Is Upwork’s (UPWK) Lisbon Move a Prelude to Sustainable International Growth Momentum?

• Earlier this month, Upwork Inc. announced it will open its first international operational hub in Lisbon, Portugal, with full operations planned in Alcântara by late 2026, and has already started hiring in the region; this comes alongside third-quarter results showing year-over-year increases in revenue and net income as well as a raised full-year revenue outlook to US$782 million–US$787 million.
• This marks a pivotal move for Upwork, signaling both its ambition to scale outside the U.S. and the operational momentum reflected in its financial performance and guidance updates.
• We'll explore how Upwork's international expansion and strong recent earnings could influence the company's longer-term investment narrative.

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Upwork Investment Narrative Recap

To buy and hold Upwork, an investor needs to believe in the company’s ability to lead the online freelance marketplace by growing its client base, driving adoption of AI solutions, and deepening global reach. The recent Lisbon hub news boosts Upwork’s international expansion narrative, but it does not directly counter the short-term risk of unpredictable macroeconomic conditions, which continue to pressure new client acquisition and transaction growth in the core U.S. market.

Among recent developments, Upwork’s Q3 results stand out with a year-over-year rise in revenue and net income as well as raised full-year revenue guidance to US$782 million–US$787 million. These positive signals reflect continued operational momentum, though investors will watch closely to see whether this financial strength translates into sustained active client growth, especially as Upwork seeks new growth outside the U.S. with its Portugal expansion.

On the other hand, investors should be aware that client acquisition has remained slow recently and the broader macro environment could present challenges that...

Read the full narrative on Upwork (it's free!)

Upwork's narrative projects $906.3 million revenue and $147.8 million earnings by 2028. This requires 5.5% yearly revenue growth and a $97.6 million decrease in earnings from $245.4 million.

Uncover how Upwork's forecasts yield a $21.40 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community spread between US$21.40 and US$43.98, each reflecting unique outlooks on Upwork’s future. With macroeconomic uncertainty still cited as a key risk by analysts, it is clear that investor opinions on Upwork’s potential can vary significantly, so exploring alternative viewpoints can help reshape your expectations.

Explore 4 other fair value estimates on Upwork - why the stock might be worth just $21.40!

Build Your Own Upwork Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Upwork research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Upwork research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Upwork's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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