Shares of Upwork Inc. (NASDAQ: UPWK) skyrocketed 20.74% in after-hours trading on Wednesday following the release of its impressive second-quarter 2025 financial results and strategic acquisition announcements. 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%.

Adding to the positive sentiment, Upwork 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 the company 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.