Fiverr Raises 2026 Revenue Forecast to $380 Million After Third-Quarter Results
Key Facts
Fiverr raised its 2026 revenue forecast to a range of $374 million to $380 million after third-quarter performance exceeded its previous guidance, according to the company's earnings release. The CFO said stronger-than-expected performance in the services segment helped the company surpass its previous quarterly expectations. Total revenue was $90.9 million for the quarter, down 15.8% from the same period in 2025. The forecast revision highlights a divergence between improving services and continued contraction in the core marketplace business. The company attributed the quarter's strength mainly to services, not to an increase in the value of goods associated with AI sources.
Services revenue rose 3.4% year over year to $35.5 million, compared with $34.3 million in the third quarter of 2025. Fiverr said AutoDS and e-commerce expansion were key drivers of this performance, alongside continued cost discipline. By contrast, marketplace revenue fell 24.7% to $55.4 million, from $73.6 million a year earlier. The figures show that services growth did not halt the marketplace's decline, but was enough to support a beat on previous guidance and lift the full-year forecast. July guidance for third-quarter revenue was between $80 million and $88 million.
Annual active buyers fell to 2.4 million as of September 30, 2026, compared with 3.3 million on the same date a year earlier, according to Fiverr data. But annual spend per buyer rose to $373 from $330. This means the buyer base contracted as spending per buyer increased, while the increase alone does not reflect a recovery in the number of marketplace users. The company also reported GAAP net income of $1.3 million, compared with $5.5 million a year earlier. Free cash flow fell to $9.4 million from $29.1 million, a year-over-year decline of 67.8%.
Fiverr reported adjusted earnings before interest, taxes, depreciation and amortization of $14.5 million in the third quarter, compared with $24.2 million in the corresponding period of 2025. The margin on these earnings fell to 16% from 22.4%. This comparison puts the improvement in services in the context of broader results, in which revenue, adjusted earnings and cash flows all declined from year-earlier levels. The company had attributed cost control to continued discipline, alongside the expansion of its services. But that did not prevent declines in profitability and cash flow metrics compared with the third quarter of last year.
This does not mean that all of Fiverr's AI-related services are growing at the same rate, and the company did not attribute the higher revenue forecast to this indicator. At the same time, it said disruption to AI-related search engine optimization and advertising is weighing on marketplace demand and traffic. The company expects a steeper-than-previously-anticipated decline in marketplace traffic as service discovery shifts from search to AI tools, a trend it expects to continue through 2027. This shift adds a growing new acquisition channel alongside ongoing pressure on traditional traffic.
For the fourth quarter of 2026, Fiverr expects revenue of between $80 million and $86 million and adjusted earnings before interest, taxes, depreciation and amortization of between $6 million and $10 million. The company said it will provide full-year 2027 financial guidance when it reports fourth-quarter results next year. After the results were released, the stock rose 11% on Thursday, October 29, to $9.05, according to Investing.com, while remaining down 59% over the prior year. The stock move reflects an immediate response to the results, while upcoming guidance will remain in focus as investors assess the effects of services growth and declining traffic on performance.