NEW YORK — Fiverr (NYSE: FVRR) released its full-year 2025 financial results today, revealing a company in the middle of a major transformation. While the company grew its revenue and hit record profitability levels last year, it is signaling to investors that 2026 will be a “reset” year as it bets big on AI and higher-priced services.
If you’re an investor trying to make sense of the numbers, here are the three big takeaways from the report.
1. Quality Over Quantity: Fewer Buyers, but Bigger Spenders
The most striking figure in the report is a tale of two directions. Fiverr lost about 14% of its “active buyers” last year (dropping to 3.1 million). Usually, losing customers is a red flag, but Fiverr says this is intentional.
The company is moving away from “cheap” $5 gigs and toward complex, high-value projects. The strategy seems to be working: the average spend per buyer jumped 13.3% to $342. Even more impressively, transactions over $1,000 grew by nearly 23%. In short: Fiverr is becoming a place for professional business outsourcing rather than just quick, one-off tasks.
2. A Solid 2025 Performance
Financially, 2025 was a steady year.
- Revenue: Grew 10% to $430.9 million.
- Profitability: The company reached a record “Adjusted EBITDA margin” of 21.3%, a fancy way of saying they are getting much more efficient at turning sales into actual profit.
- Cash Flow: Fiverr generated over $100 million in free cash flow, giving them a healthy “war chest” to invest in new technology.
3. The “AI Reset”: Why 2026 Looks Shaky
Despite the strong 2025, Fiverr’s stock may face pressure due to its 2026 outlook. The company warned that revenue in 2026 could actually shrink (projecting anywhere from a 12% drop to a 1% gain).
Why the slowdown? Fiverr is currently “re-architecting” its entire platform to be “AI-native.” CEO Micha Kaufman believes that AI won’t replace freelancers; instead, it will help them do more complex work. However, building these “agentic” AI tools and shifting the business model takes time and money.
The company is essentially telling investors: “We are taking a step back in 2026 to leap forward in 2027.”
Executive Shakeup
To lead this transition, Fiverr is shuffling its leadership. Long-time CFO Ofer Katz is moving to the role of President to focus on big-picture strategy and acquisitions, while Esti Levy Dadon, a 10-year veteran of the company, takes over as the new CFO.
The Bottom Line for Investors
Fiverr is no longer just a “gig” site; it’s trying to become an AI-powered enterprise partner.
For the average investor, this report shows a company that is financially healthy and profitable but is entering a period of high-risk, high-reward transformation. If you believe AI will enhance the freelance economy rather than destroy it, Fiverr’s “upmarket” shift is an encouraging sign—even if the next few months look a little bumpy.
