GSV per Active Client Reaches Record $5,230 Marking Eighth Consecutive Quarter of Sequential Growth

Second-quarter revenue of $191.7 million and GAAP net income of $25.4 million

Second-quarter adjusted EBITDA of $64.1 million or 33% adjusted EBITDA margin

PALO ALTO, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Upwork Inc. (NASDAQ:UPWK), the world’s human and AI-powered work marketplace, today announced its financial results for the second quarter of 2026.

"In the second quarter, Upwork demonstrated solid execution against our strategic plan in a challenging operating environment," said Hayden Brown, president and CEO of Upwork Inc. "While lower-complexity work continues to shift toward automation, we are increasingly seeing what is emerging in its place: growing demand for high-value AI talent, more complex projects, and new categories of work across SMB and Enterprise. We are on track with our enterprise strategy, staying disciplined in how we execute, and continuing to build the AI capabilities that will make Upwork essential infrastructure as work becomes increasingly human-and-agent driven."

Second Quarter 2026 Financial Highlights

GSV⁽¹⁾ was $966.4 million, decreased 4% year-over-year
Revenue decreased 2% year-over-year to $191.7 million
Active clients⁽¹⁾ of 763,000
GSV per active client⁽¹⁾ of $5,230 increased 5% year-over-year
GAAP Net income was $25.4 million, a decrease of 22% year-over-year
GAAP Diluted earnings per share was $0.20, compared to diluted earnings per share of $0.24 in the second quarter of 2025
Adjusted EBITDA⁽²⁾ was $64.1 million, up 12% year-over-year
Cash provided by operating activities was $46.9 million, compared to cash provided by operating activities of $72.5 million in the second quarter of 2025
Free cash flow⁽²⁾ was $35.9 million, compared to free cash flow of $65.6 million in the second quarter of 2025
Share repurchase program returned $109.7 million to shareholders during the six months ended June 30, 2026 with the repurchase of 8.3 million shares. As of June 30, 2026, the Company had $254.3 million in remaining authorization in its repurchase program

Second Quarter 2026 and Recent Operational Highlights

Building the World’s Human and AI-Powered Work Marketplace

Following the April launch of Upwork’s app for ChatGPT, launched the Upwork Claude Connector, a new app inside Anthropic’s Claude that embeds Upwork’s marketplace at the moment businesses use AI to plan and scope work, connecting them with the experts they need as a project takes shape.
Launched Upwork’s Model Context Protocol (MCP) server, allowing clients and freelancers to direct AI agents to find talent, source opportunities, and help manage work on Upwork's marketplace from within the tools and workflows they already use.

Growing AI Work on the Marketplace

GSV from AI-related work increased more than 22% year-over-year in Q2 2026.
GSV from AI Strategy & Consulting, an AI-related work sub-category, grew over 50% year-over-year in Q2 2026.

Winning Bigger with SMB

Q2 2026 GSV from Upwork Business Plus offering for SMB increased 24% quarter-over-quarter and 174% year-over-year.
Q2 2026 Business Plus active clients grew 16% quarter-over-quarter and 219% year-over-year.
38% of active clients on Business Plus in Q2 2026 had their first Upwork spend on Business Plus.

Unlocking the Enterprise Opportunity

Lifted migrated its first wave of enterprise customers onto its new platform at the end of June and expanded the go-to-market team, including hiring a new head of sales.
The Lifted value proposition is resonating: Q2 2026 GSV from our EOR offering within Enterprise Solutions, that we bolstered in 2025 with Lifted’s acquisition of Ascen, increased 29% year-over-year.

Financial Guidance & Outlook

Upwork’s guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for the third quarter of 2026 is:

Revenue: $176 million to $184 million
Adjusted EBITDA: $50 million to $54 million
Diluted weighted-average shares outstanding: 130 million to 133 million
Non-GAAP diluted EPS: $0.31 to $0.33

Upwork’s guidance for revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for full year 2026 is:

Revenue: $730 million to $750 million
Adjusted EBITDA: $225 million to $235 million
Diluted weighted-average shares outstanding: 132 million to 135 million
Non-GAAP diluted EPS: $1.38 to $1.43

UPWORK INC.

