This study aims to determine the effect of work-from-home (WFH) arrangements on employee performance and work stress, with work motivation as a mediating variable, in a BPO company in the Philippines, Microsourcing Philippines Inc. The profiles of respondents were presented in terms of sex and highest educational attainment. The study seeks to understand how WFH setups may improve employee performance in terms of productivity and task completion, as well as its effect on work stress, while examining the mediating role of work motivation. The researcher applied quantitative methods using descriptive research and gathered data through a survey. Statistical analyses included mean, standard deviation, structural equation modelling, and path analysis. Findings revealed that employees generally meet and exceed performance expectations (overall mean = 4.12, SD = 0.163), experience below-average work stress (overall mean = 2.64, SD = 1.476), and show a positive perception of the WFH setup (overall mean = 6.07, SD = 1.067) while demonstrating high work motivation (overall mean = 5.96, SD = 0.836). Path analysis indicates that WFH significantly influences work motivation (p < .001), but it does not have a direct significant effect on employee performance or work stress, and work motivation does not mediate these relationships. The model explains 33.5% of the variance in employee performance, 41.2% in work motivation, and 50% in work stress, suggesting that while WFH enhances motivation, other factors contribute to performance and stress outcomes.