TLDR
- Fiverr (FVRR) stock plunged 17.4% pre-market after 2026 revenue guidance came in far below analyst expectations.
- Q4 adjusted EPS of $0.86 beat estimates of $0.74, but revenue of $107.2M missed the $108.98M consensus.
- Full-year 2026 revenue forecast of $380–$420M signals a potential 3–12% decline from 2025 levels.
- Active buyers declined 13.6% YoY to 3.1M, though spend per buyer increased 13.3% to $342.
- Fiverr is pivoting away from low-value transactions toward higher-value work, adding to guidance uncertainty.
Fiverr (FVRR) posted a solid Q4 earnings beat on Wednesday, but investors weren’t in a forgiving mood. The stock fell 17.4% in pre-market trading after the company’s 2026 outlook badly missed Wall Street expectations.
Q4 adjusted EPS hit $0.86, clearing the $0.74 analyst estimate. Revenue came in at $107.2 million, up 3.4% year-over-year, but just under the $108.98 million consensus.
Fiverr International Ltd., FVRR
Full-year 2025 revenue grew 10.1% to $430.9 million. Adjusted EBITDA margin reached 21.3% for the year.
2026 Outlook Triggers the Selloff
The forward guidance is what rattled markets. Fiverr projected Q1 2026 revenue of $100–$108 million, short of the $112.26 million analyst estimate.
The full-year 2026 forecast of $380–$420 million was the bigger shock. It points to a potential revenue decline of 3–12% from 2025 and falls well short of the $456.80 million Street consensus.
CEO Micha Kaufman addressed the uncertainty directly, saying the company is navigating a “significant shift in AI adoption” on its platform. He added: “Humans are becoming more essential, not less.”
Fiverr tied the wide guidance range to its ongoing transformation — stepping away from low-end work to focus on higher-value transactions. The company called it “intentionally deprioritizing incremental optimization of low-end transactions.”
Platform Metrics Show a Shrinking but Higher-Spending User Base
The user data reflects the strategic shift. Annual active buyers dropped 13.6% YoY to 3.1 million. But spend per buyer rose 13.3% to $342, meaning fewer users are spending more.
Marketplace revenue fell 2.7% YoY to $71.5 million. Services revenue grew 18.2% to $35.6 million, becoming an increasingly important revenue stream.
Q4 free cash flow was $21.8 million, down 26.5% YoY. The company noted the figure included a one-time escrow payment of $5.7 million.
What the Valuation Looks Like Now
After the drop, FVRR’s valuation has fallen to levels not seen in years. The P/E ratio is 22.2, near a three-year low. P/S sits at 1.15 and P/B at 1.21, both close to historical lows.
The RSI of 24.14 puts the stock firmly in oversold territory. The analyst consensus is a moderate buy, with a price target of $32.11.
Gross margin stands at a healthy 81.11% and net margin is positive at 5.23%. However, an Altman Z-Score of 0.61 places the company in the financial distress zone, and the debt-to-equity ratio is 1.16.
On the leadership side, Esti Levy Dadon was promoted to CFO, with Ofer Katz remaining as President.
Fiverr’s market cap was approximately $483.82 million going into Wednesday’s session.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
