UPWORK, INCUPWK

UPWORK, INC Revenue Disclosure

10-KFiled Feb 13, 20263 min read
Revenue
Revenue Recognition
For information about how the Company derives revenue, as well as the Company’s accounting policies, refer to “Note 2—Basis of Presentation and Summary of Significant Accounting Policies.”
Disaggregation of Revenue
Based on the information provided to and reviewed by the CODM, the nature, amount, timing, and uncertainty of revenue and cash flows and how they are affected by economic factors are most appropriately depicted by the type of service and primary geographical markets. Revenues recorded within these categories are earned from similar products and services for which the nature of associated fees and the related revenue recognition models are substantially similar.
The Company disaggregates revenue by two types of services: Marketplace revenue and Enterprise revenue.
The following table sets forth total revenue by type of service for the years ended December 31, 2025, 2024, and 2023:
(In thousands)202520242023
Marketplace$682,883 $662,108 $586,099 
Enterprise 104,901 107,217 103,037 
Total revenue
$787,784 $769,325 $689,136 
The following table sets forth total revenue by geographic area based on the billing address of talent and clients for the years ended December 31, 2025, 2024, and 2023:
(In thousands)202520242023
Talent:
United States$113,984 $111,691 $95,833 
Philippines57,869 58,475 45,912 
India53,531 56,897 49,487 
Pakistan(1)
46,242 38,960 30,586 
Rest of world (1)(2)
171,712 173,105 148,107 
Total talent443,338 439,128 369,925 
Clients:
United States246,218 238,786 236,744 
Rest of world (1)(2)
98,228 91,411 82,467 
Total clients344,446 330,197 319,211 
Total revenue
$787,784 $769,325 $689,136 
(1) For the years ended December 31, 2024 and 2023, the Company revised the presentation of geographic revenue to separately present Pakistan to conform to the current period presentation. This change in presentation did not impact total talent revenue or total revenue for the periods presented.
(2) During the years ended December 31, 2025, 2024, and 2023, no single country included in the Rest of world category had revenue that exceeded 10% of total talent revenue, total clients revenue, or total revenue.
Deferred Revenue and Remaining Performance Obligation
Deferred revenue represents amounts billed in advance for services not yet rendered.
Deferred revenue expected to be recognized within the next twelve months is classified as current deferred revenue.
The Company has applied the practical expedients and exemptions and does not disclose the value of remaining performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation under the series guidance.
Contract Balances
The following table provides information about the balances of the Company’s Trade and client receivables, net of allowance and contract liabilities included in deferred revenue and other liabilities, noncurrent as of December 31, 2025 and 2024:
(In thousands)20252024
Trade and client receivables, net of allowance$76,236 $75,490 
Contract liabilities
Deferred revenue, current
7,765 7,269 
During 2025, changes in the contract liabilities balances were primarily the result of normal business activity.
Revenue recognized during the year ended December 31, 2025 that was included in deferred revenue as of December 31, 2024 was $7.3 million. Revenue recognized during the year ended December 31, 2024 that was included in deferred revenue as of December 31, 2023 was $17.3 million.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 15, 2022
2020Feb 24, 2021
2019Mar 2, 2020

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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