Should Upwork’s (UPWK) Profitability Gains Shift Investor Focus Away From Slower Revenue Growth?

• Upwork Inc. recently announced that it will report its third quarter 2025 financial results on November 3, 2025, after market close, alongside a live Q&A conference call with management and a webcast available for investors.
• The company has reported significant improvement in profitability, with adjusted EBITDA margins rising sharply and its enterprise and AI-driven strategies positioning it for greater operational efficiency and future expansion, despite experiencing a temporary slowdown in revenue growth.
• We'll look at how Upwork's expanded profitability and margin growth could reshape expectations for its ongoing investment narrative.

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Upwork Investment Narrative Recap

Investors in Upwork need to believe in the company’s ability to expand margins and drive sustainable profitability, particularly as it pivots toward enterprise and AI-driven growth while handling slower revenue momentum. The recent announcement about the upcoming earnings report aligns with regular disclosure practices and does not materially affect the key short-term catalyst: successful enterprise adoption, nor the major risk, which remains exposure to fluctuating client budgets and uncertain macro conditions.

Among recent announcements, the launch of Lifted, the new subsidiary focused on serving enterprise clients, is especially relevant. As Upwork intensifies its push into larger-scale contracts, the performance of Lifted will be closely watched as a bellwether for progress on its enterprise and operational efficiency goals.

However, despite surging profitability, a key factor investors should be aware of is that larger enterprise contracts also mean greater exposure to…

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

Upwork's outlook projects $906.3 million in revenue and $147.8 million in earnings by 2028. This assumes a 5.5% annual revenue growth rate but a decline in earnings, falling by $97.6 million from the current $245.4 million.

Uncover how Upwork's forecasts yield a $19.90 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$19.90 to US$36.37 per share, showing substantial differences in expectations. While many cite Upwork's enterprise initiatives as a driver for optimism, risks from economic pressures and client spending could weigh on sentiment and future results, explore how your outlook compares.

Explore 4 other fair value estimates on Upwork - why the stock might be worth just $19.90!

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 3 key rewards and 2 important warning signs 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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