Fiverr forecasts $374M-$380M 2026 revenue as it sees steeper marketplace traffic declines through 2027

Earnings Call Insights: Fiverr International Ltd. (FVRR) Q3 2026

Management view

• "Q3 came in ahead of our guidance" and Fiverr "delivered revenue of $90.9 million" with "adjusted EBITDA... $14.5 million, a 16% margin" (CEO Micha Kaufman). He said the outperformance "was led by our services business, where AutoDS and our e-commerce offering performed better than expected" and added that "the momentum is carrying into Q4, along with tight cost management across the company" (CEO Kaufman).
• Management framed a structural shift in demand generation, saying "for 17 years, Fiverr built one of the best performance marketing engines on the Internet on top of search. That world is changing fast" and "organic clicks are falling across the web and acquisition costs are rising" (CEO Kaufman). He added, "We expect that pressure on marketplace traffic to continue into 2027" (CEO Kaufman).
• Fiverr described its marketplace repositioning as a funnel rebuild, stating, "Put simply, this is not a talent problem. It is a funnel problem, and funnels can be rebuilt" (CEO Kaufman). He anchored strategy on "4 pillars" including upmarket mix, matching, product, and new acquisition channels (CEO Kaufman).
• Upmarket mix was described as progressing, with "high-value work" at "16% of completed projects' gross order amount on a trailing 12-month basis, up from 15% last quarter" (CEO Kaufman). He positioned this as targeting "multiphase mission-critical work" and said, "These are not one-off gigs" (CEO Kaufman).
• Product and distribution changes highlighted AI-first discovery. Fiverr said it launched "Mira, our AI headhunter" and that "a Mira introduction converts at the same rate as a normal conversation on Fiverr" while "the median order value for the headhunter experience is 5x larger" (CEO Kaufman). On distribution, he said Fiverr launched "our first public APIs, CLIs, and MCP integrations" that are "now live inside Claud[e] and ChatGPT" (CEO Kaufman).
• Management disclosed a leadership change: "Jinjin... decided moving her family isn't the right step for them right now, so she stepped down" and Fiverr said, "The search for her successor is well advanced, and we expect to announce our new Chief Business Officer soon" (CEO Kaufman). He added, "In the meantime, Esti and I are running the business directly" (CEO Kaufman).
• "Both revenue and adjusted EBITDA came in above the guidance range we gave in July, and we are raising our full-year guidance for both revenue and adjusted EBITDA" (CFO Esti Dadon). She emphasized cost actions, citing "tight management of discretionary spend, internal AI efficiencies, and a balanced approach to marketing" (CFO Dadon).

Outlook

• "For the full year 2026, we are raising our revenue guidance to $374 million to $380 million, up from $356 million to $372 million last quarter" (CFO Dadon). "We are also raising our adjusted EBITDA guidance to $61 million to $65 million... up from $52 million to $62 million last quarter" (CFO Dadon).
• "For the fourth quarter, we expect revenue of $80 million to $86 million and adjusted EBITDA of $6 million to $10 million" (CFO Dadon). She said this assumes "continued strength from our e-commerce business, offset by the continued decline in marketplace traffic" (CFO Dadon).
• On 2027, management signaled continued marketplace headwinds and margin pressure: "We expect the shift from search to AI-driven discovery to drive a steeper decline in marketplace traffic through 2027" and "downward pressure on 2027 adjusted EBITDA margin" (CFO Dadon). She added, "We will provide full 2027 guidance on our fourth quarter call" (CFO Dadon).

Financial results

• "Third quarter revenue was $90.9 million, down 15.8% year-over-year" and "adjusted EBITDA was $14.5 million, a 16% margin" (CFO Esti Dadon). She attributed results to "a strong quarter in our e-commerce services and the cost discipline" (CFO Dadon).
• Segment detail: "Q3 marketplace revenue was $55.4 million, down 24.7% year-over-year" (CFO Dadon). She reported "2.4 million active buyers" and "$373 in average spend per buyer" with a "28.2% marketplace take rate" (CFO Dadon).
• Services detail: "Services revenue was $35.5 million, up 3.4% year-over-year and accounted for 39% of total revenue" (CFO Dadon). She said the upside was "led by AutoDS" tied to "a major e-commerce campaign launched in late August" that "is expected to continue through the rest of the year" (CFO Dadon).
• Expense and cash: "Non-GAAP operating expenses were $62.2 million" and Fiverr ended with "$316.2 million in cash and investments" and "generated $9.4 million in free cash flow" (CFO Dadon). She also said, "we expect operating expenses to be lower year-over-year in 2027" (CFO Dadon).

