Fiverr Stock Hits 52-Week Low - Here's Why
Fiverr International Ltd. (NYSE:FVRR) stock plunged to a new 52-week low in premarket trading Wednesday after the freelance marketplace delivered mixed fourth-quarter results and issued a sharply weaker-than-expected 2026 outlook.
While earnings topped estimates and margins expanded, slowing revenue growth, a double-digit drop in active buyers, and soft forward guidance rattled investors, sending the stock down more than 13%.
The company’s quarterly sales growth of 3.4% year over year to $107.17 million missed the analyst consensus estimate of $109.05 million.
Fiverr reported adjusted earnings per share of 86 cents, beating the analyst consensus estimate of 72 cents.
Key Metrics
Marketplace revenue slipped to $71.5 million in the fourth quarter of 2025, down 2.7% from $73.5 million a year earlier.
The platform counted 3.1 million annual active buyers as of December 31, 2025, a 13.6% drop from 3.6 million the prior year.
Despite fewer buyers, annual spend per buyer rose 13.3% to $342, compared with $302 a year ago.
The marketplace take rate for the twelve-month period ended December 31, 2025, edged down to 27.7%, up from 27.6% a year earlier.
Meanwhile, services revenue climbed 18.2% year over year to $35.6 million in the fourth quarter of 2025, up from $30.2 million in the year-ago quarter.
Margin Expansion and Cash Position
The adjusted gross margin rose 70 basis points to 84.7%, while the adjusted EBITDA margin expanded 470 basis points to 24.7%.
The operating income for the quarter was $5.90 million, compared to a loss of $(5.88) million last year.
As of December 31, 2025, Fiverr generated $21.87 million in operating cash flow and held $446.18 million in cash and equivalents.
Micha Kaufman, the company’s founder and CEO, emphasized that the company is experiencing a major shift in AI adoption, with the marketplace evolving to make human talent more essential.
Fiverr aims to remain the bridge between businesses and top human talent by embracing an agentic economy, where AI assists in managing complexity.
Kaufman shared his confidence in the company’s multi-year plan to lead this transition.
Ofer Katz, Fiverr’s CFO, highlighted the company’s record adjusted EBITDA margin as a sign of strong business health and progress in pivoting upmarket.
Outlook
Fiverr expects first-quarter fiscal 2026 revenue of $100.00 million-$108.00 million, against the analyst consensus estimate of $112.21 million.
It expects an adjusted EBITDA of $19 million-$23 million.
Fiverr now expects fiscal 2026 revenue of $380.00 million-$420.00 million versus the analyst consensus estimate of $457.70 million.
It expects an adjusted EBITDA of $60 million-$80 million.
announced executive leadership changes aimed at supporting long-term growth and increasing operational complexity.
Leadership Changes
The company announced executive leadership changes aimed at supporting long-term growth and increasing operational complexity.
Ofer Katz will remain President but will step down from the CFO role to focus on strategic investments and mergers and acquisitions.
Esti Levy Dadon has been promoted to CFO. A nearly decade-long veteran at Fiverr, she previously served as EVP of Finance and will now also oversee additional business and operational responsibilities.
The company also created a new Chief Business Officer position, appointing Jinjin Qian to the role. She will lead revenue, talent, fulfillment, and business operations after seven years heading Investor Relations and Strategy.
FVRR Price Action: Fiverr shares were down 13.13% at $11.38 during premarket trading on Wednesday. The stock is trading at a new 52-week low.
Image via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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