Upwork (NASDAQ:UPWK) is an online company that operates a marketplace connecting businesses with freelancers and independent professionals. On May 8, 2026, the investment firm Citigroup changed its rating for UPWK to Market Perform from Neutral. This downgrade occurred when the stock price was recorded at $10.61 per share.
The adjustment follows Upwork's recent first-quarter financial report. As highlighted by Benzinga, the company announced a softer revenue outlook. It generated revenue of $195.48 million, which is a 1% increase from the previous year. However, this amount fell just short of what financial analysts had predicted, which was $195.90 million.
Reports on the company's profitability were mixed. As highlighted by Zacks, quarterly earnings per share (EPS) were $0.24, which was below the estimate of $0.25. EPS is a company's profit divided by its stock shares, showing its profitability per share. In contrast, other reports noted adjusted earnings of $0.35 per share, beating expectations.
Despite some missed targets, Upwork shows strength in other areas. The company’s Gross Services Volume (GSV) per active client grew by 5% year-over-year to $5,138.00. GSV measures the total amount clients spend on the platform. Upwork also generated $12.90 million in free cash flow, which is cash left after paying for business operations.
In response to the results, management is taking action. As highlighted by GlobeNewswire, CEO Hayden Brown stated the company achieved "strong profitability while navigating a challenging demand environment." The company also announced a new restructuring plan and has raised its profitability guidance for the full year of 2026, showing confidence in its strategy.
