Alternative Investment Advisors sold out its entire stake in Upwork (NASDAQ:UPWK) during the fourth quarter, according to a February 24, 2026, SEC filing. What happened According to a Securities and Exchange Commission (SEC) filing dated February 24, 2026, Alternative Investment Advisors sold all 161,997 shares of Upwork during the fourth quarter. The position’s quarter-end value declined by $3.01 million, reflecting both the sale and stock price movements. What else to know The fund sold out of Upwor ...

Group 1 - In 2025, discussions around AI contributed to the stock market reaching new all-time highs, while in 2026, AI is negatively impacting stocks outside of "old economy" companies [1] Group 2 - Gary Alexander has extensive experience in technology companies, having worked on Wall Street and in Silicon Valley, and has been a contributor to Seeking Alpha since 2017 [2]

Core Viewpoint - Upwork Inc. has announced a new $300 million share repurchase program, contributing to a total of $600 million in share repurchase authorizations since November 2023 [1][2]. Financial Performance - 2025 was highlighted as a pivotal year for Upwork, achieving GSV growth and record financial results [2]. - The company deployed $136 million in cash to repurchase over 9 million shares in 2025, demonstrating its commitment to long-term shareholder value [2]. Share Repurchase Program - The new share repurchase authorization allows for purchases on the open market, through privately negotiated transactions, or other methods, with no expiration date [3]. - The timing and amount of repurchases will depend on market conditions and other considerations, and the authorization does not obligate Upwork to repurchase a specific dollar amount or number of shares [3]. Company Overview - Upwork connects businesses with global, AI-enabled talent across various work types, including freelance and payrolled solutions [4]. - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every work era [5].

Group 1 - Upwork Inc. will participate in a fireside chat at The Citizens Technology Conference on March 2, 2026, featuring President and CEO Hayden Brown and CFO Erica Gessert [1] - A live webcast of the event will be available on Upwork's Investor Relations website, with an archive accessible for 90 days post-event [2] - Upwork connects businesses with global, AI-enabled talent across various work types, including freelance and payrolled solutions [3] Group 2 - Upwork has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every work era [4] - The company offers access to professionals with expertise in over 10,000 skills, including AI & machine learning, software development, and finance [3]

Core Insights - Upwork Inc. is recognized as one of the 15 Best Small Cap Stocks to Buy according to Wall Street [1] - Goldman Sachs has lowered its price target for Upwork to $27 from $28 while maintaining a Buy rating, citing a solid fourth-quarter report [2] - Scotiabank and UBS have expressed caution regarding Upwork's near-term trends, with Scotiabank reducing its price target to $15 and UBS to $23, both highlighting concerns over user base expansion through AI [3] Financial Performance - Upwork reported fourth-quarter revenue of $198.4 million, slightly exceeding the consensus estimate of $197.52 million [3] - The company has guided for 2026 revenue between $835 million and $850 million, compared to the consensus estimate of $838.24 million [3] Market Position - Upwork operates a work marketplace that connects businesses with independent professionals and agencies across various service categories globally [4] - CEO Hayden Brown emphasized the company's focus on "human-plus-AI collaboration," targeting a $1.3 trillion market opportunity in flexible digital knowledge work [3]

Revenue Generation and Business Model - Upwork generates Enterprise revenue through Lifted, offering workforce solutions including client subscriptions and managed services[23] - The Upwork Marketplace provides access to independent talent with verified work history, enhancing hiring efficiency for clients[25] - Lifted's Enterprise Solutions support contingent workforce management, including independent contractors and outsourcing services, aimed at driving cost-efficiency and compliance[27] - The Enterprise sales team focuses on a "Land and Expand" strategy to acquire new clients and increase usage of Enterprise offerings[53] Technology and Innovation - The company leverages advanced technology and AI to enhance security, trust, and user experience across its platforms[31] - Upwork's proprietary data repository enables improved matching of talent and projects, enhancing client and talent experiences[34] - The company has invested significantly in research and development to enhance its platforms and workforce solutions, focusing on reliability, security, AI capabilities, and scalability[59] - The company utilizes AI and machine learning models to create an adaptive experience for customers, optimizing the matching process between client project requirements and talent skill sets[61] Marketing and Client Engagement - The marketing strategy emphasizes brand awareness and the advantages of Upwork's direct-to-talent approach, highlighting cost efficiencies and flexibility[56] - Upwork engages in targeted marketing programs to drive client retention and growth through cross-selling and upselling opportunities[58] Operational and Financial Management - In 2025, Upwork paused new client acquisition efforts to improve operational capabilities ahead of Lifted's launch[55] - The company had $361.0 million in aggregate principal amount of borrowings outstanding under the Notes as of December 31, 2025[328] - The company’s cloud-based platform is designed to scale automatically with increased usage, supporting sudden traffic spikes and ensuring predictable cost management[65] Sustainability and Compliance - The company is committed to carbon-neutral operations and purchasing carbon-free electricity to match 100% of its office and remote work electricity consumption[67] - The company has a robust regulatory compliance program to navigate complex laws applicable to internet companies and online marketplaces[74] Currency and Economic Opportunities - The company offers clients the option to settle invoices in multiple currencies, including Euro, British Pound, and Japanese Yen, exposing it to foreign currency risk[331] - The company aims to create economic opportunities for diverse backgrounds, enabling workers to set their own rates and choose projects[66] Competitive Landscape - The competitive landscape includes traditional staffing firms and emerging AI tools, with the company focusing on platform features, customer satisfaction, and brand reputation as key competitive factors[70]

