Fiverr International (NYSE:FVRR – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.50 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.02), FiscalAI reports. Fiverr International had a net margin of 7.18% and a return on equity of 16.40%. The company had revenue of $97.78 million for the quarter, compared to the consensus estimate of $99.74 million. During the same quarter last year, the firm posted $0.09 earnings per share. The company’s revenue was down 10.0% compared to the same quarter last year.
Here are the key takeaways from Fiverr International’s conference call:
- Q2 revenue and profitability declined sharply: Revenue fell 10% year over year to $97.8 million, while adjusted EBITDA declined 18.3% to $17.5 million, with margin down 180 basis points to 17.9%. The decline was driven by continued compression in low-value transactional work.
- Near-term conditions worsened and guidance was reduced: Fiverr reported decelerating marketplace traffic and demand that carried into Q3, attributing some pressure to LLM updates and AI-integrated search experiences. Q3 revenue is now expected to decline 18%–26% year over year, while full-year revenue is projected to fall 14%–17%.
- Higher-value work continued to grow: Projects valued at $1,000 or more represented 15% of completed-project gross order value and grew 13% year over year on a trailing 12-month basis. Programming and technology projects above $1,000 grew 34%, while graphics and design grew 25%, with strong demand also reported for AI video, voice agents, mobile apps, and websites.
- Management cited encouraging transformation metrics: Early testing showed skill extraction resolving up to 58% of conversation mismatches, a new matching model reducing cancellations by 7%, and semantic onboarding increasing new-customer conversion by 8%. Fiverr also said its fulfillment layer reached 91% verified precision across more than 84% of tested completed projects.
- The transition will take longer and capital allocation remains conservative: Management now expects meaningful financial benefits from its shift toward high-value, end-to-end projects to take at least six quarters, beginning in Q3. Fiverr ended the quarter with $308.5 million in cash and investments, plans to protect R&D spending, and said it is not currently pursuing inorganic investments.
Fiverr International Price Performance
Shares of FVRR stock traded down $0.01 during mid-day trading on Thursday, hitting $9.20. The company had a trading volume of 2,399,520 shares, compared to its average volume of 668,124. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.85 and a quick ratio of 1.85. The stock’s 50 day moving average price is $10.64 and its 200-day moving average price is $11.69. Fiverr International has a 52-week low of $8.75 and a 52-week high of $28.00. The company has a market capitalization of $330.56 million, a P/E ratio of 11.35 and a beta of 1.39.
More Fiverr International News
- Positive Sentiment: Fiverr remained profitable, reporting $0.50 in adjusted earnings per share, up from $0.09 a year earlier. Its net margin was 6.7%, and spending per active buyer increased to approximately $368, suggesting demand is concentrating in larger, higher-value projects. Fiverr quarterly earnings report
- Positive Sentiment: Citigroup lowered its price target to $11.50 but maintained a neutral rating, leaving potential upside from recent trading levels. Fiverr is also shifting its marketplace toward longer, more complex projects where human expertise may be less vulnerable to AI substitution. Citigroup rating update
- Neutral Sentiment: Management expects a transformation period lasting roughly six quarters as it adapts the business to AI-driven changes in customer acquisition and freelance demand. The strategy could improve the quality of revenue over time, but execution remains uncertain. Fiverr transformation outlook
- Negative Sentiment: Second-quarter revenue fell 10% year over year to $97.78 million and missed the $99.74 million consensus estimate. EPS of $0.50 also came in below the $0.52 estimate. Fiverr Q2 earnings estimates
- Negative Sentiment: Fiverr forecast third-quarter revenue of $80 million-$88 million and full-year 2026 revenue of $356 million-$372 million, well below analyst estimates of $99.4 million and $402.7 million, respectively. The outlook cut, attributed to AI-related traffic and demand headwinds, triggered broad analyst caution. Oppenheimer downgraded the stock to market perform, Scotiabank to sector perform, and RBC cut its target to $9 with a sector-perform rating. Fiverr outlook reduction
Analysts Set New Price Targets
Several analysts have recently commented on the stock. The Goldman Sachs Group restated a “neutral” rating and set a $13.00 price objective (down from $26.00) on shares of Fiverr International in a research report on Thursday. Royal Bank Of Canada cut their price target on Fiverr International from $16.00 to $9.00 and set a “sector perform” rating for the company in a research note on Thursday. Scotiabank cut Fiverr International from a “sector outperform” rating to a “sector perform” rating and set a $10.00 price target on the stock. in a report on Thursday. Zacks Research upgraded Fiverr International from a “strong sell” rating to a “hold” rating in a research report on Monday, June 29th. Finally, Citigroup dropped their price objective on Fiverr International from $15.00 to $11.50 and set a “neutral” rating for the company in a research note on Thursday. Eleven research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Fiverr International currently has a consensus rating of “Reduce” and a consensus target price of $16.25.
View Our Latest Report on FVRR
Hedge Funds Weigh In On Fiverr International
Institutional investors have recently bought and sold shares of the stock. Russell Investments Group Ltd. purchased a new stake in Fiverr International in the 4th quarter worth $32,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Fiverr International during the fourth quarter valued at about $43,000. Caitong International Asset Management Co. Ltd grew its position in shares of Fiverr International by 586.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,493 shares of the company’s stock valued at $49,000 after purchasing an additional 2,130 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of Fiverr International by 4,392.6% in the second quarter. Tower Research Capital LLC TRC now owns 3,055 shares of the company’s stock worth $90,000 after purchasing an additional 2,987 shares during the last quarter. Finally, Dark Forest Capital Management LP bought a new stake in shares of Fiverr International in the third quarter worth about $220,000. 59.00% of the stock is owned by hedge funds and other institutional investors.
About Fiverr International
Fiverr International Ltd. operates an online marketplace that connects businesses and individuals with freelance talent across a wide range of professional services. Through its platform, Fiverr enables clients to procure work such as graphic design, digital marketing, writing and translation, video and animation, programming and tech, and business services. By offering a streamlined interface for ordering and delivering gig-based work, the company seeks to simplify the procurement of specialized skills on a project-by-project basis.
Founded in 2010 and headquartered in Tel Aviv, Israel, Fiverr serves clients and freelancers around the globe, with a particularly strong presence in North America and Europe.
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