Upwork Q2 revenue beats estimates, raises annual revenue  guidance

Overview

• Upwork Q2 revenue of $194.9 mln beats analyst expectations, per LSEG data

• Adjusted EBITDA rises 40% yr/yr to $57.1 mln, beating estimates

• Co raises FY2025 revenue and adjusted EBITDA guidance

• Upwork acquires Bubty, agrees to acquire Ascen to expand workforce solutions

Outlook

• Upwork raises FY2025 revenue guidance to $765 mln-$775 mln

• Company raises FY2025 adjusted EBITDA guidance to $206 mln-$214 mln

• Upwork sees Q3 revenue between $190 mln and $195 mln

• Company expects Q3 adjusted EBITDA of $47 mln-$51 mln

Result Drivers

• AI FEATURES - Strong Marketplace performance driven by AI features that delivered value to customers, according to CEO Hayden Brown

• ACQUISITIONS - Announced acquisitions of Bubty and Ascen to enhance full-stack contingent workforce solutions for enterprise clients

• AI WORK GROWTH - GSV from AI-related work grew 30% year-over-year in Q2 2025, with significant demand for AI specialists

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Upwork Inc is $19.00, about 37.5% above its August 5 closing price of $11.88

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX5wFtZm