Fiverr (NYSE:FVRR) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsMali Greenstein - VP of Investor RelationsMicha Kaufman - Founder and CEOOfer Katz - President and CFOConference Call ParticipantsBernie McTernan - AnalystEric Sheridan - Equity Research AnalystMarvin Fong - Equity Research AnalystMatthew Condon - AnalystNat Schindler - Senior AnalystRohit Kulkarni - Equity Research AnalystRonald Josey - Equity Research AnalystNone - AnalystNone - AnalystNone - AnalystOperator``Please ...

Fiverr (NYSE:FVRR) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker9Please note this event is being recorded. I would now like to turn the conference over to Emily Greenstein, Investor Relations. Please go ahead.Speaker2Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the fourth quarter that ended December 31, 2025. Joining me on the call today are Micha Kaufman, Founder and CEO, and Ofer Katz, President and CFO. Before we start, I ...

Core Insights - Fiverr International Ltd. reported strong financial results for Q3 2025, highlighting a commitment to AI transformation and operational efficiency, with the highest-ever Adjusted EBITDA and margin for a quarter [2][6]. Financial Performance - Q3 2025 revenue reached $107.9 million, an increase of 8.3% year-over-year from $99.6 million in Q3 2024 [7]. - Marketplace revenue was $73.6 million, down 2.0% from $75.1 million in Q3 2024 [7]. - Services revenue grew significantly to $34.3 million, a 39.6% increase from $24.6 million in Q3 2024 [7]. - Adjusted EBITDA for Q3 2025 was $24.2 million, compared to $19.7 million in Q3 2024, with an Adjusted EBITDA margin of 22.4%, up from 19.7% [7][21]. Key Metrics - Annual active buyers as of September 30, 2025, were 3.3 million, down 11.7% from 3.7 million a year earlier [7]. - Annual spend per buyer increased to $330, up 11.7% from $295 in the previous year [7]. - The marketplace take rate for the twelve months ended September 30, 2025, was 27.6%, a slight decrease from 27.8% [7]. Future Outlook - The company provided guidance for Q4 2025 revenue between $104.3 million and $112.3 million, reflecting year-over-year growth of 1% to 8% [5]. - Full-year 2025 revenue is expected to be between $428 million and $436 million, indicating a growth of 9% to 11% [5]. - Continued investments in AI and upmarket services are anticipated to drive future growth [6][7].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $108.6 million, representing a 15% year-over-year growth [14] - Adjusted EBITDA for Q2 was $21.4 million, with an adjusted EBITDA margin of 20%, an improvement of 80 basis points from the previous year [14] - Free cash flow totaled $25 million, up 21% year-over-year [14] Business Line Data and Key Metrics Changes - Marketplace revenue was $74.7 million, driven by 3.4 million active buyers and a spend per buyer of $318 [15] - Services revenue reached $34 million, representing a year-over-year growth of 8431% [16] - Over 50% of GMV on the Marketplace came from transactions over $200, indicating a shift towards larger, more complex projects [16] Market Data and Key Metrics Changes - Strong demand for AI-related services was noted, with categories such as AI agents and workflow automation experiencing five to tenfold growth over the past six months [6][75] - The company is seeing robust growth in key verticals such as programming and tech, digital marketing, and video animation [5][64] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its marketplace, with plans to integrate Fiverr's talent network into AI-driven workflows [9] - Fiverr aims to expand its value-added services and maintain a balanced approach between growth and profitability [15] - The company is committed to reaching a 25% adjusted EBITDA margin by 2027 and achieving a 40% CAGR in free cash generation for the three years ending in 2027 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural tailwinds within the marketplace segment, particularly around AI and upmarket adoption, which are expected to offset broader economic headwinds [16] - The company reiterated its revenue and adjusted EBITDA guidance for the full year 2025, expecting revenue to be in the range of $425 million to $438 million [17] Other Important Information - The company is actively exploring strategic partnerships to enhance its AI capabilities and improve customer experiences [58] - Fiverr Go, an AI assistant for freelancers, has shown strong engagement and conversion uplift [12] Q&A Session Summary Question: What key investments are needed to unlock continued scaling of service revenue? - Management expects service revenue to continue growing at a healthy double-digit rate, driven by value-added services and synergies between AutoDS and Fiverr [23] Question: Can you