Upwork Reports Third Quarter 2025 Financial Results

Achieves record quarterly revenue of $201.7 million in Q3 2025 Generates GAAP net income of $29.3 million and record adjusted EBITDA of $59.6 million, resulting in 15% profit margin and all-time high 30% adjusted EBITDA margin Raises FY2025 revenue and adjusted EBITDA guidance PALO ALTO, Calif., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s human and AI-powered work marketplace, today announced its financial results for the third quarter of 2025. “The third quarter marked the start of the next chapter for Upwork. As we build the world’s human and AI-powered work marketplace, we’re driving phenomenal user productivity and engagement, resulting in a return to positive GSV growth,” said Hayden Brown, president and CEO, Upwork Inc. “We are executing with speed and precision across our growth levers of AI, SMB, and Enterprise, and are now on the path to sustained, multi-year growth.” “Our third quarter was exceptional, with record performance. We crossed the $200 million revenue milestone, with net income of $29.3 million and 15% profit margin, and our adjusted EBITDA hit an all-time high of $59.6 million, at a record 30% adjusted EBITDA margin,” said Erica Gessert, CFO, Upwork Inc. “Our strong and growing free cash flow yield also enabled us to announce another $100 million share repurchase authorization in early September. On the back of such positive momentum, we have once again raised our full-year guidance for both revenue and adjusted EBITDA. We have proven our ability to meaningfully expand margins while accelerating topline growth, reinforcing our confidence in achieving our long-term 35% adjusted EBITDA margin target.” Third Quarter 2025 Financial Highlights GSV(1) grew 2% year-over-yearRevenue grew 4% year-over-year to $201.7 millionActive clients(1) of 794,000GSV per active client(1) of $5,036 increased 5% year-over-yearNet income was $29.3 million, up 6% year-over-yearDiluted earnings per share was $0.21, compared to diluted earnings per share of $0.20 in the third quarter of 2024Adjusted EBITDA(2) was $59.6 million, up 38% year-over-yearCash provided by operating activities(3) was $75.1 million, compared to cash provided by operating activities of $61.0 million in the third quarter of 2024Free cash flow(2)(3) was $69.4 million, compared to free cash flow of $56.8 million in the third quarter of 2024 Third Quarter Operational Highlights Building the World’s Human and AI-Powered Work Marketplace Uma™, Upwork’s Mindful AI, continued to evolve into an always-on work agent, further increasing customer engagement and productivity. Scaled Uma’s capabilities across the customer journey with additional premium features like AI interviews, recruiting, and collaborative hiring capabilities for teams.Uma Proposal Writer provided a 15% uplift in Uma-generated proposals.Launched agentic talent sourcing solution for Business Plus clients, reducing the median time to receive a high-quality talent shortlist for their jobs by more than 75%. Growing AI Work on the Marketplace GSV from AI-related work accelerated to 53% year-over-year growth in Q3 2025, compared to 30% year-over-year growth in Q2 2025. GSV from Generative AI work grew 65% year-over-year in Q3 2025.GSV from Prompt Engineering grew 71% year-over-year and increased 23% quarter-over-quarter in Q3 2025. The number of clients engaging in AI-related projects grew 45% year-over-year in Q3 2025. Winning Bigger with SMBs GSV from Upwork Business Plus offering for SMBs increased 33% quarter-over-quarter.Business Plus active clients increased 36% quarter-over-quarter, with 36% of active clients on Business Plus in Q3 being net-new customers to Upwork. Generating New Value through Ads & Monetization Strategies Revenue from Ads & Monetization grew 19% year-over-year in Q3 2025. Connects revenue increased 18% year-over-year in Q3 2025.Freelancer Plus subscription revenue grew 24% year-over-year in Q3 2025. Unlocking the Enterprise Opportunity Launched Lifted, Upwork’s new enterprise-focused subsidiary, creating a unique offering of full-stack, end-to-end contingent work solutions for large enterprises following Lifted’s acquisitions of Bubty and Ascen.Rapidly integrating