FVRR · Fiverr International Ltd.

Fiverr's first quarter 2026 results reflect a company in transition, with revenue declining 1.6% year-over-year to $105.5 million, yet exceeding the midpoint of its guidance. The decline was driven by a 13.6% drop in marketplace revenue to $67.1 million, as annual active buyers fell 17.8% to 2.9 million. However, annual spend per buyer increased 15.4% to $356, indicating a shift toward higher-value engagements. Services revenue surged 30% to $38.4 million, partially offsetting marketplace weakness. Gross margins improved, with GAAP gross margin up 110 basis points to 82.1% and non-GAAP gross margin up 40 basis points to 84.8%. Operating income swung to a gain of $8.5 million from a loss of $5.2 million a year ago, driven by lower operating expenses, particularly in R&D and G&A. GAAP net income rose to $8.6 million from $0.8 million, while non-GAAP net income decreased to $22.9 million from $25.0 million due to higher adjustments. Adjusted EBITDA grew to $22.6 million from $19.4 million, with margin expanding 330 basis points to 21.4%. Management commentary highlighted early momentum from an AI-led transformation, with projects over $1,000 growing at strong double-digit rates and early Fiverr Pro tests reducing mismatch rates by nearly 10%. The company raised its full-year 2026 Adjusted EBITDA guidance to $64-80 million while reiterating revenue guidance of $380-420 million, reflecting confidence in core marketplace profitability amid ongoing investments and market uncertainty.