Fiverr International Ltd (NYSE:FVRR) stock gained on Wednesday after it reported fiscal third-quarter 2025 results.
The company’s quarterly sales growth of 8.3% year-on-year to $107.903 million beat the analyst consensus estimate of $107.898 million.
Fiverr reported adjusted earnings per share of 77 cents, beating the analyst consensus estimate of 69 cents.
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Key Metrics
Marketplace revenue slipped to $73.6 million in the third quarter of 2025, down 2% from $75.1 million a year earlier.
The platform counted 3.3 million annual active buyers as of September 30, 2025, an 11.7% drop from 3.7 million the prior year.
Despite fewer buyers, annual spend per buyer rose 11.7% to $330, compared with $295 a year ago.
The marketplace take rate for the twelve-month period ended September 30, 2025, edged down to 27.6%, from 27.8% a year earlier.
Meanwhile, services revenue climbed 39.6% year over year to $34.3 million in Q3 2025, up from $24.6 million in the year-ago quarter.
Margin Expansion and Cash Position
The adjusted gross margin rose 20 basis points to 84.2%, while the adjusted EBITDA margin expanded 270 basis points to 22.4%.
The operating income for the quarter was $0.10 million, compared to a loss of $3.48 million last year.
As of September 30, 2025, Fiverr generated $29.2 million in operating cash flow and held $712.47 million in cash and equivalents.
Executive Commentary
Fiverr CFO Ofer Katz said the company achieved another strong quarter with record adjusted EBITDA and margins, reflecting both the scalability of its marketplace and disciplined operational efficiency. He noted that Fiverr met the Rule-of-30 for the year despite a challenging environment.
Fiverr CEO Micha Kaufman said the company remains focused on accelerating GMV growth through its AI-driven strategy, noting that recent restructuring supports an AI-first operating model. He said demand is shifting toward specialized, higher-value talent, and that Fiverr’s targeted investments and new AI-enhanced product capabilities are positioning the platform for its next phase of growth.
Outlook
Fiverr expects fourth-quarter fiscal 2025 revenue of $104.300 million-$112.300 million, against the analyst consensus estimate of $109.279 million. Adjusted EBITDA of $23.9 million-$27.9 million.
Fiverr now expects fiscal 2025 revenue of $428 million-$436 million (compared to the prior forecast of $425 million–$438 million) versus the analyst consensus estimate of $432.941 million. It now expects an adjusted EBITDA of $88 million-$93 million (versus prior forecast of $84 million–$90 million).
Price Action: Fiverr stock was trading higher by 2.17% to $22.10 premarket at last check Wednesday.
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