Core Insights - The article emphasizes the importance of value investing, highlighting the strategy of identifying undervalued companies in the market [2] Company Analysis - Upwork (UPWK) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [4] - UPWK has a Forward P/E ratio of 16.25, significantly lower than the industry average of 26.99, indicating potential undervaluation [4] - The stock's Forward P/E has fluctuated between a high of 18.34 and a low of 9.39 over the past 12 months, with a median of 12.61 [4] - UPWK's P/B ratio stands at 4.34, compared to the industry average of 7.81, suggesting a favorable valuation [5] - The P/B ratio has ranged from a high of 5.62 to a low of 2.54 in the past year, with a median of 3.51 [5] - The P/CF ratio for UPWK is 10.81, which is lower than the industry average of 21.40, further indicating undervaluation [6] - UPWK's P/CF has seen a high of 27.03 and a low of 6.33 over the last year, with a median of 9.44 [6] - Overall, the metrics suggest that Upwork is likely undervalued, making it an attractive investment opportunity [7]

Core Viewpoint - Roth Capital has raised the price target for Upwork (UPWK) to $23 from $22 while maintaining a Buy rating on the shares, indicating a positive outlook for the company despite some uncertainties in guidance for Q1 [1] Group 1: Financial Performance - Upwork reported revenue and EBITDA for Q4 that were in-line to slightly above estimates, suggesting a stable financial performance [1] - The Q1 guidance is described as "noisy" due to M&A integration, which implies potential sequential declines in performance [1] Group 2: Analyst Recommendations - Roth Capital suggests that it would be a buyer of Upwork shares following any post-earnings weakness, indicating confidence in the company's long-term prospects despite short-term fluctuations [1]

Core Insights - The recent sell-off in Upwork's shares may be overdone, as the downturn is expected to be temporary [1] - Upwork reported a decline in active clients, leading to a significant drop in stock price [1] Financial Performance - Upwork's fourth-quarter revenue increased by 4% year over year to $198.4 million [3] - The company's gross services volume (GSV) rose by 3% to $1 billion [3] - GSV from the Upwork Business Plus offering for small and midsize businesses (SMBs) surged by 24% sequentially [3] AI Investments - Upwork is heavily investing in artificial intelligence (AI), with AI-powered search recommendations contributing over $100 million to GSV in 2025 [4] - Annualized GSV from AI-related work increased by more than 50% to over $300 million in the fourth quarter [4] Client Metrics - Active clients on Upwork's platform decreased by 6% to 785,000, which raised concerns among investors [6] - The company's churn rate improved throughout 2025, and it anticipates active client growth in the first quarter of 2026 [6] Future Guidance - Upwork's guidance for 2026 includes projected GSV growth of 4% to 6% and revenue growth of 6% to 8% [7] - Expected revenue for 2026 is between $835 million and $850 million, compared to $787.8 million in 2025 [7] - Adjusted earnings per share are forecasted to be between $1.43 and $1.48, compared to $1.41 [7]

Core Viewpoint - Upwork's disappointing Q1 outlook has overshadowed a strong Q4 earnings report, leading to a significant drop in stock price and indicating bearish sentiment among investors [1][2]. Financial Performance - For Q1, Upwork projects revenue between $192 million and $197 million, with earnings per share (EPS) up to $0.28, falling short of analysts' expectations of $200.5 million in revenue and $0.34 EPS [5]. - In Q4, gross services value from AI-related work exceeded $300 million, marking a 50% year-over-year increase, highlighting the company's potential in the AI sector [6]. AI Integration - Approximately 70% of job posts on Upwork are influenced by Uma, the company's proprietary AI tool, indicating significant integration of AI capabilities within the platform [7]. - The management's focus on AI is seen as a key growth driver that may be undervalued in the current market environment [6]. Client Metrics - Although there was a 6% decline in active clients, gross services value per active client increased by 7% in Q4, suggesting improved monetization of the existing user base [8]. - This shift indicates a move towards higher-value engagements and more profitable client relationships [8]. Valuation and Market Position - Upwork shares are currently trading at a forward price-to-earnings (P/E) multiple of about 13x, representing a discount compared to historical norms and peer valuations [9]. - The relative strength index (14-day) for UPWK is around 30, suggesting that the current bearish momentum may be nearing exhaustion [9].