10-Q · May 7, 2026
Upwork Inc. reported fiscal Q1 2026 results with total revenue of $195.5 million, reflecting a 1% increase from the prior year. Marketplace revenue increased by 3%, while net income decreased 17% to $31.5 million due to…
Earnings analysis · 10-Q
UPWK earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Upwork delivered a modest Q2 revenue beat and stronger-than-expected non-GAAP profitability, with revenue of $191.660 million and non-GAAP diluted EPS of $0.41. However, revenue declined approximately 1.7% both…
Read full summary
Upwork delivered a modest Q2 revenue beat and stronger-than-expected non-GAAP profitability, with revenue of $191.660 million and non-GAAP diluted EPS of $0.41. However, revenue declined approximately 1.7% both sequentially and year over year, while GSV and active clients each fell 4% year over year. The outlook was lowered to $730 million-$750 million of 2026 revenue and $1.38-$1.43 of non-GAAP diluted EPS, and the $361.0 million Notes maturity on August 15, 2026 adds a near-term liquidity consideration.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Operating margin
- 191660000%
What stood out
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Revenue modestly beat estimates
Q2 revenue was $191.660 million, $1.689 million above the $189.971 million consensus estimate. Revenue declined approximately 1.7% from $195 million in Q1 2026 and 1.7% from $195 million in Q2 2025.
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Adjusted profitability exceeded expectations
Non-GAAP diluted EPS was $0.41 versus the $0.34 consensus estimate, a $0.07 beat. Adjusted EBITDA margin improved to 33%.
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Revolver provides liquidity capacity
The company had no borrowings under its Revolving Credit Facility as of June 30, 2026 and had $150.0 million of borrowing capacity available.
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Disclosure controls remained effective
Management stated that disclosure controls and procedures were effective as of June 30, 2026, and reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Marketplace activity and clients contracted
GSV decreased 4% year over year in Q2 2026, while active clients also declined 4%; management attributed the pressure to the evolving impact of AI on freelance-work categories and client acquisition and retention, as well as macroeconomic uncertainty.
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Near-term convertible debt maturity
The $361.0 million aggregate principal amount of Notes outstanding as of June 30, 2026 matures on August 15, 2026. The company may need to use cash or financing to address the maturity.
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Buybacks may reduce financial flexibility
Upwork repurchased $109.7 million of common stock during the first six months of 2026 and had $254.3 million remaining under its 2026 authorization as of June 30, 2026. The filing warns that repurchases could diminish cash reserves available for working capital, debt repayment, capital expenditures, and strategic opportunities.
Management's outlook
Management's quantitative 2026 outlook, reported with the earnings release, was lowered to revenue of $730 million-$750 million and non-GAAP diluted EPS of $1.38-$1.43 from prior guidance of $760 million-$790 million and $1.50-$1.55. Q3 2026 outlook is revenue of $176 million-$184 million and non-GAAP diluted EPS of $0.31-$0.33.
Earlier filings 4
10-K · February 13, 2026
Upwork’s 2025 10-K emphasizes AI-driven marketplace scale (Uma and proprietary data) and the launch of Lifted to capture enterprise contingent workforce demand; platforms enabled $4.0 billion of GSV in 2025. Management…
10-Q · May 5, 2025
Upwork reported Q1 revenue of $192,706,000 (versus $190,937,000 a year ago) and GAAP net income of $37,730,000 (diluted EPS $0.27), driven by a materially higher operating income of $38,690,000. Marketplace revenue…
10-Q · August 7, 2024
Upwork reported Q2 revenue of $193,129 (in thousands), up YoY from $168,611 and up slightly sequentially from Q1 (Q1 implied revenue $190,937). Gross profit expanded to $149,277 (gross margin ~77.3%) and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.