acquired companies and products, in anticipation of onboarding first customers onto the new Lifted platform by early 2026. Financial Guidance & Outlook Upwork’s guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for the fourth quarter of 2025 is: Revenue: $193 million to $198 millionAdjusted EBITDA: $49 million to $52 millionDiluted weighted-average shares outstanding: 138 million to 140 millionNon-GAAP diluted EPS: $0.31 to $0.33 Upwork’s guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, non-GAAP diluted EPS, and stock-based compensation expense for full year 2025 is: Revenue: $782 million to $787 millionAdjusted EBITDA: $222 million to $225 millionDiluted weighted-average shares outstanding: 140 million to 142 millionNon-GAAP diluted EPS: $1.35 to $1.37Stock-based compensation expense: Approximately $65 million UPWORK INC.Key Financial and Operational Metrics(In thousands, except percentages and basis points)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 Change 2025 2024 ChangeGSV(1)$1,017,680 $998,268 1.9% $3,008,054 $3,015,331 (0.2)% Marketplace revenue(1)$174,572 $167,337 4% $511,525 $498,453 3%Enterprise revenue(1)$27,158 $26,439 3% $77,850 $79,389 (2)%Gross profit$155,887 $150,368 4% $458,294 $446,389 3%Gross profit margin 77% 78% -32 bps 78% 77% 51 bps Operating expenses$126,129 $129,575 (3)% $357,281 $394,766 (9)%Net income$29,335 $27,758 6% $99,791 $68,420 46%Adjusted EBITDA(2)$59,627 $43,227 38% $172,699 $117,387 47%Profit margin 15% 14% 22 bps 17% 12% 509 bps Adjusted EBITDA margin(2) 30% 22% 725 bps 29% 20% 899 bps Cash provided by operating activities(3)$75,079 $60,964 23% $184,558 $114,981 61%Free cash flow(2)(3)$69,431 $56,797 22% $165,847 $104,402 59% As of September 30, (In thousands)2025 2024 % ChangeActive clients(1)794 855 (7)% (1) See Key Definitions in our third quarter 2025 earnings presentation. (2) An explanation of non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures can be found in the “Non-GAAP Financial Measures" section and the subsequent tables at the end of this press release. (3) We elected to change the presentation of certain cash flows on our Consolidated Statement of Cash Flow, reclassifying the change in Trade and client receivables, related to amounts received on behalf of talent to fund their escrow account, from operating activities to financing activities. Prior period comparative amounts have been recast to conform to the current period presentation. Third Quarter 2025 Financial Results Conference Call and Webcast Upwork will host a conference call today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the company’s third quarter 2025 financial results. An audio webcast archive will be available following the live event for approximately one year at investors.upwork.com. Please visit the Upwork Investor Relations website at investors.upwork.com/financial-information/quarterly-results to view Upwork’s third quarter 2025 earnings presentation. Disclosure InformationWe use our Investor Relations website (investors.upwork.com), our Blog (upwork.com/blog), our X handle (twitter.com/Upwork), Hayden Brown’s X handle (twitter.com/hydnbrwn) and LinkedIn profile (linkedin.com/in/haydenlbrown), and Erica Gessert’s LinkedIn profile (linkedin.com/in/erica-gessert) as means of disseminating or providing notification of, among other things, news or announcements regarding our business or financial performance, investor events, press releases, and earnings releases, and as means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. About UpworkUpwork Inc.’s (Nasdaq: UPWK) family of companies connects businesses with global, AI-enabled talent across every contingent work type including freelance, fractional, and payrolled. This portfolio includes the Upwork Marketplace, which connects businesses with on-demand access to highly skilled talent across the globe, and Lifted, which provides a purpose-built solution for enterprise organizations to source, contract, manage, and pay talent across the full spectrum of contingent work. From Fortune 100 enterprises to entrepreneurs, businesses rely on Upwork Inc. to find and hire expert talent, leverage AI-powered work solutions, and drive business transformation. With