Fiverr (FVRR) Q2 2025 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q2 2025, with strong momentum in AI-related services, Managed Services, and Dynamic Matching products, despite cautious SMB spending in a volatile macro environment.

• Spend per buyer increased 10% year-over-year to $318, with robust growth in Programming & Tech, Digital Marketing, and Video Animation verticals.

• Continued expansion of value-added services and successful integration of AutoDS, including the launch of an AI-powered Shopify Store Builder.

• AI is driving demand, improving platform efficiency, and enabling new product offerings for both buyers and sellers.

• Managed Services continued to grow, fueled by high-value transactions and repeat clients, supporting upmarket expansion.

Financial highlights

• Q2 2025 revenue reached $108.6 million, up 15% year-over-year.

• Adjusted EBITDA was $21.4 million, with a 20% margin, up 80 basis points from the prior year.

• Free cash flow totaled $25 million, up 21% year-over-year.

• Marketplace revenue was $74.7 million, with 3.4 million active buyers and $318 spend per buyer; take rate at 27.6%.

• Services revenue was $34 million, up 84% year-over-year, representing 31% of total revenue.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $425–$438 million, representing 9–12% year-over-year growth.

• Adjusted EBITDA for 2025 expected at $84–$90 million, with a 20% margin midpoint.

• Q3 2025 revenue expected at $105–$110 million (5–10% year-over-year growth); adjusted EBITDA at $21.5–$23.5 million (21% margin midpoint).

• Long-term target to reach 25% adjusted EBITDA margin by 2027 and deliver 40% CAGR in free cash generation through 2027.

• Long-term targets include 14% CAGR in free cash generation by 2027.