elaborate on the managed services offering and the progress in upmarket strategy? - Managed services are part of the upmarket strategy, with over 50% of business coming from transactions over $200, indicating a shift towards more sophisticated customer needs [28] Question: How is the balance of supply and demand in the marketplace? - The company is in a good position regarding supply and demand, with AI-native freelancers enhancing service offerings [36] Question: What is the outlook for marketplace growth? - Management believes that efforts around AI and upmarket strategies will lead to growth, even without macroeconomic improvements [38] Question: How does AI impact entry-level jobs and demand for Fiverr services? - AI is elevating the capabilities of entry-level workers, allowing them to perform more complex tasks, which benefits Fiverr's service offerings [42] Question: Can you provide insights on the mix of recurring versus transactional revenue in services? - Services revenue is primarily from promoted gigs, Seller Plus, and AutoDS, with ongoing momentum in all areas [46] Question: What is the visibility on marketplace growth and the mix shift between complex and simple services? - Management is optimistic that the mix shift towards complex services will eventually lead to marketplace growth, despite current macroeconomic conditions [54]

Company Overview and Financial Performance - Fiverr's mission is to change how the world works together[11] - In 2024, Fiverr's revenue reached $391.5 million, with an adjusted EBITDA margin of 19% and GMV of $1.1 billion[12] - This is a significant increase from 2019, where revenue was $107.1 million, with an adjusted EBITDA margin of 16.8% and GMV of $293.5 million[12] Market Opportunity and Business Model - Fiverr estimates a $247 billion U S addressable market across creative, technical, and professional services[27] - The company operates with a marketplace take rate of 27.7% as of Q1 2025[96] - 68% of revenue in 2024 came from repeat buyers[63] Growth Strategies and Future Outlook - Strategic priorities include going upmarket, expanding services, and investing in AI to drive double-digit revenue growth in 2025[55] - The company is targeting a 25% adjusted EBITDA margin by 2027[78] - Fiverr aims to generate $300 million in cumulative free cash flow between 2025 and 2027, representing a 14% free cash flow CAGR from 2024 to 2027[78] Q1 2025 Financial Results - Marketplace revenue for Q1 2025 was $77.7 million with 3.536 million annual active buyers[96] - Services revenue for Q1 2025 was $29.5 million[96]

Core Insights - The freelance economy is rapidly evolving, with Upwork Inc. (UPWK) and Fiverr International (FVRR) at the forefront, each adopting distinct strategies to leverage AI and cater to enterprise clients [1][5] Upwork Overview - Upwork reported record first-quarter results for 2025, with revenues of $193 million, a 1% year-over-year increase, and adjusted EBITDA of $56 million, reflecting a 29% margin [6] - The company is transitioning to an AI-native platform, utilizing its in-house AI assistant, Uma, which has seen a 52% increase in user engagement and a 58% rise in proposal-writing usage [7] - Upwork has access to over 80,000 AI specialists, addressing the talent gap as 63% of employers report a lack of skilled personnel [8] - For 2025, Upwork reaffirmed its revenue target of $740-$760 million and raised its adjusted EBITDA guidance to $190-$200 million, with EPS forecasted at $1.14-$1.18 [10] Fiverr Overview - Fiverr's first-quarter 2025 revenues increased by 15% year-over-year to $107.2 million, with an adjusted EBITDA margin of 18% [11] - The classic marketplace revenue declined by 0.8% to $77.7 million, while service revenues surged by 94% to $29.5 million, now representing 27.5% of total revenues [12] - Fiverr is evolving into a full-service work platform, focusing on larger clients and enhanced tools like Fiverr Pro and Fiverr Go, which are designed to improve buyer-seller interactions [13][15] - The company anticipates full-year revenues between $425-$438 million, with adjusted EBITDA margins expected to reach 20% in 2025 [11] Comparative Analysis - Upwork is positioned as a leader in AI integration within the freelance market, while Fiverr is gaining traction in high-margin services but faces challenges with a shrinking active buyer base [19][20] - Upwork's focus on AI and operational strength makes it a more compelling investment choice, currently rated as a Zacks Rank 1 (Strong Buy), compared to Fiverr's Zacks Rank 3 (Hold) [21]

