Upwork Reports Second Quarter 2025 Financial Results

Upwork Inc., the world's largest human and AI-powered work marketplace, has released its financial results for the second quarter of 2025. The company reported a record revenue of $194.9 million, a GAAP net income of $32.7 million, and an adjusted EBITDA of $57.1 million. These results reflect a 1% year-over-year revenue growth and a significant increase in profitability.

Financial Highlights

Upwork's financial performance for the second quarter of 2025 showcases several key metrics:

• Revenue grew 1% year-over-year to $194.9 million.
• Net income was $32.7 million, up 47% year-over-year.
• Diluted earnings per share (EPS) was $0.24, compared to $0.17 in the second quarter of 2024.
• Adjusted EBITDA was $57.1 million, up 40% year-over-year.
• Cash provided by operating activities was $72.5 million, compared to $39.2 million in the second quarter of 2024.
• Free cash flow was $65.6 million, compared to $35.5 million in the second quarter of 2024.

Business and Operational Highlights

Upwork has made significant strides in enhancing its platform and expanding its service offerings:

• Major advancements to Uma™, Upwork’s Mindful AI, including features like instant interviews and Upwork Video Meetings.
• Uma™ adoption increased 24% quarter-over-quarter, with improved search and match capabilities driving revenue outperformance.
• GSV from AI-related work accelerated to 30% year-over-year growth in Q2 2025.
• Announced acquisition of Bubty and agreement to acquire Ascen, enhancing the offering of full-stack, end-to-end contingent work solutions for large enterprises.

Strategic Initiatives and Corporate Developments

Upwork has undertaken several strategic initiatives to strengthen its market position:

• Acquisition of Bubty and agreement to acquire Ascen to serve large clients with a full range of contingent workforce and staffing solutions.
• Continued strength in ads & monetization, with revenue increasing 17% year-over-year.
• Freelancer Plus subscription revenue grew 13% year-over-year, and Connects revenue grew 19% year-over-year.

Management's Perspective

Hayden Brown, president and CEO of Upwork, commented on the results: "Upwork delivered an exceptional second quarter, significantly outperforming across all key financial metrics. Our strong Marketplace performance was driven by AI features that delivered tremendous value to our full range of customers."

Erica Gessert, CFO of Upwork, added: "With encouraging growth signals from key product and platform enhancements and continued rigorous cost discipline, we are raising our full-year guidance for both revenue and adjusted EBITDA."

Future Outlook

Upwork has provided guidance for the third quarter and full year of 2025:

• Q3 2025 Revenue: $190 million to $195 million
• Q3 2025 Adjusted EBITDA: $47 million to $51 million
• FY 2025 Revenue: $765 million to $775 million
• FY 2025 Adjusted EBITDA: $206 million to $214 million

SEC Filing: UPWORK, INC [ UPWK ] - 8-K - Aug. 06, 2025