Upwork (UPWK) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $191.7 million, down 2% year-over-year, with GAAP net income of $25.4 million, a 22% decrease year-over-year; adjusted EBITDA reached $64.1 million, up 12% year-over-year, driven by cost management and monetization levers.

• GSV per active client hit a record $5,230, up 5% year-over-year, marking eight consecutive quarters of sequential growth.

• GSV from AI-related work reached $330 million annualized, up 22% year-over-year; AI Strategy & Consulting GSV grew over 50%.

• Business Plus GSV for SMBs rose 24% quarter-over-quarter and 174% year-over-year; active clients up 16% quarter-over-quarter and 219% year-over-year.

• Share repurchases totaled $109.7 million for 8.3 million shares in the first half of 2026.

Financial highlights

• GSV was $966.4 million, down 4% year-over-year; active clients totaled 763,000, down 4%.

• Marketplace revenue was $166.9 million, down 2% year-over-year; enterprise revenue was $24.8 million, up 2%.

• Gross margin was 76%, down from 78% year-over-year; adjusted EBITDA margin was 33.4%.

• Free cash flow was $35.9 million, representing 56.1% of adjusted EBITDA, impacted by restructuring payments.

• Net income margin for Q2 2026 was 13%, down from 17% year-over-year.

Outlook and guidance

• Full-year 2026 revenue expected between $730 million–$750 million; adjusted EBITDA projected at $225 million–$235 million (31% margin midpoint); non-GAAP diluted EPS expected between $1.38 and $1.43.

• Q3 2026 revenue guidance is $176 million–$184 million, with adjusted EBITDA of $50 million–$54 million; non-GAAP diluted EPS: $0.31–$0.33.

• Management expects continued headwinds from AI adoption and macroeconomic uncertainty, impacting GSV, active clients, and revenue for the remainder of 2026.

• Increased marketing spend by $5 million–$10 million planned for the back half of the year to drive customer acquisition.

• Cost reduction efforts are anticipated to support further adjusted EBITDA growth, subject to market conditions.