Fiverr shares rally on profit optimism, but growth concerns persist
Improved margins and guidance lift shares, even as revenue declines and user numbers continue to fall amid AI disruption.
Shares of Fiverr rose by about 15% on Wall Street on Wednesday after the company reported better-than-expected first-quarter results.
Revenue for the first quarter of 2026 reached $105.5 million, roughly $1 million above expectations, although still down from $107.2 million in the same quarter a year earlier. Adjusted net income came in at 62 cents per share, in line with forecasts.
What appeared to drive investor enthusiasm most was an increase in the company’s adjusted profit outlook for 2026, even as its revenue forecast remains weak. Fiverr now expects adjusted operating profit of $64 million to $80 million for the year, alongside projected revenue of $380 million to $420 million. That range implies a decline of about 12% at the low end, and at best modest growth of around 2% compared with 2025.
For the second quarter, Fiverr issued a cautious outlook, forecasting revenue of $95 million to $103 million and adjusted operating profit of $16 million to $20 million, below what analysts had expected.
The company, which operates a platform connecting businesses with freelance service providers, is undergoing a significant shift amid the rise of artificial intelligence. AI tools are increasingly replacing services traditionally offered by freelancers, including translation, basic programming tasks, and design work.
As a result, the number of active buyers on the platform continued to decline, falling 18% year-over-year to 2.9 million in the first quarter. However, average spending per buyer rose 15% to $356, reflecting the company’s strategy to focus on higher-value projects. Fiverr noted that projects priced above $1,000 grew at a strong double-digit rate during the quarter.
Despite the sharp rise in its share price, Fiverr remains near historic lows, with a market capitalization of approximately $430 million, after losing about 40% of its value over the past year, even after accounting for the latest surge.
