Upwork says Q2 2026 adjusted EBITDA beats guidance on disciplined cost management
UPWK•Full-year outlook
Upwork cut its full-year revenue outlook to $730 million to $750 million on faster AI automation and SEO pressure.
Adjusted EBITDA for the full year is now expected to be $225 million to $235 million.
Demand trends and client activity
Gross services volume fell to $966 million as AI automation reduced demand for lower-value work. Active clients slipped to 763,000 despite record spend metrics.
Management said Google search-driven acquisition was weaker and the mix shifted toward paid search. Cost per new contract start improved 22% quarter over quarter.
Q2 revenue and margin performance
Upwork said second-quarter 2026 revenue was $191.7 million, supported by a higher take-rate from Ads & Monetization levers and disciplined cost control.
Adjusted EBITDA reached $64.1 million, beating guidance on restructuring-driven expense reductions. Non-GAAP gross margin held at 77%.
