Upwork Inc (UPWK) Stock Forecast & Price Target

Upwork Inc. has demonstrated robust growth, with Gross Services Volume (GSV) from AI-related work increasing by 53% year-over-year, indicating a strong demand for AI services within its platform. The company reported a record Adjusted EBITDA of $60 million, reflecting a 38% year-over-year increase and maintaining a healthy margin of approximately 30%. Furthermore, Upwork anticipates significant growth in its Business Plus and Enterprise plans, expecting Business Plus volumes to double by 2026, which is indicative of positive long-term revenue trajectories and an expanding client base.

Upwork Inc. faces significant challenges that contribute to a negative outlook on its stock, primarily stemming from a decline in gross services volume (GSV) and increased competition from AI developments, particularly affecting smaller job categories where GSV has dropped from 5% to 3.5%. The company is also experiencing a macroeconomic headwind that persists, resulting in reduced customer acquisition investments and limiting revenue growth, which diminishes the potential upside for shareholders despite achieving long-term margin targets sooner. Additionally, ongoing cash burn, inconsistent fundamentals, and the volatility of consumer behavior in the online marketplace further exacerbate the risks facing Upwork’s financial stability.