Fiverr Announces Third Quarter 2026 Results

Higher spending per buyer and services growth accompanied a shrinking buyer base and lower quarterly earnings.

Rhea-AI Summary

Fiverr (FVRR) reported third-quarter 2026 revenue of $90.9 million, down year over year, and raised its full-year financial guidance ranges. Revenue fell 15.8%, with marketplace revenue down 24.7% and services revenue up 3.4%. Annual active buyers declined 25.8% to 2.4 million, while annual spend per buyer rose 12.9% to $373.

GAAP net income fell to $1.3 million from $5.5 million a year earlier. Adjusted EBITDA, an adjusted earnings measure, declined to $14.5 million from $24.2 million. Free cash flow fell 67.8% to $9.4 million; quarter-end cash, deposits and marketable securities totaled $316.2 million.

Fiverr expects 2026 revenue of $374–$380 million and adjusted EBITDA of $61–$65 million. It expects marketplace traffic declines to steepen through 2027 and pressure adjusted EBITDA margin, despite anticipated lower operating expenses.

12 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 guidance raised to revenue of $374–$380 million and adjusted EBITDA of $61–$65 million.
• Moderate pointQ3 services revenue increased 3.4% year over year to $35.5 million.
• Moderate pointAnnual spend per buyer rose 12.9% to $373 as of September 30, 2026, versus a year earlier.
• Moderate pointQuarter-end cash, cash equivalents, deposits and marketable securities totaled $316.2 million.
• Moderate pointNine-month operating income reached $12.213 million, versus a $7.080 million loss a year earlier.
• Moderate pointNine-month GAAP net income rose to $14.302 million from $9.523 million a year earlier.

6 minor points

• Minor pointTrailing-twelve-month marketplace take rate rose to 28.2% from 27.6% a year earlier.
• Minor pointQ3 research and development expense fell to $18.052 million from $25.150 million a year earlier.
• Minor pointQ3 sales and marketing expense fell to $39.254 million from $40.669 million a year earlier.
• Minor pointQ3 general and administrative expense fell to $17.213 million from $22.214 million a year earlier.
• Minor pointFiverr is advancing AI platform investments, including outcome-based talent matching and expansion into external language-model ecosystems.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiverr expects AutoDS and e-commerce expansion trends to remain positive through 2026.

Negative

• Moderate pointQ3 revenue declined 15.8% year over year to $90.9 million.
• Moderate pointAnnual active buyers declined 25.8% to 2.4 million as of September 30, 2026, versus a year earlier.
• Moderate pointQ3 GAAP net income fell to $1.3 million from $5.5 million; basic and diluted EPS fell to $0.03 from $0.15.
• Moderate pointQ3 adjusted EBITDA fell to $14.5 million from $24.2 million; margin declined 640 basis points to 16.0%.
• Moderate pointQ3 operating cash flow declined 67.6% year over year to $9.5 million.
• Moderate pointQ3 non-GAAP net income fell to $16.0 million from $30.5 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 2026 revenue guidance of $80–$86 million implies a 25%–20% year-over-year decline.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiverr expects steeper marketplace traffic declines through 2027 and downward pressure on adjusted EBITDA margin.

6 minor points

• Minor pointQ3 marketplace revenue fell 24.7% year over year to $55.4 million.
• Minor pointQ3 free cash flow declined 67.8% year over year to $9.4 million.
• Minor pointQ3 GAAP gross margin fell 40 basis points to 81.3% from 81.7% a year earlier.
• Minor pointQ3 operating results shifted to a $662,000 loss from $104,000 income a year earlier.
• Minor pointNine-month revenue fell to $294.173 million from $323.735 million a year earlier.
• Minor pointNine-month operating cash flow fell to $44.487 million from $82.719 million a year earlier.

News Explained

Fiverr reports that Chief Business Officer Jinjin Qian has stepped down; while it searches for a successor based in Israel, CEO Micha Kaufman and CFO Esti Levy-Dadon continue leading day-to-day operations and strategy, with the CFO taking on an expanded operational role.

