(UPWK) Upwork - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NASDAQ (USA) | Market Cap: 1.097m USD | Total Return: -43.5% in 12m
Avg Turnover: 44.0M
EPS Trend: 85.1%
Qual. Beats: 9
Rev. Trend: 93.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence, Garp
Upwork Inc. operates a global online marketplace connecting businesses with independent professionals and agencies across diverse categories, including software development, creative design, and administrative support. The company provides a comprehensive suite of workforce solutions, including talent sourcing, contract management, payroll services, and escrow-based payment protection. Its platform integrates AI-driven tools, such as the Uma assistant, to streamline project delivery and remote collaboration for both small businesses and enterprise clients.
The business model relies primarily on service fees charged to both clients and freelancers, creating a two-sided network effect where increased liquidity attracts more participants. As part of the Human Resource & Employment Services sector, Upwork competes in the growing gig economy, which is increasingly characterized by the shift toward fractional work and remote-first staffing models. Investors can find deeper fundamental insights on these trends at ValueRay.
Headquartered in Palo Alto, California, the company has expanded its reach to include managed services for large-scale enterprise projects and specialized compliance tools for contingent workforces. Originally founded as Elance-oDesk, Upwork maintains a significant international presence with major talent pools located in the Philippines, India, and Pakistan.
- Active client growth and gross services volume drive core marketplace revenue
- Enterprise solution adoption expands high-margin recurring contract revenue streams
- Generative AI integration increases platform efficiency and talent matching accuracy
- Macroeconomic shifts in remote work trends influence total freelance labor demand
- Operational cost discipline and marketing spend optimization impact net income margins
| Net Income: 109.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 5.32 > 1.0 |
| NWC/Revenue: 29.86% < 20% (prev 86.02%; Δ -56.16% < -1%) |
| CFO/TA 0.19 > 3% & CFO 234.3m > Net Income 109.2m |
| Net Debt (-185.1m) to EBITDA (161.9m): -1.14 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (135.7m) vs 12m ago -4.96% < -2% |
| Gross Margin: 77.54% > 18% (prev 0.78%; Δ 7.68k% > 0.5%) |
| Asset Turnover: 63.70% > 50% (prev 62.18%; Δ 1.52% > 0%) |
| Interest Coverage Ratio: 96.44 > 6 (EBITDA TTM 161.9m / Interest Expense TTM 1.40m) |
| A: 0.19 (Total Current Assets 883.3m - Total Current Liabilities 647.2m) / Total Assets 1.24b |
| B: 0.06 (Retained Earnings 68.4m / Total Assets 1.24b) |
| C: 0.11 (EBIT TTM 135.0m / Avg Total Assets 1.24b) |
| D: 0.10 (Book Value of Equity 68.6m / Total Liabilities 672.3m) |
| Altman-Z'' = 2.26 = BBB |
| DSRI: 0.95 (Receivables 75.9m/77.9m, Revenue 790.6m/771.1m) |
| GMI: 1.00 (GM 77.54% / 77.73%) |
| AQI: 1.13 (AQ_t 0.24 / AQ_t-1 0.21) |
| SGI: 1.03 (Revenue 790.6m / 771.1m) |
| TATA: -0.10 (NI 109.2m - CFO 234.3m) / TA 1.24b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 8.82 with a total of 5,362,887 shares traded.
Over the past week, the price has changed by +4.50%,
over one month by -14.78%,
over three months by -34.28% and
over the past year by -43.50%.
Upwork has received a consensus analysts rating of 3.73. Therefore, it is recommended to hold UPWK.
- StrongBuy: 2
- Buy: 4
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 12.2 | 38% |
P/E Trailing = 10.9691
P/E Forward = 5.9382
P/S = 1.3749
P/B = 1.906
P/EG = 0.4967
Revenue TTM = 790.6m USD
EBIT TTM = 135.0m USD
EBITDA TTM = 161.9m USD
Long Term Debt = 15.2m USD (estimated: total debt 375.4m - short term 360.2m)
Short Term Debt = 360.2m USD (from shortTermDebt, last quarter)
Debt = 394.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 19.2m
Net Debt = -185.1m USD (calculated: Debt 394.7m - CCE 579.7m)
Enterprise Value = 912.4m USD (1.10b + Debt 394.7m - CCE 579.7m)
Interest Coverage Ratio = 96.44 (Ebit TTM 135.0m / Interest Expense TTM 1.40m)
EV/FCF = 4.07x (Enterprise Value 912.4m / FCF TTM 224.1m)
FCF Yield = 24.56% (FCF TTM 224.1m / Enterprise Value 912.4m)
FCF Margin = 28.35% (FCF TTM 224.1m / Revenue TTM 790.6m)
Net Margin = 13.81% (Net Income TTM 109.2m / Revenue TTM 790.6m)
Gross Margin = 77.54% ((Revenue TTM 790.6m - Cost of Revenue TTM 177.6m) / Revenue TTM)
Gross Margin QoQ = 77.16% (prev 77.99%)
Tobins Q-Ratio = 0.73 (Enterprise Value 912.4m / Total Assets 1.24b)
Interest Expense / Debt = 0.35% (Interest Expense 1.40m / Debt 394.7m)
Taxrate = 16.57% (6.25m / 37.7m)
NOPAT = 112.6m (EBIT 135.0m * (1 - 16.57%))
Current Ratio = 1.36 (Total Current Assets 883.3m / Total Current Liabilities 647.2m)
Debt / Equity = 0.69 (Debt 394.7m / totalStockholderEquity, last quarter 569.6m)
Debt / EBITDA = -1.14 (Net Debt -185.1m / EBITDA 161.9m)
Debt / FCF = -0.83 (Net Debt -185.1m / FCF TTM 224.1m)
Total Stockholder Equity = 609.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.80% (Net Income 109.2m / Total Assets 1.24b)
RoE = 17.92% (Net Income TTM 109.2m / Total Stockholder Equity 609.2m)
RoCE = 21.62% (EBIT 135.0m / Capital Employed (Equity 609.2m + L.T.Debt 15.2m))
RoIC = 12.56% (NOPAT 112.6m / Invested Capital 896.8m)
WACC = 7.37% (E(1.10b)/V(1.49b) * Re(9.91%) + D(394.7m)/V(1.49b) * Rd(0.35%) * (1-Tc(0.17)))
Discount Rate = 9.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: -2.54%
[DCF] Terminal Value 77.97% ; FCFF base≈197.6m ; Y1≈226.5m ; Y5≈333.3m
[DCF] Fair Price = 42.11 (EV 5.02b - Net Debt -185.1m = Equity 5.20b / Shares 123.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 85.10 | EPS CAGR: 109.0% | SUE: 4.0 | # QB: 9
Revenue Correlation: 92.96 | Revenue CAGR: 7.27% | SUE: -0.11 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.34 | Chg30d=+2.36% | Revisions=+45% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.41 | Chg30d=+1.95% | Revisions=+11% | Analysts=8
EPS current Year (2026-12-31): EPS=1.55 | Chg30d=+7.56% | Revisions=+60% | GrowthEPS=+9.7% | GrowthRev=-1.4%
EPS next Year (2027-12-31): EPS=1.75 | Chg30d=+1.32% | Revisions=+17% | GrowthEPS=+13.4% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +60%