Fiverr reported solid Q3 2025 results, surpassing expectations in both revenue and profitability. Total revenue reached $107.9 million, up 8.3% year-over-year, while Adjusted EBITDA hit a record $24.2 million with a 22.4% margin. Despite a decline in active buyers, Fiverr’s average spend per buyer rose 11.7%, supported by strong AI adoption, upmarket expansion, and value-added services. The company’s “AI-first” strategy continues to reshape its marketplace efficiency and prepare for accelerated growth in 2026.

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Strong Q3 results: Q3’25 represents another quarter of Rule-of-30, with revenue above the midpoint and Adjusted EBITDA exceeding the high end of our guidance. The continued growth of AI, upmarket, and value-added services led to revenue strength, and we delivered the highest-ever quarter of Adjusted EBITDA and Adjusted EBITDA margin as we accelerated our pace towards long-term targets.

Acceleration in Spend per Buyer growth: With tailwinds from both AI-related categories and the expansion of Managed Services and Dynamic Matching, Marketplace revenue continued to benefit from strong growth in complex projects, resulting in higher ticket-sized purchases and growth of customer wallet size.

Continued strength of Services revenue: Services revenue continued to grow at a robust pace, with Fiverr Go serving as a key driver for Seller Plus adoption, which grew over 20% y/y. Fiverr Ads maintained double-digit growth as we expanded ads into the Fiverr Pro catalog. AutoDS benefited from synergies with Fiverr and the partnership with Shopify.

Positioning the business for 2026: As we look to close 2025 with strong execution, we are working through the transformation to position the business for a successful 2026. This includes focused investments in AI and upmarket to reaccelerate marketplace growth, as well as continued expansion of our value-added service portfolio, which remains a key driver of growth.

NEW YORK, Nov. 05, 2025- Fiverr International Ltd. (NYSE: FVRR), the company that is transforming the way the world creates and works together, today reported financial results for the third quarter of 2025. Additional operating results and management commentary can be found in the Company’s shareholder letter, which is posted to its investor relations website at investors.fiverr.com.

“With AI continuing to run through every facet of the business, our commitment to driving AI transformation and re-accelerating GMV growth is as focused as ever. Our recent strategic restructuring has prepared us to further this transformation and truly establish an AI-first mentality. What the market wants is clear, high-quality specialized talent, and the intentional investments we are making are already allowing us to capture these higher-value client projects,” said Micha Kaufman, founder and CEO of Fiverr. “As we leverage our data and the latest AI technologies to build more nuanced product capabilities, we look forward to unlocking this next phase of growth.”

"We delivered another strong quarter, with solid execution across both revenue and profitability. Adjusted EBITDA and Adjusted EBITDA margin were our highest-ever for a quarter, highlighting the scalability in our marketplace and our disciplined approach to operational efficiency,” said Ofer Katz, President and CFO of Fiverr. “As we close out the year, we’re proud to have delivered Rule-of-30 in a dynamic environment. We believe this resiliency and consistent execution position us well for continued momentum in the year ahead.”

Third Quarter 2025 Financial Highlights

• Revenue in the third quarter of 2025 was $107.9 million, compared to $99.6 million in the third quarter of 2024, an increase of 8.3% year over year.


• Marketplace revenue in the third quarter of 2025 was $73.6 million, compared to $75.1 million in the third quarter of 2024, a decline of 2.0% year over year.


• Annual active buyers¹ as of September 30, 2025, were 3.3 million, compared to 3.7 million as of September 30, 2024, a decline of 11.7% year over year.


• Annual spend per buyer¹ as of September 30, 2025, reached $330, compared to $295 as of September 30, 2024, an increase of 11.7% year over year.


• Marketplace take rate¹ for the twelve months period ended September 30, 2025, was 27.6%, a decrease of 20 basis points from 27.8% for the twelve months period ended September 30, 2024.


• Services revenue in the third quarter of 2025 was $34.3 million, compared to $24.6 million in the third quarter of 2024, an increase of 39.6% year over year.


• GAAP gross margin in the third quarter of 2025 was 81.7%, an increase of 70 basis points from 81.0% in the third quarter of 2024. Non-GAAP gross margin¹ in the third quarter of 2025 was 84.2%, an increase of 20 basis points from 84.0% in the third quarter of 2024.


• GAAP net income in the third quarter of 2025 was $5.5 million, or $0.15 basic and diluted net income per share, compared to $1.4 million GAAP net income, or $0.04 basic and diluted net income per share in the third quarter of 2024.


• Non-GAAP net income¹ in the third quarter of 2025 was $30.5 million, or $0.84 basic non-GAAP net income per share¹ and $0.77 diluted non-GAAP net income per share¹, compared to $24.6 million non-GAAP net income¹, or $0.69 basic non-GAAP net income per share¹ and $0.64 diluted non-GAAP net income per share¹, in the third quarter of 2024.


• Net cash provided by operating activities in the third quarter of 2025 was $29.2 million, compared to $10.9 million in the third quarter of 2024, an increase of 168.8% year over year. Excluding the impact from the one-time escrow payment for contingent consideration of $12.2 million in the third quarter of 2024, net cash provided by operating activities grew 26.8% year over year.


• Free cash flow¹ in the third quarter of 2025 was $29.1 million, compared to $10.6 million in the third quarter of 2024, an increase of 175.4% year over year. Excluding the impact from the one-time escrow payment for contingent consideration of $12.2 million in the third quarter of 2024, free cash flow grew 28.1% year over year.


• Adjusted EBITDA¹ in the third quarter of 2025 was $24.2 million, compared to $19.7 million in the third quarter of 2024. Adjusted EBITDA margin¹ was 22.4% in the third quarter of 2025, compared to 19.7% in the third quarter of 2024, representing a 270 basis points improvement year over year.

Financial Outlook

Our Q4’25 and full-year 2025 guidance reflect the recent trends in our marketplace.

 


Conference Call and Webcast Details

Fiverr’s management will host a conference call to discuss its financial results on Wednesday, November 5, 2025, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr’s Investor Relations website. An archived version will be available on the website after the call. To participate in the conference call, please register using the link here.

About Fiverr

Fiverr’s mission is to transform the way the world creates and works together. We’re shaping the future of work with the world’s leading open platform, seamlessly connecting top talent and cutting-edge technology with businesses around the globe. From expert freelancers in over 750 skilled categories to best-in-class GenAI models and agents, Fiverr provides the most advanced and comprehensive talent and tools for digital services—helping businesses get mission-critical projects done fast and cost-effectively.

From small businesses to Fortune 500 companies, millions trust Fiverr for projects in software and AI development, digital marketing, finance, business consulting, video animation, music, architecture, and more.

Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, X, and Facebook.

¹ See “Key Performance Metrics and Non-GAAP Financial Measures” and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release.