Upwork Inc. delivered an exceptional second quarter of 2025, reporting record revenue of $194.9 million, GAAP net income of $32.7 million, and an all-time high adjusted EBITDA of $57.1 million, resulting in a 29.3% adjusted EBITDA margin. These results significantly outperformed the company's expectations across all key financial metrics.
The company announced two strategic acquisitions: it acquired Bubty B.V. for $20.4 million and entered into a definitive agreement to acquire Ascen Inc., expected to close in the second half of 2025. These acquisitions are designed to complete Upwork's enterprise offering, enabling it to serve large clients with a full range of contingent workforce and staffing solutions and capitalize on the estimated $650 billion Enterprise Total Addressable Market (TAM).
Operational performance was strong, with AI-related work Gross Services Volume (GSV) increasing 30% year-over-year in Q2 2025. The Business Plus offering also saw significant traction, with active clients surging 45% quarter-over-quarter and GSV from these clients increasing 190% quarter-over-quarter.
Reflecting this strong performance and confidence in its strategic execution, Upwork raised its full-year 2025 revenue guidance to a range of $765 million to $775 million. The company also raised its full-year adjusted EBITDA guidance to between $206 million and $214 million, reiterating its long-term target of a 35% adjusted EBITDA margin.
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