Fiverr Q2 revenue falls 10%, misses estimates on AI shift

Fiverr International

29/07/2026 06:15

Overview
Freelance marketplace's Q2 revenue fell 10% yr/yr, missing analyst expectations
Q2 pretax profit missed analyst estimates
Company cites rapid AI adoption as driving shift toward higher-value projects

Outlook
Fiverr sees Q3 2026 revenue between $80 mln and $88 mln
Company expects FY 2026 revenue of $356 mln to $372 mln, down 14-17% y/y
Fiverr anticipates persistent weakness in categories most exposed to AI automation

Result Drivers
AI IMPACT - Co said rapid AI adoption reduced demand for low-value, transactional work and created headwinds in categories exposed to automation
UPMARKET SHIFT - Co said it is transitioning from a transaction-oriented marketplace toward a platform for higher-value projects, with 13% y/y growth in clients completing $1,000+ projects
PLATFORM UPGRADES - Co implemented infrastructure and matching improvements, including live deployment of proprietary Knowledge Graph, to support higher-value project outcomes

Company press release: ID:nGNX10x2h9

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$97.78 mln
$99.72 mln (10 Analysts)
Q2 EPS
 
$0.12
 
Q2 Net Income
 
$4.47 mln
 
Q2 Pretax Profit
Miss
$6.03 mln
$16.73 mln (4 Analysts)
Q2 Gross Profit
 
$79.93 mln
 
Q2 Operating Income
 
$4.38 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Fiverr International Ltd is $16.00, about 38.1% above its July 28 closing price of $11.59
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)