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 (GLOBE NEWSWIRE) -- 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.
Q4 2025
FY 2025
Revenue
$104.3 - $112.3 million
$428 - $436 million
y/y growth
1% - 8%
9% - 11%
Adjusted EBITDA(1)
$23.9 - $27.9 million
$88 - $93 million
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.
Investor Relations:Jinjin
Press:Jenny
Source: Fiverr International Ltd.
CONSOLIDATED BALANCE SHEETS(In thousands)
September 30,
December 31,
2025
2024
(Unaudited)
(Audited)
Assets
Current assets:
Cash and cash equivalents
$
559,661
$
133,472
Marketable securities
152,809
288,947
User funds
168,291
153,309
Bank deposits
39,000
144,843
Restricted deposit
1,502
1,315
Other receivables
35,269
34,198
Total current assets
956,532
756,084
Long-term assets:
Marketable securities
-
122,009
Property and equipment, net
3,562
4,271
Operating lease right of use asset
3,179
5,122
Intangible assets, net
30,014
41,882
Goodwill
110,218
110,218
Other non-current assets
32,136
30,388
Total long-term assets
179,109
313,890
TOTAL ASSETS
$
1,135,641
$
1,069,974
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables
$
4,873
$
5,533
User accounts
155,704
141,691
Deferred revenue
19,624
20,090
Other account payables and accrued expenses
74,643
57,167
Operating lease liabilities
2,917
2,608
Convertible notes, net
459,786
457,860
Total current liabilities
717,547
684,949
Long-term liabilities:
Operating lease liabilities
860
2,747
Other non-current liabilities
18,586
19,628
Total long-term liabilities
19,446
22,375
TOTAL LIABILITIES
$
736,993
$
707,324
Shareholders' equity:
Share capital and additional paid-in capital
772,916
727,176
Accumulated deficit
(379,190
)
(366,193
)
Accumulated other comprehensive income
4,922
1,667
Total shareholders' equity
398,648
362,650
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,135,641
$
1,069,974
CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Revenue
$
107,903
$
99,628
$
323,735
$
287,815
Cost of revenue
19,766
18,893
60,546
50,365
Gross profit
88,137
-
80,735
263,189
-
237,450
Operating expenses:
Research and development
25,150
22,424
72,771
67,912
Sales and marketing
40,669
42,970
132,903
126,446
General and administrative
22,214
18,817
64,595
53,032
Total operating expenses
88,033
84,211
270,269
247,390
Operating loss
104
(3,476
)
(7,080
)
(9,940
)
Financial income, net
6,815
6,881
20,694
22,044
Income before taxes on income
6,919
3,405
13,614
12,104
Taxes on income
(1,382
)
(2,052
)
(4,091
)
(6,696
)
Net income attributable to ordinary shareholders
$
5,537
$
1,353
$
9,523
$
5,408
Basic net income per share attributable to ordinary shareholders
$
0.15
$
0.04
$
0.26
$
0.14
Basic weighted average ordinary shares
36,415,189
35,435,532
36,340,110
37,426,914
Diluted net income per share attributable to ordinary shareholders
$
0.15
$
0.04
$
0.26
$
0.14
Diluted weighted average ordinary shares
37,237,699
36,205,992
37,343,283
38,188,945
CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$
5,537
$
1,353
$
9,523
$
5,408
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,074
3,392
11,447
6,148
Amortization of premium and accretion of discount of marketable securities, net
772
(858
)
(825
)
(3,106
)
Amortization of discount and issuance costs of convertible notes
643
640
1,926
1,915
Shared-based compensation
11,925
18,464
41,734
55,922
Exchange rate fluctuations and other items, net
(169
)
(106
)
(513
)
60
Impairment of intangible assets
2,400
-
2,400
-
Revaluation of earn out
2,274
143
9,603
143
Changes in assets and liabilities:
User funds
(4,172
)
(3,032
)
(14,982
)
(7,724
)
Operating lease ROU assets and liabilities
53
82
365
(193
)
Other receivables
1,798
(893
)
(1,713
)
(6,066
)
Trade payables
(2,004
)
(2,482
)
(642
)
(3,062
)
Deferred revenue
(1,215
)
673
(466
)
1,791
User accounts
3,657
2,794
14,013
6,085
Payment of earn out
(2,714
)
(2,714
)
Escrow payment for contingent consideration
-
(12,168