Key Figures

Revenue: $90.9 million; down 15.8% year over year Marketplace revenue: $55.4 million; down 24.7% year over year Services revenue: $35.5 million; up 3.4% year over year +5 more

Revenue

$90.9 million; down 15.8% year over year

Third quarter 2026

Marketplace revenue

$55.4 million; down 24.7% year over year

Third quarter 2026

Services revenue

$35.5 million; up 3.4% year over year

Third quarter 2026

GAAP net income

$1.3 million, compared with $5.5 million

Third quarter 2026 versus third quarter 2025

Adjusted EBITDA

$14.5 million, compared with $24.2 million

Third quarter 2026 versus third quarter 2025

Free cash flow

$9.4 million; down 67.8% year over year

Third quarter 2026

FY 2026 revenue guidance

$374 million-$380 million

Raised financial guidance

FY 2026 Adjusted EBITDA guidance

$61 million-$65 million

Raised financial guidance

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 earnings

   24h Move

   -20.5%

   Revenue fell 10.0% year over year as Fiverr revised its 2026 revenue and EBITDA guidance.

2. Apr 29

   Q1 earnings

   24h Move

   +17.0%

   Q1 revenue declined, while Fiverr raised full-year Adjusted EBITDA guidance and reiterated revenue guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

llm, gaap, adjusted ebitda, free cash flow

4 terms

llm technical

"expanding into external LLM ecosystems"

A large language model (LLM) is an advanced computer system trained on vast amounts of written text to understand and generate human-like language, similar to a very fast, well-read assistant that can summarize documents, draft messages, or answer questions. Investors care because LLMs can speed up research, automate customer support, and reduce costs, while also creating new product opportunities and risks around accuracy, bias, and regulatory oversight that can affect a company’s performance.

gaap financial

"GAAP net income in the third quarter of 2026 was $1.3 million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

adjusted ebitda financial

"Adjusted EBITDA was $14.5 million in the third quarter of 2026"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow in the third quarter of 2026 was $9.4 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Higher-value project growth: Projects at or above $1,000 represented 16% of completed projects' gross order amount on a trailing twelve-month basis.
• AI transformation investments: Advancing the platform by leveraging our Knowledge Graph to match talent based on delivered outcomes, scaling our new Mira AI headhunter to improve project scoping and conversion, and expanding into external LLM ecosystems.
• Capital allocation and liquidity: Generated $9.5 million in operating cash flow, $9.4 million in free cash flow, and ended the quarter with $316.2 million in cash, cash equivalents, deposits, and marketable securities.
• 2026 Outlook: Raised financial guidance ranges through fiscal year 2026 to reflect positive tailwinds from AutoDS’s recent high-profile campaign and disciplined cost management, partially offset by persistent search engine traffic headwinds.
  
  

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is transforming the way the world creates and works together, today reported financial results for the third quarter of 2026. The Company’s shareholder letter, posted on its investor relations website at investors.fiverr.com, includes additional operating results and management commentary.

“As the landscape shifts from traditional search toward GEO and automated workflows, we are proactively executing on a platform transformation to capture the future of work,” said Micha Kaufman, founder and CEO of Fiverr. “Our upmarket push continues to prove the defensibility and value of complex, high-value work. By upgrading our underlying infrastructure, advancing high-precision outcome matching, and embedding directly into the broader LLM ecosystem, we are rebuilding our traffic vectors while positioning our marketplace as the indispensable, agentic-friendly layer powering the future AI economy.”

“Our third quarter results demonstrate the resilience of our lean operating model amidst broader macro disruption. The stronger than expected performance in our services segment allowed us to outperform our previous quarterly guidance and support an upward revision to full year 2026,” said Esti Levy-Dadon, CFO of Fiverr. “With a strong balance sheet and healthy cash position, we are taking a disciplined approach to capital allocation, balancing liquidity, strict cost management, and cash flow generation while funding the key transformation investments to create long-term value.”

