Upwork's GSV Per Client Rises: What's Fueling It and Can It Last?

Freelancing platform Upwork Inc.’s UPWK latest results show that clients are spending more on the platform and at a better pace. Gross Services Volume (GSV), the all-in value of every payment, fee, and service run through Upwork, reached $988 million in Q1 2025, topping management’s expectations.

GSV per active client, measured on a rolling 12-month basis, climbed 3% year over year. This was the first year-over-year growth in six quarters and the third straight sequential increase.

The improvement wasn’t just from one client segment. Every client tier showed growth, with GSV from large customers jumping 11%. So, where’s the lift coming from? First, product enhancements like smarter search and better talent matching are leading to higher customer spend.

Second, Upwork’s growing exposure to artificial intelligence (AI)-related work is showing up in the numbers. AI-related GSV surged 25% year over year, driven by categories like prompt engineering, which saw 52% growth. These jobs aren’t just more frequent—they also come with 40% higher freelancer earnings, boosting overall platform volume.

Third, Upwork’s Business Plus plan is helping too. It is pulling in larger clients—many brand-new to the platform—who tend to spend more once they are onboard and stick around longer. Management has trimmed broad marketing, yet the mix shift toward higher-value customers has lifted fixed-price and hourly spend per contract.

On top of that, early signs from Uma, Upwork’s in-platform AI assistant, are promising. It’s already contributing to higher proposal volume and faster hiring, with management expecting a bigger impact in the coming quarters.

For investors, rising GSV per client matters more than raw user growth. Higher average spend points to stronger network effects, better unit economics, and a platform that can scale without piling on marketing costs. If Upwork can keep nudging this metric higher—through AI demand, premium tiers and smarter matching—it may be laying the groundwork for a more durable growth cycle into 2026 and beyond.

The Zacks Rundown for Upwork

Shares of Upwork have lost more than 18% year to date compared with the industry’s decline of 10.5%. Upwork’s closest publicly traded competitor is Fiverr International FVRR. Fiverr’s shares have contracted almost 8% so far this year.

From a valuation standpoint, UPWK trades at a forward price-to-sales ratio of 2.29, lower than the industry and its own 5-year average. Meanwhile, Fiverr is trading at a slightly higher multiple of 2.32X.

See how the Zacks Consensus Estimate for Upwork’s earnings has been revised over the past 60 days.

Upwork stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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