Q1 Revenue and Adjusted EBITDA at High End of Guidance
Reported revenue of $105.5 million (down 1.6% YoY) and adjusted EBITDA of $22.6 million (up 16.3% YoY). Management stated both revenue and adjusted EBITDA came in at the high end of guidance for Q1.
Improved Profitability and Margin Expansion
Adjusted EBITDA margin was 21% in Q1, an improvement of 330 basis points year-over-year. Full-year adjusted EBITDA guidance was raised to $64M–$80M (midpoint implying ~18% margin).
Strong Free Cash Flow and Capital Allocation Flexibility
Generated $21 million of free cash flow in Q1. Company plans to continue disciplined buybacks with $59.5 million remaining under the current authorization and reiterated capex/M&A optionality.
Marketplace Fundamentals — Buyer Engagement and Take Rate
Marketplace revenue was $67.1 million with 2.9 million active buyers, $356 spend per buyer (spend per buyer growth +15% YoY) and a 27.7% marketplace take rate, indicating higher value per buyer.
Upmarket Traction — Higher-Value Projects Growing
Projects priced over $1,000 continue to grow at a strong double-digit rate; clients completing $1,000+ projects increased 18% YoY. Management highlighted multi-phase, sustained high-value engagements as evidence of upmarket adoption.
Services Revenue Acceleration
Service revenue was $38.4 million, up 30% YoY and representing 36% of total revenue. Q1 benefited from an AutoDS campaign that pulled some sign-ups/revenue forward.
Early Proof Points for Improved Matching and Trust
Tests in Fiverr Pro showed mismatch rates down nearly 10%; management reported data signals of higher-value engagements, stronger repeat behavior and initial traction from investments in context-aware, outcome-driven matching.
Strategic Investments and Product Roadmap
Company is investing in a rebuilt matching infrastructure (knowledge graph, outcome-driven ranking), an end-to-end fulfillment layer (project visibility, early risk detection, orchestration), three go-to-market growth engines (talent-, industry-, and partner-led), and hiring AI-native talent to drive transformation.