Upwork (NASDAQ:UPWK) Issues Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Upwork (NASDAQ:UPWK) announced its earnings results on Monday. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.04), Zacks reports. Upwork had a net margin of 31.63% and a return on equity of 41.66%. The firm had revenue of ($387.62) million during the quarter, compared to analysts’ expectations of $193.33 million. During the same quarter last year, the company posted $0.30 earnings per share. Upwork’s revenue for the quarter was up 4.1% compared to the same quarter last year. Upwork updated its FY 2025 guidance to 1.350-1.370 EPS and its Q4 2025 guidance to 0.310-0.330 EPS.

Upwork Price Performance

NASDAQ UPWK opened at $17.70 on Wednesday. The stock has a market capitalization of $2.35 billion, a P/E ratio of 10.11 and a beta of 1.57. Upwork has a 1 year low of $11.13 and a 1 year high of $20.54. The business’s fifty day moving average is $17.09 and its two-hundred day moving average is $15.20. The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.36 and a current ratio of 3.36.

Wall Street Analyst Weigh In

UPWK has been the topic of several research analyst reports. Citigroup reaffirmed a “neutral” rating and set a $19.00 price target (up previously from $16.00) on shares of Upwork in a research report on Tuesday. UBS Group lifted their target price on Upwork from $21.00 to $23.00 and gave the company a “buy” rating in a research note on Tuesday. Scotiabank lifted their target price on Upwork from $15.00 to $17.00 and gave the company a “sector perform” rating in a research note on Tuesday. Royal Bank Of Canada lifted their price target on Upwork from $18.00 to $21.00 and gave the company a “sector perform” rating in a report on Tuesday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Upwork in a research note on Wednesday, October 8th. Eight investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Upwork currently has an average rating of “Moderate Buy” and an average price target of $20.83.

Insider Buying and Selling at Upwork

In other Upwork news, insider Dave Bottoms sold 10,014 shares of the business’s stock in a transaction on Friday, September 19th. The shares were sold at an average price of $19.96, for a total transaction of $199,879.44. Following the sale, the insider directly owned 345 shares of the company’s stock, valued at $6,886.20. The trade was a 96.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Erica Gessert sold 8,730 shares of the business’s stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $19.16, for a total transaction of $167,266.80. Following the sale, the chief financial officer directly owned 218,605 shares in the company, valued at approximately $4,188,471.80. This trade represents a 3.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 222,576 shares of company stock valued at $3,670,318 in the last three months. 7.60% of the stock is currently owned by company insiders.

Institutional Trading of Upwork

Large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its stake in shares of Upwork by 68.9% in the first quarter. Royal Bank of Canada now owns 191,587 shares of the company’s stock worth $2,501,000 after acquiring an additional 78,123 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Upwork by 5.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,466 shares of the company’s stock worth $972,000 after acquiring an additional 3,599 shares during the last quarter. Millennium Management LLC increased its stake in shares of Upwork by 364.0% in the first quarter. Millennium Management LLC now owns 789,638 shares of the company’s stock worth $10,305,000 after acquiring an additional 619,459 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Upwork by 10.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 338,680 shares of the company’s stock worth $4,420,000 after acquiring an additional 31,378 shares during the last quarter. Finally, Creative Planning increased its stake in shares of Upwork by 16.9% in the second quarter. Creative Planning now owns 29,239 shares of the company’s stock worth $393,000 after acquiring an additional 4,230 shares during the last quarter. 77.71% of the stock is owned by institutional investors and hedge funds.

Upwork declared that its board has initiated a stock buyback plan on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 4.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Upwork Company Profile

Upwork Inc, together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development.