Upwork Q4 Earnings Beat Expectations with Strong Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy UPWK?
Source: seekingalpha
- Earnings Highlights: Upwork reported a Q4 GAAP EPS of $0.12, missing expectations by $0.07, yet achieved revenue of $198.4 million, a 3.6% year-over-year increase, exceeding forecasts by $0.88 million, indicating stability in market performance.
- Adjusted EBITDA Growth: The adjusted EBITDA for Q4 2025 was $52.9 million, a 5% increase from $50.2 million in Q4 2024, while the full-year adjusted EBITDA reached $225.6 million, up 35% from $167.6 million in 2024, reflecting significant improvements in profitability.
- Cash Flow Performance: Operating cash flow for Q4 was $63.7 million, a substantial increase from $38.6 million in Q4 2024, with total cash flow for 2025 at $248.3 million, a 62% rise compared to 2024, showcasing effective cash flow management.
- Share Repurchase Program: Upwork returned $136 million to shareholders through its repurchase program in 2025, acquiring 9.3 million shares, including 2 million shares for $34 million in Q4, demonstrating confidence in its value and commitment to shareholders.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy UPWK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on UPWK
Wall Street analysts forecast UPWK stock price to rise
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 13.110
Low
17.00
Averages
23.33
High
28.00
Current: 13.110
Low
17.00
Averages
23.33
High
28.00
About UPWK
Upwork Inc. operates a working marketplace, which connects businesses with independent talent. The Company's independent talent refers to the talent that includes independent professionals and agencies of varying sizes. The Company’s marketplace offerings are designed for clients looking to identify hiring. Its marketplace offerings provide clients with access to independent talent with verified work history on its work marketplace, as well as client feedback. They also receive perks, such as a verified client badge and highlighted job posts. Upwork Payroll is available to clients when they choose to work with talent that they engage through Upwork as employees. With Upwork Payroll, clients have access to third-party staffing providers to employ talent and meet their talent needs through its work marketplace. It offers two lines of service: managed services and enterprise solutions. Its managed services offer a service-led program management and full project lifecycle solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Upwork Shares Plunge 19% Amid Client Decline
- Client Decline: Upwork's active clients fell by 6% to 785,000, causing a stock price drop of over 19%, which understandably alarmed investors concerned about client retention.
- Revenue Growth: Despite the decline in active clients, Upwork reported a 4% year-over-year revenue increase in Q4, reaching $198.4 million, indicating resilience in revenue generation, particularly in expanding its small and midsize business market.
- AI Investment Returns: Upwork's aggressive investment in AI has paid off, with AI-powered search recommendations boosting GSV by over $100 million, and annualized GSV from AI-related work climbing over 50% to $300 million, showcasing the potential of technological investments.
- Optimistic Outlook: Upwork's guidance for 2026 includes projected revenue between $835 million and $850 million, with adjusted earnings per share expected to be between $1.43 and $1.48, reflecting confidence in future growth driven by diversification in AI and SMB sectors.
See More
Analysis of Significant Stock Movements Among Companies
- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
- Ichor Holdings Surge: Ichor Holdings' shares soared 37% to a 52-week high due to strong demand driving a fourth-quarter earnings beat, highlighting the recovery potential in the semiconductor equipment market.
See More
Upwork Reports Better-Than-Expected Q4 Earnings
- Strong Earnings Report: Upwork reported Q4 2025 revenue of $198.41 million, exceeding analyst expectations of $197.52 million, indicating robust performance in the era of human-plus-AI collaboration and boosting market confidence.
- Adjusted Earnings Beat: The company posted adjusted earnings of $0.36 per share for Q4, surpassing the $0.31 estimate, suggesting improving profitability that may attract more investor interest.
- Cautious Future Outlook: Upwork anticipates Q1 2026 revenue between $192 million and $197 million, below the $200.83 million forecast, reflecting a cautious stance towards the short-term market environment.
- Stock Price Volatility: Despite the strong earnings, Upwork's stock fell 19.3% to $15.16 on Tuesday, indicating market concerns over future earnings expectations, which could impact investor confidence.
See More
Upwork Issues Weak Q1 Guidance Despite Q4 Beat
- Q4 Results Beat Expectations: Upwork reported fourth-quarter revenue of $198.41 million, exceeding analyst estimates of $197.52 million, with adjusted earnings of 36 cents per share, surpassing the 31 cents forecast, indicating some resilience in the company's performance.
- Weak Q1 Outlook: Despite a strong Q4, Upwork expects first-quarter revenue between $192 million and $197 million, falling short of analyst expectations of $200.83 million, reflecting potential softness in market demand.
- Full-Year Revenue Forecast: The company projects full-year 2026 revenue between $835 million and $850 million, slightly below the $836.15 million analyst estimate, highlighting uncertainty in future growth prospects.
- Technical Price Analysis: Upwork shares fell 23.68% in premarket trading to $14.34, significantly below both the 20-day and 100-day simple moving averages, indicating considerable weakness in the short term.
