Fiverr Cuts 2026 Revenue Forecast Amid AI Market Shift
Fiverr, the software company known for its freelance marketplace, reported second-quarter 2026 results within its previously provided guidance but slightly below analyst expectations. The company significantly lowered its full-year revenue forecast, now expecting $356 million to $372 million, a 14% to 17% decline compared to 2025, down from an earlier projection of $380 million to $420 million. EBITDA guidance was also reduced from $64 million-$80 million to $52 million-$62 million, against an EBITDA of $91.6 million in 2025.
Founder and CEO Micha Kaufman described Q2 as a transitional quarter, noting that while Fiverr’s clients are accelerating AI adoption, the company has observed a marked slowdown in overall demand and traffic continuing into Q3. This trend is attributed to developments in large language models (LLMs). Fiverr is responding by aggressively shifting its strategy toward higher-value, complex projects, aiming to focus on upmarket opportunities requiring specialized talent.
In Q2, Fiverr posted revenues of $97.8 million, down 10% year-over-year, with first-half revenues falling 5.8% to $203 million. GAAP net income rose 40% to $4.5 million for the quarter and totaled $13 million year-to-date. Non-GAAP net income was $0.50 per share, slightly below analyst forecasts. Quarterly EBITDA declined 18% to $17.5 million. The company generated $35 million in cash from operations in the first half and held approximately $309 million in cash and investments at period end.
Fiverr has faced headwinds from negative sentiment toward software companies perceived as vulnerable to AI disruption. Its stock has dropped 41% since the start of the year, with further declines following the earnings release. In September 2025, Fiverr cut about one-third of its workforce and reverted to a startup-like structure to adapt to market changes. Additionally, Fiverr will not be relocating to Wix’s campus in Glilot, as recently reported.
CFO Esti Levy-Dadon emphasized that the results reflect early stages of a significant transformation, with updated guidance accounting for ongoing trends and the time needed for transformation initiatives to impact financials. She highlighted the company’s focus on operational efficiency, budget discipline, and maintaining flexibility to stabilize core marketplace activities while investing in the upmarket shift and exploring capital allocation opportunities to create long-term value.
