0001627475-26-000012
SEC filingUpwork Inc. (UPWK) delivered strong financial performance in FY 2025, achieving revenue of $787.8M and record net income of $115.4M. Gross profit reached $613.0M, reflecting a robust gross margin driven by efficient cost of revenue management at $174.8M. Operating income improved to $129.3M, supported by total operating expenses of $483.7M, including R&D at $185.5M, sales and marketing at $143.4M, G&A at $146.6M, and provision for transaction losses at $8.1M. Other income of $23.9M and a $37.8M income tax benefit contributed to income before taxes of $153.2M. Balance sheet strengthened with $1.30B total assets, $950.8M current assets including $294.4M cash and $378.4M marketable securities, and $630.3M stockholders' equity. Total liabilities stood at $669.3M, with $650.2M current including $359.8M current debt. Operating cash flow was robust at $248.3M, though investing activities used $136.9M including a $58.4M acquisition, and financing used $138.0M primarily for $136.0M stock repurchases. Net change in cash was -$26.7M, ending at $295.2M. This profitability milestone and capital return signal financial maturity for future growth.
Upwork Inc. reported FY 2025 revenue of $787.8M and gross profit of $613.0M. Net income reached $115.4M, or $1 basic and diluted per share, with weighted-average basic shares of 132.5M and diluted shares of 140.7M. Total comprehensive income was $115.9M, including $490K net unrealized gain on marketable securities. Income from operations was $129.3M after $483.7M total operating expenses. Balance sheet shows total assets of $1.30B and stockholders' equity of $630.3M. Shares outstanding were 130,545,236 as of December 31, 2025, down from 135,348,453 prior year, reflecting repurchases. No prior year figures disclosed for direct YoY comparison, but profitability marks significant achievement.
Revenue totaled $787.8M for FY 2025. Cost of revenue was $174.8M, yielding gross profit of $613.0M. No segment breakdowns or geographic revenue mix disclosed in the filing. Growth drivers not specified in provided data.
Gross margin calculated as $613.0M / $787.8M = 77.8%. Operating margin of $129.3M / $787.8M = 16.4%. Operating expenses comprised R&D $185.5M (23.6% of revenue), sales and marketing $143.4M (18.2%), G&A $146.6M (18.6%), and transaction losses $8.1M (1.0%). Other income $23.9M boosted pre-tax income to $153.2M. Income tax benefit of $37.8M enhanced net profitability. No prior year margins for comparison.
Net cash from operating activities was $248.3M, driven by $115.4M net income plus $65.4M stock-based compensation, $25.7M depreciation/amortization, and $18.5M deferred taxes. Investing used $136.9M, including $485.2M marketable securities purchases (net of $431.7M proceeds), $58.4M business acquisition, and $19.3M internal software. Financing used $138.0M, mainly $136.0M stock repurchases. Net cash change -$26.7M; ending cash/restricted $295.2M. Balance sheet: current assets $950.8M (cash $294.4M, marketable $378.4M), total liabilities $669.3M (current debt $359.8M), equity $630.3M with $36.9M retained earnings.
No management guidance, strategic priorities, or risk factors explicitly disclosed in the provided filing content.