Third Quarter 2026 Financial Highlights

• Revenue in the third quarter of 2026 was $90.9 million, compared to $107.9 million in the third quarter of 2025, a decrease of 15.8% year over year.
• Marketplace revenue in the third quarter of 2026 was $55.4 million, compared to $73.6 million in the third quarter of 2025, a decline of 24.7% year over year.
• Annual active buyers¹ as of September 30, 2026, were 2.4 million, compared to 3.3 million as of September 30, 2025, a decline of 25.8% year over year.
• Annual spend per buyer¹ as of September 30, 2026, reached $373, compared to $330 as of September 30, 2025, an increase of 12.9% year over year.
• Marketplace take rate¹ for the twelve-months period ended September 30, 2026 was 28.2%, compared to 27.6% for the twelve-months period ended September 30, 2025.
• Services revenue in the third quarter of 2026 was $35.5 million, compared to $34.3 million in the third quarter of 2025, an increase of 3.4% year over year.
• GAAP gross margin in the third quarter of 2026 was 81.3%, down 40 basis points from 81.7% in the third quarter of 2025. Non-GAAP gross margin¹ in the third quarter of 2026 was 84.4%, up 20 basis points from 84.2% in the third quarter of 2025.
• GAAP net income in the third quarter of 2026 was $1.3 million, or $0.03 basic and diluted net income per share, compared to $5.5 million GAAP net income, or $0.15 basic and diluted net income per share in the third quarter of 2025.
• Non-GAAP net income¹ in the third quarter of 2026 was $16.0 million, or $0.44 basic non-GAAP net income per share¹ and $0.43 diluted non-GAAP net income per share¹, compared to $30.5 million non-GAAP net income¹, or $0.84 basic non-GAAP net income per share¹ and $0.77 diluted non-GAAP net income per share¹, in the third quarter of 2025.
• Net cash provided by operating activities in the third quarter of 2026 was $9.5 million, compared to $29.2 million in the third quarter of 2025, a decrease of 67.6% year over year.
• Free cash flow¹ in the third quarter of 2026 was $9.4 million, compared to $29.1 million in the third quarter of 2025, a decrease of 67.8% year over year.
• Adjusted EBITDA¹ in the third quarter of 2026 was $14.5 million, compared to $24.2 million in the third quarter of 2025. Adjusted EBITDA margin¹ was 16.0% in the third quarter of 2026, compared to 22.4% in the third quarter of 2025, representing a 640 basis points decline year over year.
  
  

Executive Leadership Update

Following her decision not to relocate to Israel, Jinjin Qian has stepped down from her position as Chief Business Officer. The search for her successor, who will be based in Israel, is well advanced. In the interim, day-to-day operations and strategic direction continue to be led by Micha Kaufman, Chief Executive Officer, alongside Esti Levy-Dadon, Chief Financial Officer, who has assumed an expanded operational role to ensure a smooth transition and continuous operational alignment.

Financial Outlook

Our revised financial guidance through the remainder of fiscal year 2026 reflects the impact of several items. First, our better than expected performance in Q3’26, which exceeded our previously provided guidance. A primary driver of that strength was our Services segment, driven by AutoDS and e-commerce expansion, along with continued strict expense management. Second, these positive drivers continue to be offset by ongoing demand and search traffic headwinds across the marketplace stemming from AI-related disruption to traditional SEO and SEM. Third, the positive trends associated with AutoDS and e-commerce expansion are expected to continue through 2026.

We expect the shift from search to AI-driven discovery to drive a steeper decline than previously expected in marketplace traffic through 2027. While we anticipate lower year-over-year operational expenses in 2027, the reduction will be offset by the ongoing demand and search traffic headwinds, resulting in downward pressure on 2027 Adjusted EBITDA margin. We will provide full 2027 financial guidance when we report fourth quarter results next year.

	Q4 2026	FY 2026
Revenue	$80 - $86 million	$374 - $380 million
y/y growth	(25)% - (20)%	(13)% - (12)%
Adjusted EBITDA(1)	$6 - $10 million	$61 - $65 million

Conference Call and Webcast Details

Fiverr’s management will host a conference call to discuss its financial results on Thursday, October 29, 2026, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr’s Investor Relations website. An archived version will be available on the website after the call. To participate in the conference call, please dial: Toll-Free: 1-833-630-1956 or International: 1-412-317-1837.

About Fiverr

Fiverr’s mission is to transform the way the world creates and works together. We’re shaping the future of work with the world’s leading open platform, seamlessly connecting top talent and cutting-edge technology with businesses around the globe. From expert freelancers in over 750 skilled categories to best-in-class GenAI models and agents, Fiverr provides the most advanced and comprehensive talent and tools for digital services - helping businesses get mission-critical projects done fast and cost-effectively.

From small businesses to Fortune 500 companies, millions trust Fiverr for projects in software and AI development, digital marketing, finance, business consulting, video animation, music, architecture, and more.

Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, and Facebook.

Investor Relations:
Steve Rubis
Emily Greenstein
investors@fiverr.com

Press:
Jenny Chang
Madeleine Bendalin
press@fiverr.com

Source: Fiverr International Ltd.