Q&A

• Jake (on for Ron), Citi: asked about "AI-sourced GMV for first-time buyers" and the path to scale; CEO Kaufman responded, "we're witnessing something that is no less than an earthquake on the Internet" and said LLM traffic is "less traffic coming from LLMs, but we're seeing a higher quality traffic" (CEO Kaufman).
• Jake (on for Ron), Citi: asked on AutoDS durability; CEO Kaufman said "AutoDS... are killing it" and reiterated, "Fiverr thinks about its business as a whole" (CEO Kaufman).
• Stefanos Crist, Needham: asked if AutoDS results were campaign-driven and about LLM economics; CFO Dadon said the campaign "started in late August" and "we expect that to continue into Q4" (CFO Dadon), while CEO Kaufman said, "the economics are unchanged" and integrations are "the new top of the funnel" (CEO Kaufman).
• Marvin Fong, BTIG: asked how Mira rolls out in 2027; CEO Kaufman said Mira is "not necessarily the right experience for everyone" and Fiverr will "continue expanding this offering as we learn" (CEO Kaufman). Marvin also questioned slower sequential spend-per-buyer gains; CFO Dadon said traffic headwinds affect "the entire marketplace" and "we're expecting... the spend per buyer to continue to grow" though growth may be "on a slower base" (CFO Dadon).
• Julian (on for Jason), Oppenheimer: asked when AI-channel efforts could improve acquisition and to size the opportunity; CEO Kaufman said, "The answer is it's very hard to tell" and added, "the necessary speed is yesterday" while the adoption horizon is "unknown" (CEO Kaufman).
• Matthew Condon, Citizens JMP: asked about SEO stabilization and brand risk with agents; CEO Kaufman said SEO impact is "decreasing to the point where it's going to be dead very, very soon" and on loyalty, "agents don't care and they don't have brand loyalty" (CEO Kaufman).
• Brianna Kanju (on for Josh), UBS: asked if marketplace was within expectations and whether declines were getting steeper; CFO Dadon said Q3 trends were "within our expectation" and added Fiverr expects "traffic deterioration to continue and to increase" into 2027 (CFO Dadon). Brianna also asked about M&A; CFO Dadon replied, "M&A is not on the table now" (CFO Dadon).

Sentiment analysis

• Analysts’ tone was slightly negative and risk-focused, concentrating on SEO disruption, durability of AutoDS-driven services strength, and whether AI agents could weaken direct customer relationships, including "a risk of losing brand affinity and customer loyalty" (Matthew Condon, Citizens JMP: Question).
• Management tone was slightly positive on execution but cautious on the marketplace outlook, emphasizing urgency and uncertainty: "The answer is it's very hard to tell" (CEO Micha Kaufman) alongside confidence in assets, saying "I'm confident that the assets... the trust, the quality, the reliable fulfillment" can differentiate Fiverr in agent-driven discovery (CEO Kaufman).
• Versus last quarter, management shifted from describing a "transitional quarter" and a multi-quarter transformation to asserting a sharper external inflection, repeatedly using accelerated language such as "earthquake" and "yesterday" (CEO Kaufman).

Quarter-over-quarter comparison

• Guidance direction changed: in Q2 Fiverr guided Q3 revenue at "$80 million to $88 million" with adjusted EBITDA at "$8 million to $12 million" (CFO Esti Dadon, Q2), while in Q3 management said "we are raising our full-year guidance" to "$374 million to $380 million" revenue and "$61 million to $65 million" adjusted EBITDA (CFO Dadon, Q3).
• Strategic emphasis evolved from Q2’s focus on platform upgrades and a stated transformation timeline ("meaningful financial impacts... require at least 6 quarters to materialize") to Q3’s emphasis on distribution into AI assistants, including "public APIs" and being "live inside... ChatGPT" (CEO Kaufman).
• Analyst focus stayed consistent on traffic headwinds, but Q3 questions leaned more into the mechanics and risks of third-party agent ownership of the customer, while Q2 included more probing on transformation duration and internal cost levers.

Risks and concerns

• Marketplace headwind risk was explicit: "We expect that pressure on marketplace traffic to continue into 2027" (CEO Micha Kaufman), and management said declines could become "steeper" as discovery shifts from search to AI (CFO Esti Dadon).
• Margin risk for next year was flagged: traffic and demand headwinds are expected to create "downward pressure on 2027 adjusted EBITDA margin" even as Fiverr anticipates lower year-over-year OpEx (CFO Dadon).
• Customer-relationship risk was acknowledged: "brand loyalty is changing" and "it is a very high risk because agents don't care and they don't have brand loyalty" (CEO Kaufman). Management’s mitigation framing centered on integrating Fiverr into agent workflows and leveraging "moats" such as data, trust, and fulfillment (CEO Kaufman).

Final takeaway

Management said Q3 results were ahead of guidance, driven by services outperformance (including AutoDS) and cost discipline, while reiterating that marketplace traffic pressure tied to AI-driven discovery is expected to persist into 2027. Fiverr raised full-year 2026 revenue and adjusted EBITDA guidance, guided Q4 with continued services strength but ongoing marketplace decline, and positioned product (Mira) plus integrations (APIs/MCP inside ChatGPT and Claude) as the core response to shifting top-of-funnel dynamics. Leadership continuity was addressed with the Chief Business Officer stepping down and a successor search described as “well advanced.”

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