Upwork Q2 revenue beats estimates, raises annual revenue  guidance

Upwork

06/08/2025 21:11

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$194.90 mln
$187.70 mln (10 Analysts)
Q2 EPS
$0.24
Q2 Net Income
$32.70 mln
Q2 Adjusted EBITDA
Beat
$57.10 mln
$47.20 mln (9 Analysts)

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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)