UPWORK, INC (UPWK) FY2025 10-K Annual Report
UPWORK, INC (UPWK) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 13, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
UPWORK, INC FY2025 10-K Analysis
Business Overview
- • Core business model: AI-enabled global platform connecting businesses with freelance, agency, fractional, and payrolled talent across broad skill categories
- • NEW emphasis on Lifted subsidiary for enterprise workforce solutions, including Managed Services and diverse contingent labor models (AOR, EOR, outsourcing)
- • Strategic shift: Paused some new client acquisition in 2025 to focus on Lifted launch, operational improvements, and cost reduction in enterprise account management
- • Quantitative metric: $4.0 billion Gross Services Volume (GSV) transacted in 2025 across 180+ countries; ~630 corporate employees plus 1,600 independent internal contractors
- • Noteworthy fact: Integration of AI-driven features throughout platform, including proprietary AI assistant Uma and advanced machine learning models for search, matching, and rate insights
Management Discussion & Analysis
- • Revenue $787.8M total; Marketplace $682.9M up 3% YoY from $662.1M; Enterprise $104.9M down 2% YoY from $107.2M
- • Marketplace take rate 18.7% vs 18.0% in 2024; net income $115.4M down 46% YoY from $215.6M; adjusted EBITDA $225.6M up 35% from $167.6M
- • Best segment Marketplace revenue $682.9M up 3%; worst Enterprise revenue $104.9M down 2%
- • No cash flow details provided on buybacks, dividends or capex in MDA
- • Management focused on AI capabilities, monetization, and Lifted platform transition; risk due to paused Enterprise client acquisitions
Risk Factors
- • Income tax expense $37.8M in 2025 due to valuation allowance on state deferred tax assets reversing $125.2M benefit in 2024
- • Geopolitical exposure from global client and talent base; active clients declined 6% YoY to Dec 2025 amid macro slowdown
- • Managed Services costs rose $2.9M including $ contract termination charges from reduced client work volume
- • Competitive risk from transition to Lifted platform, causing 2% Enterprise revenue decline and requiring further integration investment
- • Debt maturity of $ Notes due Aug 15, 2026 poses refinancing risk amid tightening credit markets
UPWORK, INC FY2025 Key Financial MetricsXBRL
Revenue
$788M
▲ +2.4% YoY
Net Income
$115M
▼ -46.5% YoY
Gross Margin
77.8%
▲ +45bp YoY
Operating Margin
16.4%
▲ +794bp YoY
Net Margin
14.7%
▼ -1337bp YoY
ROE
18.3%
▼ -1916bp YoY
Total Assets
$1.3B
▲ +7.3% YoY
EPS (Diluted)
$0.84
▼ -44.7% YoY
Operating Cash Flow
$248M
▲ +61.7% YoY
Source: XBRL data from UPWORK, INC FY2025 10-K filing on SEC EDGAR. All figures in USD.
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