Upwork Inc. reported its financial results for the second quarter of 2025, revealing a slight increase in revenue and significant improvements in profitability compared to the same period last year. The company generated total revenue of $194.9 million for the three months ended June 30, 2025, a 1% increase from $193.1 million in the same quarter of 2024. For the first half of 2025, revenue reached $387.6 million, up from $384.1 million in the prior year. Notably, net income surged to $32.7 million, a 47% increase from $22.2 million in Q2 2024, while net income for the six months ended June 30, 2025, was $70.5 million, compared to $40.7 million in the same period last year.
The company's Marketplace revenue, which constitutes the majority of its income, increased by 2% to $170.7 million for the second quarter, driven by higher revenue from ads and monetization products. However, Enterprise revenue declined by 8% to $24.3 million, reflecting a decrease in client spending. Upwork's Marketplace take rate improved to 18.5% in Q2 2025, up from 18.0% in Q2 2024, indicating enhanced monetization strategies. The company attributed its improved profitability to cost-saving measures, including reduced marketing expenses and workforce optimization.
Operationally, Upwork reported a decrease in active clients, which fell by 8% year-over-year to 796,000 as of June 30, 2025. Despite this decline, the Gross Services Volume (GSV) per active client increased by 5%, suggesting improved engagement among existing clients. The company also completed the acquisition of Bubty B.V. for $20.4 million, aimed at enhancing its enterprise management capabilities. Additionally, Upwork has plans to acquire Ascen Inc., further expanding its service offerings in the contingent labor market.
Looking ahead, Upwork anticipates continued revenue growth driven by strategic initiatives aimed at improving monetization and operational efficiency. The company expects its Marketplace revenue to increase for the remainder of 2025, despite ongoing macroeconomic challenges. Upwork's management remains focused on maintaining profitability while navigating a competitive landscape, with expectations for adjusted EBITDA to remain strong throughout the year. The company ended the quarter with $291.1 million in cash and cash equivalents, providing a solid liquidity position to support its growth initiatives.
About UPWORK, INC
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