Fiverr (FVRR) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong results with 8.3% year-over-year revenue growth and a record adjusted EBITDA margin of 22.4%, driven by AI, upmarket, and value-added services.

• Strategic focus on upmarket expansion and AI-driven innovation is driving larger, more complex projects and higher spend per buyer, up 12% year-over-year.

• Strategic restructuring in September aimed to accelerate the transition to an AI-first company, streamline operations, and enhance product focus.

• Dynamic Matching GMV grew 22% year-over-year, and Managed Services GMV surged 65%, with average project sizes of $2,200 and $17,000, respectively.

• AI-related services, especially in Programming and Tech, grew 14% year-over-year, reflecting strong demand and positioning for future growth.

Financial highlights

• Q3 2025 revenue was $107.9 million, up 8.3% year-over-year; services revenue grew 40% to $34.3 million, representing 32% of total revenue.

• Adjusted EBITDA reached $24.2 million (22.4% margin), up from $19.7 million (19.7% margin) a year ago.

• Free cash flow totaled $29.1 million in Q3, up 175.4% year-over-year.

• Marketplace revenue was $73.6 million, with 3.3 million active buyers and a 27.6% take rate.

• GAAP net income was $5.5 million ($0.15/share); non-GAAP net income was $30.5 million ($0.84 basic, $0.77 diluted per share).

Outlook and guidance

• Full-year 2025 revenue expected between $428 million and $436 million, up 9%-11% year-over-year.

• Full-year adjusted EBITDA guidance raised to $88 million-$93 million, with a 21% margin at midpoint.

• Q4 2025 revenue guidance is $104.3 million-$112.3 million, up 1%-8% year-over-year, reflecting macro uncertainty.

• Q4 adjusted EBITDA expected at $23.9 million-$27.9 million, with a 24% margin at midpoint.

• Committed to reaching a 25% adjusted EBITDA margin in 2026.