Upwork Inc's Q2 Earnings Call Highlights AI-Driven Growth, Raises Full-Year Guidance

Upwork Inc reported Q2 revenue of $194.9 million, its highest ever, driven by AI enhancements, increased AI-related work, and strategic acquisitions. The company's net income was $32.7 million and adjusted EBITDA was $57.1 million, with a profit margin of 16.8% and adjusted EBITDA margin of 29.3%. AI-related work grew 30% YoY, and active Business Plus clients increased 45% QoQ. Upwork raised its full-year guidance for revenue and adjusted EBITDA, citing strong performance and confidence in continued growth.

Upwork Inc. (UPWK) reported strong financial results for the second quarter of 2025, achieving its highest-ever revenue of $194.9 million. The company's net income for the period was $32.7 million, and adjusted EBITDA was $57.1 million, resulting in a profit margin of 16.8% and an adjusted EBITDA margin of 29.3% [1].

The robust performance was driven by several key factors. Upwork's AI enhancements and increased AI-related work contributed significantly to the growth. AI-related work grew by 30% year-over-year (YoY), while active Business Plus clients increased by 45% quarter-over-quarter (QoQ) [1].

Upwork also made strategic acquisitions to bolster its enterprise offerings. The company acquired Bubty, a contingent workforce management platform, and agreed to acquire Ascen, a digitally native employment solution for contingent W-2 work. These acquisitions are expected to have a minor revenue benefit in the second half of 2025 and a more significant contribution in 2026 [1].

The company's CEO, Hayden Brown, highlighted the importance of AI and customer experience enhancements, stating, "The quarter's results clearly demonstrate the significant advancement of our AI efforts and product enhancements, resulting in growth of our core marketplace business, including Business Plus" [1].

Upwork's CFO, Erica Gessert, echoed this sentiment, noting that the quarter's results exceeded expectations and that the company is on track to achieve its long-term adjusted EBITDA margin target of 35%. She also raised the full-year 2025 revenue and adjusted EBITDA guidance, citing the strong performance and confidence in continued growth [1].

The company's strategic focus on AI and enterprise capabilities positions it well to capitalize on the $650 billion enterprise market opportunity. Upwork expects its integrated AI and enterprise solutions to be key growth drivers in 2026 and beyond [1].

References:
[1] https://seekingalpha.com/news/4480821-upwork-signals-2026-growth-with-ai-driven-platform-and-enterprise-acquisitions
[2] https://finance.yahoo.com/news/upwork-reports-second-quarter-2025-110000072.html