UPWORK, INC (UPWK) FY2025 10-K Annual Report

Filed: Feb 13, 2026
Information Technology
Services-Computer Processing & Data PreparationSEC EDGAR

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 Metrics
XBRL

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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