.4% margin.
• AI automation and weakening SEO are pressuring growth. Upwork said low-complexity work is declining faster than expected, Google search changes are reducing customer referrals, and active clients fell to 763,000; full-year 2026 revenue guidance was reduced to $730 million–$750 million.
• Higher-value segments continue to gain traction, with Business Plus GSV up 174% year over year, AI strategy and consulting growth of 51%, and Enterprise GSV per account up 7%. Upwork maintained its expectation for approximately 25% Enterprise GSV growth in 2026, while EOR GSV increased 29%.
• Upwork is expanding its AI positioning through ChatGPT and Claude integrations and the new Upwork MCP Server, allowing clients and AI agents to access talent and jobs within AI tools. Management believes these capabilities can create new demand and strengthen customer acquisition as work becomes more AI-driven.
• Monetization and efficiency remained strong, with a 19.8% take rate, 77% non-GAAP gross margin, and $70 million of annualized operating-expense reductions underway. The company also plans to increase paid customer-acquisition spending by $5 million–$10 million in the second half after improving cost per new contract start by 22% sequentially.

Upwork Stock Down 0.6%

Shares of NASDAQ:UPWK traded down $0.05 on Wednesday, reaching $8.31. 4,290,018 shares of the company’s stock were exchanged, compared to its average volume of 3,842,644. The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of 10.79 and a beta of 0.99. Upwork has a fifty-two week low of $7.44 and a fifty-two week high of $22.84. The business’s 50-day moving average is $8.86 and its two-hundred day moving average is $11.13.

Trending Headlines about Upwork

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Upwork reported second-quarter adjusted earnings of $0.41 per share, above the $0.34 consensus estimate, while revenue of $191.66 million also exceeded expectations of $189.97 million. Upwork second-quarter earnings report
• Positive Sentiment: The company launched an Upwork MCP server that connects AI tools such as Claude, ChatGPT and Cursor directly to its marketplace. The service could simplify hiring, improve freelancer discovery and position Upwork as a source of human expertise within AI-driven workflows. Upwork launches MCP server
• Neutral Sentiment: Upwork’s results highlight a transition in customer demand: AI is automating some low-complexity assignments, while demand may be shifting toward higher-value and AI-related work. The financial benefit of this transition remains uncertain. Upwork and AI reshaping freelance demand
• Negative Sentiment: Third-quarter guidance calls for revenue of $176 million to $184 million and EPS of $0.31 to $0.33, below analyst expectations of $193.8 million and $0.41, respectively. Full-year revenue guidance of $730 million to $750 million and EPS guidance of $1.38 to $1.43 also fell short of consensus, overshadowing the earnings beat. Upwork weak guidance report
• Negative Sentiment: Analysts cited traffic and client-acquisition headwinds following a challenging quarter. RBC lowered its price target from $9 to $8 and maintained a “sector perform” rating, adding pressure to the stock’s outlook.

Insider Transactions at Upwork

In other Upwork news, CEO Hayden Brown sold 23,468 shares of Upwork stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $8.15, for a total value of $191,264.20. Following the completion of the transaction, the chief executive officer directly owned 797,495 shares in the company, valued at $6,499,584.25. The trade was a 2.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Erica Gessert sold 9,169 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $8.15, for a total value of $74,727.35. Following the transaction, the chief financial officer directly owned 341,609 shares of the company’s stock, valued at $2,784,113.35. This trade represents a 2.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 34,471 shares of company stock valued at $281,446. Insiders own 4.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. lifted its position in shares of Upwork by 4.0% during the 3rd quarter. Raymond James Financial Inc. now owns 24,004 shares of the company’s stock worth $446,000 after purchasing an additional 928 shares during the last quarter. Lazard Asset Management LLC grew its holdings in Upwork by 3.0% in the 3rd quarter. Lazard Asset Management LLC now owns 45,381 shares of the company’s stock valued at $843,000 after buying an additional 1,303 shares during the last quarter. California State Teachers Retirement System increased its position in Upwork by 1.3% in the 2nd quarter. California State Teachers Retirement System now owns 115,859 shares of the company’s stock worth $1,557,000 after buying an additional 1,523 shares during the period. Parkside Financial Bank & Trust increased its position in Upwork by 37.2% in the 4th quarter. Parkside Financial Bank & Trust now owns 5,629 shares of the company’s stock worth $112,000 after buying an additional 1,527 shares during the period. Finally, Jump Financial LLC lifted its holdings in shares of Upwork by 4.2% during the fourth quarter. Jump Financial LLC now owns 40,400 shares of the company’s stock worth $801,000 after buying an additional 1,627 shares during the last quarter. Institutional investors and hedge funds own 77.71% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on UPWK. Roth Capital downgraded Upwork from a “buy” rating to a “neutral” rating and set a $10.00 price objective on the stock. in a report on Friday, May 8th. UBS Group cut Upwork from a “buy” rating to a “neutral” rating and reduced their target price for the company from $20.00 to $10.00 in a research note on Friday, May 8th. Citizens Jmp lowered shares of Upwork from an “outperform” rating to a “market perform” rating in a research note on Friday, May 8th. Wall Street Zen cut shares of Upwork from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Citigroup reduced their price objective on shares of Upwork from $17.00 to $10.00 and set a “neutral” rating on the stock in a research note on Thursday, May 21st. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $13.15.

Upwork Company Profile

Upwork Inc operates a leading online talent marketplace that connects businesses with independent professionals worldwide. Through its digital platform, the company enables clients across industries—including technology, marketing, creative services and customer support—to source, hire and manage freelance talent on demand. Key features of the Upwork platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing and secure payment processing, all designed to simplify collaboration between clients and remote workers.

The company traces its roots to the merger of two pioneering freelance marketplaces, Elance (founded in 1998) and oDesk (founded in 2003), which combined in 2015 to form a unified entity.