access to professionals spanning more than 10,000 skills across AI & machine learning, software development, sales & marketing, customer support, finance & accounting, and more, the Upwork family of companies enables businesses of all sizes to scale, innovate, and transform their workforces for the age of AI and beyond. Since its founding, Upwork Inc. has facilitated more than $30 billion in total transactions and services as it fulfills its purpose to create opportunity in every era of work. Learn more about the Upwork Marketplace at upwork.com and follow on LinkedIn, Facebook, Instagram, TikTok, and X; and learn more about Lifted at go-lifted.com and follow on LinkedIn. Contact:Investor Relationsinvestor@upwork.com Safe Harbor:This press release of Upwork Inc. (together with its wholly owned subsidiaries, the “Company,” “we,” “us,” or “our”) contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include all statements other than statements of historical fact, including any statements regarding our future operating results and financial position, including expected financial results for the fourth quarter and full year 2025, information or predictions concerning the future of our business or strategy, anticipated events and trends, potential growth or growth prospects, competitive position, technological and market trends, industry environment, the economy, our plans with respect to share repurchases, the expected impact and timing of strategic initiatives, including the launch of Lifted, the Company’s enterprise-focused subsidiary, and its acquisitions of Bubty B.V., which we refer to as Bubty, and Ascen Inc., which we refer to as Ascen, and other future conditions. We have based these forward-looking statements largely on our current expectations and projections as of the date hereof about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs. As such, they are subject to inherent uncertainties, known and unknown risks, and changes in circumstances that are difficult to predict and in many cases outside our control, and you should not rely on such forward-looking statements. We make no representation that the projected results will be achieved or that future events and circumstances will occur, and actual results may differ materially and adversely from our expectations. The forward-looking statements are made as of the date hereof, and we do not undertake, and expressly disclaim, any obligation to update or revise any forward-looking statements, conform these statements to actual results, or make changes in our expectations, except as required by law. Additional information regarding the risks and uncertainties that could cause actual results to differ materially from our expectations is included under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, filed with the SEC on August 6, 2025, and in our other SEC filings, which are available on our Investor Relations website at investors.upwork.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended September 30, 2025, when filed. Upwork, “Uma™, Upwork’s Mindful AI,” Lifted and other registered or common law trade names, trademarks, or service marks of Upwork appearing in this press release are the property of Upwork. This presentation may also contain additional trade names, trademarks, and service marks of other companies, including names and brands. All third-party trademarks are property of their respective owners, and any references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law. UPWORK INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)(Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024 Revenue Marketplace$174,572 $167,337 $511,525 $498,453 Enterprise 27,158 26,439 77,850 79,389 Total revenue 201,730 193,776 589,375 577,842 Cost of revenue 45,843 43,408 131,081 131,453 Gross profit 155,887 150,368 458,294 446,389 Operating expenses Research and development 47,494 50,411 138,489 155,792 Sales and marketing 34,985 46,093 107,407 141,277 General and administrative 41,257 31,276 104,964 93,201 Provision for transaction losses 2,393 1,795 6,421 4,496 Total operating expenses 126,129 129,575 357,281 394,766 Income from operations 29,758 20,793 101,013 51,623 Other income, net 5,917 8,091 