CONSOLIDATED BALANCE SHEETS1
(in thousands)
		September 30,				December 31,
			2026				2025
		(Unaudited)				(Audited)
Assets
Current assets:
Cash and cash equivalents		$	125,471			$	125,215
Marketable securities			25,997				117,705
User funds			146,361				159,849
Bank deposits			90,000				40,000
Restricted deposit			3,418				3,409
Other receivables			36,416				34,465
Total current assets			427,663				480,643
Long-term assets:
Marketable securities			74,754				-
Property and equipment, net			2,578				3,360
Operating lease right of use asset			1,286				3,513
Deferred tax assets, net			30,359				26,423
Intangible assets, net			27,366				36,554
Goodwill			126,313				126,313
Other non-current assets			4,926				7,795
Total long-term assets			267,582				203,958
TOTAL ASSETS		$	695,245			$	684,601
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables		$	11,241			$	9,081
User accounts			137,329				149,454
Deferred revenue			16,035				18,567
Other account payables and accrued expenses			72,358				68,426
Operating lease liabilities			1,310				3,365
Total current liabilities			238,273				248,893
Long-term liabilities:
Operating lease liabilities			441				798
Other non-current liabilities			13,603				22,926
Total long-term liabilities			14,044				23,724
TOTAL LIABILITIES		$	252,317			$	272,617
Shareholders' equity:
Share capital and additional paid-in capital			815,257				786,195
Accumulated deficit			(371,454	)			(377,739	)
Accumulated other comprehensive income (loss)			(875	)			3,528
Total shareholders' equity			442,928				411,984
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	695,245			$	684,601

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
			2026				2025				2026				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenue		$	90,899			$	107,903			$	294,173			$	323,735
Cost of revenue			17,042				19,766				53,727				60,546
Gross profit			73,857				88,137				240,446				263,189
Operating expenses:
Research and development			18,052				25,150				54,740				72,771
Sales and marketing			39,254				40,669				126,348				132,903
General and administrative			17,213				22,214				47,145				64,595
Total operating expenses			74,519				88,033				228,233				270,269
Operating income (loss)			(662	)			104				12,213				(7,080	)
Financial income and other, net			2,981				6,815				6,590				20,694
Income before taxes on income			2,319				6,919				18,803				13,614
Taxes on income			(1,050	)			(1,382	)			(4,501	)			(4,091	)
Net income attributable to ordinary shareholders		$	1,269			$	5,537			$	14,302			$	9,523
Basic net income per share attributable to ordinary shareholders		$	0.03			$	0.15			$	0.39			$	0.26
Basic weighted average ordinary shares			36,822,775				36,415,189				36,369,156				36,340,110
Diluted net income per share attributable to ordinary shareholders		$	0.03			$	0.15			$	0.39			$	0.26
Diluted weighted average ordinary shares			37,236,336				37,237,699				36,798,549				37,343,283

