Quality Investor

Upwork Inc.

Rank #85Capital Return

UPWK · Nasdaq · Communication Services

Upwork Inc. (UPWK) — Rank #85 by gross profitability (GP/assets 0.48) · ROE 18.9% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001627475 · all metrics point-in-time as of the filing date.

About

Upwork Inc., together with its subsidiaries, provides platforms and workforce solutions that connect businesses with freelance, agency, fractional, and payrolled talent in the United States, the Philippines, India, Pakistan, and internationally.

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The company offers Upwork Marketplace, a human and AI-powered work marketplace that connects businesses with on-demand access to independent talent across a range of categories, including AI-related projects, administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its marketplace also streamlines workflows, such as talent sourcing, outreach, contracting, and engagement management, as well as provides infrastructure for remote collaboration, including communication and collaboration tools, consolidated invoicing, and payment protection; and Upwork Payroll services. It also offers enterprise solutions that provide access to platform capabilities that support contingent workforce solutions, including sourcing, onboarding, classification, compliance and contract management, payments, and reporting. In addition, the company offers managed services that provide a service-led program management and end-to-end project delivery solution that enables enterprise clients to outsource defined functions or projects; Uma, an AI assistant; and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc.

was founded in 1998 and is headquartered in Palo Alto, California.

Industry
Internet Content & Information
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
upwork.com

Price History

UPWK-80.5% · -27.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$1.09B

P/E (annual)

10.4

P/S (annual)

1.4

P/B

1.8

P/OCF (annual)

4.4

Shareholder Yield

1.7%

Employees

630

Industry

Internet Content & Information

Exchange

Nasdaq

Signal Flags

3 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.48
Return on equity
18.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.08
Current ratio
1.42×
Net cash
$253.55M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.3%

Growth

2/2 pass
Revenue growth
2.4%
Piotroski F-Score
6 / 9
Share dilution
-1.7%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-11.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.7% — per-share value needs a total required return of -13.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-15.0%

r = 10% (base)

-11.9%

r = 12%

-9.3%

Net debt / market cap: -20.6%

Note: current FCF margin is 2.3σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $242.5M3Y mean FCF: $139.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

15.7xFair
10.9xmed 15.7x231.3x

P / S

Price / revenue per share

2.4xCheap
2.4xmed 3.1x17.8x

P / B

Price / book value per share

3.0xCheap
3.0xmed 5.0x22.2x

P / GP

Price / gross profit per share

3.0xCheap
3.0xmed 4.2x24.7x

P / FCF

Price / free cash flow per share

7.7xCheap
7.7xmed 181.0x415.0x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.48

Primary signal (Novy-Marx).

7th of 13 SIC 7374 peers

Return on equity

18.9%

Gross margin

77.8%

4th of 13 SIC 7374 peers

Revenue growth (YoY)

2.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

8.4%

Revenue CAGR (5Y)

16.1%

Earnings CAGR (3Y)

FCF CAGR (3Y)

257.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.08

5th of 11 SIC 7374 peers (best = lowest)

Current ratio

1.42×

7th of 13 SIC 7374 peers

Quick ratio

1.08×

Net cash

$253.55M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$242.47M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.10

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Capital Return