Fiverr (FVRR) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results, exceeding expectations in both revenue and adjusted EBITDA, driven by robust execution in marketplace and services segments, and rapid AI product expansion.

• Strategic focus remains on moving upmarket, expanding value-added services, leveraging AI, and strengthening Fiverr Pro and Fiverr Go, which are improving buyer conversion and seller deal closure speed.

• Fiverr Pro signed several six-digit, multi-month contracts, supporting the upmarket strategy.

• Double-digit revenue growth achieved with disciplined expense management and capital allocation.

• The demand environment for freelancing remains stable, with no direct exposure to tariffs and continued appeal of Fiverr's value proposition.

Financial highlights

• Q1 2025 revenue reached $107.2 million, up 15% year-over-year, with adjusted EBITDA at $19.4 million and an 18% margin, up 100 basis points from last year.

• Marketplace revenue was $77.7 million, down 0.8% year-over-year; Services revenue surged 94% to $29.5 million, now 27.5% of total revenue.

• Free cash flow totaled $27.4 million, up 31.6% year-over-year; net cash from operating activities rose 33.6% to $28.3 million.

• GAAP net income was $0.8 million ($0.02 per share); non-GAAP net income was $25.0 million ($0.70 basic, $0.64 diluted per share).

• Marketplace had 3.5 million active buyers, $309 spend per buyer, and a 27.7% take rate.

Outlook and guidance

• Full year 2025 revenue guidance raised to $425–$438 million, representing 9–12% year-over-year growth; adjusted EBITDA expected at $84–$90 million.

• Q2 2025 revenue expected at $105–$109 million, with adjusted EBITDA of $20–$22 million.

• Raised low end of both revenue and adjusted EBITDA guidance for 2025, reflecting strong Q1 performance.

• Long-term target of 25% adjusted EBITDA margin by 2027 and 14% CAGR in free cash generation through 2027.