Upwork pivots to high-value work amid AI automation pressure

Upwork Inc. reported second-quarter 2026 financial results characterized by a strategic pivot toward high-value, complex work as artificial intelligence automates lower-complexity freelance tasks. While revenue fell 2% year-over-year to $191.7 million and gross services volume (GSV) declined 4% to $966.4 million, the company saw an increase in profitability. Adjusted EBITDA rose 12% to $64.1 million, reaching a 33.4% margin.

CEO Hayden Brown noted a structural shift in the marketplace. Although routine tasks are being pressured by automation, demand for specialized talent is increasing. AI-related work on the platform grew 22% year-over-year, with a 51% surge in AI strategy and consulting. This shift is reflected in the GSV per active client, which reached a record $5,230, up 5% year-over-year.

To integrate with evolving workflows, Upwork launched a Model Context Protocol server to connect its marketplace with AI platforms such as Anthropic’s Claude and ChatGPT. The company is also seeing growth in enterprise solutions and SMB-focused offerings, with GSV from the Business Plus segment jumping 174% year-over-year.