18,112 20,433 Income before income taxes 35,675 28,884 119,125 72,056 Income tax provision (6,340) (1,126) (19,334) (3,636)Net income$29,335 $27,758 $99,791 $68,420 Net income per share: Basic$0.22 $0.21 $0.75 $0.51 Diluted$0.21 $0.20 $0.72 $0.50 Weighted-average shares used to compute net income per share: Basic 131,987 132,603 133,114 133,404 Diluted 139,666 139,294 140,910 140,552 UPWORK INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) September 30, 2025 December 31, 2024ASSETS Current assets Cash and cash equivalents$260,838 $305,757 Marketable securities 382,259 316,344 Funds held in escrow, including funds in transit 211,373 195,736 Trade and client receivables, net 76,433 75,490 Prepaid expenses and other current assets 18,048 17,727 Total current assets 948,951 911,054 Property and equipment, net 40,373 30,056 Goodwill 150,471 121,064 Intangible assets, net 39,656 12,989 Operating lease asset 5,188 5,752 Deferred tax asset 125,065 128,779 Other assets, noncurrent 1,505 1,919 Total assets$1,311,209 $1,211,613 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$8,514 $6,128 Escrow funds payable 211,373 195,736 Debt, current 359,310 — Accrued expenses and other current liabilities 73,336 59,300 Deferred revenue 7,943 7,269 Total current liabilities 660,476 268,433 Debt, noncurrent — 357,928 Operating lease liability, noncurrent 10,131 9,567 Other liabilities, noncurrent 12,476 308 Total liabilities 683,083 636,236 Stockholders’ equity Common stock 13 14 Additional paid-in capital 605,931 653,575 Accumulated and other comprehensive income 867 264 Accumulated deficit 21,315 (78,476)Total stockholders’ equity 628,126 575,377 Total liabilities and stockholders’ equity$1,311,209 $1,211,613 UPWORK INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income$29,335 $27,758 $99,791 $68,420 Adjustments to reconcile net income to net cash provided by operating activities: Provision for transaction losses 2,113 1,100 5,707 3,533 Depreciation and amortization 7,946 3,668 18,686 10,443 Amortization of debt issuance costs 460 460 1,381 1,381 Accretion of discount on purchases of marketable securities, net (2,195) (2,272) (5,699) (10,431)Amortization of operating lease asset 179 722 564 2,428 Tides Foundation common stock warrant expense 188 188 563 563 Stock-based compensation expense 19,789 18,578 48,038 54,758 Deferred taxes (2,463) — (399) — Changes in operating assets and liabilities: Trade and client receivables(1) (2,014) 4,851 (1,654) (236)Prepaid expenses and other assets 3,378 2,665 40 (2,468)Operating lease liability (208) (1,086) 600 (4,215)Accounts payable 4,571 (160) (504) 541 Accrued expenses and other liabilities 13,866 6,480 16,777 (367)Deferred revenue 134 (1,988) 667 (9,369)Net cash provided by operating activities 75,079 60,964 184,558 114,981 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of marketable securities (106,791) (40,205) (365,939) (234,504)Proceeds from maturities of marketable securities 70,314 43,423 302,725 365,269 Proceeds from sale of marketable securities 64 3,027 3,601 38,421 Acquisition of business, net of cash acquired (39,436) — (59,846) — Purchases of property and equipment (482) (1,204) (5,335) (1,979)Internal-use software and platform development costs (5,166) (2,963) (13,376) (8,600)Net cash (used in) provided by investing activities (81,497) 2,078 (138,170) 158,607 CASH FLOWS FROM FINANCING ACTIVITIES: Change in escrow funds payable, net(1) 6,451 36,810 23,025 32,008 Proceeds from exercises of stock options and common stock warrants 76 1,165 729 1,935 Proceeds from employee stock purchase plan — — 2,199 2,917 Repurchase of common stock (31,001) — (101,923) (100,000)Net cash (used in) provided by financing activities (24,474) 37,975 (75,970) (63,140)NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (30,892) 101,017 (29,582) 210,448 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—beginning of period 506,903 405,849 505,593 296,418 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—end of period$476,011 $506,866 $476,011 $506,866 (1) We elected to change the presentation of certain cash flows on our Consolidated Statement of Cash Flow, reclassifying the change in Trade and client receivables, related