Upwork Inc. (NASDAQ: UPWK) announced that senior management will participate in a fireside chat at The Goldman Sachs Communacopia Conference in San Francisco on September 9, 2026.

The session is scheduled for 3:05 p.m. PT (6:05 p.m. ET). A live webcast of the event will be available in the Events and Presentations section of Upwork’s Investor Relations website. An archive of the webcast will remain accessible for approximately 90 days following the conference.

Event Details

During the course of these events, Upwork may disclose material developments affecting its business and/or financial performance. For additional details regarding the conference logistics, investors are advised to contact the financial institution hosting the event.

About Upwork

Upwork Inc.’s family of companies connects businesses with global, AI-enabled talent across every contingent work type, including freelance, agency, fractional, and payrolled roles. The portfolio includes the Upwork Marketplace, which provides on-demand access to skilled talent, and Lifted, a solution for enterprise organizations to source and manage contingent work.

Since its founding, Upwork has facilitated more than $30 billion in total transactions and services. The platform offers access to professionals spanning more than 10,000 skills, including AI & machine learning, software development, sales & marketing, customer support, and finance & accounting.

Upwork Inc. shares fell 12.36 percent to $8.61 on Tuesday after the freelance platform lowered its full-year 2026 financial guidance, signaling that artificial intelligence is acting as a near-term drag on demand despite a second-quarter earnings beat. The company reduced its adjusted earnings per share (EPS) forecast to $1.38–$1.43 from $1.50–$1.55, and cut revenue guidance to $730–$750 million from $760–$790 million, both figures falling below analyst consensus estimates of $1.55 EPS and $776.3 million in revenue.

The downgrade reflects structural shifts in the marketplace, where AI automation is reducing volume in lower-complexity work categories. Although Upwork reported Q2 adjusted EPS of $0.41, beating the $0.34 consensus, and revenue of $191.66 million, surpassing the $189.96 million estimate, gross settlement volume (GSV) declined 4 percent year-over-year to $966 million. Management attributed the GSV contraction to pressure from AI automation, weaker new-client additions, and a soft labor market.

Financial Performance Overview

Despite the top-line stagnation, Upwork demonstrated strong operational leverage and margin expansion. Adjusted gross margin stood at 77 percent as the company managed infrastructure and support costs effectively. The take rate increased to 19.8 percent, driven by a 15 percent year-over-year growth in higher-margin initiatives such as Ads, Dynamic Pricing, Connects, and Business Plus. Free cash flow was $35.9 million, impacted by restructuring-related payments, while GAAP net income was not explicitly detailed in the new filing but previously stood at $25.4 million.

Operational Highlights and Strategy

Upwork’s client base remains engaged, with active clients totaling 763,000. The average GSV per active client reached a record $5,230, up 5 percent year-over-year, marking the eighth consecutive quarter of sequential growth. Average spend per contract also hit a record high, extending its year-over-year growth streak to six quarters. This indicates that while user acquisition is slowing, existing clients are increasing their spending on higher-value engagements.

Specific segments showed robust growth, offsetting broader declines. GSV from explicitly AI-related jobs rose 22 percent year-over-year and 5 percent sequentially, reaching an annualized run rate of about $330 million. Within this category, AI Strategy & Consulting GSV increased 51 percent. Additionally, Business Plus GSV surged 174 percent year-over-year. To capitalize on these trends, Upwork launched the Upwork Claude Connector inside Anthropic’s Claude platform and introduced its Model Context Protocol (MCP) server, allowing AI agents to source talent directly from within existing workflows.

Outlook and Capital Allocation

Looking ahead, Upwork expects third-quarter adjusted EPS of $0.31–$0.33, below the $0.41 analyst estimate, with revenue projected at $176–$184 million versus the $193.7 million consensus. The company’s restructuring plan targets $70 million in annualized cost savings, with about $40 million expected in 2026.

On the capital allocation front, Upwork secured a new $150 million revolving credit facility, with a $50 million accordion option, to support debt repayment, potential M&A, and share buybacks. The company repurchased approximately 164,000 shares in the second quarter and 8.3 million shares year to date. Management noted that while AI remains a near-term drag on some work categories, it is simultaneously creating new demand for AI talent and human-AI teams.

What the Numbers Show

The divergence between rising take rates and falling gross settlement volume highlights a critical transition for Upwork. The company is successfully monetizing existing relationships through higher-margin services like Ads and Business Plus, which grew 15 percent and 174 percent respectively. However, the 4 percent decline in GSV suggests that the total addressable market for traditional freelance work is shrinking due to automation. Investors are penalizing the stock because the growth in high-margin segments has not yet been sufficient to offset the volume loss in core services, leading to the significant cut in full-year guidance.