Upwork (UPWK) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $194.9M, up 1% year-over-year, with net income of $32.7M, a 47% increase, and adjusted EBITDA of $57.1M, up 40%, driven by AI enhancements, Business Plus growth, and monetization strategies.

• Raised full-year 2025 guidance for revenue and adjusted EBITDA, reflecting strong momentum, cost discipline, and successful AI and M&A strategies.

• Announced and/or completed acquisitions of Bubty and Ascen to expand enterprise workforce solutions and address the $650B contingent workforce market.

• AI-driven product enhancements, including Uma, accelerated client adoption, increased spend per contract, and contributed to over 35% of deployed engineering code.

• Cost optimization, including workforce reductions and reduced marketing spend, contributed to improved profitability and gross margin expansion.

Financial highlights

• Q2 2025 revenue: $194.9M (+1% YoY); net income: $32.7M (+47% YoY); adjusted EBITDA: $57.1M (29.3% margin, +40% YoY); diluted EPS: $0.24 (vs. $0.17 in Q2 2024).

• Q2 gross services volume (GSV): $1.0B; average GSV per active client: $5,002 (+5% YoY); Business Plus GSV up 190% QoQ.

• Marketplace take rate increased to 18.5% from 18.0% YoY; non-GAAP gross margin reached 77.8%–78%.

• Free cash flow was $65.6M; cash, cash equivalents, and marketable securities stood at $635M at quarter end.

• Share repurchases totaled $38M in Q2 2025; $70.9M in H1 2025; 2.9M shares repurchased in Q2.

Outlook and guidance

• Q3 2025 revenue expected between $190M–$195M; adjusted EBITDA guidance of $47M–$51M (25%–26% margin); non-GAAP diluted EPS: $0.26–$0.28.

• Full-year 2025 revenue guidance raised to $765M–$775M; adjusted EBITDA guidance increased to $206M–$214M (27% margin midpoint); non-GAAP diluted EPS expected between $1.14 and $1.18.

• Long-term adjusted EBITDA margin target reiterated at 35%.

• Guidance assumes no material improvement in macro conditions for the remainder of 2025.