to amounts received on behalf of talent to fund their escrow account, from operating activities to financing activities. Prior period comparative amounts have been recast to conform to the current period presentation. The following table reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows as of the following (in thousands): September 30, 2025 December 31, 2024Cash and cash equivalents$260,838 $305,757 Restricted cash 3,800 4,100 Funds held in escrow, including funds in transit 211,373 195,736 Total cash, cash equivalents, and restricted cash as shown in the condensed consolidated statement of cash flows$476,011 $505,593 Non-GAAP Financial MeasuresTo supplement our condensed consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release, including adjusted EBITDA, adjusted EBITDA margin, free cash flow, and non-GAAP diluted EPS. We define adjusted EBITDA as net income adjusted for stock-based compensation expense; depreciation and amortization; other income (expense), net, which includes interest expense; income tax benefit (provision); and, if applicable, certain other gains, losses, benefits, or charges that are non-cash or are significant and the result of isolated events or transactions that have not occurred frequently in the past and are not expected to occur regularly in the future. Free cash flow is defined as cash provided by operations less purchases of property, plant and equipment and cash outflows from internally developed software. We use non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. These non-GAAP financial measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of our core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to certain items that can vary substantially from company to company, and free cash flow allows investors to evaluate the cash generated from our underlying operations across periods. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as analytical tools, and investors should not consider them in isolation or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. In particular, (1) adjusted EBITDA excludes stock-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; (c) tax payments that may represent a reduction in cash available to us; or (d) material acquisition-related deal costs. In addition, the non-GAAP financial measures we use may be different from non-GAAP financial measures used by other companies, including companies in our industry, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from the non-GAAP financial measures that we present. Reconciliations of the non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures have been provided below, and investors are encouraged to review the reconciliations and not rely on any single financial measure to evaluate our business. We have not reconciled our adjusted EBITDA guidance to GAAP net income or non-GAAP diluted EPS guidance to GAAP diluted EPS because certain items that impact GAAP net income and GAAP diluted EPS are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during the fourth quarter of 2025 and fiscal year 2025 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of adjusted EBITDA guidance to GAAP net income and non-GAAP diluted EPS guidance to GAAP diluted EPS is not available without unreasonable effort. UPWORK INC.RECONCILIATION OF GAAP TO NON-GAAP RESULTS(In thousands, except for percentages and share data)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income$29,335 $27,758 $99,791 $68,420 Add back (deduct): Stock-based compensation expense 19,789 18,578 48,038 54,758 Depreciation and amortization 7,946 3,668 18,686 10,443 Other income, net (5,917) (8,091) (18,112) (20,433)Income tax provision 6,340 1,126 19,334 3,636 Other(1) (2) 2,134 188 4,962 563 Adjusted EBITDA$59,627 $43,227 $172,699 $117,387 Profit margin 15% 14% 17% 12%Adjusted EBITDA margin 30% 22% 29% 20% Cost of revenue, GAAP$45,843 $43,408 $131,081 $131,453 Stock-based compensation expense (193) (361) (580) (1,324)Cost of revenue, Non-GAAP 45,650 43,047 130,501 130,129 As a percentage of total revenue, GAAP 23% 22% 22% 23%As a percentage of total revenue, Non-GAAP 23% 22% 22% 23% Gross profit, GAAP$155,887 $150,368 $458,294 $446,389 Stock-based compensation expense 