Fiverr International Ltd. reported third‑quarter 2025 results that included a $107.9 million revenue total and an earnings‑per‑share figure of $0.77, beating the consensus estimate of $0.70 by $0.07 (a 10% beat). The company’s revenue fell 0.13% below the $108.04 million estimate, a small miss that reflects a modest decline in marketplace activity.
Segment analysis shows that marketplace revenue was $73.6 million, down 2.0% year‑over‑year, while services revenue rose 39.6% to $34.3 million. The decline in marketplace sales is attributed to a shrinking active buyer base, whereas the robust growth in services—particularly AI‑enabled offerings—has offset the headwind and driven the overall revenue mix toward higher‑margin work.
Adjusted EBITDA reached $19.7 million, giving the company a record 22.4% margin, up from 19.7% in Q3 2024. The margin expansion is largely a result of cost discipline and a higher proportion of services revenue, which carries a higher operating margin than marketplace transactions. The company’s operating leverage has improved as revenue scales while fixed costs remain stable.
Comparing to prior periods, Q2 2025 revenue was $108.6 million, indicating a slight QoQ decline, while Q3 2024 revenue was $99.6 million, showing an 8.3% YoY increase. Active buyers fell from 3.7 million in Q3 2024 to 3.3 million in Q3 2025, but spend per buyer rose to $330 from $295, underscoring a shift toward higher‑value projects even as the buyer base contracts.
Guidance for the remainder of the year reflects a cautious outlook. Management projected Q4 revenue of $104.3 million to $112.3 million, slightly below the consensus estimate of $109.3 million, and full‑year revenue of $428 million to $436 million, in line with the analyst consensus of $433 million. Adjusted EBITDA guidance was raised to $88 million–$93 million, with a midpoint margin of 21%, signaling confidence in maintaining profitability amid a decelerating top‑line growth.
CEO Micha Kaufman emphasized the company’s AI‑first strategy, noting that “AI continues to run through every facet of the business” and that the firm is “re‑accelerating GMV growth” through higher‑quality, specialized talent. CFO Ofer Katz highlighted the record adjusted EBITDA and the disciplined approach to operational efficiency, stating that the company “delivered a strong quarter with top and bottom lines exceeding expectations.” The market reacted positively, with shares rising 6.61% in pre‑market trading, driven by the EPS beat and margin expansion but tempered by the revenue miss and cautious Q4 guidance.
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