Fiverr Announces Second Quarter 2025 Results
Strong Q2 results: We delivered solid execution across Marketplace and Services segments, together with continued operational discipline. Marketplace revenue was led by strong growth across AI-related categories and continued momentum of Fiverr Pro's Managed Services, while the Services segment contributed to revenue upside, driven by cross-sell and upsell opportunities of value-added services.
Rapid AI category expansion: AI-related services are booming, with surging demand especially around AI agents, workflow automation and vibe coding. Businesses of all sizes turn to freelancers on Fiverr to bridge the gap between AI technology and implementation.
Continued momentum for Managed Services: Fiverr Pro's Managed Services is showing meaningful growth, driven by demand for high-value, larger transactions. Execution on full-scope projects with new high spenders and repeat clients remains solid, with more deals steadily coming in this quarter. Managed Services continues to be a key driver of upmarket expansion.
Reiterating full year guidance: We are reiterating our revenue and Adjusted EBITDA guidance for 2025 as we continue to drive solid execution towards the goals and roadmap set at the beginning of the year, while operating with the highest level of discipline and efficiency.
NEW YORK, July 30, 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 second 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.
"AI continues to be a power driver for everything we do, from rapid catalog expansion around AI-related services, to enabling transformative customer experiences, or driving workflow automation within Fiverr. Together with our continuous efforts in going upmarket, we are seeing encouraging growth trends for certain key verticals and high-value transactions," said Micha Kaufman, founder and CEO of Fiverr. "As AI continues to reshape how work is done, our freelancers are playing a crucial role in helping our customers navigate the rapidly changing technology landscape, and turning AI tools into real world business impact. We are uniquely positioned at the intersection of human and AI, making us the go-to platform for AI expertise."
"We delivered strong Q2 results as we continue to take a balanced approach between growth and profitability. Growth and innovation remain a top priority for us, especially at a time when AI is unlocking opportunities across almost every discipline. At the same time, we are committed to and confident in delivering our long-term targets for Adjusted EBITDA and free cash flow," said Ofer Katz, President and CFO of Fiverr. "Our outlook demonstrates our confidence in execution while remaining mindful of a dynamic macro environment."
Second Quarter 2025 Financial Highlights
Revenue in the second quarter of 2025 was $108.6 million, compared to $94.7 million in the second quarter of 2024, an increase of 14.8% year over year.
Marketplace revenue in the second quarter of 2025 was $74.7 million, compared to $76.2 million in the second quarter of 2024, a decline of 2.0% year over year.
Annual active buyers1 as of June 30, 2025, were 3.4 million, compared to 3.8 million as of June 30, 2024, a decline of 10.9% year over year.
Annual spend per buyer1 as of June 30, 2025, reached $318, compared to $290 as of June 30, 2024, an increase of 9.8% year over year.
Marketplace take rate1 for the twelve months period ended June 30, 2025, and 2024 was 27.6%.
Services revenue in the second quarter of 2025 was $34.0 million, compared to $18.5 million in the second quarter of 2024, an increase of 83.8% year over year.
GAAP gross margin in the second quarter of 2025 was 81.2%, a decrease of 190 basis points from 83.1% in the second quarter of 2024. Non-GAAP gross margin1 in the second quarter of 2025 was 84.5%, an increase of 10 basis points from 84.4% in the second quarter of 2024.
GAAP net income in the second quarter of 2025 was $3.2 million, or $0.09 basic net income per share and diluted net income per share, compared to $3.3 million GAAP net income, or $0.09 basic net income per share and $0.08 diluted net income per share in the second quarter of 2024.
Non-GAAP net income1 in the second quarter of 2025 was $27.4 million, or $0.75 basic non-GAAP net income per share1 and $0.69 diluted non-GAAP net income per share1, compared to $23.8 million non-GAAP net income1, or $0.63 basic non-GAAP net income per share1 and $0.58 diluted non-GAAP net income per share1, in the second quarter of 2024.
Net cash provided by operating activities in the second quarter of 2025 was $25.2 million, compared to $21.0 million in the second quarter of 2024, an increase of 20.2% year over year.
Free cash flow1 in the second quarter of 2025 was $25.0 million, compared to $20.7 million in the second quarter of 2024, an increase of 21.1% year over year.
