Upwork Q2 2025:
What Changed and What It
Means for Freelancers
Last week, Upwork released its Q2 2025 financial results. The numbers may look modest at first glance, but behind them are significant shifts in the platform’s priorities. The company continues to grow profitability and take new strategic steps — from doubling down on AI solutions to acquisitions in the Enterprise segment. As always, our goal is to unpack what these results mean for freelancers.
As we noted in our Q1 2025 analysis , Upwork is moving toward AI-driven tools, monetizing the platform through paid services, and building closer relationships with large clients. The Q2 report confirms that these trends are not only continuing but accelerating. Let’s look at the key Q2 2025 metrics and trends — and what they mean for you as a freelancer.
Key Metrics Q2 2025
- Revenue: $194.9M (+1% YoY)
- Marketplace Revenue (core “market” income from fees, paid services, etc.): +2% YoY
- Enterprise Revenue (corporate solutions & managed services for large clients): –8% YoY
- Active Clients: 796K (–8% YoY)
- GSV (total transaction volume between clients and freelancers) per client: $5,002 (+5% YoY)
- Free Cash Flow: $65.6M (+113% QoQ)
Compared to last year, the number of clients is down, but their budgets are up. In Q2 2024, there were about 868K active clients, but they spent less. Now, with 796K active clients, average annual spend is $5,002 per client. Projects are becoming bigger and longer-term — Upwork is betting on quality over quantity. For freelancers, this means fewer small one-off jobs but more chances to land large contracts with serious budgets — if you can meet the expectations of high-value clients.
AI: From Feature to Core Strategy
Upwork isn’t just adding AI as a “nice-to-have” — it’s making it part of the platform’s core. We’ve discussed this many times before, so here’s the snapshot:
- Uma™ usage up 24% QoQ.
- Proposal Writer increased freelancer activity by +58%.
- 75+ new AI features launched in Summer 2025 Updates.
- Uma™ conducts pre-screen interviews, prepares summaries, and suggests next steps.
- Freelancers offering AI skills earn ~40% more per hour.
Takeaway: AI is no longer optional — it’s the standard. Integrate AI into your workflow to stay competitive.
Advertising & Paid Services: Access Costs Are Rising
Back in late 2024, we noticed a growing trend toward paid features on Upwork. In 2025, this only accelerated. Ad & monetization revenue grew 17% YoY, with paid services becoming a stable revenue stream for the platform.
The biggest contributors? Connects and Freelancer Plus subscriptions. In Q2, Connects revenue grew +19% YoY, meaning freelancers are buying more “bids” to apply for jobs. Freelancer Plus subscription revenue grew 13% YoY. On top of that, Upwork’s advertising tools — like boosting your profile in search or the “Available Now” badge for Connects — are gaining traction.
What this means: Getting in front of clients increasingly comes at a cost. Plan your spending on Connects and promotions carefully — be selective and strategic.
Enterprise & New Acquisitions
Enterprise clients are becoming more central to Upwork’s strategy, even though this segment’s revenue dipped. In Q2, Enterprise revenue fell 8% YoY as large companies pulled back slightly on freelance spending. Still, Upwork made it clear it sees its future in this high-value segment — announcing acquisitions of Bubty and Ascen.
- Bubty: A modern platform for managing a wide talent pool and various contract types (freelancers, contractors, temporary staff).
- Ascen: An “Employer of Record” service that handles compliance and employee onboarding in multiple countries.
By integrating these, Upwork is creating a new subsidiary aimed at large clients — covering the full cycle from talent sourcing to onboarding and administration. In other words, Upwork wants to be more than a marketplace — it’s aiming to become a full-scale corporate outsourcing solution.
At the same time, Upwork isn’t ignoring SMBs (small and medium businesses). The Business Plus subscription saw explosive growth in Q2: GSV through Business Plus jumped +190% QoQ, active clients grew +45% in just one quarter, and a third of them are new to the platform. Clearly, SMB demand for freelance talent remains strong despite economic headwinds.
Financial Stability
Q2 brought another record quarter for Upwork: the company maintained profitability and exceeded its own guidance. Net income was $32.7M (+~50% YoY). Q1 2025 was the first strong profit quarter, and Q2 confirmed the trend — Upwork is solidly “in the black.”
Another positive indicator: Free Cash Flow of $65.6M, more than double the previous quarter. For freelancers, this means platform stability and predictability — you can confidently plan for the long term without worrying about Upwork disappearing or losing its market position.
Bottom line: Upwork in 2025 is for freelancers who can adapt and grow. AI integration and larger projects are on the rise — so upgrade your skills and go after more ambitious work. Competition is heating up — so refine your positioning and play strategically. Upwork is getting stronger and looking ahead with confidence — and you should too. Let this quarter be your signal to review your strategy and aim higher.
More Articles
Keeping the Human Mind Sharp When AI Can Do It All
16-10-2025
AI makes work easier, but thinking harder. Learn how to stay creative, critical, and human in the age of intelligent machines.
AI Workslop: Why Businesses Pay Freelancers to Fix AI
07-10-2025
AI speeds up work but often creates “workslop” - results that look complete yet lack value. Freelancers are the ones turning them into quality.
Disney Creative Strategy: How Ideas Become Reality
03-10-2025
Disney Creative Strategy: dream, plan, critique — a tool to guide ideas from imagination to real-world results.
Upwork Boost: Increasing Freelancer Profile Visibility
29-09-2025
Discover how Upwork’s Available Now badge and Profile Boost work, their costs, pros and cons, and which boost is best for freelancers or agencies.
10 Posts to Help You Get Started on Upwork
29-09-2025
We’ve gathered a set of articles to guide you through the essentials — from setting up your profile to building long-term client relationships.
Etcetera summer 2025 report
26-09-2025
Etcetera summer 2025 results: quiet season, new team members, shifting Upwork rules, and plans for an active autumn.
Upwork Feedback: a trust tool you should learn to read and write
22-09-2025
Upwork feedback is more than stars — it builds trust, shapes reputation, and guides choices. Learn how to read, request, and write reviews effectively
7 Hats: a thinking tool that saves time and nerves
08-09-2025
Instead of mixing emotions, facts, and criticism in chaos — this method by Edward de Bono helps separate thinking modes.
Upwork: From Simple Fees to Pay-to-Play
29-08-2025
Discover how Upwork’s fees evolved from flat 10% to a pay-to-play model with Connects, boosts, and variable 0-15% commissions in 2025.
Upwork Reset 2025: How to Refresh Your Freelance Strategy
25-08-2025
Discover 5 practical steps to reset your Upwork strategy in 2025: update skills, rethink pricing, optimize proposals, and grow with the market.
How to Build a Team That Won’t Fall Apart in a Crisis
22-08-2025
How to build a strong team that survives crises: Denys Safonov shares lessons from 11 years of leading the agency Etcetera through global challenges.
Upwork Q2 2025: What Changed and What It Means for Freelancers
15-08-2025
Upwork Q2 2025 results: fewer clients, bigger budgets, AI at the core, rising paid services, and strategic acquisitions shaping the platform’s future.
