Fiverr Reports Mixed Q4 Earnings, 2026 Guidance Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 hours ago
0mins
Should l Buy FVRR?
Source: seekingalpha
- Lackluster Revenue Growth: Fiverr's Q4 revenue increased by 3.4% year-over-year to $107.2 million, but marketplace revenue fell by 2.7% to $71.5 million, indicating weak market demand that could impact future growth potential.
- Decline in Active Buyers: The number of annual active buyers decreased by 13.6% to 3.1 million at the end of the quarter, suggesting a drop in user engagement that may pose a threat to the platform's long-term revenue.
- Improved Profitability: Adjusted EBITDA reached $26.5 million in Q4, up from $20.7 million a year ago, demonstrating progress in cost control despite the overall poor revenue performance.
- Cautious Future Outlook: Fiverr's guidance for FY26 revenue is set at $380 million to $420 million (midpoint $400 million), below the consensus of $452 million, reflecting the company's cautious stance on the AI market disruption, with the CEO emphasizing the importance of human resources in the future.
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Analyst Views on FVRR
Wall Street analysts forecast FVRR stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 13.100
Low
28.00
Averages
31.50
High
34.00
Current: 13.100
Low
28.00
Averages
31.50
High
34.00
About FVRR
Fiverr International Ltd is an Israel-based global marketplace that connects freelancers and businesses for digital services. At the foundation of the Company's platform lies a catalog with several categories of productized service listings, called Gigs. Each Gig has a clearly defined scope, duration, and price, along with buyer-generated reviews. Using the Company's search or navigation tools, buyers can find and purchase Gigs, such as logo design, video creation and editing, Web development, and blog writing, with varying prices. Promoted Gigs and Seller Plus provide advertising capabilities and tools for freelancers. Fiverr Workspace provides freelancers with software skills to manage business with their clients. Learning and development offerings are made through Fiverr Learn and CreativeLive. ClearVoice offers a subscription-based content marketing solution, WorkingNotWorking provides paid access to creative talent, and Stoke Talent provides a freelancer management system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fiverr's Strategic Shift Leads to Downgraded Outlook
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- Price Target Cut: BTIG reduced Fiverr's price target from $31 to $18 while maintaining a 'Buy' rating, reflecting concerns about the company's future performance amid a challenging environment.
- Profitability Decline: Needham lowered Fiverr's EBITDA estimates by 38% for FY26 and 63% for FY27, suggesting that the shift towards higher-value clients may lead to significant declines in gross merchandise value.
- Market Sentiment Shift: Despite Fiverr's shares dropping over 62% in the past year, retail sentiment on Stocktwits surged from 'bullish' to 'extremely bullish' within 24 hours, indicating a divergence in market outlook regarding the company's future.
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- Analyst Downgrades: Citi downgraded Fiverr from ‘Buy’ to ‘Neutral’ and cut the price target from $33 to $15, although the new target implies a 21.5% upside, analysts noted that the transformation plan reduces visibility over the next 12-18 months.
- Surging Demand for AI Services: Fiverr has repeatedly highlighted the booming demand for AI-related services, particularly for AI agents, workflow automation, and vibe coding, but Roth Capital cautioned that the transition to an AI-first knowledge worker marketplace will require more time and money.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Fiverr surged from ‘neutral’ to ‘extremely bullish’ compared to a week ago, with message volume jumping over 555% in the last 24 hours, indicating increased investor interest and expectations for the company's future.
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- Financial Strategy: The company is exploring options to hold off from buying while implementing necessary cost reductions.
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- Strategic Transformation Plan: CEO Micha Kaufman emphasized that Fiverr is executing a multiyear strategic transformation plan aimed at shifting the platform from a transaction-oriented marketplace to a trusted work platform for high-value projects, expected to yield tangible impacts within 4 to 6 quarters.
- Focus on High-Value Projects: Kaufman noted a 7% increase in buyers spending over $10,000 annually and a 23% growth in GMV from projects over $1,000, demonstrating the company's success in attracting high-value clients and enhancing market share.
