Fiverr (FVRR) investor relations material

Executive summary

• Q2 2026 marked a transitional period with ongoing compression in low-value, transactional work due to rapid AI adoption, while high-value projects grew to 15% of gross order value and are expected to increase further.

• Strategic focus is on shifting up-market to high-value, long-duration projects, leveraging proprietary technology and operational upgrades for better client-talent matching and fulfillment.

• Operational investments target four pillars: up-market shift, advanced matching infrastructure, active fulfillment platform, and targeted demand acquisition.

• Early signs of success in the upmarket transition include 13% year-over-year growth in clients completing $1,000+ projects on a trailing twelve-month basis.

• Infrastructure upgrades, including deployment of a proprietary Knowledge Graph, aim to improve matching and project outcomes for higher-value work.

Financial highlights

• Q2 2026 revenue was $97.8 million, down 10% year-over-year, primarily due to a decline in low-value transactional work; marketplace revenue fell 15.5% to $63.1 million.

• Adjusted EBITDA was $17.5 million, down 18.3% year-over-year, with a margin of 17.9%, reflecting a 180 basis point decline.

• Services revenue grew 2% year-over-year to $34.6 million, but is expected to decline double digits by year-end.

• Free cash flow for the quarter was $13.6 million, down 45.5% year-over-year; total cash and investments stood at $308.5 million.

• Annual spend per buyer increased 15.6% year-over-year to $368, while active buyers declined 22% to 2.7 million.

Outlook and guidance

• Q3 2026 revenue expected between $80 million-$88 million, representing -26% to -18% year-over-year growth; Adjusted EBITDA between $8 million-$12 million.

• Full year 2026 revenue expected in the range of $356 million-$372 million (-17% to -14% year-over-year), with Adjusted EBITDA of $52 million-$62 million.

• Guidance revised downward due to AI-related demand and traffic headwinds, especially in categories exposed to automation.

• Management expects at least six quarters for meaningful financial impact from the transformation to materialize.