193 361 580 1,324 Gross profit, Non-GAAP 156,080 150,729 458,874 447,713 Gross margin, GAAP 77% 78% 78% 77%Gross margin, Non-GAAP 77% 78% 78% 77% Research and development, GAAP$47,494 $50,411 $138,489 $155,792 Stock-based compensation expense (6,101) (8,053) (17,528) (23,529)Intangible amortization (3,067) (398) (5,697) (1,196)Research and development, Non-GAAP 38,326 41,960 115,264 131,067 As a percentage of total revenue, GAAP 24% 26% 23% 27%As a percentage of total revenue, Non-GAAP 19% 22% 20% 23% Sales and marketing, GAAP$34,985 $46,093 $107,407 $141,277 Stock-based compensation expense (1,615) (3,225) (4,790) (9,554)Intangible amortization (403) — (1,236) — Sales and marketing, Non-GAAP 32,967 42,868 101,381 131,723 As a percentage of total revenue, GAAP 17% 24% 18% 24%As a percentage of total revenue, Non-GAAP 16% 22% 17% 23% General and administrative, GAAP$41,257 $31,276 $104,964 $93,201 Stock-based compensation expense (11,880) (6,939) (25,140) (20,351)Other(1) (2) (2,134) (188) (4,962) (563)General and administrative, Non-GAAP 27,243 24,149 74,862 72,287 As a percentage of total revenue, GAAP 20% 16% 18% 16%As a percentage of total revenue, Non-GAAP 14% 12% 13% 13% Total operating expenses, GAAP$126,129 $129,575 $357,281 $394,766 Stock-based compensation expense (19,596) (18,217) (47,458) (53,434)Intangible amortization (3,470) (398) (6,933) (1,196)Other(1) (2) (2,134) (188) (4,962) (563)Total operating expenses, Non-GAAP 100,929 110,772 297,928 339,573 As a percentage of total revenue, GAAP 63% 67% 61% 68%As a percentage of total revenue, Non-GAAP 50% 57% 51% 59% Income from operations, GAAP$29,758 $20,793 $101,013 $51,623 Stock-based compensation expense 19,789 18,578 48,038 54,758 Intangible amortization 3,470 398 6,933 1,196 Other(1) (2) 2,134 188 4,962 563 Income from operations, Non-GAAP 55,151 39,957 160,946 108,140 Net income, GAAP$29,335 $27,758 $99,791 $68,420 Stock-based compensation expense 19,789 18,578 48,038 54,758 Intangible amortization 3,470 398 6,933 1,196 Tax effect of non-GAAP adjustments (4,897) (7,762) (13,613) (20,150)Other(1) (2) 2,134 188 4,962 563 Net income, Non-GAAP 49,831 39,160 146,111 104,787 Weighted-average shares outstanding used in computing earnings per share, GAAPBasic (in millions) 132.0 132.6 133.1 133.4 Diluted (in millions) 139.7 139.3 140.9 140.6 Basic earnings per share, GAAP$0.22 $0.21 $0.75 $0.51 Diluted earnings per share, GAAP$0.21 $0.20 $0.72 $0.50 Weighted-average shares outstanding used in computing earnings per share, Non-GAAPBasic (in millions) 132.0 132.6 133.1 133.4 Diluted (in millions) 139.7 139.3 140.9 140.6 Basic earnings per share, Non-GAAP$0.38 $0.30 $1.10 $0.79 Diluted earnings per share, Non-GAAP$0.36 $0.29 $1.05 $0.76 (1) During the three and nine months ended September 30, 2025 and 2024, we incurred $0.2 million and $0.6 million, respectively, of expense related to the warrant to purchase 500,000 shares of our common stock at an exercise price of $0.01 per share issued to the Tides Foundation in 2018. (2) During the three and nine months ended September 30, 2025, we incurred acquisition-related costs of $1.9 million and $4.4 million in connection with our business combinations. These costs primarily consist of legal, accounting, and other professional fees, and are recorded in general and administrative expenses in the condensed consolidated statements of operations. Beginning in the second quarter of 2025, we included acquisition-related costs as an add-back to net income in the reconciliation to adjusted EBITDA. Acquisition-related costs incurred in prior periods were deemed immaterial and therefore not included as an add-back to adjusted EBITDA. UPWORK INC.RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIESTO FREE CASH FLOW(In thousands)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cash provided by operating activities $75,079 $60,964 $184,558 $114,981 Less: purchases of property, plant & equipment and cash outflows from internally developed software (5,648) (4,167) (18,711) (10,579)Free cash flow $69,431 $56,797 $165,847 $104,402

Upwork Reports Third Quarter 2025 Financial Results

FAQ

Why Very Bullish?

How important is it?

Why Short Term?

Related Companies

Related News