TLDR
- Fiverr (FVRR) stock dropped 17.4% pre-market after 2026 guidance badly missed Wall Street estimates.
- Q4 EPS of $0.86 beat the $0.74 estimate, but revenue of $107.2M narrowly missed the $108.98M consensus.
- Full-year 2026 revenue guidance of $380–$420M implies a potential 3–12% decline versus 2025.
- Annual active buyers fell 13.6% YoY to 3.1M, while spend per buyer rose 13.3% to $342.
- CEO cited AI adoption shifts and a strategic pivot away from low-value transactions as reasons for wide guidance range.
Fiverr International (FVRR) beat Q4 earnings expectations on Wednesday, but that wasn’t enough to satisfy investors. Weak 2026 guidance sent the stock down 17.4% in pre-market trading.
Fiverr International Ltd., FVRR
Q4 adjusted EPS came in at $0.86, ahead of the $0.74 analyst estimate. Revenue of $107.2 million grew 3.4% year-over-year but fell just short of the $108.98 million consensus.
For the full year 2025, revenue grew 10.1% to $430.9 million, with adjusted EBITDA margin reaching 21.3%.
Guidance Sends Stock Lower
The selloff was driven by the forward outlook. Fiverr guided Q1 2026 revenue at $100–$108 million, well below the $112.26 million analysts had penciled in.
The full-year 2026 forecast of $380–$420 million was even harder to swallow. That implies revenue could fall 3–12% compared to 2025 and sits far below the $456.80 million Street estimate.
CEO Micha Kaufman pointed to shifting AI adoption patterns. “We are seeing a profound migration on our marketplace where humans are becoming more essential, not less,” he said.
Fiverr linked the wide guidance range to “elevated uncertainty” as it executes a transformation plan, intentionally stepping back from low-end transactions to focus on higher-value work.
Buyer Numbers Fall, Spend Per Buyer Climbs
Marketplace metrics were mixed. Annual active buyers dropped 13.6% YoY to 3.1 million. Spend per buyer, however, rose 13.3% to $342 — the buyers staying on the platform are spending more.
Marketplace revenue fell 2.7% YoY to $71.5 million, while services revenue grew 18.2% to $35.6 million.
Free cash flow for Q4 was $21.8 million, down 26.5% YoY, though that included a one-time escrow payment of $5.7 million.
Valuation After the Drop
With the stock battered, valuation metrics have moved to multi-year lows. The P/E ratio sits at 22.2, near its three-year low. P/S is 1.15 and P/B is 1.21, both close to historical lows. The RSI of 24.14 puts FVRR in oversold territory.
Analyst consensus is a moderate buy with a $32.11 price target.
Gross margin remains strong at 81.11% and net margin is a positive 5.23%. The Altman Z-Score of 0.61 does flag financial distress risk, and the debt-to-equity ratio stands at 1.16.
Esti Levy Dadon was promoted to CFO as part of a leadership reshuffle, with Ofer Katz continuing as President.
Fiverr’s market cap stood at approximately $483.82 million ahead of Wednesday’s session.
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