Upwork (NASDAQ:UPWK) Releases Earnings Results, Beats Estimates By $0.09 EPS

Upwork (NASDAQ:UPWK) posted its quarterly earnings results on Monday. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.09, FiscalAI reports. The firm had revenue of $185.60 million during the quarter, compared to the consensus estimate of $180.22 million. Upwork had a net margin of 13.53% and a return on equity of 17.28%.

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

• Q3 results exceeded guidance: Upwork generated $914 million in GSV, $186 million in revenue, and $63.8 million in adjusted EBITDA, all above the high end of its outlook. Free cash flow was $53.9 million, with an 84% conversion from adjusted EBITDA.
• Higher-value products continued to gain traction. Business Plus revenue rose 120% year over year and GSV increased 132%, while marketplace take rate expanded to 20.0% and GSV per active client reached a record $5,418.
• WorkMotion acquisition accelerates Upwork’s Lifted enterprise strategy. The deal adds global employer-of-record capabilities, is expected to contribute approximately $4 million of Q4 revenue, and supports projected Lifted GSV growth of more than 30% in 2026.
• AI-related demand and new distribution channels are expanding. GSV from talent with AI skills rose 55% to $112 million, while work initiated through Upwork’s MCP server grew more than 150% month over month in October and reached a Connects revenue run rate above $3 million.
• Management expects continued growth pressure in early 2027. Low-value work leaving the marketplace and shifts in digital search traffic are expected to weigh on first-half growth; the larger Lifted and WorkMotion mix is also expected to dilute adjusted EBITDA margin by roughly 3–4 percentage points, alongside integration costs.

Upwork Stock Performance

NASDAQ UPWK opened at $9.93 on Wednesday. The firm’s 50 day moving average price is $8.69 and its 200-day moving average price is $10.60. Upwork has a 52-week low of $7.44 and a 52-week high of $22.84. The company has a market cap of $1.24 billion, a PE ratio of 12.26 and a beta of 1.03.

Insider Activity at Upwork

In related news, CFO Erica Gessert sold 22,844 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $8.43, for a total value of $192,574.92. Following the completion of the transaction, the chief financial officer owned 364,789 shares of the company’s stock, valued at $3,075,171.27. The trade was a 5.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Anthony Kappus sold 45,732 shares of the company’s stock in a transaction on Friday, September 18th. The stock was sold at an average price of $8.45, for a total value of $386,435.40. Following the sale, the chief operating officer owned 76,342 shares of the company’s stock, valued at approximately $645,089.90. This represents a 37.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 178,868 shares of company stock valued at $1,509,462 over the last ninety days. 4.90% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on UPWK. Canaccord Genuity Group dropped their price objective on Upwork from $10.00 to $9.00 and set a “hold” rating on the stock in a research note on Wednesday, August 12th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Upwork in a research report on Tuesday, October 27th. BTIG Research reaffirmed a “neutral” rating on shares of Upwork in a research report on Tuesday. The Goldman Sachs Group set a $11.50 target price on Upwork in a report on Tuesday, August 11th. Finally, Needham & Company LLC increased their price target on Upwork from $11.00 to $13.00 and gave the stock a “buy” rating in a research report on Tuesday. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $13.55.

Key Upwork News

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Upwork reported Q3 adjusted earnings of $0.40 per share, above the $0.31 consensus, and revenue of $185.6 million, exceeding the $180.22 million estimate. The company also raised its 2026 EPS outlook to $1.45–$1.47, above the $1.40 consensus. Upwork’s Q3 Non-GAAP Earnings Rise, Revenue Falls; 2026 Guidance Increased
• Positive Sentiment: Growth initiatives could strengthen Upwork’s longer-term prospects: Business Plus revenue rose 120% year over year, Lifted acquired employer-of-record provider WorkMotion, and Upwork launched the public beta of Upwork Now, a faster way for clients to hire freelancers. Upwork: 3 Key Takeaways for Long-Term Investors Upwork Introduces Upwork Now
• Neutral Sentiment: Analyst views were mixed: UBS raised its price target from $9 to $10 but kept a neutral rating, while RBC reaffirmed Sector Perform with an $8 target. Unusually high call-option volume may reflect increased speculative interest but does not establish a clear outlook.
• Negative Sentiment: Fourth-quarter EPS guidance of $0.30–$0.32 came in below the $0.35 consensus; revenue guidance of $169–$177 million straddles the $174.7 million estimate. Although Q3 revenue beat expectations, coverage also highlighted ongoing revenue contraction and longer-term competitive or secular risks. Upwork: Short-Term Survival Doesn’t Mean Long-Term Relevance

About Upwork

Upwork Inc operates a global work marketplace that connects businesses with independent professionals and agencies. Clients use the platform to find, evaluate, hire and manage talent for projects across areas such as software development, design, marketing, writing, consulting, customer support and administrative services.

The company provides tools for talent discovery, project collaboration, communications, time tracking, contract management and payments. Its offerings serve both individual clients and larger organizations, with features designed to support recurring engagements, contingent-work programs and enterprise talent management.

Upwork was formed in 2015 through the merger of Elance and oDesk, two online freelance-work platforms, and began trading publicly on the Nasdaq stock exchange in 2018.