Summary of Fiverr (FVRR) FY Conference Call - May 13, 2025 Company Overview - Fiverr is a global marketplace connecting freelancers and businesses through digital services across more than 700 categories, including graphic design, copywriting, voice-over, music, and AI services [1][2]. Market Potential - The total addressable market (TAM) for freelancing in the U.S. is estimated at approximately $250 billion, with significant international expansion potential [4]. - Awareness of the efficiency of digital marketplaces is growing, as traditional methods of finding freelancers remain fragmented and outdated [5][6]. Strategic Focus - Fiverr has shifted its focus from micro services to engaging larger customers with complex needs, resulting in transactions ranging from tens to hundreds of thousands of dollars [7]. - The company aims to enhance its margins by expanding its Fiverr Pro offering and targeting mid-market to enterprise customers [8][9]. Product Development and AI Integration - Fiverr is evolving from a marketplace to a platform, offering a suite of tools for project management and engagement with talent [9][10]. - The introduction of AI tools aims to improve customer experience and streamline the search and engagement process within the marketplace [15][18]. - Fiverr Go, a new product, serves as a personalized AI assistant for creators, significantly improving conversion rates and customer interactions [33][34]. Financial Performance and Growth - Fiverr has seen strong growth in service revenue, driven by seller tools, promoted leads, and app integrations [45][46]. - The company expects seller plus revenue to contribute approximately 30% of overall revenue in the current year [48]. - Revenue growth outlook for 2025 is projected at 10%, with potential for double-digit growth as macroeconomic conditions improve [49][50]. Profitability and Expense Management - Fiverr maintains a disciplined approach to managing expenses while improving EBITDA, with a long-term target of 25% net margin by 2027 [53][55]. - The company is focused on optimizing marketing spend and increasing lifetime value for customers [54]. Market Sentiment and SMB Focus - The sentiment in the small and medium-sized business (SMB) sector is currently negative, impacting growth, but Fiverr believes that as market conditions improve, SMBs will invest more in their growth [40][41]. - The average spend for SMBs is approximately $15,000 per year, indicating significant room for growth in both spend and active buyers [51]. Future Outlook - Fiverr's leadership emphasizes the importance of adapting to changing market dynamics and leveraging AI to enhance the marketplace experience [36][37]. - The company is optimistic about the future, believing that the evolution of work and the integration of AI will create new opportunities for entrepreneurs and businesses [60][61]. Additional Insights - The CEO's candid communication about the impact of AI on jobs highlights the need for professionals to adapt and leverage technology to remain relevant [20][21][22]. - Fiverr's approach to AI aims to empower creators rather than replace them, fostering a collaborative environment for innovation [31][32].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a spend per buyer of $3.09, with a marketplace take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, driven by Fiverr Ads, SellerPlus, and AutoDS [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [7] - Fiverr's strategic focus on high-value buyers has allowed the company to maintain growth despite a flat macroeconomic environment [61] Company Strategy and Development Direction - The company has set three strategic priorities for 2025: strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [8] - Fiverr Pro has been a key growth driver, with successful large deals closed without a traditional sales organization [9] - Fiverr Go has shown strong engagement, with over 6,000 sellers activated and 200,000 buyers interacting with the product [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, raising guidance for both revenue and adjusted EBITDA [19] - The company anticipates services revenue to exceed 30% of total revenue for the full year 2025 [18] - Management noted that the macroeconomic environment remains stable, with no significant changes expected [60] Other Important Information - The Board authorized an additional $100 million for the stock repurchase program, reflecting confidence in long-term opportunities [16] - The company is on track to reach a 25% adjusted EBITDA target by 2027 and aims for a 14% CAGR in free cash generation for the three years ending in 2027 [20] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion, with strong initial results [27] - The demand for freelancing is stable, with Q1 showing better opportunities than in previous years [31] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of Fiverr Go, which provides instant results and enhances their