- Future Outlook and Uncertainty: Management anticipates 2026 revenue to range between $380 million and $420 million, reflecting a year-over-year decline of 12% to 3%, highlighting the market uncertainties and short-term revenue pressures as the transformation plan is executed.
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- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
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- Guidance Downgrade: Fiverr forecasts fiscal year 2026 revenue between $380 million and $420 million, falling short of analysts' expectations of $456 million, indicating significant pressure in market competition.
- Price Target Cut: BTIG reduced Fiverr's price target from $31 to $18 while maintaining a 'Buy' rating, reflecting concerns about the company's future performance amid a challenging environment.
- Profitability Decline: Needham lowered Fiverr's EBITDA estimates by 38% for FY26 and 63% for FY27, suggesting that the shift towards higher-value clients may lead to significant declines in gross merchandise value.
- Market Sentiment Shift: Despite Fiverr's shares dropping over 62% in the past year, retail sentiment on Stocktwits surged from 'bullish' to 'extremely bullish' within 24 hours, indicating a divergence in market outlook regarding the company's future.
See More
Fiverr International's Shares Drop 8% Following Q4 Revenue Shortfall
- Fiverr's Revenue Decline: Fiverr International's shares fell by 8% following a revenue miss in their Q4 earnings report.
- Impact of Missed Estimates: The company's revenue did not meet analysts' expectations, leading to a significant drop in stock value.
See More
Fiverr's Transformation Plan Faces Challenges Amid Market Caution
- Negative Market Reaction: Fiverr International shares closed down 5.7% on Wednesday, marking a second consecutive day of sharp declines, reflecting Wall Street's caution regarding the pace of the company's transition to an AI-first strategy, resulting in a 38% drop in stock price year-to-date.
- Analyst Downgrades: Citi downgraded Fiverr from ‘Buy’ to ‘Neutral’ and cut the price target from $33 to $15, although the new target implies a 21.5% upside, analysts noted that the transformation plan reduces visibility over the next 12-18 months.
- Surging Demand for AI Services: Fiverr has repeatedly highlighted the booming demand for AI-related services, particularly for AI agents, workflow automation, and vibe coding, but Roth Capital cautioned that the transition to an AI-first knowledge worker marketplace will require more time and money.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Fiverr surged from ‘neutral’ to ‘extremely bullish’ compared to a week ago, with message volume jumping over 555% in the last 24 hours, indicating increased investor interest and expectations for the company's future.
See More
FIVERR INTERNATIONAL LTD: NEEDHAM Downgrades Rating from Buy to Hold
- Company Overview: Fiver International Ltd is facing challenges that may require significant cuts to maintain its operations.
- Financial Strategy: The company is exploring options to hold off from buying while implementing necessary cost reductions.
See More
Fiverr International Q4 2025 Earnings Call Insights
- Revenue Growth and Adjusted EBITDA: Fiverr reported Q4 2025 revenue of $107.2 million, a 3% year-over-year increase, with adjusted EBITDA of $26.5 million and a margin of 25%, indicating strong profitability amidst stable revenue.
- Strategic Transformation Plan: CEO Micha Kaufman emphasized that Fiverr is executing a multiyear strategic transformation plan aimed at shifting the platform from a transaction-oriented marketplace to a trusted work platform for high-value projects, expected to yield tangible impacts within 4 to 6 quarters.
- Focus on High-Value Projects: Kaufman noted a 7% increase in buyers spending over $10,000 annually and a 23% growth in GMV from projects over $1,000, demonstrating the company's success in attracting high-value clients and enhancing market share.
- Future Outlook and Uncertainty: Management anticipates 2026 revenue to range between $380 million and $420 million, reflecting a year-over-year decline of 12% to 3%, highlighting the market uncertainties and short-term revenue pressures as the transformation plan is executed.
See More
Palo Alto's Q2 Earnings Beat Estimates but Guidance Lowered
- Strong Earnings Report: Palo Alto Networks reported fiscal Q2 revenue of $2.59 billion, surpassing analyst expectations of $2.58 billion, indicating robust performance in the cybersecurity sector despite a challenging market environment.
- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
See More