Key Financial and Operational Metrics

(In thousands, except percentages and basis points)

(Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
		2026			2025		Change			2026			2025		Change
GSV⁽¹⁾	$	966,439		$	1,002,650		(3.6)%		$	1,952,461		$	1,990,363		(1.9)%
Marketplace revenue⁽¹⁾	$	166,858		$	170,660		(2)%		$	337,563		$	336,953		—	%
Enterprise revenue⁽¹⁾	$	24,802		$	24,279		2	%	$	49,580		$	50,692		(2)%
Gross profit	$	146,372		$	151,507		(3)%		$	297,214		$	302,407		(2)%
Gross profit margin		76	%		78	%	-135 bps			77	%		78	%	-124 bps
Operating expenses	$	118,235		$	118,942		(1)%		$	236,359		$	231,152		2	%
Net income	$	25,404		$	32,726		(22)%		$	56,865		$	70,456		(19)%
Adjusted EBITDA⁽²⁾	$	64,053		$	57,061		12	%	$	121,479		$	113,072		7	%
Profit margin		13	%		17	%	-353 bps			15	%		18	%	-349 bps
Adjusted EBITDA margin⁽²⁾		33	%		29	%	415 bps			31	%		29	%	221 bps
Cash provided by operating activities	$	46,874		$	72,514		(35)%		$	69,893		$	109,479		(36)%
Free cash flow⁽²⁾	$	35,938		$	65,626		(45)%		$	48,843		$	96,416		(49)%

	As of June 30,
(In thousands)	2026	2025	% Change
Active clients⁽¹⁾	763	796	(4)%

⁽¹⁾ See Key Definitions in our second quarter 2026 earnings presentation.

⁽²⁾ An explanation of non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures can be found in the "Non-GAAP Financial Measures" section and the subsequent tables at the end of this press release.

Second Quarter 2026 Financial Results Conference Call and Webcast

Upwork will host a conference call today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the company’s second quarter 2026 financial results. An audio webcast archive will be available following the live event for approximately one year at investors.upwork.com. Please visit the Upwork Investor Relations website at investors.upwork.com/financial-information/quarterly-results to view Upwork’s second quarter 2026 earnings presentation.

Disclosure Information

We use our Investor Relations website (investors.upwork.com), our Blog (upwork.com/blog), our X handle (twitter.com/Upwork), Hayden Brown’s X handle (twitter.com/hydnbrwn) and LinkedIn profile (linkedin.com/in/haydenlbrown), and Erica Gessert’s LinkedIn profile (linkedin.com/in/erica-gessert) as means of disseminating or providing notification of, among other things, news or announcements regarding our business or financial performance, investor events, press releases, and earnings releases, and as means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

About Upwork

Upwork Inc.’s (NASDAQ:UPWK) family of companies connects businesses with global, AI-enabled talent across every contingent worker classification. This portfolio includes the Upwork Marketplace, which connects businesses with on-demand access to highly skilled talent across the globe, and Lifted, which provides a purpose-built solution for enterprise organizations to source, contract, manage, and pay talent across the full spectrum of contingent work. From Fortune 100 enterprises to entrepreneurs, businesses rely on Upwork Inc. to find and hire expert talent, leverage AI-powered work solutions, and drive business transformation. With access to professionals spanning more than 10,000 skills across AI & machine learning, software development, sales & marketing, customer support, finance & accounting, and more, the Upwork family of companies enables businesses of all sizes to scale, innovate, and transform their workforces for the age of AI and beyond.

Since its founding, Upwork Inc. has facilitated more than $30 billion in total transactions and services as it fulfills its purpose to create opportunity in every era of work. Learn more about the Upwork Marketplace at upwork.com and follow on LinkedIn, Facebook, Instagram, TikTok, and X; and learn more about Lifted at go-lifted.com and follow on LinkedIn.

