UPWORK, INC Earnings Per Share Disclosure
| (In thousands, except share and per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Numerator: | |||||||||||||||||
Basic: net income | $ | 115,425 | $ | 215,586 | $ | 46,887 | |||||||||||
| Gain on early extinguishment of debt, net of tax | — | (38,525) | |||||||||||||||
| Interest expense related to convertible senior notes, net of tax | 2,069 | 2,239 | 389 | ||||||||||||||
Diluted: net income | $ | 117,494 | $ | 217,825 | $ | 8,751 | |||||||||||
| Denominator: | |||||||||||||||||
Weighted-average shares used to compute net income per share, basic and diluted | |||||||||||||||||
| Basic | 132,485,498 | 133,620,612 | 134,774,189 | ||||||||||||||
| Options to purchase common stock | 517,864 | 1,211,092 | 1,401,107 | ||||||||||||||
| Common stock issuable upon vesting of restricted stock units and performance stock units | 1,967,220 | 2,437,873 | — | ||||||||||||||
| Common stock issuable upon exercise of common stock warrants | 149,905 | 232,813 | 299,741 | ||||||||||||||
| Common stock issuable in connection with employee stock purchase plan | 76,071 | 186,594 | 16,270 | ||||||||||||||
| Common stock issuable in connection with convertible senior notes | 5,463,045 | 5,463,045 | 771,923 | ||||||||||||||
| Diluted | 140,659,603 | 143,152,029 | 137,263,230 | ||||||||||||||
Net income per share: | |||||||||||||||||
| Basic | $ | 0.87 | $ | 1.61 | $ | 0.35 | |||||||||||
| Diluted | $ | 0.84 | $ | 1.52 | $ | 0.06 | |||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Options to purchase common stock | 1,500,000 | 1,500,000 | 1,859,807 | ||||||||||||||
| Common stock issuable upon vesting of RSUs and PSUs | 6,853,777 | 6,403,843 | 10,348,892 | ||||||||||||||
| Common stock issuable in connection with employee stock purchase plan | 661,620 | 557,444 | 1,110,018 | ||||||||||||||
| Common stock issuable in connection with convertible senior notes | — | — | 5,463,045 | ||||||||||||||
| Total | 9,015,397 | 8,461,287 | 18,781,762 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.