Upwork (NASDAQ:UPWK) Issues Quarterly Earnings Results

Upwork (NASDAQ:UPWK) posted its quarterly earnings results on Thursday. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.25 by $0.10, FiscalAI reports. Upwork had a return on equity of 18.76% and a net margin of 14.65%.The business had revenue of $195.48 million for the quarter, compared to analyst estimates of $195.90 million. During the same quarter in the previous year, the firm earned $0.34 EPS. The company’s quarterly revenue was up 1.4% compared to the same quarter last year. Upwork updated its FY 2026 guidance to 1.500-1.550 EPS and its Q2 2026 guidance to 0.350-0.370 EPS.

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

• Company lowered and widened full?year 2026 revenue guidance to $760M–$790M and expects Q2 revenue of $187M–$193M, citing geopolitical headwinds and softness in the smallest contracts.
• Upwork raised its full?year adjusted EBITDA outlook to $250M–$260M (?33% margin) and now expects to reach a 35% adjusted EBITDA margin in H2 after announcing ~$70M in annualized cost savings and a ~24% workforce reduction (one?time charges of $16M–$23M).
• An updated LLM?based analysis indicates only about 10% of GSV is AI?at?risk (down from 11%), while AI?related work is growing rapidly (>$300M annualized GSV, >40% YoY), and Upwork is rolling out AI products (Uma, ChatGPT app, human?supervised agents) to capture that demand.
• Weakness is concentrated in very small businesses and sub?$500 contracts—areas most affected by inflation, tariffs, energy costs, and higher rates—so marketplace volumes decelerated in late Q1 and management conservatively baked further downside into 2026 guidance.
• Strength in higher?value segments continues—Business Plus GSV grew 34% QoQ, Lifted’s enterprise pipeline expanded (3x for new clients, 9x for existing) with migrations starting in June, and ~20% of net new enterprise pipeline is AI?related.

Upwork Trading Up 5.3%

UPWK traded up $0.53 during trading hours on Thursday, hitting $10.61. 7,947,853 shares of the company’s stock were exchanged, compared to its average volume of 3,596,897. The firm has a market cap of $1.31 billion, a P/E ratio of 12.63 and a beta of 1.07. Upwork has a 12-month low of $10.02 and a 12-month high of $22.84. The firm has a 50 day moving average of $11.51 and a 200 day moving average of $16.02.

Insiders Place Their Bets

In other news, insider Dave Bottoms sold 17,013 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total value of $234,779.40. Following the sale, the insider directly owned 15,994 shares in the company, valued at approximately $220,717.20. This trade represents a 51.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Erica Gessert sold 26,292 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total value of $362,829.60. Following the transaction, the chief financial officer directly owned 298,386 shares of the company’s stock, valued at $4,117,726.80. The trade was a 8.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 235,186 shares of company stock worth $3,156,199 over the last 90 days. Corporate insiders own 7.50% of the company’s stock.

Hedge Funds Weigh In On Upwork

Several hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its holdings in shares of Upwork by 68.9% in the 1st quarter. Royal Bank of Canada now owns 191,587 shares of the company’s stock valued at $2,501,000 after buying an additional 78,123 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Upwork by 5.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,466 shares of the company’s stock worth $972,000 after purchasing an additional 3,599 shares during the last quarter. Millennium Management LLC raised its position in Upwork by 364.0% during the 1st quarter. Millennium Management LLC now owns 789,638 shares of the company’s stock worth $10,305,000 after buying an additional 619,459 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Upwork by 10.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 338,680 shares of the company’s stock worth $4,420,000 after acquiring an additional 31,378 shares during the period. Finally, Creative Planning increased its stake in shares of Upwork by 16.9% during the second quarter. Creative Planning now owns 29,239 shares of the company’s stock worth $393,000 after acquiring an additional 4,230 shares during the period. 77.71% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Needham & Company LLC restated a “buy” rating and set a $25.00 price target on shares of Upwork in a report on Tuesday, February 10th. Citigroup reduced their price objective on shares of Upwork from $19.00 to $17.00 and set a “neutral” rating on the stock in a report on Tuesday, February 10th. UBS Group lowered their target price on shares of Upwork from $26.00 to $23.00 and set a “buy” rating for the company in a research note on Tuesday, February 10th. Wall Street Zen upgraded shares of Upwork from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. Finally, Zacks Research downgraded shares of Upwork from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Upwork currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.60.

Upwork announced that its Board of Directors has authorized a stock repurchase program on Wednesday, February 18th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 18% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Key Stories Impacting Upwork

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Company reiterated stronger profitability targets — Upwork raised full?year adjusted EBITDA outlook and issued FY 2026 EPS guidance (1.50–1.55) above consensus, signaling management focus on margins and cash generation. Read More.
• Positive Sentiment: Q2 EPS guidance (0.350–0.370) also came in above consensus, suggesting the company expects continued per?share profitability improvement even as revenue is softened. Read More.
• Neutral Sentiment: Top-line was essentially flat year?over?year: Q1 revenue ~ $195.5M (? +1.4% YoY), showing limited growth but not a collapse. Read More.
• Neutral Sentiment: GSV per active client and SMB/AI category initiatives showed some underlying marketplace momentum (management highlighted a 5% increase), which could support longer?term monetization if execution continues. Read More.
• Negative Sentiment: Revenue guidance materially missed Street expectations — management cut Q2 and FY revenue targets (Q2: $187–193M vs. ~$204M consensus; FY: $760–790M vs. ~$841M consensus), the primary driver of the sharp share decline. Read More.
• Negative Sentiment: Mixed/uncertain Q1 profitability reporting in media: some outlets reported EPS misses (Zacks/Quiver showed diluted EPS ~$0.24 — below estimates) and declines in operating profit and cash from operations, raising concern over near?term cash flow strength. (Note: some sources reported different EPS figures; the market focused on guidance cuts.) Read More. | Read More.
• Negative Sentiment: Insider selling and headlines about a restructuring plan amplified investor concern; the shares plunged in after?hours trading (~mid?to?high teens percentage move reported) as the market digested weaker revenue guidance. Read More.

About Upwork

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.