Contact:

Investor Relations

investor@upwork.com

Safe Harbor:

This press release of Upwork Inc. (together with its wholly owned subsidiaries, the "Company," "we," "us," or "our") contains "forward-looking" statements within the meaning of the federal securities laws. Forward-looking statements include all statements other than statements of historical fact, including any statements regarding our future operating results and financial position, including expected financial results for the third quarter and full year 2026, information or predictions concerning the future of our business or strategy, future market opportunity and market size, future products, features, or functionality, anticipated events and trends, potential growth or growth prospects, competitive position, technological and market trends, industry environment, the economy, our plans with respect to share repurchases, the expected impact and timing of strategic or cost-saving initiatives, and other future conditions.

We have based these forward-looking statements largely on our current expectations and projections as of the date hereof about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs. As such, they are subject to inherent uncertainties, known and unknown risks, and changes in circumstances that are difficult to predict and in many cases outside our control, and you should not place undue reliance on such forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. We make no representation that the plans, intentions, expectations, or results disclosed in these forward-looking statements will be achieved or that future events and circumstances will occur, and actual results or events may differ materially and adversely from our expectations. The forward-looking statements are made as of the date hereof, and we do not undertake, and expressly disclaim, any obligation to update or revise any forward-looking statements, conform these statements to actual results, or make changes in our expectations, except as required by law. Additional information regarding the risks and uncertainties that could cause actual results to differ materially from our expectations is included under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026, filed with the SEC on May 7, 2026, and in our other SEC filings, which are available on our Investor Relations website at investors.upwork.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended June 30, 2026, when filed.

Upwork, Lifted, Uma^TM, and other registered or common law trade names, trademarks, or service marks of Upwork appearing in this press release are the property of Upwork. This press release may also contain additional trade names, trademarks, and service marks of other companies, including names and brands. All third-party trademarks are property of their respective owners, and any references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law.

UPWORK INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Revenue
Marketplace	$	166,858		$	170,660		$	337,563		$	336,953
Enterprise		24,802			24,279			49,580			50,692
Total revenue		191,660			194,939			387,143			387,645
Cost of revenue		45,288			43,432			89,929			85,238
Gross profit		146,372			151,507			297,214			302,407
Operating expenses
Research and development		43,894			44,843			87,201			90,995
Sales and marketing		34,914			36,671			72,351			72,422
General and administrative		36,878			35,659			72,036			63,707
Provision for transaction losses		2,549			1,769			4,771			4,028
Total operating expenses		118,235			118,942			236,359			231,152
Income from operations		28,137			32,565			60,855			71,255
Other income, net		3,966			5,878			8,958			12,195
Income before income taxes		32,103			38,443			69,813			83,450
Income tax provision		(6,699	)		(5,717	)		(12,948	)		(12,994	)
Net income	$	25,404		$	32,726		$	56,865		$	70,456

Net income per share:
Basic	$	0.21		$	0.25		$	0.45		$	0.53
Diluted	$	0.20		$	0.24		$	0.44		$	0.50

Weighted-average shares used to compute net income per share:
Basic		123,918			132,183			126,005			133,687
Diluted		129,958			140,198			132,784			141,866

UPWORK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	June 30, 2026			December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	476,040		$	294,356
Marketable securities		138,204			378,425
Funds held in escrow, including funds in transit		193,269			180,752
Trade and client receivables, net		76,459			76,236
Prepaid expenses and other current assets		25,018			21,064
Total current assets		908,990			950,833
Property and equipment, net		58,605			44,421
Goodwill		149,192			149,192
Intangible assets, net		31,318			37,161
Operating lease asset		12,217			5,011
Deferred tax asset		109,860			111,495
Other assets, noncurrent		4,222			1,467
Total assets	$	1,274,404		$	1,299,580

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	7,030		$	7,858
Escrow funds payable		193,269			180,752
Debt, current		360,691			359,770
Accrued expenses and other current liabilities		68,683			94,023
Deferred revenue		8,576			7,765
Total current liabilities		638,249			650,168
Operating lease liability, noncurrent		14,367			9,707
Other liabilities, noncurrent		10,522			9,390
Total liabilities		663,138			669,265

