Upwork Inc. (UPWK): A Bull Case Theory 

We came across a bullish thesis on Upwork Inc. on Value investing subreddit by No3Account. In this article, we will summarize the bulls’ thesis on UPWK. Upwork Inc.’s share was trading at $18.57 as of September 30th. UPWK’s trailing and forward P/E were 11.13 and 14.39 respectively according to Yahoo Finance.

Upwork, Inc. (UPWK) has quietly delivered impressive operational performance, despite limited market buzz. The company trades at a relatively low P/E of 11.45, which appears disconnected from its recent margin expansion and strategic initiatives. Over the past three years, revenue has grown at a 22% CAGR, although the most recent quarter showed negligible year-over-year growth.

What stands out, however, is the company’s remarkable improvement in profitability: adjusted EBITDA margins surged from 11% in FY2024 to 22%, and Q2 2025 saw margins reach approximately 29%, with management targeting 35% in the near term. This demonstrates disciplined cost management and operational leverage, making the company increasingly cash-generative.

Upwork’s strategy centers on advertising/monetization, enterprise, and AI-driven solutions, all of which are executing well. The enterprise segment is particularly compelling, with recent acquisitions and a new subsidiary focused on large clients. Leveraging its existing talent pool and platform, Upwork is well-positioned to capture enterprise staffing demand, potentially driving a meaningful acceleration in growth over time. While the recent slowdown in revenue growth may raise some concern, the current valuation already reflects muted growth expectations, implying a favorable risk/reward dynamic.

Even without a significant revenue rebound, Upwork’s margin expansion alone provides a strong investment case, offering a resilient free cash flow profile. Coupled with the strategic opportunity in enterprise, the company has potential upside that is not yet fully recognized by the market. Overall, UPWK presents a compelling opportunity for investors seeking a combination of operational efficiency, undervaluation, and optionality for future growth.

Previously we covered a bullish thesis on Upwork Inc. (NASDAQ:UPWK) by Oliver | MMMT Wealth in December 2024, which highlighted strong revenue growth, record free cash flow, and disciplined cost management driving margin expansion. The stock has appreciated approximately 11% since coverage as operational improvements played out. The thesis still stands as Upwork’s platform scalability remains strong. No3Account shares a similar perspective but emphasizes margin acceleration and enterprise strategy as additional growth drivers.

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Disclosure: None.