Upwork Inc. Common Stock (UPWK)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Upwork as an asset-light marketplace with real network effects, but not an unshakable moat. It connects businesses with freelance and agency talent, including AI-related projects, and operates with only 630 employees. The financials are mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $191.7M and net income $25.4M. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $194.9M and net income $32.7M, so the top line slipped and profit fell. In fiscal 2025, revenue was $787.8M and net income $115.4M, or diluted EPS of $0.84, down from fiscal 2024 net income of $215.6M and diluted EPS of $1.52. That is not a compounding machine today; revenue growth is 1.44% and profit growth is -16.62%. Still, cash generation is the attraction: trailing free cash flow is $175.5M, a 16.3% FCF yield on the $1.1B market cap. At the 2026-10-13 close of $8.64, FairStock calculations show a P/E of 11.08, P/B of 1.91, EV/EBITDA of 6.41, ROE of 16.70%, ROCE of 6.63%, and debt-to-equity of 0.62. The Graham Number is $9.27, leaving only a 6.80% margin of safety. Piotroski is 5/9 and Altman Z is 1.56, so the balance sheet deserves watching. FairStock classifies it as a TURNAROUND because it returned to profit after a loss within the last three years. The price is not demanding, but the business must show stabilizing revenue and profit before I would call the moat or trajectory durable.

In plain English: Upwork runs a website and services that connect businesses with freelancers and agencies. The company is profitable and produces plenty of cash, but sales are almost flat and profits have dropped recently. At $8.64, the stock looks close to fair compared with its earnings and cash flow, not clearly cheap or expensive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer