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- **Q3 2025 Milestones**: First-ever $200M+ quarterly revenue, 2% GSV growth return, $59.6M EBITDA (29.6% margin). 
- **AI Growth Engine**: AI-related GSV +53% YoY, Uma proposals +15%, 45% more AI clients. 
- **Lifted Expansion**: Enterprise subsidiary on track for 2026 launch, targeting $650B contingent work market. 
- **Profitability**: 35% long-term EBITDA margin target, 85% free cash flow conversion, $31M Q3 share buybacks. 
- **2025 Guidance**: Full year revenue $782-787M (+13% YoY), EBITDA $222-225M (+36% YoY).

**【CEO Summary Section】**
- Upwork returned to 2% year-over-year GSV growth in Q3 2025, marking a turning point after 18 months of decline. Revenue reached $201.7 million, a record high, with GAAP net income of $29.3 million and adjusted EBITDA of $59.6 million (29.6% margin). 
- AI-driven innovations like Uma (Mindful AI) are transforming the platform: Uma-generated proposals increased 15%, talent acceptance rates doubled, and AI-related GSV grew 53% YoY. 
- Launch of Lifted subsidiary to expand into $650B contingent work market, with first customer onboarding expected in early 2026. AI-related projects saw 45% YoY client growth, with 41% more talent engaging in AI work. 
- Business Plus adoption grew 36% QoQ, targeting SMBs navigating AI adoption. 

**【CFO Financial Commentary】**
- Q3 2025: Revenue $201.7M (+1% YoY), GAAP net income $29.3M, free cash flow $69.4M. 
- Take rate 18.9% (vs 18.3% YoY), gross margin 77.3%, non-GAAP operating expenses $101M (50% of revenue vs 57% YoY). 
- Guidance: Q4 2025 revenue $193-198M, adjusted EBITDA $49-52M. Full year 2025 revenue $782-787M (+13% YoY), adjusted EBITDA $222-225M (+36% YoY). 
- Free cash flow conversion ~85%, with $31M share buybacks in Q3. 

**【Q&A Highlights】**
- **Lifted Integration**: Early demand exceeds expectations, with RFPs for multimillion-dollar deals. Expected to contribute meaningfully to 2027 growth, with 2-3ppt margin dilution in 2026. 
- **AI Impact**: AI-related GSV to contribute $100M+ in 2025, driven by search/recommendation improvements. AI projects have 3.5x spend of average work. 
- **Margin Strategy**: Reiterate 35% long-term EBITDA margin target, balancing growth investments (e.g., dynamic pricing testing) with profitability. 
- **Freelancer Hours**: 12% YoY increase in hours per contract, driven by complex AI and Business Plus projects. AI substitution risk limited to 5% of GSV in small tasks. 
- **Share Buybacks**: Offset dilution from stock compensation, with $31M spent in Q3 and $100M+ annual pace expected. 
- **ChatGPT Strategy**: Early traffic converts at high rates, with focus on optimizing presence in LLM search results.

Upwork Inc. (UPWK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

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Loss on Disposal of Assets

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Net Income

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Net Income Attributable to Owners of the Company

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

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UPWK

UPWK fundamentals

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