Online freelance marketplace Fiverr (NYSE: FVRR) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, but sales fell by 1.6% year on year to $105.5 million. On the other hand, next quarter’s revenue guidance of $99 million was less impressive, coming in 2.4% below analysts’ estimates. Its non-GAAP profit of $0.62 per share was in line with analysts’ consensus estimates.
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Fiverr (FVRR) Q1 CY2026 Highlights:
- Revenue: $105.5 million vs analyst estimates of $104.4 million (1.6% year-on-year decline, 1% beat)
- Adjusted EPS: $0.62 vs analyst estimates of $0.61 (in line)
- Adjusted EBITDA: $22.62 million vs analyst estimates of $20.93 million (21.4% margin, 8.1% beat)
- The company reconfirmed its revenue guidance for the full year of $400 million at the midpoint
- EBITDA guidance for the full year is $72 million at the midpoint, above analyst estimates of $70.71 million
- Operating Margin: 8.1%, up from -4.8% in the same quarter last year
- Free Cash Flow Margin: 19.9%, similar to the previous quarter
- Active Buyers: 2.9 million, down 600,000 year on year
- Market Capitalization: $372.4 million
“The year started with execution reflecting the early momentum of our AI-led transformation. Our multi-year plan is moving into focus as we shift from a transactional marketplace to a sophisticated work platform. We are seeing a healthy flywheel effect in the high-value work on Fiverr, with growth momentum across clients and talent who are engaged in complex projects. With our unique business model and differentiated data assets based on real transactions, we have a strong right to win in this new era of human-in-the-loop collaboration,” said Micha Kaufman, founder and CEO of Fiverr.
Company Overview
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Fiverr grew its sales at a mediocre 8.2% compounded annual growth rate. This was below our standard for the consumer internet sector and is a poor baseline for our analysis.
This quarter, Fiverr’s revenue fell by 1.6% year on year to $105.5 million but beat Wall Street’s estimates by 1%. Company management is currently guiding for a 8.9% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to decline by 6% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
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Active Buyers
Buyer Growth
As a gig economy marketplace, Fiverr generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Fiverr struggled with new customer acquisition over the last two years as its active buyers have declined by 12.3% annually to 2.9 million in the latest quarter. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Fiverr wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. 
In Q1, Fiverr’s active buyers once again decreased by 600,000, a 17.1% drop since last year. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t moving the needle for buyers yet.
Revenue Per Buyer
Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the company earns in transaction fees from each buyer. This number also informs us about Fiverr’s take rate, which represents its pricing leverage over the ecosystem, or "cut" from each transaction.
Fiverr’s ARPB growth has been exceptional over the last two years, averaging 23.5%. Although its active buyers shrank during this time, the company’s ability to successfully increase monetization demonstrates its platform’s value for existing buyers. 
This quarter, Fiverr’s ARPB clocked in at $36.38. It grew by 18.8% year on year, faster than its active buyers.
Key Takeaways from Fiverr’s Q1 Results
We were impressed by how significantly Fiverr blew past analysts’ EBITDA expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. On the other hand, its revenue guidance for next quarter fell short of Wall Street’s estimates. Zooming out, we think this was still a positive quarter. The stock traded up 10% to $11.40 immediately after reporting.
Is Fiverr an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
