Upwork (UPWK) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results: $4.03B GSV, $787.8M revenue, $226M adjusted EBITDA, with 2.4% revenue growth and 29% adjusted EBITDA margin year-over-year.

• Reinvented business model focused on AI-powered work, SMB growth, and enterprise expansion, positioning for leadership in a $1.3T market by 2028.

• Transformation to an AI-driven platform completed, with strong momentum entering 2026 and targeting accelerated growth and margin expansion.

• Active clients at year-end were 785,000, with GSV per active client rising 7% year-over-year to $5,129 in Q4.

• Significant growth in AI-related work, with GSV from AI surpassing $300M annually, up over 50% year-over-year.

Financial highlights

• FY 2025 GSV reached $4.03B, up 1% year-over-year; Q4 GSV was $1.02B, up 3% year-over-year.

• FY 2025 revenue was $787.8M, up 2% year-over-year; Q4 revenue was $198.4M, up 4% year-over-year.

• Record annual adjusted EBITDA of $225.6M, a 35% increase year-over-year; Q4 adjusted EBITDA was $52.9M (27% margin).

• Free cash flow for 2025 was $223.1M, up 60% year-over-year; $57.3M generated in Q4.

• GAAP gross margin for FY 2025 was 77.8%, a record high; Q4 gross margin was 78.0%.

Outlook and guidance

• 2026 revenue guidance: $835M-$850M (6%-8% growth); adjusted EBITDA: $240M-$250M; Q1 2026 revenue: $192M-$197M; adjusted EBITDA: $45M-$47M.

• Non-GAAP diluted EPS for 2026 expected between $1.43-$1.48; Q1 EPS $0.26-$0.28.

• 2026 GSV growth expected at 4%-6%; adjusted EBITDA margin projected at ~29%.

• Focus on leveraging AI features and expanding enterprise solutions to drive future growth.

• Expect sequential growth in GSV, take rate, and revenue through 2026, with Lifted ramping in H2.