Upwork Inc. (UPWK) experienced a significant after-hours plunge of 23.28% following the release of its quarterly financial results.
The sharp decline came despite the company reporting fourth-quarter revenue and earnings that exceeded analyst expectations. The primary driver behind the sell-off was the company's first-quarter outlook, which fell short of market forecasts. Upwork guided for Q1 revenue in the range of $192 million to $197 million, below the consensus estimate of approximately $200.8 million. Similarly, its Q1 adjusted earnings per share guidance of $0.26 to $0.28 missed the expected $0.34.
While the full-year 2026 revenue and earnings guidance was largely in line with estimates, the disappointing near-term forecast overshadowed the positive Q4 performance, leading to a substantial negative reaction in the extended trading session.