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
			2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Cash flows from operating activities:
Net income		$	1,269			$	5,537			$	14,302			$	9,523
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			3,454				3,074				10,293				11,447
Amortization of premium and accretion of discount of marketable securities, net			(106	)			772				(530	)			(825	)
Amortization of discount and issuance costs of convertible notes			-				643				-				1,926
Share-based compensation			6,714				11,925				23,919				41,734
Exchange rate fluctuations and other items, net			(57	)			(169	)			(106	)			(513	)
Impairment of intangible assets			-				2,400				-				2,400
Revaluation of earn-outs			3,425				2,274				3,498				9,603
Changes in assets and liabilities:
User funds			10,061				(4,172	)			13,488				(14,982	)
Operating lease ROU assets and liabilities			(178	)			53				(185	)			365
Other receivables			939				3,359				(1,904	)			3,072
Deferred tax assets, net			(1,964	)			(1,561	)			(3,936	)			(4,785	)
Trade payables			(846	)			(2,004	)			2,173				(642	)
Deferred revenue			(1,984	)			(1,215	)			(2,532	)			(466	)
User accounts			(9,260	)			3,657				(12,125	)			14,013
Payment of earn-outs			(1,610	)			(2,714	)			(6,893	)			(2,714	)
Other accounts payable and accrued expenses			(509	)			7,387				4,322				13,674
Non-current liabilities			120				(40	)			703				(111	)
Net cash provided by operating activities			9,468				29,206				44,487				82,719
Investing Activities:
Investment in marketable securities			(39,215	)			-				(102,869	)			(55,652	)
Proceeds from maturities of marketable securities			24,835				136,505				118,804				316,776
Investment in short-term bank deposits			(20,000	)			(187	)			(50,000	)			(2,187	)
Proceeds from short-term bank deposits			-				107,000				5				107,843
Purchase of property and equipment			(95	)			(77	)			(462	)			(549	)
Capitalization of internal-use software			-				-				-				(661	)
Other receivables and non-current assets			-				-				901				-
Lease payment made prior to commencement			(770	)			-				(770	)			-
Net cash provided by (used in) investing activities			(35,245	)			243,241				(34,391	)			365,570
Financing Activities
Repurchases of common stock			-				(22,520	)			(8,017	)			(22,520	)
Proceeds from exercise of share options			6				632				1,355				3,211
Payment of earn-out			-				(2,486	)			(1,717	)			(2,486	)
Proceeds from withholding tax related to employees' exercises of share options and RSUs, net			(11	)			(2,073	)			(518	)			(785	)
Deferred payment related to business combination			-				-				(1,078	)			-
Net cash (used in) financing activities			(5	)			(26,447	)			(9,975	)			(22,580	)
Effect of exchange rate fluctuations on cash and cash equivalents			59				141				135				480
Increase (decrease) in cash and cash equivalents			(25,723	)			246,141				256				426,189
Cash and cash equivalents at the beginning of the period			151,194				313,520				125,215				133,472
Cash and cash equivalents at the end of the period		$	125,471			$	559,661			$	125,471			$	559,661

REVENUE BREAKDOWN
(in thousands1)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
			2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Marketplace Revenue		$	55,411			$	73,592			$	185,686			$	225,955
Annual Active Buyers			2,447				3,297				2,447				3,297
Annual Spend per Buyer		$	373			$	330			$	373			$	330
Marketplace Take Rate			28.2	%			27.6	%			28.2	%			27.6	%
Services Revenue		$	35,488			$	34,311			$	108,487			$	97,780
Total Revenue		$	90,899			$	107,903			$	294,173			$	323,735
Except for Annual Spend per Buyer and Marketplace Take Rate