confidence in decision-making [42] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as more value-added services are introduced [52] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during times of market volatility [59] Question: Sales and marketing opportunities in Q1 - Management indicated that they seized marketing opportunities based on geo, channel, and category analysis, which will continue into Q2 [89] Question: Incentives for Fiverr Pro customers - Fiverr Pro offers a unique experience with high-touch services and exclusive products, incentivizing buyers to engage and spend more [90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, and accounted for 27.5% of total revenue in Q1 [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [7] - The company has seen strong engagement for Fiverr Go, with over 6,000 sellers activated and more than 200,000 buyers interacting with the product [11] Company Strategy and Development Direction - The company’s strategic priorities include strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [8] - Fiverr Pro has been a focus, with enhancements to the product offerings aimed at driving buyer conversion and maximizing customer engagement [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, raising guidance for both revenue and adjusted EBITDA [19] - The macroeconomic environment is viewed as stable, with opportunities for growth identified in business solutions [30] Other Important Information - The board authorized an additional $100 million for the stock repurchase program, reflecting confidence in long-term business opportunities [16] - The company expects services revenue to exceed 30% of total revenue for the full year 2025 [18] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion rates, with strong initial results [26][30] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of the service, which provides instant results and enhances their confidence in decision-making [41] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as more value-added services are introduced [50] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during periods of market volatility [58] Question: Sales and marketing opportunities in Q1 - The company capitalized on various opportunities across different channels and geographies, which contributed to strong performance in Q1 [88] Question: Incentives for Fiverr Pro customers - Customers are incentivized to engage with Fiverr Pro through exclusive services, account management, and rewards for spending above a certain threshold [90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, and accounted for 27.5% of total revenue in Q1 [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [6] - The company has seen strong engagement for Fiverr Go, with over 6,000 sellers activated and over 200,000 buyers interacting with the product [11] Company Strategy and Development Direction - The company’s strategic priorities for 2025 include strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [7] - Fiverr Pro has been a key focus, with enhancements to product offerings aimed at driving buyer conversion and maximizing customer leads [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, citing a stable demand environment and successful execution of strategic initiatives [6][19] - The company raised its full-year 2025 revenue guidance to a range of $425 million to $438 million, reflecting a year-over-year growth of 9% to 12% [19] Other Important Information - The Board authorized an additional $100 million for the stock repurchase program, indicating strong confidence in long-term opportunities [16] - The company is on track to reach a 25% adjusted EBITDA target by 2027 and aims for a 14% CAGR in free cash generation for the three years ending in 2027 [20] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion, with strong initial results and plans for scaling across more categories [24][25] - The demand for freelancing remains stable, with Q1 showing better opportunities than in the past two years [29] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of Fiverr Go, which provides instant responses and enhances their confidence in decision-making [39] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as a percentage of total revenue [46] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during times of market volatility [54] Question: Sales and marketing opportunities in Q1 - The company capitalized on various opportunities across geographies and channels, which contributed to strong performance in Q1 [84] Question: Incentives for Fiverr Pro customers - Customers are incentivized to engage with Fiverr Pro through exclusive access to high-tier sellers and additional services that enhance their experience [85]