Stockholders’ equity
Common stock		12			13
Additional paid-in capital		517,479			592,599
Accumulated and other comprehensive (loss) income		(39	)		754
Retained earnings		93,814			36,949
Total stockholders’ equity		611,266			630,315
Total liabilities and stockholders’ equity	$	1,274,404		$	1,299,580

UPWORK INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	25,404		$	32,726		$	56,865		$	70,456
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for transaction losses		2,171			1,528			4,117			3,594
Depreciation and amortization		8,780			5,879			17,879			10,740
Amortization of debt issuance costs		461			461			921			921
Accretion of discount on purchases of marketable securities, net		(929	)		(1,561	)		(2,779	)		(3,504	)
Amortization of operating lease asset		439			183			836			385
Tides Foundation common stock warrant expense		187			187			375			375
Stock-based compensation expense		14,123			15,977			29,544			28,249
Deferred taxes		1,542			2,064			1,635			2,064
Loss on disposal of fixed assets		178			—			178			—
Changes in operating assets and liabilities:
Trade and client receivables		(605	)		3,895			(1,389	)		360
Prepaid expenses and other assets		(2,155	)		(40	)		(5,635	)		(3,338	)
Operating lease liability		(531	)		(22	)		(556	)		808
Accounts payable		(3,969	)		(3,088	)		(845	)		(5,075	)
Accrued expenses and other liabilities		1,402			14,019			(32,064	)		2,911
Deferred revenue		376			306			811			533
Net cash provided by operating activities		46,874			72,514			69,893			109,479
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities		—			(208,440	)		—			(259,148	)
Proceeds from maturities of marketable securities		111,895			181,031			240,221			232,411
Proceeds from sale of marketable securities		1,986			3,257			1,986			3,537
Acquisition of business, net of cash acquired		—			(20,410	)		—			(20,410	)
Purchases of property and equipment		(1,618	)		(2,381	)		(3,341	)		(4,853	)
Internal-use software and platform development costs		(9,318	)		(4,507	)		(17,709	)		(8,210	)
Net cash provided by (used in) investing activities		102,945			(51,450	)		221,157			(56,673	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in escrow funds payable, net		(11,870	)		(2,684	)		11,684			16,574
Proceeds from exercises of stock options and common stock warrants		686			1			769			653
Proceeds from employee stock purchase plan		1,646			2,199			1,646			2,199
Repurchase of common stock		(1,834	)		(37,868	)		(109,725	)		(70,922	)
Payment of debt issuance costs		(1,223	)		—			(1,223	)		—
Net cash used in financing activities		(12,595	)		(38,352	)		(96,849	)		(51,496	)
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		137,224			(17,288	)		194,201			1,310
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—beginning of period		535,885			524,191			478,908			505,593
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—end of period	$	673,109		$	506,903		$	673,109		$	506,903

The following table reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows as of the following (in thousands):

	June 30, 2026		December 31, 2025
Cash and cash equivalents	$	476,040	$	294,356
Restricted cash		3,800		3,800
Funds held in escrow, including funds in transit		193,269		180,752
Total cash, cash equivalents, and restricted cash as shown in the condensed consolidated statement of cash flows	$	673,109	$	478,908

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), we present certain non-GAAP financial measures in this press release, including adjusted EBITDA, adjusted EBITDA margin, free cash flow, and non-GAAP diluted EPS.

We define adjusted EBITDA as net income adjusted for stock-based compensation expense; depreciation and amortization; other income (expense), net, which includes interest expense; income tax benefit (provision); and, if applicable, certain other gains, losses, benefits, or charges that are non-cash or are significant and the result of isolated events or transactions that have not occurred frequently in the past and are not expected to occur regularly in the future. Free cash flow is defined as cash provided by operations less purchases of property, plant and equipment and cash outflows from internally developed software.