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(in thousands, except gross margin data)
	Q3'25				Q4'25				Q1'26				Q2'26				Q3'26				FY 2024				FY 2025
									(Unaudited)												(Unaudited)				(Unaudited)
GAAP gross profit	$	88,137			$	88,304			$	86,658			$	79,931			$	73,857			$	320,915			$	351,493
Add:
Share-based compensation		365				39				256				247				224				2,136				1,230
Depreciation and amortization		2,186				2,446				2,582				2,605				2,632				7,017				10,951
Restructuring costs		238				(35	)			-				-				-				-				203
Earn-out revaluation, acquisition related costs and other		(43	)			6				6				6				(3	)			28				7
Non-GAAP gross profit	$	90,883			$	90,760			$	89,502			$	82,789			$	76,710			$	330,096			$	363,884
Non-GAAP gross margin		84.2	%			84.7	%			84.8	%			84.7	%			84.4	%			84.3	%			84.4	%
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME AND NET INCOME PER SHARE
(in thousands, except share and per share data)
	Q3'25				Q4'25				Q1'26				Q2'26				Q3'26				FY 2024				FY 2025
									(Unaudited)												(Unaudited)				(Unaudited)
GAAP net income attributable to ordinary shareholders	$	5,537			$	11,460			$	8,564			$	4,469			$	1,269			$	18,246			$	20,983
Add:
Depreciation and amortization		3,074				3,245				3,414				3,425				3,454				10,476				14,692
Share-based compensation		11,925				9,655				8,982				8,223				6,714				73,942				51,389
Impairment of intangible assets		2,400				-				-				-				-				-				2,400
Restructuring costs		3,567				(143	)			-				-				-				-				3,424
Earn-out revaluation, acquisition related costs and other		3,111				7,854				1,725				1,496				5,036				5,631				20,858
Convertible notes amortization of discount and issuance costs		643				214				-				-				-				2,555				2,140
Taxes on income related to non-GAAP adjustments		(235	)			(268	)			(278	)			(281	)			(284	)			(16,610	)			(1,234	)
Exchange rate gain (loss), net		431				126				463				1,008				(164	)			859				446
Non-GAAP net income	$	30,453			$	32,143			$	22,870			$	18,340			$	16,025			$	95,099			$	115,098
Weighted average number of ordinary shares - basic		36,415,189				36,107,120				35,971,243				36,313,450				36,822,775				36,984,757				36,281,883
Non-GAAP basic net income per share attributable to ordinary shareholders	$	0.84			$	0.89			$	0.64			$	0.51			$	0.44			$	2.57			$	3.17
Weighted average number of ordinary shares - diluted		39,391,560				37,387,076				36,601,102				36,558,208				37,236,336				39,994,015				38,969,647
Non-GAAP diluted net income per share attributable to ordinary shareholders	$	0.77			$	0.86			$	0.62			$	0.50			$	0.43			$	2.38			$	2.95
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(in thousands, except adjusted EBITDA margin data)
	Q3'25				Q4'25				Q1'26				Q2'26				Q3'26				FY 2024				FY 2025
									(Unaudited)												(Unaudited)				(Unaudited)
GAAP net income	$	5,537			$	11,460			$	8,564			$	4,469			$	1,269			$	18,246			$	20,983
Add:
Financial income and other		(6,815	)			(3,899	)			(1,963	)			(1,646	)			(2,981	)			(27,706	)			(24,593	)
Taxes on income (tax benefit)		1,382				(1,658	)			1,894				1,557				1,050				(6,358	)			2,433
Depreciation and amortization		3,074				3,245				3,414				3,425				3,454				10,476				14,692
Share-based compensation		11,925				9,655				8,982				8,223				6,714				73,942				51,389
Impairment of intangible assets		2,400				-				-				-				-				-				2,400
Restructuring costs		3,567				(143	)			-				-				-				-				3,424
Earn-out revaluation, acquisition related costs and other		3,111				7,854				1,725				1,496				5,036				5,631				20,858
Adjusted EBITDA	$	24,181			$	26,514			$	22,616			$	17,524			$	14,542			$	74,231			$	91,586
Adjusted EBITDA margin		22.4	%			24.7	%			21.4	%			17.9	%			16.0	%			19.0	%			21.3	%
RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES
(In thousands)
	Q3'25				Q4'25				Q1'26				Q2'26				Q3'26				FY 2024				FY 2025
									(Unaudited)												(Unaudited)				(Unaudited)
GAAP research and development	$	25,150			$	17,893			$	18,061			$	18,627			$	18,052			$	90,241			$	90,664
Less:
Share-based compensation		3,229				2,333				2,196				1,816				1,742				23,569				14,421
Depreciation and amortization		309				301				279				266				270				831				1,188
Restructuring costs		2,258				(85	)			-				-				-				-				2,173
Earn-out revaluation, acquisition related costs and other		(83	)			137				159				160				174				28				181
Non-GAAP research and development	$	19,437			$	15,207			$	15,427			$	16,385			$	15,866			$	65,813			$	72,701
GAAP sales and marketing	$	40,669			$	43,772			$	45,579			$	41,515			$	39,254			$	171,678			$	176,675
Less:
Share-based compensation		1,338				1,079				984				1,037				854				13,592				6,032
Depreciation and amortization		507				429				467				469				470				2,308				2,202
Impairment of intangible assets		-				2,400				-				-				-				-				2,400
Restructuring costs		829				(2	)			-				-				-				-				827
Earn-out revaluation, acquisition related costs and other		805				1,263				1,385				1,400				1,421				1,878				4,412
Non-GAAP sales and marketing	$	37,190			$	38,603			$	42,743			$	38,609			$	36,509			$	153,900			$	160,802
GAAP general and administrative	$	22,214			$	20,736			$	14,523			$	15,409			$	17,213			$	74,814			$	85,331
Less:
Share-based compensation		6,993				6,204				5,546				5,123				3,894				34,645				29,706
Depreciation and amortization		72				69				86				85				82				320				351
Impairment of intangible assets		2,400				(2,400	)			-				-				-				-				-
Restructuring costs		242				(21	)			-				-				-				-				221
Earn-out revaluation, acquisition related costs and other		2,432				6,448				175				(70	)			3,444				3,697				16,258
Non-GAAP general and administrative	$	10,075			$	10,436			$	8,716			$	10,271			$	9,793			$	36,152			$	38,795
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW (In thousands)
	Q3'25				Q4'25				Q1'26				Q2'26				Q3'26				FY 2024				FY 2025
									(Unaudited)												(Unaudited)				(Unaudited)
Net cash provided by operating activities	$	29,206			$	21,870			$	21,176			$	13,843			$	9,468			$	83,068			$	104,589
Purchase of property and equipment		(77	)			(98	)			(159	)			(208	)			(95	)			(1,303	)			(647	)
Capitalization of internal-use software		-				-				-				-				-				(103	)			(661	)
Free cash flow	$	29,129			$	21,772			$	21,017			$	13,635			$	9,373			$	81,662			$	103,281

