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Upwork, Inc. (UPWK) Fundamental Analysis & AI Grade 2026

UPWK Nasdaq Services-Computer Processing & Data Preparation DE CIK: 0001627475
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
78% Confidence
N/A
B
78% Conf
Pending
Analysis scheduled

📊 UPWK Key Takeaways

Revenue: $195.5M
Net Margin: 16.1%
Free Cash Flow: $21.3M
Current Ratio: 1.36x
Debt/Equity: 0.63x
EPS: $0.24
AI Grade: B with 78% confidence
Upwork, Inc. (UPWK) receives a B fundamental grade with 78% confidence from our AI analysis based on SEC 10-K filings. With revenue of $195.5M, net profit margin of 16.1%, and return on equity (ROE) of 5.5%, Upwork, Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete UPWK stock analysis for 2026.

Is Upwork, Inc. (UPWK) a Good Investment?

Claude

Upwork generates strong unit economics with 77.2% gross margins and maintains profitability with 16.1% net margins, supported by positive free cash flow and manageable debt. However, the company faces significant headwinds: revenue growth of just 2.4% YoY, completely flat net income, and a concerning 44.7% EPS decline suggest shareholder dilution and market maturation. Poor capital efficiency metrics (5.5% ROE, 2.5% ROA) indicate the business is not effectively deploying capital to generate acceptable returns.

Upwork, Inc. Key Strengths (UPWK)

Claude
  • + Exceptional gross margin of 77.2% demonstrates pricing power and efficient delivery of services
  • + Strong interest coverage of 13.0x and manageable debt-to-equity of 0.63x provide financial flexibility and stability
  • + Positive free cash flow generation of 21.3M with 328.4M cash position supports operational continuity and strategic optionality

UPWK Stock Risks: Upwork, Inc. Investment Risks

Claude
  • ! Anemic revenue growth of 2.4% YoY coupled with flat net income growth suggests market saturation or intensifying competitive pressures
  • ! Significant 44.7% EPS decline indicates substantial shareholder dilution offsetting any earnings stability
  • ! Poor capital efficiency with ROE of 5.5% and ROA of 2.5% reveals management is not effectively deploying shareholder capital to generate adequate returns

Key Metrics to Watch

Claude
  • * Revenue growth acceleration trajectory and competitive market positioning
  • * EPS and per-share profitability trend to assess dilution impact
  • * Return on equity and return on assets improvement as indicators of capital deployment effectiveness

Upwork, Inc. (UPWK) Financial Metrics & Key Ratios

Revenue
$195.5M
Net Income
$31.5M
EPS (Diluted)
$0.24
Free Cash Flow
$21.3M
Total Assets
$1.2B
Cash Position
$328.4M

💡 AI Analyst Insight

Upwork, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

UPWK Profit Margin, ROE & Profitability Analysis

Gross Margin 77.2%
Operating Margin 16.7%
Net Margin 16.1%
ROE 5.5%
ROA 2.5%
FCF Margin 10.9%

UPWK vs Technology Sector: How Upwork, Inc. Compares

How Upwork, Inc. compares to Technology sector averages

Net Margin
UPWK 16.1%
vs
Sector Avg 18.0%
UPWK Sector
ROE
UPWK 5.5%
vs
Sector Avg 22.0%
UPWK Sector
Current Ratio
UPWK 1.4x
vs
Sector Avg 2.5x
UPWK Sector
Debt/Equity
UPWK 0.6x
vs
Sector Avg 0.5x
UPWK Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Upwork, Inc. Stock Overvalued? UPWK Valuation Analysis 2026

Based on fundamental analysis, Upwork, Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
5.5%
Sector avg: 22%
Net Profit Margin
16.1%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.63x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Upwork, Inc. Balance Sheet: UPWK Debt, Cash & Liquidity

Current Ratio
1.36x
Quick Ratio
1.36x
Debt/Equity
0.63x
Debt/Assets
54.1%
Interest Coverage
12.96x
Long-term Debt
$360.2M

UPWK Revenue & Earnings Growth: 5-Year Financial Trend

UPWK 5-year financial data: Year 2021: Revenue $502.8M, Net Income -$16.7M, EPS $-0.15. Year 2022: Revenue $618.3M, Net Income -$22.9M, EPS $-0.19. Year 2023: Revenue $689.1M, Net Income -$56.2M, EPS $-0.44. Year 2024: Revenue $769.3M, Net Income -$89.9M, EPS $-0.69. Year 2025: Revenue $787.8M, Net Income $46.9M, EPS $0.06.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Upwork, Inc.'s revenue has grown significantly by 57% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.06 reflects profitable operations.

UPWK Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.9%
Free cash flow / Revenue

UPWK Quarterly Earnings & Performance

Quarterly financial performance data for Upwork, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $192.7M $31.5M $0.24
Q3 2025 $193.8M $27.8M $0.20
Q2 2025 $193.1M $22.2M $0.17
Q1 2025 $190.9M $18.4M $0.13
Q3 2024 $175.7M $16.3M $-0.06
Q2 2024 $168.6M -$4.0M $-0.03
Q1 2024 $160.9M $17.2M $0.13
Q3 2023 $158.6M $16.3M $-0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Upwork, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$23.0M
Cash generated from operations
Stock Buybacks
$107.9M
Shares repurchased (TTM)
Capital Expenditures
$1.7M
Investment in assets
Dividends
None
No dividend program

UPWK SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Upwork, Inc. (CIK: 0001627475)

📋 Recent SEC Filings

Date Form Document Action
May 20, 2026 4 xslF345X06/primarydocument.xml View →
May 20, 2026 4 xslF345X06/primarydocument.xml View →
May 20, 2026 4 xslF345X06/primarydocument.xml View →
May 7, 2026 10-Q upwk-20260331.htm View →
May 7, 2026 8-K upwork-20260507.htm View →

Frequently Asked Questions about UPWK

What is the AI rating for UPWK?

Upwork, Inc. (UPWK) has an AI grade of B with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are UPWK's key strengths?

Claude: Exceptional gross margin of 77.2% demonstrates pricing power and efficient delivery of services. Strong interest coverage of 13.0x and manageable debt-to-equity of 0.63x provide financial flexibility and stability.

What are the risks of investing in UPWK?

Claude: Anemic revenue growth of 2.4% YoY coupled with flat net income growth suggests market saturation or intensifying competitive pressures. Significant 44.7% EPS decline indicates substantial shareholder dilution offsetting any earnings stability.

What is UPWK's revenue and growth?

Upwork, Inc. reported revenue of $195.5M.

Does UPWK pay dividends?

Upwork, Inc. does not currently pay dividends.

Where can I find UPWK SEC filings?

Official SEC filings for Upwork, Inc. (CIK: 0001627475) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is UPWK's EPS?

Upwork, Inc. has a diluted EPS of $0.24.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is UPWK's fundamental grade?

Based on our AI fundamental analysis in June 2026, Upwork, Inc. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is UPWK stock overvalued or undervalued?

Valuation metrics for UPWK: ROE of 5.5% (sector avg: 22%), net margin of 16.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is UPWK's AI grade for 2026?

Our dual AI analysis gives Upwork, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is UPWK's free cash flow?

Upwork, Inc.'s operating cash flow is $23.0M, with capital expenditures of $1.7M. FCF margin is 10.9%.

How does UPWK compare to other Technology stocks?

Vs Technology sector averages: Net margin 16.1% (avg: 18%), ROE 5.5% (avg: 22%), current ratio 1.36 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI