--- title: "Upwork | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 195.48 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285619877.md" datetime: "2026-05-07T21:05:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285619877.md) - [en](https://longbridge.com/en/news/285619877.md) - [zh-HK](https://longbridge.com/zh-HK/news/285619877.md) --- # Upwork | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 195.48 M Revenue: As of FY2026 Q1, the actual value is USD 195.48 M, missing the estimate of USD 195.9 M. EPS: As of FY2026 Q1, the actual value is USD 0.24, beating the estimate of USD 0.1664. #### Operational Metrics Upwork Inc. announced a restructuring plan on May 7, 2026, which includes an expected reduction of its total workforce by approximately 24%. #### Gross Services Volume (GSV) Upwork Inc. reported a Gross Services Volume (GSV) of $987.1 million in Q1 2026, which was approximately flat year-over-year compared to $987,712 thousand in Q1 2025, representing a -0.1% change. #### Revenue Total revenue grew 1% year-over-year to $195.5 million in Q1 2026. Marketplace revenue increased 3% to $170,705 thousand in Q1 2026 from $166,293 thousand in Q1 2025. Enterprise revenue decreased by -6% to $24,778 thousand in Q1 2026 from $26,413 thousand in Q1 2025. #### Gross Profit Gross profit was $150,842 thousand in Q1 2026, approximately flat compared to $150,900 thousand in Q1 2025. The gross profit margin was 77% in Q1 2026, a decrease of -114 basis points from 78% in Q1 2025. #### Operating Expenses Total operating expenses increased by 5% year-over-year to $118,124 thousand in Q1 2026 from $112,210 thousand in Q1 2025. This included Research and development expenses of $43,307 thousand (down from $46,152 thousand), Sales and marketing expenses of $37,437 thousand (up from $35,751 thousand), General and administrative expenses of $35,158 thousand (up from $28,048 thousand), and Provision for transaction losses of $2,222 thousand (down from $2,259 thousand). #### Net Income GAAP Net income was $31.5 million in Q1 2026, marking a 17% decrease year-over-year from $37,730 thousand in Q1 2025. The profit margin was 16% in Q1 2026, a decrease of -349 basis points from 20% in Q1 2025. #### Adjusted EBITDA Adjusted EBITDA was $57.4 million in Q1 2026, up 3% year-over-year from $56,011 thousand in Q1 2025. The Adjusted EBITDA margin was 29% in both Q1 2026 and Q1 2025, showing a 31 basis points increase. #### Cash Flow Cash provided by operating activities was $23.0 million in Q1 2026, a decrease of -38% compared to $37.0 million in Q1 2025. Free cash flow was $12.9 million, a decrease of -58% compared to $30.8 million in Q1 2025. Net cash provided by investing activities was $118,212 thousand in Q1 2026, compared to - $5,223 thousand in Q1 2025, with purchases of property and equipment at - $1,723 thousand and internal-use software and platform development costs at - $8,391 thousand. Net cash used in financing activities amounted to - $84,254 thousand in Q1 2026, compared to - $13,144 thousand in Q1 2025, including repurchases of common stock totaling - $107,891 thousand. #### Unique Metrics and Operational Highlights Active clients totaled 784,000 as of March 31, 2026, a -3% decrease from 812,000 as of March 31, 2025. GSV per active client increased 5% year-over-year to $5,138. GSV from AI-related work increased more than 40% year-over-year in Q1 2026, with AI Integration & Automation GSV growing over 50% year-over-year. GSV from the Business Plus offering for SMB increased 34% quarter-over-quarter in Q1 2026, and Business Plus active clients grew 35% quarter-over-quarter, with 39% of these active clients being net-new customers. Upwork Inc. returned $107.9 million to shareholders by repurchasing 8.1 million shares in Q1 2026, with $256.1 million remaining in its $300 million repurchase authorization as of March 31, 2026. The company secured a commitment letter for a $150 million revolving credit facility. #### Outlook / Guidance Upwork Inc. announced a restructuring plan involving an approximate 24% workforce reduction, expecting to incur $16 million to $23 million in pre-tax restructuring charges, mostly cash expenditures, recognized over the next two to three quarters and substantially complete by Q4 2026. For Q2 2026, the company expects revenue between $187 million and $193 million, Adjusted EBITDA between $56 million and $59 million, and non-GAAP diluted EPS between $0.35 and $0.37. Full-year 2026 guidance anticipates revenue between $760 million and $790 million, Adjusted EBITDA between $250 million and $260 million, and non-GAAP diluted EPS between $1.50 and $1.55. ### Related Stocks - [UPWK.US](https://longbridge.com/en/quote/UPWK.US.md) ## Related News & Research - [UPWK Investors Have Opportunity to Join Upwork Inc. Fraud Investigation with the Schall Law Firm](https://longbridge.com/en/news/288103031.md) - [Upwork (NASDAQ:UPWK) Issues FY 2026 Earnings Guidance](https://longbridge.com/en/news/285625165.md) - [Dell boosts annual outlook as tech giants ramp up AI infrastructure spending](https://longbridge.com/en/news/287966154.md) - [Movado Group, Inc. 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