Upwork’s Q1 AI Work GSV Jumps 40% as Revenue Grows 1%
Upwork reported flat GSV at $987.1 million and a 1% revenue increase to $195.5 million in Q1, with adjusted EBITDA up 3% to $57.4 million and EPS of $0.24. AI-related GSV surged over 40% and the company authorized $300 million for share repurchases, raising 2026 adjusted EBITDA guidance.
1. Q1 Financial Results
Upwork delivered $987.1 million in GSV, flat year-over-year, while revenue rose 1% to $195.5 million. Active clients totaled 784,000, with GSV per client up 5% to $5,138. GAAP net income was $31.5 million, EPS $0.24, adjusted EBITDA reached $57.4 million, and free cash flow was $12.9 million. The company repurchased $107.9 million of shares in Q1 under a $300 million authorization.
2. Operational Highlights
The platform launched an AI-native homepage and integrated with ChatGPT via an Upwork app to streamline job posting. GSV from AI-related work grew over 40%, led by a 50% increase in AI integration and automation. SMB Business Plus GSV rose 34% quarter-over-quarter, active Business Plus clients jumped 35%, and 39% were net-new customers. Enterprise migration milestones set the stage for platform shifts by June.
3. Credit Facility and Restructuring
Upwork secured a commitment for a $150 million revolving credit facility expected to close in coming weeks. A restructuring plan will cut approximately 24% of the workforce to build an efficient operating model, with pre-tax charges of $16 million to $23 million recognized over the next three quarters and substantially complete by Q4 2026.
4. Financial Guidance
For Q2, Upwork forecasts revenue of $187 million to $193 million, adjusted EBITDA of $56 million to $59 million, and non-GAAP EPS of $0.35 to $0.37 on 130 million to 133 million diluted shares. Full-year 2026 guidance calls for $760 million to $790 million in revenue, $250 million to $260 million in adjusted EBITDA, and $1.50 to $1.55 in non-GAAP EPS on 132 million to 135 million shares.