TLDR
- Fiverr sinks on Q4 revenue miss despite profit growth
- Shares slide as guidance signals softer demand ahead
- Profit rises, but revenue shortfall rattles investors
- Marketplace slowdown weighs on Fiverr outlook
- Upmarket push grows, yet near-term pressure persists
Fiverr International Ltd. (FVRR) shares fell sharply after the company reported fourth-quarter revenue below forecasts. The stock closed at $13.10, down 8.65%, and then dropped to $10.61 in pre-market trading, a further 19.19% decline. The selloff followed mixed results, as profit improved but revenue guidance signaled near-term pressure.
Fiverr International Ltd., FVRR
Fiverr reported fourth-quarter net income of $11.5 million, reflecting continued margin discipline. The company posted earnings of 31 cents per share on a reported basis. Adjusted earnings reached 86 cents per share, excluding non-recurring costs and stock option expenses.
Revenue totaled $107.2 million and missed analyst expectations. Zacks analysts had projected quarterly revenue of $108.7 million. As a result, the shortfall weighed on sentiment despite stronger profitability.
For the March quarter, Fiverr expects revenue between $100 million and $108 million. This outlook suggests limited sequential growth and points to ongoing demand softness. Consequently, shares extended losses in pre-market trading after the announcement.
Full-Year 2025 Profit Growth Offsets Slower Marketplace Trends
For the full year 2025, Fiverr generated $430.9 million in revenue, up 10.1% year over year. The company accelerated growth compared with 8.3% expansion in 2024. Net income reached $21 million, or 56 cents per share, for the year.
Adjusted EBITDA rose 23% year over year to $92 million. The adjusted EBITDA margin expanded to 21.3%, reflecting cost discipline and operational focus. Management maintained profitability while supporting strategic initiatives.
Marketplace revenue reached $297.5 million, supported by 3.1 million annual active buyers. Annual spend per buyer increased to $342, while the marketplace take rate remained steady at 27.7%. However, softer small business demand continued to limit overall marketplace growth.
Upmarket Strategy and Services Expansion Drive Structural Shift
Fiverr continued shifting toward higher-value and more complex projects during 2025. Spend per buyer increased 13.3% year over year, accelerating from the prior year. Gross merchandise value from transactions above $1,000 rose 22.8%.
The number of buyers spending more than $10,000 annually increased 7%. This trend reflected growth in Dynamic Matching and Managed Services adoption. The company positioned these offerings to capture larger and recurring engagements.
Services revenue rose 50.9% year over year to $133.4 million. Growth stemmed from Fiverr Ads, Seller Plus, and AutoDS product adoption. Meanwhile, management initiated a multi-year transformation focused on trust, quality, and AI-enabled capabilities, and expects measurable progress within four to six quarters.
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