Upwork Stock Down 11% This Past Year, and One Investor Just Exited a $3 Million Stake
Key Points
Alternative Investment Advisors exited 161,997 shares of Upwork in the fourth quarter.
The quarter-end position value fell by $3.01 million, reflecting the complete exit.
Upwork represented approximately 1.37% of AUM in the prior quarter, making the exit notable for fund allocation.
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Alternative Investment Advisors sold out its entire stake in Upwork (NASDAQ:UPWK) during the fourth quarter, according to a February 24, 2026, SEC filing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 24, 2026, Alternative Investment Advisors sold all 161,997 shares of Upwork during the fourth quarter. The position’s quarter-end value declined by $3.01 million, reflecting both the sale and stock price movements.
What else to know
- The fund sold out of Upwork, which accounted for 1.4% of assets under management in the previous quarter.
- Top holdings after the filing:
- NYSEMKT: IVV: $140.95 million (61.1% of AUM)
- NYSEMKT: DYNF: $8.45 million (3.7% of AUM)
- NYSEMKT: OEF: $8.09 million (3.5% of AUM)
- NYSEMKT: BINC: $7.90 million (3.4% of AUM)
- NASDAQ: MBB: $6.71 million (2.9% of AUM)
- As of Thursday, Upwork shares were priced at $13.85, down 11% over the past year and well underperforming the S&P 500’s roughly 16% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $787.78 million |
| Net Income (TTM) | $115.42 million |
| Price (as of Thursday) | $13.85 |
| One-Year Price Change | -11% |
Company snapshot
- Upwork provides a global online work marketplace connecting businesses with independent professionals and agencies across fields such as software development, design, marketing, and customer service.
- The firm facilitates talent sourcing, contracting, and payment services for freelancers and clients via its digital platform.
- It serves businesses seeking flexible, remote talent solutions for a wide range of skill categories and project types.
Upwork Inc. operates one of the largest online talent marketplaces, enabling organizations to efficiently access and manage remote professionals worldwide. The company leverages a scalable digital platform to streamline the sourcing, contracting, and payment processes for both clients and freelancers.
What this transaction means for investors
This exit highlights the tension between solid profitability and uneven stock performance in platform businesses. Upwork just delivered record full-year revenue of $787.8 million and $115.4 million in GAAP net income for 2025. Adjusted EBITDA climbed 35% to $225.6 million, with margins expanding to 29%. Free cash flow reached $223.1 million, up 60% year over year.
Yet the shares trade around $13.85, down 11% over the past year and trailing the broader market. Active clients slipped 6% to 785,000, even as GSV per active client rose 7%. Growth, meanwhile, is modest, with 2026 revenue guided to $835 million to $850 million.
For a portfolio otherwise dominated by broad index ETFs like IVV and OEF, this sale reinforces a lower risk posture. Long-term investors should weigh cash generation and AI-driven marketplace expansion against client contraction and mid-single-digit growth. Upwork is no longer a turnaround story; it’s a cash-generative marketplace being asked to prove it can reaccelerate.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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