Fiverr International Ltd. (NYSE:FVRR) shares tumbled nearly 17% in pre-market trading after the freelance marketplace reported weaker-than-expected second-quarter results and significantly lowered its financial outlook, citing growing pressure from artificial intelligence on parts of its business.
The company missed Wall Street estimates on both earnings and revenue, while management warned that AI-related headwinds and softer customer demand had intensified during recent weeks and continued into the third quarter.
Revenue and Earnings Fall Short of Expectations
Fiverr reported second-quarter revenue of $97.8 million, a decline of 10% from the same period a year earlier and below analysts’ expectations of approximately $99.8 million.
Adjusted earnings came in at $0.50 per share, narrowly missing the consensus forecast of $0.52.
The disappointing results were accompanied by a substantial reduction in the company’s full-year guidance, which weighed heavily on investor sentiment.
Company Cuts 2026 Revenue Forecast
Fiverr now expects full-year 2026 revenue to be between $356 million and $372 million, representing an annual decline of between 14% and 17%.
The revised outlook marks a significant reduction from the previous forecast of $380 million to $420 million issued just three months earlier.
Management attributed the weaker outlook to slowing traffic, softer demand linked to the growing adoption of artificial intelligence and continued weakness in categories most exposed to AI-driven automation.
The company also forecast third-quarter revenue of between $80 million and $88 million, well below analysts’ expectations of around $99 million.
Marketplace Business Faces Ongoing Pressure
The weakness was concentrated within Fiverr’s core marketplace business.
Marketplace revenue declined 15.5% year over year to $63.1 million, while the number of annual active buyers fell 21.9% to 2.7 million.
However, spending per buyer continued to increase, with annual spend rising 15.6% to $368. The marketplace take rate also improved to 28.0%.
Fiverr said the number of customers completing projects valued at more than $1,000 increased 13% over the past 12 months, highlighting continued progress in shifting the platform toward larger, higher-value projects.
Even so, analysts noted that growth in premium projects has not yet been sufficient to offset the decline in overall transaction volumes.
AI Concerns Continue to Weigh on Investor Sentiment
Before the earnings release, several analysts had already reduced their price targets for the stock, pointing to slower expected growth, mounting AI-related pressure on lower-value freelance work and the company’s ongoing transition toward more complex, higher-value services.
Following the results, Fiverr shares fell as low as $9.65 in pre-market trading, leaving the stock close to its 52-week low of $9.58.
The combination of weaker-than-expected financial results, sharply reduced revenue guidance and management’s acknowledgement that AI is accelerating the decline in transactional work added to concerns about the company’s near-term growth prospects.
While Fiverr continues to reposition its business toward larger projects and enterprise customers, investors are likely to remain focused on whether that strategy can offset the impact of declining activity across its traditional marketplace.
Fiverr stock price
