Fiverr International (NYSE:FVRR) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Fiverr International (NYSE:FVRR) issued its quarterly earnings results on Wednesday. The company reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.02), FiscalAI reports. The business had revenue of $97.78 million for the quarter, compared to analysts’ expectations of $99.74 million. Fiverr International had a net margin of 7.18% and a return on equity of 16.40%. The business’s quarterly revenue was down 10.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.09 EPS.

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 Stock Down 0.2%

Shares of FVRR traded down $0.01 during midday trading on Thursday, reaching $9.20. 2,399,520 shares of the stock were exchanged, compared to its average volume of 668,124. The company has a market cap of $330.56 million, a price-to-earnings ratio of 11.35 and a beta of 1.39. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.04. Fiverr International has a 12-month low of $8.75 and a 12-month high of $28.00. The firm has a 50 day simple moving average of $10.64 and a 200-day simple moving average of $11.69.

Fiverr International News Roundup

Here are the key news stories impacting Fiverr International this week:

• 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

Hedge Funds Weigh In On Fiverr International

Hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. bought a new stake in Fiverr International in the fourth quarter worth approximately $32,000. Northwestern Mutual Wealth Management Co. bought a new stake in Fiverr International in the fourth quarter worth $43,000. Caitong International Asset Management Co. Ltd increased its position in 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 worth $49,000 after buying an additional 2,130 shares during the last quarter. Tower Research Capital LLC TRC raised its holdings in Fiverr International by 4,392.6% during the second quarter. Tower Research Capital LLC TRC now owns 3,055 shares of the company’s stock valued at $90,000 after buying an additional 2,987 shares in the last quarter. Finally, Dark Forest Capital Management LP acquired a new stake in shares of Fiverr International in the third quarter worth about $220,000. Institutional investors and hedge funds own 59.00% of the company’s stock.

Analysts Set New Price Targets

FVRR has been the topic of several research analyst reports. Oppenheimer cut Fiverr International from an “outperform” rating to a “market perform” rating in a research note on Thursday. The Goldman Sachs Group reissued a “neutral” rating and issued a $13.00 price target (down from $26.00) on shares of Fiverr International in a research report on Thursday. Royal Bank Of Canada decreased their price target on shares of Fiverr International from $16.00 to $9.00 and set a “sector perform” rating for the company in a report on Thursday. Wall Street Zen upgraded shares of Fiverr International from a “hold” rating to a “buy” rating in a research note on Saturday, June 6th. Finally, Weiss Ratings downgraded shares of Fiverr International from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday. Eleven research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus target price of $16.25.

Fiverr International Company Profile

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.