Fiverr reported second-quarter results on Wednesday that missed Wall Street expectations on both revenue and earnings, while sharply lowering its full-year outlook as the rapid adoption of generative AI continues to reshape the freelance economy and replace some lower-complexity digital work.<\/p>\n
The Tel Aviv-based freelance marketplace reported second-quarter revenue of $97.8 million, down 10% from $108.6 million in the same period last year and below analyst expectations of $99.8 million. Adjusted net income came in at $0.50 per share, missing consensus estimates by two cents.<\/p>\n
Fiverr\u2019s shares fell 20% in pre-market trading following the report. The company began the day with a market cap of around $415 million, down over 40% in 2026.<\/p>\n
The decline was driven primarily by weakness in lower-complexity categories, including basic copywriting, simple graphic design and entry-level programming, where customers are increasingly turning to generative AI tools instead of hiring human freelancers.<\/p>\n
Marketplace revenue, which excludes other businesses such as Fiverr Business and advertising-related products, declined 15.5% year-over-year to $63.1 million. The number of annual active buyers fell 21.9% to 2.7 million.<\/p>\n
“Our second-quarter results reflect a market that is changing faster than expected, driven by rapid AI adoption,” said Fiverr CEO Micha Kaufman.<\/p>\n
In response to the disruption, Fiverr is attempting to reposition itself around more complex, higher-value projects that require human expertise, project management and collaboration.<\/p>\n
While the overall buyer base contracted, spending among remaining customers increased. Average annual spend per buyer rose 15.6% year-over-year to $368, while the number of customers completing projects worth more than $1,000 increased 13%.<\/p>\n
High-value demand was particularly strong in some categories, with gross order volume for large programming and technology projects rising 34% year-over-year and graphics and design projects increasing 25%.<\/p>\n
Fiverr is also investing in proprietary AI-powered matching tools and quality verification systems aimed at helping businesses find freelancers for larger, multi-stage projects. However, company executives said the financial benefits of the transition are expected to take several quarters to materialize.<\/p>\n
Fiverr significantly lowered its expectations for the remainder of 2026. Third-quarter 2026 revenue is expected at $80 million-$88 million, representing an 18%-26% year-over-year decline and below Wall Street expectations of $99.26 million. Full-year 2026 revenue was reduced to $356 million-$372 million, representing a 14%-17% annual decline and below previous analyst expectations of $402.1 million.<\/p>\n
Despite the revenue pressure, Fiverr remained profitable and generated $13.6 million in free cash flow during the quarter. The company ended the period with $308.5 million in cash and marketable securities.<\/p>\n
Adjusted EBITDA totaled $17.5 million, representing a 17.9% margin.<\/p>\n","protected":false},"excerpt":{"rendered":"Fiverr reported second-quarter results on Wednesday that missed Wall Street expectations on both revenue and earnings, while sharply…\n","protected":false},"author":2,"featured_media":565137,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-565136","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/565136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=565136"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/565136\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/565137"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=565136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=565136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=565136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}