Upwork Inc. (NASDAQ: UPWK) saw its stock price surge 20.74% in after-hours trading following the release of its impressive second-quarter 2025 financial results. The freelancing platform company not only beat analyst estimates but also announced strategic acquisitions, driving investor enthusiasm.

Upwork reported record Q2 revenue of $194.9 million, a 1% increase year-over-year and surpassing the analyst consensus estimate of $187.7 million. The company's net income soared 47% to $32.7 million, with diluted earnings per share rising to $0.24 from $0.17 in the same quarter last year. Adjusted earnings per share came in at $0.35, significantly beating the analyst estimate of $0.28.

The company's profitability metrics were particularly impressive, with adjusted EBITDA reaching $57.1 million and achieving an all-time high adjusted EBITDA margin of 29.3%. This strong performance led Upwork to raise its full-year 2025 guidance for both revenue and adjusted EBITDA, further fueling investor optimism. Additionally, Upwork announced the acquisition of Bubty and an agreement to acquire Ascen, strategic moves aimed at enhancing its offerings to large enterprise clients and tapping into a $650 billion Enterprise Total Addressable Market opportunity. These factors combined to drive the significant after-hours stock price increase, as investors reacted positively to Upwork's strong financial results and growth prospects.