Fiverr (FVRR) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid execution, with revenue and adjusted EBITDA at the high end of guidance, reflecting disciplined execution and a strategic transformation toward high-value, complex work engagements.

• The company is transitioning from a transaction-oriented marketplace to a trusted work platform, focusing on quality, trust, and AI-driven workflows.

• Strong growth in projects over $1,000, with an 18% year-over-year increase in clients completing high-value projects and increased participation from high-end talent.

• Early improvements in trust and quality, with Fiverr Pro tests reducing mismatch rates by nearly 10%.

• Investments are being made in matching infrastructure, context-aware algorithms, and an end-to-end fulfillment layer to support complex projects.

Financial highlights

• Q1 2026 revenue was $105.5 million, down 1.6% year-over-year, with growth in high-value work offset by declines in low-value transactions.

• Adjusted EBITDA reached $22.6 million, up 16.3% year-over-year, with a margin of 21%, improving by 330 basis points.

• Marketplace revenue was $67.1 million, with 2.9 million active buyers and $356 spend per buyer, up 15% year-over-year.

• Service revenue was $38.4 million, up 30% year-over-year, accounting for 36% of total revenue, boosted by a successful AutoDS campaign.

• Free cash flow in Q1 was $21 million.

Outlook and guidance

• Full-year 2026 revenue expected between $380 million and $420 million, representing a year-over-year decline of 12% to 3%.

• Full-year adjusted EBITDA guidance raised to $64 million-$80 million, with an 18% margin at the midpoint.

• Q2 2026 revenue expected between $95 million-$103 million, with adjusted EBITDA of $16 million-$20 million.

• Service revenue growth expected to moderate in Q2 and the second half of the year.

• Outlook reflects continued uncertainty in market conditions.