Shares of Upwork Inc. (NASDAQ: UPWK) skyrocketed 23.93% in after-hours trading on Wednesday following the release of its impressive second-quarter 2025 financial results, strategic acquisition announcements, and raised full-year guidance. The freelancing platform significantly outperformed analyst expectations, demonstrating robust growth and profitability.

Upwork reported record quarterly revenue of $194.9 million, surpassing the analyst consensus estimate of $187.7 million by 3.87%. The company's adjusted earnings per share came in at $0.35, beating the expected $0.28 by a substantial 26.81%. Net income surged 47% year-over-year to $32.7 million, while adjusted EBITDA reached an all-time high of $57.1 million with a margin of 29.3%.

CEO Hayden Brown attributed the strong performance to AI features that delivered significant value to customers across the board. The company saw notable growth in AI-enabled projects, with a 30% year-over-year increase. Additionally, Upwork's Business Plus offering for mid-market clients showed impressive results, with GSV rising 190% quarter-over-quarter and the active client base growing 45%. The company also announced the acquisition of Bubty and an agreement to acquire Ascen, moves aimed at enhancing its offerings to large enterprise clients. These strategic acquisitions position Upwork to tap into a $650 billion Enterprise Total Addressable Market opportunity. Furthermore, Upwork raised its full-year 2025 guidance for both revenue and adjusted EBITDA, signaling confidence in its growth trajectory. The combination of strong financial performance, strategic acquisitions, and optimistic outlook appears to have fueled investor enthusiasm, leading to the significant after-hours stock price surge.