We use non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. These non-GAAP financial measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of our core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to certain items that can vary substantially from company to company, and free cash flow allows investors to evaluate the cash generated from our underlying operations across periods.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as analytical tools, and investors should not consider them in isolation or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. In particular, (1) adjusted EBITDA and certain of our other non-GAAP financial measures exclude stock-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and adjusted EBITDA and certain of our other non-GAAP financial measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; (c) tax payments that may represent a reduction in cash available to us; or (d) material acquisition-related deal costs. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Moreover, the non-GAAP financial measures we use may be different from non-GAAP financial measures used by other companies, including companies in our industry, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from the non-GAAP financial measures that we present. Reconciliations of the non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures have been provided below, and investors are encouraged to review the reconciliations and not rely on any single financial measure to evaluate our business.

We have not reconciled our adjusted EBITDA guidance to GAAP net income or non-GAAP diluted EPS guidance to GAAP diluted EPS because certain items that impact GAAP net income and GAAP diluted EPS are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during the third quarter of 2026 and fiscal year 2026 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of adjusted EBITDA guidance to GAAP net income and non-GAAP diluted EPS guidance to GAAP diluted EPS is not available without unreasonable effort.

UPWORK INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(In thousands, except for percentages and share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Net income	$	25,404		$	32,726		$	56,865		$	70,456
Add back (deduct):
Stock-based compensation expense⁽¹⁾		14,123			15,977			29,544			28,249
Depreciation and amortization		8,780			5,879			17,879			10,740
Other income, net⁽¹⁾		(3,966	)		(5,878	)		(8,958	)		(12,195	)
Income tax provision		6,699			5,717			12,948			12,994
Other^(1)(2)(3)		13,013			2,640			13,201			2,828
Adjusted EBITDA	$	64,053		$	57,061		$	121,479		$	113,072
Profit margin		13	%		17	%		15	%		18	%
Adjusted EBITDA margin		33	%		29	%		31	%		29	%

Cost of revenue, GAAP	$	45,288		$	43,432		$	89,929		$	85,238
Stock-based compensation expense⁽¹⁾		(88	)		(200	)		(250	)		(387	)
Other⁽¹⁾		(271	)		—			(271	)		—
Cost of revenue, Non-GAAP		44,929			43,232			89,408			84,851
As a percentage of total revenue, GAAP		24	%		22	%		23	%		22	%
As a percentage of total revenue, Non-GAAP		23	%		22	%		23	%		22	%

Gross profit, GAAP	$	146,372		$	151,507		$	297,214		$	302,407
Stock-based compensation expense⁽¹⁾		88			200			250			387
Other⁽¹⁾		271			—			271			—
Gross profit, Non-GAAP		146,731			151,707			297,735			302,794
Gross margin, GAAP		76	%		78	%		77	%		78	%
Gross margin, Non-GAAP		77	%		78	%		77	%		78	%

Research and development, GAAP	$	43,894		$	44,843		$	87,201		$	90,995
Stock-based compensation expense⁽¹⁾		(2,866	)		(5,615	)		(7,671	)		(11,427	)
Intangible amortization		(2,912	)		(1,315	)		(5,842	)		(2,630	)
Other⁽¹⁾		(6,467	)		—			(6,467	)		—
Research and development, Non-GAAP		31,649			37,913			67,221			76,938
As a percentage of total revenue, GAAP		23	%		23	%		23	%		23	%
As a percentage of total revenue, Non-GAAP		17	%		19	%		17	%		20	%

Sales and marketing, GAAP	$	34,914		$	36,671		$	72,351		$	72,422
Stock-based compensation expense⁽¹⁾		(1,321	)		(1,674	)		(2,741	)		(3,175	)
Intangible amortization		—			(333	)		—			(833	)
Other⁽¹⁾		(3,137	)		—			(3,137	)		—
Sales and marketing, Non-GAAP		30,456			34,664			66,473			68,414
As a percentage of total revenue, GAAP		18	%		19	%		19	%		19	%
As a percentage of total revenue, Non-GAAP		16	%		18	%		17	%		18	%

