TLDR
- Fiverr (FVRR) beat Q4 earnings with EPS of $0.86 vs. $0.74 expected, but revenue of $107.2M missed estimates of $108.98M.
- Stock fell 17.4% in pre-market trading after weak 2026 guidance spooked investors.
- Full-year 2026 revenue forecast of $380–$420M implies a potential 3–12% decline, well below the $456.80M consensus.
- Annual active buyers dropped 13.6% YoY to 3.1M, though spend per buyer rose 13.3% to $342.
- CEO cited “elevated uncertainty” and a shift in AI adoption as key factors behind the wide guidance range.
Fiverr International (FVRR) reported a Q4 earnings beat on Wednesday, but weak 2026 guidance sent the stock tumbling 17.4% in pre-market trading.
#Fiverr International Ltd. $FVRR, Q4-25.
Results:
📊 Adj. EPS: $0.86 🟢
💰 Revenue: $107.2M 🔴
📈 Net Income: $11.5M
🔎 Adjusted EBITDA margin expanded to 24.7% as the company continues shifting toward higher-value, complex projects and AI-native capabilities. pic.twitter.com/0KLe6PsgTJ— EarningsTime (@Earnings_Time) February 18, 2026
The company posted adjusted EPS of $0.86, topping the $0.74 analyst estimate. However, revenue of $107.2 million came in just below the $108.98 million consensus, up only 3.4% year-over-year.
For the full year 2025, Fiverr grew revenue 10.1% to $430.9 million, with adjusted EBITDA margin hitting 21.3%. Not a bad year on paper — but the market was looking ahead.
Fiverr International Ltd., FVRR
The real damage came from guidance. Fiverr projected Q1 2026 revenue between $100–$108 million, well short of the $112.26 million analysts had expected.
The full-year 2026 forecast of $380–$420 million was even more jarring. That range implies revenue could fall between 3% and 12% compared to 2025, and it sits far below the Street’s $456.80 million estimate.
CEO Micha Kaufman pointed to shifting AI adoption as a core reason for the wide guidance range. “We are seeing a profound migration on our marketplace where humans are becoming more essential, not less,” he said.
Fiverr attributed the uncertainty to its ongoing transformation plan, which involves focusing on high-value work and stepping back from low-end transactions.
Buyer Numbers Slide, But Spend Per Buyer Rises
The marketplace data told a split story. Annual active buyers fell 13.6% year-over-year to 3.1 million. That’s a meaningful drop in the user base.
On the flip side, spend per buyer climbed 13.3% to $342, suggesting the buyers who stayed are spending more. Fiverr appears to be trading volume for value.
Marketplace revenue declined 2.7% YoY to $71.5 million, while services revenue grew 18.2% to $35.6 million. The services side is clearly the growth engine right now.
Free cash flow for Q4 came in at $21.8 million, down 26.5% YoY. The company noted that figure included a one-time escrow payment of $5.7 million.
Valuation and Financial Health
With the stock already down sharply, Fiverr’s valuation metrics are catching attention. The P/E ratio sits at 22.2, near its three-year low. The P/S ratio is 1.15 and P/B is 1.21 — both close to historical lows.
The RSI of 24.14 puts the stock in oversold territory. Analyst consensus currently reflects a moderate buy with a target price of $32.11.
That said, the balance sheet carries some caution flags. The Altman Z-Score of 0.61 places Fiverr in the distress zone, which flags potential risk. The debt-to-equity ratio stands at 1.16.
Gross margin remains strong at 81.11%, and the net margin is a positive 5.23%, showing the business is still profitable at the bottom line.
On the leadership front, Ofer Katz continues as President, while Esti Levy Dadon has been promoted to CFO.
Fiverr’s market cap stood at approximately $483.82 million heading into Wednesday’s session.
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