Fiverr’s Earnings Call: Growth Amid Uncertainty

Fiverr International ((FVRR)) has held its Q3 earnings call. Read on for the main highlights of the call.

Fiverr International’s recent earnings call painted a picture of robust financial performance, underscored by significant growth in key areas such as AI-related services, Managed Services, and Dynamic Matching. However, the company remains cautious due to persistent macroeconomic uncertainties and challenges in small and medium-sized business (SMB) demand. While Fiverr’s strategic initiatives are promising, the unpredictable macro environment continues to pose challenges.

Revenue Growth and Record EBITDA Margin

Fiverr reported a revenue increase of 8% year-over-year for Q3 2025, reaching $107.9 million. The company also achieved a record high adjusted EBITDA margin of 22%, showcasing disciplined execution and effective market-based model leverage. This financial performance highlights Fiverr’s ability to grow despite broader economic challenges.

Significant Growth in Managed Services and Dynamic Matching

The company’s Managed Services segment saw a remarkable 65% year-over-year growth in GMV, with an average project size of $17,000. Dynamic Matching GMV also grew by 22% year-over-year, with 15% of job briefs exceeding a $1,000 budget and an average order value of $2,200. These figures underscore Fiverr’s success in expanding its service offerings and attracting higher-value projects.

AI-Related Services Driving Growth

Fiverr’s Programming and Tech vertical experienced a 14% year-over-year growth in Q3, fueled by increasing demand for AI-related services such as AI agents, workflow automation, and vibe coding. This growth reflects the company’s strategic focus on emerging technologies and its ability to capitalize on new market trends.

Strong Performance in Services Segment

The Services segment reported a 40% year-over-year increase in revenue, amounting to $34.3 million and accounting for 32% of total revenue in Q3. This strong performance highlights the segment’s growing importance to Fiverr’s overall business strategy.

Increased Spend Per Buyer

Fiverr saw a 12% year-over-year increase in spend per buyer, marking the strongest growth rate since the COVID era. This indicates a positive trend in customer engagement and spending behavior, contributing to the company’s revenue growth.

Macro Environment Uncertainty

The macroeconomic environment remains uncertain, with mixed labor market trends and broader economic conditions impacting GMV trends. This uncertainty has led Fiverr to provide a wider revenue guidance range for Q4 2025, reflecting the challenges posed by the external economic landscape.

Challenges in SMB Demand

Fiverr continues to face challenges in SMB demand due to ongoing macroeconomic issues, with no significant improvement expected in the near term. This remains a critical area of concern for the company as it navigates the current economic climate.

Potential Decline in Marketplace Revenue

Marketplace revenue could face a flat or low single-digit decline, contingent on GMV trends. This potential decline underscores the impact of macroeconomic factors on Fiverr’s core business operations.

Forward-Looking Guidance

Looking ahead, Fiverr has provided full-year 2025 revenue guidance between $428 million and $436 million, representing a 9% to 11% year-over-year growth. For Q4 2025, revenue is expected to range from $104.3 million to $112.3 million, with adjusted EBITDA anticipated between $23.9 million and $27.9 million. The company is focusing on strategic restructuring and investments in AI to drive upmarket expansion and enhance operational efficiency, with a long-term goal of achieving a 25% adjusted EBITDA margin by 2026.

In summary, Fiverr International’s earnings call reflects a strong financial performance with notable growth in key areas, despite the challenges posed by macroeconomic uncertainties. The company’s strategic initiatives, particularly in AI and Managed Services, demonstrate its commitment to adapting and thriving in a dynamic market environment.