General and administrative, GAAP	$	36,878		$	35,659		$	72,036		$	63,707
Stock-based compensation expense⁽¹⁾		(9,848	)		(8,488	)		(18,882	)		(13,260	)
Other^(1)(2)(3)		(3,138	)		(2,640	)		(3,326	)		(2,828	)
General and administrative, Non-GAAP		23,892			24,531			49,828			47,619
As a percentage of total revenue, GAAP		19	%		18	%		19	%		16	%
As a percentage of total revenue, Non-GAAP		12	%		13	%		13	%		12	%

Total operating expenses, GAAP	$	118,235		$	118,942		$	236,359		$	231,152
Stock-based compensation expense⁽¹⁾		(14,035	)		(15,777	)		(29,294	)		(27,862	)
Intangible amortization		(2,912	)		(1,648	)		(5,842	)		(3,463	)
Other^(1)(2)(3)		(12,742	)		(2,640	)		(12,930	)		(2,828	)
Total operating expenses, Non-GAAP		88,546			98,877			188,293			196,999
As a percentage of total revenue, GAAP		62	%		61	%		61	%		60	%
As a percentage of total revenue, Non-GAAP		46	%		51	%		49	%		51	%

Income from operations, GAAP	$	28,137		$	32,565		$	60,855		$	71,255
Stock-based compensation expense⁽¹⁾		14,123			15,977			29,544			28,249
Intangible amortization		2,912			1,648			5,842			3,463
Other^(1)(2)(3)		13,191			2,640			13,379			2,828
Income from operations, Non-GAAP		58,363			52,830			109,620			105,795

Net income, GAAP	$	25,404		$	32,726		$	56,865		$	70,456
Stock-based compensation expense⁽¹⁾		14,123			15,977			29,544			28,249
Intangible amortization		2,912			1,648			5,842			3,463
Tax effect of non-GAAP adjustments		(3,211	)		(5,085	)		(5,905	)		(8,716	)
Other^(1)(2)(3)		13,191			2,640			13,379			2,828
Net income, Non-GAAP		52,419			47,906			99,725			96,280

Weighted-average shares outstanding used in computing earnings per share, GAAP
Basic (in millions)		123.9			132.2			126.0			133.7
Diluted (in millions)		130.0			140.2			132.8			141.9
Basic earnings per share, GAAP	$	0.21		$	0.25		$	0.45		$	0.53
Diluted earnings per share, GAAP	$	0.20		$	0.24		$	0.44		$	0.50

Weighted-average shares outstanding used in computing earnings per share, Non-GAAP
Basic (in millions)		123.9			132.2			126.0			133.7
Diluted (in millions)		130.0			140.2			132.8			141.9
Basic earnings per share, Non-GAAP	$	0.42		$	0.36		$	0.79		$	0.72
Diluted earnings per share, Non-GAAP	$	0.41		$	0.35		$	0.76		$	0.69

⁽¹⁾ During the three and six months ended June 30, 2026, we incurred $13.8 million in costs related to the execution of the restructuring announced in May 2026. Of this amount, $12.8 million is included in Other, while the remaining amount is allocated between stock-based compensation and Other income, net.

⁽²⁾ For each of the three months ended June 30, 2026 and 2025, we incurred $0.2 million of expense related to the warrant to purchase 500,000 shares of our common stock at an exercise price of $0.01 per share issued to the Tides Foundation in 2018, and for each of the six months ended June 30, 2026 and 2025, we incurred $0.4 million of such expense.

⁽³⁾ During the three and six months ended June 30,2025, we incurred acquisition-related costs of $2.5 million in connection with our business combinations. These costs primarily consist of legal, accounting, and other professional fees, and are recorded in general and administrative expenses in the condensed consolidated statements of operations.

UPWORK INC.

RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES

TO FREE CASH FLOW

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Cash provided by operating activities	$	46,874		$	72,514		$	69,893		$	109,479
Less: purchases of property, plant & equipment and cash outflows from internally developed software		(10,936	)		(6,888	)		(21,050	)		(13,063	)
Free cash flow	$	35,938		$	65,626		$	48,843		$	96,416