Upwork Reports Record Q2 Revenue, Driven by AI-Enhanced Platform and Enterprise Acquisitions

Upwork reported Q2 2025 revenue of $194.9 million, citing the success of its AI-driven platform and accelerated client hiring in AI-related work. The company's president and CEO, Hayden Brown, highlighted the record-breaking quarter and attributed the growth to AI enhancements, increased ad revenue, and monetization efforts.

Upwork Inc. (Nasdaq: UPWK) reported strong financial results for the second quarter of 2025, with revenue reaching $194.9 million, a 1% year-over-year increase. The company's president and CEO, Hayden Brown, attributed the growth to the success of its AI-driven platform, increased client hiring in AI-related work, and enhanced monetization efforts.

Key highlights of the quarter include:

- Revenue Growth: Upwork's revenue grew by 1% year-over-year to $194.9 million, driven by AI features that delivered significant value to customers.
- AI Work: The company saw a 30% year-over-year growth in GSV from AI-related work, with clients hiring AI specialists across 365+ different skills.
- Acquisitions: Upwork announced the acquisition of Bubty and an agreement to acquire Ascen, positioning the company to serve large clients with a full range of contingent workforce and staffing solutions.
- Profitability: The company reported a net income of $32.7 million and an adjusted EBITDA of $57.1 million, representing a 17% profit margin and a 29% adjusted EBITDA margin.
- Financial Guidance: Upwork raised its full-year guidance for revenue and adjusted EBITDA, targeting $765 million to $775 million in revenue and $206 million to $214 million in adjusted EBITDA for 2025.

Upwork's AI-driven platform, Uma™, played a pivotal role in the company's growth. The AI work agent now takes action on behalf of customers, accelerating hiring, collaboration, and work outcomes through features like instant interviews and improved job posting experiences. The adoption of Uma™ increased by 24% quarter-over-quarter, contributing to revenue and GSV outperformance.

The company's continued strength in ads and monetization, with revenue increasing 17% year-over-year, also supported the strong quarter. Freelancer Plus subscription revenue and Connects revenue grew by 13% and 19% year-over-year, respectively.

Upwork's strategic acquisitions, including Bubty and Ascen, aim to enhance its offering of full-stack, end-to-end contingent work solutions for large enterprises. These acquisitions provide clients with access to a full range of contingent workforce models sourced from Upwork's global talent pool.

Investors can expect Upwork to continue leading the industry in the human and AI-powered era of work, with a focus on AI infrastructure investments, AI work on the marketplace, and strategic acquisitions.

References:
[1] https://investors.upwork.com/news-releases/news-release-details/upwork-reports-second-quarter-2025-financial-results