UPWK · Upwork Inc.

Upwork Inc. reported first quarter 2026 results showing resilience in a challenging demand environment, with GSV nearly flat at $987.1 million and revenue up 1% to $195.5 million, driven by a 5% increase in GSV per active client to $5,138 despite a 3% decline in active clients to 784,000. GAAP gross margin dipped slightly to 77% from 78% year-over-year, while operating expenses rose 5% to $118.1 million, leading to operating income of $32.7 million and net income of $31.5 million, down 17% from prior year. Adjusted EBITDA improved 3% to $57.4 million, reflecting non-GAAP profitability focus. Management highlighted momentum in AI-related work, with GSV up over 40% year-over-year, particularly in AI Integration & Automation (over 50% growth), alongside SMB growth via Business Plus (34% QoQ GSV increase) and enterprise pipeline expansion. CEO Hayden Brown emphasized building for AI-driven work shifts, while CFO Erica Gessert noted disciplined execution enabling raised full-year guidance. Concurrently, Upwork announced a restructuring plan reducing workforce by 24% to enhance efficiency, expecting $16-23 million in pre-tax charges mostly in Q2 2026, with completion by Q4. This pairs with a new $150 million revolving credit facility commitment and aggressive capital returns, repurchasing $107.9 million in shares under a $300 million program ($256.1 million remaining). Q2 guidance projects revenue $187-193 million and Adjusted EBITDA $56-59 million; full-year revenue $760-790 million and Adjusted EBITDA $250-260 million, signaling confidence in growth pillars offsetting cyclical pressures.