Filing Flows › Upwork (UPWK) › Q1 2025
Upwork (UPWK) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 5, 2025
Upwork (UPWK) reported revenue of $193M for the first quarter 2025 (Q1 2025), +0.9% from a year earlier and +0.6% from the quarter before. Operating margin was 20.1%, net earnings $37.7M (19.6% of revenue).
Upwork, Q1 2025: revenue $193M (+0.9% year over year), operating margin 20.1%, net earnings $37.7M, operating cash flow $37.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $193M | +0.6% | +0.9% |
| Gross profit | $151M | +1% | +3% |
| Operating profit | $38.7M | +185% | +196% |
| Net earnings | $37.7M | -74% | +105% |
| Operating cash flow | $37.0M | +335% | +150% |
| Free cash flow | $30.8M | — | +153% |
What changed
Revenue was $192.7M in Q1 2025, up 1% year over year and up 1% from the previous quarter. Marketplace was the largest line at 86% of revenue. Marketplace added $2.0M year over year (up 1%), 111% of the total change. Enterprise declined 1%.
Gross margin was 78.3%, up 1.5 points from a year earlier. Operating profit was $38.7M, a 20.1% margin (up 13.2 points year over year). Of the extra revenue versus a year earlier, 1449% reached operating profit, above the 7% margin then. Operating expenses fell 16% while revenue rose 1%. The fastest-growing cost line was Other operating costs (+144%). Net earnings were $37.7M, up 105% year over year. The effective tax rate was 16.2%.
Operating cash flow was $37.0M (up 150% year over year), 98% of net earnings. Non-cash charges added back $4.9M of depreciation and amortization and $12.3M of share-based compensation. Working capital and other items used $17.9M. After purchases of property, plant & equipment and cash outflows from internally developed software ($6.2M), free cash flow as the company reports it was $30.8M.
Questions
What was Upwork's revenue in the first quarter 2025?
Upwork (UPWK) reported revenue of $193M for the first quarter 2025 (Q1 2025), +0.9% from a year earlier and +0.6% from the quarter before.
Was Upwork profitable in the first quarter 2025?
Operating profit was $38.7M (20.1% of revenue) and net earnings $37.7M.
Source: Upwork 10-Q on SEC EDGAR.