Key Performance Metrics and Non-GAAP Financial Measures

This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow, as well as operating metrics, including marketplace Gross Merchandise Value or GMV, annual active buyers, annual spend per buyer and marketplace take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts.

We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, restructuring costs, impairment of intangible assets, earn-out revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible notes, financial (income) expenses, net and other. Amortization of acquired intangible assets is excluded from the measures, however, the revenue from the acquired companies is included, and their assets actively contribute to revenue generation. Non-GAAP gross margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as net cash provided by operating activities less capital expenditures. We define Adjusted EBITDA margin as Adjusted EBITDA expressed as a percentage of revenue.

We define GMV or marketplace Gross Merchandise Value as the total value of transactions ordered through our marketplace, excluding value-added tax, goods and services tax, service chargebacks and refunds. Annual active buyers on any given date is defined as buyers who have ordered a Gig on our marketplace within the last 12-month period, irrespective of cancellations. Annual spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of annual active buyers as of such date. Marketplace take rate for a given period means marketplace revenue for such period divided by GMV for such period. When we refer in this release to the marketplace we refer to transactions conducted between buyers and freelancers on Fiverr.com. When we refer to the platform we refer to the marketplace and our additional services.

Management and our board of directors use certain metrics as supplemental measures of our performance that are not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs.

Free cash flow should not be used as an alternative to, or superior to, net cash provided by operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, annual active buyers, annual spend per buyer and marketplace take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measures derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business.

These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measures of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein are not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

We are not able to provide a reconciliation of Adjusted EBITDA guidance to net income (loss), the nearest comparable GAAP measure, for the fourth quarter of 2026, or the fiscal year ending December 31, 2026, because certain items that are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our financial outlook and expected financial and operational performance, our business plans and strategy, including our platform transformation and AI-related initiatives, traffic trends, capital allocation and liquidity, our leadership transition, and the long term growth of our business, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our recent reduction in force could adversely affect our business, results of operations and financial condition; AI developments may present challenges for our industry and reduce the demand for some of our service offerings; our ability to successfully implement our business plan within adverse economic conditions that may impact consumers, business spending and the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to maintain profitability or positive net cash flow generated by operating activities; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our websites; our ability to maintain user engagement on our websites and to maintain and improve the quality of our platform; our operations within a competitive market; political, economic and military instability in Israel, including related to the war in Israel; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations, including with regulatory frameworks around the development and use of AI; our ability to attract, recruit, retain and develop qualified employees; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption “Risk Factors” in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 12, 2026, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

______________________
¹ _{See “Key Performance Metrics and Non-GAAP Financial Measures” and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release.}

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Fiverr's third-quarter 2026 revenue and earnings?

Fiverr reported $90.9 million in revenue and GAAP net income of $1.3 million, or $0.03 per basic and diluted share. Revenue decreased 15.8% year over year, while GAAP net income compared with $5.5 million, or $0.15 per basic and diluted share, a year earlier.

What is Fiverr's updated 2026 financial guidance?

Fiverr raised its full-year 2026 guidance ranges to $374–$380 million in revenue and $61–$65 million in adjusted EBITDA. The revenue range represents a 13%–12% year-over-year decline. Fourth-quarter guidance calls for revenue of $80–$86 million and adjusted EBITDA of $6–$10 million.

Why did Fiverr's Chief Business Officer step down?

Jinjin Qian stepped down as Chief Business Officer following her decision not to relocate to Israel. The search for an Israel-based successor is well advanced. CEO Micha Kaufman continues to lead operations alongside CFO Esti Levy-Dadon, who has assumed an expanded operational role during the transition.

How much of Fiverr's completed project value came from higher-value projects?

Projects valued at $1,000 or more represented 16% of completed projects' gross order amount on a trailing-twelve-month basis. This measures their share of order value, rather than their share of the number of completed projects.