Q4 2025 Upwork Inc Earnings Call Transcript
Key Points
- Upwork Inc (UPWK) achieved record levels in revenue and adjusted EBITDA for 2025, with revenue growth of 2.4% and an adjusted EBITDA margin of 29%.
- The company reported over $4 billion in Gross Services Volume (GSV) for 2025, with a strong Q4 showing year-over-year growth of 3% in GSV and 4% in revenue.
- AI-related work on the platform saw significant growth, with GSV from AI-related work surpassing $300 million on an annualized basis in Q4, up more than 50% from the prior year.
- The Business Plus solution for SMBs showed strong traction, with active Business Plus clients growing 49% sequentially in Q4, and these clients spending almost 2.5 times more than the marketplace average.
- Upwork Inc (UPWK) successfully integrated AI functionalities into its marketplace, contributing an estimated $100 million in incremental GSV in 2025, and plans to further enhance AI capabilities in 2026.
- Enterprise revenue decreased by 3% year-over-year in Q4 due to a pause in selling legacy enterprise plans as the company shifted to its new strategy with Lifted.
- The company experienced relatively flat marketplace GSV growth in Q4, driven primarily by fewer low-value, high-volume contracts.
- Q1 2026 guidance indicates a lower adjusted EBITDA margin of 23% to 24%, attributed to integration costs and marketing investments.
- The labor market remains challenging, with December showing the lowest BLS data on job openings, impacting the platform's growth.
- There is a minor impact from declining categories like reading and translation due to automation and AI advancements.
Hello, and thank you for standing by. Welcome to Upwork fourth-quarter 2025 earnings conference call. At this time, all participants on a listen-only mode. (Operator Instructions).
I would now like to hand the conference over to Gary Fuges, Vice President of Investor Relations. You may begin.
Thank you and welcome to Upwork's discussion of its fourth-quarter and full year 2025 financial results. Joining me today are Hayden Brown, Upwork's President and Chief Executive Officer; and Erica Gasser, Upwork's Chief Financial Officer. Following management's prepared remarks, they will be happy to take your questions. But 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 statements of historical fact. These statements are not guaranteed of future performance but rather are subject to a variety of
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