UPWKUpwork Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.4×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 23% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is UPWK?
Upwork Inc. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Cash conversion
- 2.40×
Cash conversion · 2.50× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −7.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −6.0% |
| FY2021 | −11% |
| FY2022 | −15% |
| FY2023 | −1.6% |
| FY2024 | 8.5% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 77%
- Operating margin12 months to Q2 2026
- 15%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $787M
- Free cash flow, trailing twelve months
- $204M
- Net income, trailing twelve months
- $102M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #7 of 31 by RyuScore