Upwork stock posts Q3 profit as AI initiatives expand

Published on 11/05/2026 at 14:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Upwork stock follows a quarter with USD 185.6 million in revenue and USD 31.8 million in GAAP net income. AI tools and WorkMotion broaden its enterprise push.

Quarter results and next steps

Upwork reported third-quarter revenue of USD 185.6 million and GAAP net income of USD 31.8 million.
Adjusted EBITDA reached USD 63.8 million, while gross services volume and active clients declined year over year.
Management guided to fourth-quarter revenue of USD 169 million to USD 177 million and named Peter Sanborn as the next chief financial officer.

UPWK, US91688F1049, Illustration mit AI erstellt.

Upwork reported its third-quarter 2026 results on Monday, November 2, with revenue of USD 185.6 million and GAAP net income of USD 31.8 million. The company said adjusted EBITDA reached USD 63.8 million, or a 34.4% margin, in its earnings release.

Revenue declined from USD 201.7 million a year earlier, while GAAP net income rose 8%. Gross services volume fell 10.1% year over year to USD 914.1 million, and active clients declined 10% to 717,000. GSV per active client increased 8% to USD 5,418, pointing to higher spending among the remaining client base.

AI and enterprise expansion

Upwork said weekly active users of its Model Context Protocol server have increased 20-fold since its August launch. AI agents have made nearly 50 million requests, generating more than USD 3 million in estimated annualized Connects revenue. GSV from freelancers with AI skills reached an estimated annualized run rate of nearly USD 450 million in the quarter, up 55% year over year.

The company also highlighted Lifted's acquisition of WorkMotion, which is expected to strengthen its enterprise offering and reduce reliance on third-party employer-of-record providers. Upwork launched the public beta of Upwork Now, allowing clients to find freelancers who are online and ready to begin work immediately.

Guidance and leadership change

For the fourth quarter, Upwork guided to revenue of USD 169 million to USD 177 million and adjusted EBITDA of USD 51 million to USD 55 million. Full-year revenue guidance stands at USD 742 million to USD 750 million, with adjusted EBITDA guidance of USD 236 million to USD 240 million.

The adjusted figures are non-GAAP measures. The quarter included USD 4.3 million in restructuring costs and USD 5.7 million in transaction-related costs tied to the WorkMotion acquisition, while adjusted EBITDA also excludes recurring stock-based compensation.

Erica Gessert will step down as chief financial officer on January 1, 2027, and remain as an adviser for several months. Peter Sanborn, currently chief business officer, will become CFO. The real-time quote of Upwork stock was 9.26 euros on Lang & Schwarz at 14:04 CET on Thursday, November 5, 2026.