See More
Market Movers: AAppLovin, TSMC, BP, ON Semi, Credo, Upwork, ZoomInfo, and Others
- Stock Market Performance: Stock futures rose modestly on Tuesday, indicating a positive trend in the market.
- Tech Sector Influence: The increase in stock futures is attributed to a recent comeback in the technology sector, which has driven equities higher over the past two sessions.
See More
Credo Technology Raises Revenue Guidance Significantly
- Revenue Guidance Increase: Credo Technology expects to report revenue between $404 million and $408 million, significantly up from prior guidance of $335 million to $345 million, indicating strong market demand and business growth potential.
- Significant Year-over-Year Growth: The company anticipates over 200% year-over-year growth in the current fiscal year, reflecting its competitive position in the industry and rapid market share expansion.
- Quarterly Growth Outlook: Credo also expects mid-single-digit sequential revenue growth to round out the year, suggesting continued strong performance in the coming months, which enhances investor confidence.
- Positive Stock Reaction: In pre-market trading, Credo Technology shares jumped 17.4% to $144.87, reflecting market optimism regarding its financial outlook and potentially attracting more investor interest.
See More
Upwork Shares Plunge 19% Amid Client Decline
- Client Decline: Upwork's active clients fell by 6% to 785,000, causing a stock price drop of over 19%, which understandably alarmed investors concerned about client retention.
- Revenue Growth: Despite the decline in active clients, Upwork reported a 4% year-over-year revenue increase in Q4, reaching $198.4 million, indicating resilience in revenue generation, particularly in expanding its small and midsize business market.
- AI Investment Returns: Upwork's aggressive investment in AI has paid off, with AI-powered search recommendations boosting GSV by over $100 million, and annualized GSV from AI-related work climbing over 50% to $300 million, showcasing the potential of technological investments.
- Optimistic Outlook: Upwork's guidance for 2026 includes projected revenue between $835 million and $850 million, with adjusted earnings per share expected to be between $1.43 and $1.48, reflecting confidence in future growth driven by diversification in AI and SMB sectors.
See More
Analysis of Significant Stock Movements Among Companies
- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
- Ichor Holdings Surge: Ichor Holdings' shares soared 37% to a 52-week high due to strong demand driving a fourth-quarter earnings beat, highlighting the recovery potential in the semiconductor equipment market.
See More
Upwork Reports Better-Than-Expected Q4 Earnings
- Strong Earnings Report: Upwork reported Q4 2025 revenue of $198.41 million, exceeding analyst expectations of $197.52 million, indicating robust performance in the era of human-plus-AI collaboration and boosting market confidence.
- Adjusted Earnings Beat: The company posted adjusted earnings of $0.36 per share for Q4, surpassing the $0.31 estimate, suggesting improving profitability that may attract more investor interest.
- Cautious Future Outlook: Upwork anticipates Q1 2026 revenue between $192 million and $197 million, below the $200.83 million forecast, reflecting a cautious stance towards the short-term market environment.
- Stock Price Volatility: Despite the strong earnings, Upwork's stock fell 19.3% to $15.16 on Tuesday, indicating market concerns over future earnings expectations, which could impact investor confidence.
See More
Upwork Issues Weak Q1 Guidance Despite Q4 Beat
- Q4 Results Beat Expectations: Upwork reported fourth-quarter revenue of $198.41 million, exceeding analyst estimates of $197.52 million, with adjusted earnings of 36 cents per share, surpassing the 31 cents forecast, indicating some resilience in the company's performance.
- Weak Q1 Outlook: Despite a strong Q4, Upwork expects first-quarter revenue between $192 million and $197 million, falling short of analyst expectations of $200.83 million, reflecting potential softness in market demand.
- Full-Year Revenue Forecast: The company projects full-year 2026 revenue between $835 million and $850 million, slightly below the $836.15 million analyst estimate, highlighting uncertainty in future growth prospects.
- Technical Price Analysis: Upwork shares fell 23.68% in premarket trading to $14.34, significantly below both the 20-day and 100-day simple moving averages, indicating considerable weakness in the short term.
See More
Market Movers: AAppLovin, TSMC, BP, ON Semi, Credo, Upwork, ZoomInfo, and Others
- Stock Market Performance: Stock futures rose modestly on Tuesday, indicating a positive trend in the market.
- Tech Sector Influence: The increase in stock futures is attributed to a recent comeback in the technology sector, which has driven equities higher over the past two sessions.
See More
Credo Technology Raises Revenue Guidance Significantly
- Revenue Guidance Increase: Credo Technology expects to report revenue between $404 million and $408 million, significantly up from prior guidance of $335 million to $345 million, indicating strong market demand and business growth potential.
- Significant Year-over-Year Growth: The company anticipates over 200% year-over-year growth in the current fiscal year, reflecting its competitive position in the industry and rapid market share expansion.
- Quarterly Growth Outlook: Credo also expects mid-single-digit sequential revenue growth to round out the year, suggesting continued strong performance in the coming months, which enhances investor confidence.
- Positive Stock Reaction: In pre-market trading, Credo Technology shares jumped 17.4% to $144.87, reflecting market optimism regarding its financial outlook and potentially attracting more investor interest.
See More
