Upwork Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Upwork reported Q2 2026 revenue of $191.7 million, at the high end of guidance, and adjusted EBITDA of $64.1 million, exceeding guidance.
- Gross Services Volume (GSV) was $966 million, reflecting a decline in lower value, automatable work and impacts from AI and labor market conditions.
- GSV per active client reached a record $5,230, up 5% year over year, marking eight consecutive quarters of growth.
- Business Plus GSV grew 174% year over year, driven by larger customers with complex recurring needs.
- Enterprise GSV per account grew 7% year over year, the highest in over three years, with Employer of Record solutions growing 29%.
- AI-related jobs grew 22% year over year, reaching an annualized $330 million run rate, though actual AI work is more prevalent than job postings indicate.
- Take rate was strong at 19.8%, supported by ads, dynamic pricing, connects, and subscriptions, which now represent 15% of total revenue.
- Non-GAAP gross margin was 77%, near record levels, with operating expenses reflecting early restructuring actions targeting $70 million annualized savings.
- Free cash flow was $35.9 million, impacted by one-time restructuring payments.
- Upwork closed a new $150 million revolving credit facility with a $50 million accordion and repurchased approximately 164,000 shares in Q2, totaling 8.3 million shares year to date.
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Transcript
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Note, today's conference may be recorded. I will now hand the conference over to your speaker host, Peter Sundberg, Chief Business Officer.
Please go ahead. Thank you, and welcome to Upwork's discussion of its second quarter 2026 financial results.
Joining me today is Hayden Brown, Upwork's President and Chief Executive Officer. Following our prepared remarks, we will be happy to take your questions. First, I'll review the safe harbor statement. During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. Forward-looking statements include all statements other than those of historical fact. These statements are not guarantees of future performance, but rather are subject to a variety of risks, uncertainties, and assumptions. Our actual results could differ materially from expectations reflected in any forward-looking statements.
For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and on our investor relations website, as well as the risks and other important factors discussed in today's earnings press release. Additional information is also available in our quarterly report on Form 10-Q for the quarter ended June 30th, 2026, which was filed today. In addition, references will be made to certain non-GAAP financial measures. Adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense, non-GAAP net income, non-GAAP diluted EPS, and free cash flow are non-GAAP financial measures, and all other financial measures are GAAP unless cited as non-GAAP. Information regarding non-GAAP financial measures, including reconciliations to their most directly comparable GAAP financial measures, can be found in the press release that was issued this afternoon on our investor relations website at investors.upwork.com.
Unless otherwise noted, reported figures are rounded, and comparisons of the second quarter of 2026 are to the second quarter of 2025. With that, I'll now turn the call over to Hayden.
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