| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 92 | 11.2x | 17.8x | Top tier | |
Growth | 44 | 1.9% | 7.1% | Around median | |
Quality | 90 | 8.2% | 4.5% | Top tier | |
Safety | 73 | — | 2.6x | Top tier | |
Capital Return | 33 | — | 2.12% | Bottom tier | |
Momentum | 6 | -38.8% | 2.9% | Bottom tier | |
Sentiment | 36 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Upwork operates a digital marketplace that connects businesses, from small and medium-sized enterprises to enterprise clients, with freelancers and experts for project execution and flexible work. The company generates revenue from fees tied to gross services volume GSV, monetization tools such as Connects, talent subscriptions, dynamic pricing, advertising, and Business Plus, as well as enterprise services and employer of record EOR services through Lifted and Ascen. In fiscal Q2 2026, Connects and talent subscriptions represented 15% of revenue, and the take rate reached 19.8%, illustrating the growing contribution of higher-margin revenue streams.
In fiscal Q2 2026, Upwork generated revenue of $191.7 million, at the high end of its guidance, and gross services volume reached $966 million. Adjusted gross margin reached 77%, while adjusted EBITDA was $64.1 million at a margin of 33.4%, and free cash flow was $35.9 million despite nonrecurring cash payments related to restructuring. The latest available EDGAR data for fiscal Q1 2026 shows revenue of $195.5 million, gross profit of $150.8 million, net income of $31.5 million, and earnings per share of $0.24.
The business mix reflects a shift from increasing the number of clients to raising the value of each client and project; active clients totaled 763 thousand in fiscal Q2 2026, while gross services volume per active client reached a record $5,230, up 5% annually and marking the eighth consecutive quarter of sequential growth. Gross services volume for Business Plus grew 174% annually, its counterpart per enterprise account grew 7%, and EOR solutions increased 29%. In contrast, management said that automation of low-complexity work and declining Google search referrals are pressuring activity volume and new-client acquisition.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average target of $9.64 and a wide range of $8 to $11.5; the average is approximately 42% of the top of the 52-week range of $22.84, while the highest target is approximately half that peak. An August 11, 2026 report cited a price-to-earnings multiple of 10.3 times, but the fiscal 2026 guidance reduction and pressures from automation and Google referrals explain the sharp revaluation. The positive consensus should therefore be weighed against the wide target range and the uncertain timing of growth stabilization.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Upwork generated revenue of $191.7 million and adjusted EBITDA of $64.1 million in fiscal Q2 2026, exceeding the high end of its guidance. However, it lowered its fiscal 2026 revenue guidance to $730–750 million and adjusted EBITDA guidance to $225–235 million. Management attributed the reduction to accelerating automation of low-complexity work, declining Google referrals, and labor-market weakness. The market therefore focused more on the future trajectory than on the completed quarter's outperformance, causing the stock to fall 13% in its worst single-day performance in three months.
Artificial intelligence represents both factors: management said on August 10, 2026 that automation is accelerating the erosion of demand for low-complexity work. In contrast, gross services volume for jobs that explicitly mention a need for artificial intelligence grew 22% annually in fiscal Q2 2026 and reached an annual run rate of approximately $330 million. The AI strategy and consulting category also grew 51% annually, and approximately half of the talent in the company's survey reported that their latest projects were related to artificial intelligence, even though only 16% of those job postings explicitly mentioned it. The net outcome will depend on how quickly complex work grows relative to how quickly automatable work disappears.
Upwork embedded its marketplace within ChatGPT and Claude during fiscal Q2 2026, then announced the Upwork MCP server on August 10, 2026. MCP allows people and their agents to access Upwork jobs and talent from within any compatible artificial intelligence tool, while also allowing freelancers to manage proposals, projects, and communications from their preferred tools. The company thereby aims to reach clients within the work environment itself instead of relying entirely on search-engine referrals. The context does not provide standalone revenue figures for these integrations, so their financial contribution remains unproven despite the clear strategic use case.
Active clients totaled 763 thousand in fiscal Q2 2026, with the figure under pressure from automation, search, labor-market weakness, and the company's focus on value rather than volume. At the same time, gross services volume per active client reached a record $5,230, up 5% annually and marking the eighth consecutive quarter of improvement. Average spend per contract reached a company high on a trailing 12-month basis, and the average duration of hourly contracts reached 100 hours. Business Plus services volume also grew 174% annually, supporting the existence of a genuine shift toward higher-value clients and projects.
Upwork began migrating clients to Lifted in June 2026 and maintained its target of approximately 25% growth in Lifted services volume during fiscal 2026. The Ascen transaction enabled the company to move its employment infrastructure in the United States and Canada from external partners to owned entities, and management said this improves the value proposition and margins. Employer of record EOR solutions grew 29% annually in fiscal Q2 2026. The company also won a multimillion-dollar request for proposal from a large global company for a workforce augmentation contract, a type of opportunity for which management said it had not been qualified before Lifted.
Upwork expects revenue of between $176 million and $184 million and adjusted EBITDA of between $50 million and $54 million in fiscal Q3 2026, equivalent to a margin of 29% at the midpoint. For fiscal 2026, it expects revenue of between $730 million and $750 million, adjusted EBITDA of between $225 million and $235 million, and non-GAAP diluted earnings per share of between $1.38 and $1.43. Investors should also monitor active clients of 763 thousand, gross services volume per client of $5,230, and the artificial intelligence business run rate of approximately $330 million as of fiscal Q2 2026. Stabilization in Google referrals and growth in paid channels following the 22% improvement in the cost of initiating a new contract will be important indicators of the company's ability to offset weakness in organic acquisition.