Adjusted EBITDA1 in the second quarter of 2025 was $21.4 million, compared to $17.8 million in the second quarter of 2024. Adjusted EBITDA margin1 was 19.7% in the second quarter of 2025, compared to 18.9% in the second quarter of 2024, representing an 80 basis points improvement year over year.
Financial Outlook
Our Q3'25 and full-year 2025 guidance reflect the recent trends in our marketplace.
Q3 2025
FY 2025
Revenue
$105 - $110 million
$425 - $438 million
y/y growth
5% - 10%
9% - 12%
Adjusted EBITDA(1)
$21.5 - $23.5 million
$84 - $90 million
Conference Call and Webcast Details
Fiverr's management will host a conference call to discuss its financial results on Wednesday, July 30, 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.
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.
Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, and Facebook.
Investor Relations:Jinjin
Press:Jenny
Source: Fiverr International Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,
December 31,
2025
2024
(Unaudited)
(Audited)
Assets
Current assets:
Cash and cash equivalents
$
313,520
$
133,472
Marketable securities
264,884
288,947
User funds
164,119
153,309
Bank deposits
146,000
144,843
Restricted deposit
1,315
1,315
Other receivables
40,392
34,198
Total current assets
930,230
756,084
Long-term assets:
Marketable securities
23,770
122,009
Property and equipment, net
3,883
4,271
Operating lease right of use asset
3,829
5,122
Intangible assets, net
35,077
41,882
Goodwill
110,218
110,218
Other non-current assets
31,593
30,388
Total long-term assets
208,370
313,890
TOTAL ASSETS
$
1,138,600
$
1,069,974
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables
$
6,922
$
5,533
User accounts
152,047
141,691
Deferred revenue
20,839
20,090
Other account payables and accrued expenses
64,930
57,167
Operating lease liabilities
2,827
2,608
Convertible notes, net
459,143
457,860
Total current liabilities
706,708
684,949
Long-term liabilities:
Operating lease liabilities
1,547
2,747
Other non-current liabilities
25,481
19,628
Total long-term liabilities
27,028
22,375
TOTAL LIABILITIES
$
733,736
$
707,324
Shareholders' equity:
Share capital and additional paid-in capital
760,995
727,176
Accumulated deficit
(362,207
)
(366,193
)
Accumulated other comprehensive income
6,076
1,667
Total shareholders' equity
404,864
362,650
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,138,600
$
1,069,974
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Revenue
$
108,648
$
94,663
$
215,832
$
188,187
Cost of revenue
20,384
16,024
40,780
31,472
Gross profit
88,264
-
78,639
175,052
-
156,715
Operating expenses:
Research and development
23,994
21,855
47,621
45,488
Sales and marketing
44,844
41,324
92,234
83,476
General and administrative
21,415
17,764
42,381
34,215
Total operating expenses
90,253
80,943
182,236
163,179
Operating loss
(1,989
)
(2,304
)
(7,184
)
(6,464
)
Financial income, net
6,554
8,502
13,879
15,163
Income before taxes on income
4,565
6,198
6,695
8,699
Taxes on income
(1,377
)
(2,931
)
(2,709
)
(4,644
)
Net income attributable to ordinary shareholders
$
3,188
$
3,267
$
3,986
$
4,055
Basic net income per share attributable to ordinary shareholders
$
0.09
$
0.09
$
0.11
$
0.11
Basic weighted average ordinary shares
36,585,998
38,089,060
36,523,934
38,422,605
Diluted net income per share attributable to ordinary shareholders
$
0.09
$
0.08
$
0.11
$
0.10
Diluted weighted average ordinary shares
37,499,304
38,755,863
37,617,438
39,180,421
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$
3,188
$
3,267
$
3,986
$
4,055
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
4,089
1,606
8,373
2,756
Amortization of premium and accretion of discount of marketable securities, net
(1,530
)
(1,154
)
(1,597
)
(2,248
)
Amortization of discount and issuance costs of convertible notes
642
638
1,283
1,275
Shared-based compensation
14,055
18,438
29,809
37,458
Exchange rate fluctuations and other items, net
(345
)
55
(344
)
166
Revaluation of Earn-out
4,067
-
7,329
-
Changes in assets and liabilities:
User funds
2,930
6,928
