Upwork Faces Securities Probe After Q2 Guidance Cut and 19% Share Drop
UPWK•Levi & Korsinsky LLP opened an investigation into potential securities violations at Upwork after it cut Q2 2026 revenue guidance and trimmed full-year forecasts. Upwork reported 2.4% revenue growth and a 29% adjusted EBITDA margin for 2025, cited $100 million in AI-driven GSV, yet Q1 shortfalls sparked a 19% share plunge.
1. Investigation Commenced
On May 25, 2026, Levi & Korsinsky LLP initiated a federal securities law investigation into Upwork, focusing on potential misstatements following rapid guidance revisions and a sharp share price decline.
2. Fiscal 2025 Performance and AI Claims
In its February 9 earnings call, Upwork reported 2.4% revenue growth and a 29% adjusted EBITDA margin for fiscal 2025, and said AI enhancements drove $100 million in incremental GSV, with annualized AI-related GSV exceeding $300 million.
3. Guidance Revisions and Market Reaction
Within weeks of the call, Upwork cut its Q2 2026 revenue guidance and trimmed full-year forecasts; subsequent Q1 results missed projections, triggering a 19% share price plunge.
