Earnings Show Mixed Bag, Sparking Concern (Image Credits: Unsplash)
Fiverr International Ltd. watched its shares tumble sharply Thursday following the release of its fourth-quarter 2025 earnings and a cautious outlook for the coming year.
Earnings Show Mixed Bag, Sparking Concern
The freelance platform posted total revenue of $107.2 million for the quarter ended December 31, 2025, marking a 3.4% rise from the prior year.
This figure landed toward the lower end of the company’s projected range of $104.3 million to $112.3 million. Marketplace revenue, however, dipped 2.7% to $71.5 million compared with the year-earlier period. Such results highlighted underlying pressures even as overall sales edged higher. Investors appeared unimpressed, focusing instead on broader trends.
Buyer Base Shrinks as Spend Per User Climbs
Fiverr’s annual active buyers fell to 3.1 million by year-end 2025, a 13.6% drop from 3.6 million in 2024.
This decline of 500,000 users raised red flags about platform engagement. Yet the company pointed to resilience elsewhere: average annual spend per buyer increased 13.3% to $342, up from $302 the previous year. The offset suggested loyal customers were spending more generously. Still, the net effect left analysts questioning long-term growth.
- Annual active buyers: Down 13.6% to 3.1 million
- Average spend per buyer: Up 13.3% to $342
- Marketplace revenue: Declined 2.7% to $71.5 million
- Total Q4 revenue: Grew 3.4% to $107.2 million
Guidance Falls Short, Igniting Sell-Off
The real trigger for the stock’s plunge came with Fiverr’s 2026 projections, which fell well below Wall Street hopes.
First-quarter revenue is now forecasted at $100 million to $108 million, implying a potential 7% drop or slight uptick from recent levels. Full-year expectations range from $380 million to $420 million, signaling a possible 12% decline at the low end. Analysts had anticipated $112.26 million for the quarter and $456.8 million annually, per reports from Investing.com. Premarket trading saw shares slide nearly 21% to $10.79. Details appear in the company’s earnings release.
| Period | Fiverr Guidance | Analyst Expectations |
|---|---|---|
| Q1 2026 | $100M–$108M | $112.26M |
| FY 2026 | $380M–$420M | $456.8M |
AI Shift Draws Investor Scrutiny
Artificial intelligence loomed large over the earnings call, as businesses increasingly turn to AI for tasks once handled by Fiverr freelancers.
CEO Micha Kaufman acknowledged the transformation, stating it was “clear that we are living through a significant shift in AI adoption.” He maintained that humans would become “more essential, not less,” positioning Fiverr as a bridge in an “agentic economy.” Kaufman highlighted the platform’s global talent pool, outcome-based hiring, and data advantages as keys to thriving. Whether this view holds remains a focal point for observers.
Key Takeaways
- Fiverr’s Q4 revenue grew modestly, but buyer losses and revenue dips signaled challenges.
- 2026 guidance significantly trailed expectations, driving the stock lower.
- AI poses risks yet offers opportunities, per company leadership.
Fiverr’s trajectory underscores the freelance market’s vulnerabilities amid technological upheaval and shifting buyer habits – what strategies will stabilize its path forward? Share your thoughts in the comments.