Fiverr stock crashes 20% as AI automation decimates freelance marketplace and gig economy

Fiverr stock today: Freelance marketplace's collapse proves AI is decimating the gig economy

Fiverr's dramatic stock collapse on Wednesday is proving to be a real-time example of how artificial intelligence is decimating the gig economy. Shares of online freelance marketplace Fiverr International (Nasdaq: FVRR) were down over 20% midday Wednesday at the time of this writing, after the company reported lackluster second-quarter 2026 fiscal earnings. Fiverr reported $97.78 million in revenue, missing analyst estimates of $100.38 million), a gap of -2.59%. That year-over-year (YoY) decline of 10% was "due to a decline in low-value transactional work," according to Fiverr chief technology officer Esti Levy Dadon.

Oppenheimer downgrades Fiverr stock rating on LLM pressure By Investing.com

Investing.com - Oppenheimer downgraded Fiverr International Ltd. (NYSE:FVRR) to Perform from Outperform on Thursday as the company faces increasing pressure from large language model adoption. The stock currently trades at $9.21, near its 52-week low of $8.75, and has declined 58% over the past year. The company cut its full-year revenue and EBITDA guidance by 9% and 21%, respectively. Oppenheimer noted that pressure from LLM adoption noticeably increased during the quarter. Lower cost services represent 85% of gross merchandise value and headwinds are accelerating. Management expects the turnaround to take another six quarters. Oppenheimer forecasts fiscal 2026 and fiscal 2027 revenue to decline 16% and 38%, respectively. The firm projects EBITDA to fall 20% in fiscal 2026 and 45% in fiscal 2027. Shares trade at 0.5 times 2026 EBITDA and 1 times 2027 EBITDA, representing an enterprise value of $28 million. Despite the bearish outlook, InvestingPro analysis suggests the stock is undervalued at current levels, appearing on the platform's Most Undervalued list. For deeper insights, investors can access the comprehensive Pro Research Report, available for FVRR and 1,400+ other US equities. In other recent news, Fiverr International Ltd. reported its second-quarter results, which fell short of Wall Street expectations. The company announced adjusted earnings of $0.50 per share on revenue of $97.8 million, missing analyst projections of $0.52 per share and $99.81 million in revenue. The earnings report highlighted a 10% decline in revenue compared to the previous year, attributed to a decrease in low-value transactional work. Active buyers on the platform also dropped by 22% year over year, although the average spend per buyer increased by 15.6% to $368. Fiverr's management indicated that the company is undergoing a multi-quarter transformation focused on higher-value, longer-duration projects. Despite the current challenges, the company expects significant financial benefits from this transformation to materialize over the next six quarters. The adjusted EBITDA for the quarter was reported at $17.5 million, with a margin reduction to 17.9%. The company acknowledged that AI-driven changes are impacting its core marketplace, prompting a strategic shift. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Fiverr tumbles 17% on earnings, revenue miss, and weak guidance By Investing.com

NEW YORK -On Wednesday, Fiverr International Ltd. (NYSE:FVRR) reported second quarter results that missed analyst expectations and slashed its full-year outlook, citing accelerated AI-related demand headwinds that have pressured its marketplace business. Shares of the freelance platform tumbled 16.74% following the results, driven primarily by significantly reduced guidance that signals ongoing challenges from AI automation displacing lower-value transactional work. Thecompany posted adjusted EPS of $0.50, missing the consensus estimate of $0.52, while revenue of $97.8 million fell short of the $99.81 million analyst estimate. Revenue declined 10.0% YoY from $108.6 million in the second quarter of 2025. The company's marketplace revenue segment saw a steeper 15.5% YoY decline to $63.1 million, while services revenue grew 2.0% to $34.6 million. "What we're seeing right now is an accelerated evolution of the freelance economy. Our second quarter results reflect a market that is changing faster than expected, driven by rapid AI adoption," said Micha Kaufman, founder and CEO of Fiverr. "As a result, we are focused on repositioning toward higher-value work." For the third quarter, Fiverr expects revenue of $80-88 million, with a midpoint of $84 million well below the consensus estimate of $99.26 million. The company also cut its full-year 2026 revenue guidance to $356-372 million, with a midpoint of $364 million significantly trailing the $402.1 million consensus. Fiverr projects third quarter adjusted EBITDA of $8-12 million and full-year adjusted EBITDA of $52-62 million. The company's annual active buyers declined 21.9% YoY to 2.7 million as of June 30, 2026, though annual spend per buyer increased 15.6% to $368, reflecting the shift toward higher-value projects. Clients completing projects over $1,000 grew 13% YoY on a trailing twelve-month basis. Fiverr generated $13.6 million in free cash flow during the quarter and ended with $308.5 million in cash, cash equivalents, deposits and marketable securities. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.