Loading...
•
Sep 30, 2025
Upwork Q3 2025 Earnings Report
Upwork reported record Q3 2025 financial performance with revenue, adjusted EBITDA, and free cash flow all hitting all-time highs.
Key Takeaways
Upwork delivered strong Q3 2025 results with record revenue of $201.7 million and adjusted EBITDA of $59.6 million. Net income rose to $29.3 million, and GSV growth turned positive, fueled by AI-driven client engagement.
Revenue reached a record $201.7 million, growing 4% year-over-year.
Adjusted EBITDA hit an all-time high of $59.6 million, with a 30% margin.
Net income rose to $29.3 million, with a profit margin of 15%.
Free cash flow increased to $69.4 million, up from $56.8 million last year.
Revenue by Segment
Forward Guidance
Upwork raised its FY2025 outlook, projecting continued revenue and margin growth fueled by AI, SMB momentum, and new enterprise initiatives.
Positive Outlook
- Revenue guidance raised to $782M–$787M for FY2025.
- Adjusted EBITDA forecast increased to $222M–$225M.
- Strong adoption of AI-related features like Uma™ and agentic sourcing.
- Enterprise momentum supported by Lifted platform launch.
- Share repurchase program authorized for $100 million.
Challenges Ahead
- Gross margin dipped slightly from 78% to 77%.
- Active clients declined 7% year-over-year.
- Enterprise revenue growth remains modest at 3%.
- High competition in freelancing and AI markets.
- Stock-based compensation remains a significant expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...