$UPWK

UPWORK, INC

CIK:0001627475|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 191,660	$ 194,939	$ 387,143	$ 387,645
Cost of revenue	45,288	43,432	89,929	85,238
Gross profit	146,372	151,507	297,214	302,407
Operating expenses
Research and development	43,894	44,843	87,201	90,995
Sales and marketing	34,914	36,671	72,351	72,422
General and administrative	36,878	35,659	72,036	63,707
Provision for transaction losses	2,549	1,769	4,771	4,028
Total operating expenses	118,235	118,942	236,359	231,152
Income from operations	28,137	32,565	60,855	71,255
Other income, net	3,966	5,878	8,958	12,195
Income before income taxes	32,103	38,443	69,813	83,450
Income tax provision	(6,699)	(5,717)	(12,948)	(12,994)
Net income	$ 25,404	$ 32,726	$ 56,865	$ 70,456
Net income per share:
Basic (in dollars per share)	$ 0.21	$ 0.25	$ 0.45	$ 0.53
Diluted (in dollars per share)	$ 0.20	$ 0.24	$ 0.44	$ 0.50
Weighted-average shares used to compute net income per share:
Basic (in shares)	123,917,706	132,183,392	126,005,312	133,687,429
Diluted (in shares)	129,957,851	140,198,161	132,783,668	141,865,567
Other comprehensive income, net of tax:
Net unrealized holding (loss) gain on marketable securities, net	$ (178)	$ 176	$ (793)	$ 460
Total comprehensive income	$ 25,226	$ 32,902	$ 56,072	$ 70,916

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 56,865	$ 70,456
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for transaction losses	4,117	3,594
Depreciation and amortization	17,879	10,740
Amortization of debt issuance costs	921	921
Accretion of discount on purchases of marketable securities, net	(2,779)	(3,504)
Amortization of operating lease asset	836	385
Tides Foundation common stock warrant expense	375	375
Stock-based compensation expense	29,544	28,249
Deferred taxes	1,635	2,064
Loss on disposal of fixed assets	178	0
Changes in operating assets and liabilities:
Trade and client receivables	(1,389)	360
Prepaid expenses and other assets	(5,635)	(3,338)
Operating lease liability	(556)	808
Accounts payable	(845)	(5,075)
Accrued expenses and other liabilities	(32,064)	2,911
Deferred revenue	811	533
Net cash provided by operating activities	69,893	109,479
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	0	(259,148)
Proceeds from maturities of marketable securities	240,221	232,411
Proceeds from sale of marketable securities	1,986	3,537
Acquisition of business, net of cash acquired	0	(20,410)
Purchases of property and equipment	(3,341)	(4,853)
Internal-use software and platform development costs	(17,709)	(8,210)
Net cash provided by (used in) investing activities	221,157	(56,673)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in escrow funds payable, net	11,684	16,574
Proceeds from exercises of stock options and common stock warrants	769	653
Proceeds from employee stock purchase plan	1,646	2,199
Repurchase of common stock	(109,725)	(70,922)
Payment of debt issuance costs	(1,223)	0
Net cash used in financing activities	(96,849)	(51,496)
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	194,201	1,310
Cash, cash equivalents, and restricted cash—beginning of period	478,908	505,593
Cash, cash equivalents, and restricted cash—end of period	673,109	506,903
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	16,411	5,560
Cash paid for interest	576	451
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
Right-of-use asset recognized	8,042	0
Property and equipment purchased but not yet paid	2,713	51
Internal-use software and platform development costs incurred but not yet paid	$ 691	$ 479

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 476,040	$ 294,356
Marketable securities	138,204	378,425
Funds held in escrow, including funds in transit	193,269	180,752
Trade and client receivables – net of allowance of $6,754 and $5,919 as of June 30, 2026 and December 31, 2025, respectively	76,459	76,236
Prepaid expenses and other current assets	25,018	21,064
Total current assets	908,990	950,833
Property and equipment, net	58,605	44,421
Goodwill	149,192	149,192
Intangible assets, net	31,318	37,161
Operating lease asset	12,217	5,011
Deferred tax asset	109,860	111,495
Other assets, noncurrent	4,222	1,467
Total assets	1,274,404	1,299,580
Current liabilities
Accounts payable	7,030	7,858
Escrow funds payable	193,269	180,752
Debt, current	360,691	359,770
Accrued expenses and other current liabilities	68,683	94,023
Deferred revenue	8,576	7,765
Total current liabilities	638,249	650,168
Operating lease liability, noncurrent	14,367	9,707
Other liabilities, noncurrent	10,522	9,390
Total liabilities	663,138	669,265
Commitments and contingencies (Note 8)
Stockholders’ equity
Common stock, $0.0001 par value; 490,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 124,797,586 and 130,545,236 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	12	13
Additional paid-in capital	517,479	592,599
Accumulated and other comprehensive (loss) income	(39)	754
Retained earnings	93,814	36,949
Total stockholders’ equity	611,266	630,315
Total liabilities and stockholders’ equity	$ 1,274,404	$ 1,299,580