Fiverr stock price is collapsing today as the freelancer platform tries to put a positive spin on AI disruption

Shares of Fiverr International Ltd. (NYSE: FVRR) are dropping significantly this morning after the freelance marketplace platform reported its Q4 2025 financial results.

While the company reported modest revenue growth, its 2026 outlook sent the stock plunging, even as Fiverr executives put a positive spin on the impact of artificial intelligence on its business. Here’s what you need to know.

Revenue increases, but outlook sends investors fleeing

On Wednesday morning, Fiverr reported its fourth-quarter 2025 results. And those results, for the most part, were mixed.

The company saw modest growth in total revenue, which rose to $107.2 million in the quarter—a 3.4% increase from a year earlier. Its revenue actuals fall on the lower end of the $104.3 million to $112.3 million range that the company had projected.

However, once you get past the modest revenue growth, you see that Fiverr disappointed on many other key metrics. For example, its marketplace revenue for the quarter was $71.5 million, which was 2.7% lower than the same quarter a year earlier.

Perhaps more worrying, and looking out across its entire fiscal 2025, Fiverr reported that its annual active buyers as of December 31 totaled 3.1 million.

That’s down from 3.6 million annual active buyers a year earlier—a decline of half a million buyers, or 13.6% year over year.

Interestingly, though, this 13.6% decline in the number of annual active buyers was offset to a large degree by an increase of 13.3% in annual spend per buyer.

For the 2025 fiscal year, Fiverr says that the average annual buyer spent $342 compared to the average of $302 they spent in the previous year. What this suggests is that while there were fewer buyers in 2025, they spent more on average than they did in 2024.

Yet this mixed bag of results isn’t what seems to have sunk Fiverr’s stock price this morning.

Instead, the main catalyst for Fiverr’s stock price decline seems to be its 2026 guidance. For its current Q1 2026, the company says it expects to make between $100 million and $108 million. That would represent a decline of anywhere from 7% to a modest increase of 1%.

And for all of fiscal 2026, the company says it expects to make between $380 million and $420 million in revenue, which would represent a decline of anywhere between 12% and 3%.

As noted by investing.com, analysts had been expecting Q1 2026 guidance to be around $112.26 million and full-year 2026 guidance to be around $456.80 million. When these expectations weren’t met, the stock sank. Fiverr shares are currently down nearly 21% in premarket trading as of the time of this writing.

AI uncertainty abounds

Of course, the elephant in the room for Fiverr investors is artificial intelligence. For over a decade and a half, businesses have turned to Fiverr to source freelancers who could help them carry out projects, from design to coding.

But in recent years, those same businesses have begun embracing AI tools for many of those tasks.

This has led many investors (and freelancers who sell services on Fiverr) to ponder the platform’s future in a world where AI tools are increasingly commonplace.

Fiverr itself didn’t say if the rise of these AI tools were the reason for its declining Q1 marketplace revenue, but the company did touch on the topic of AI, attempting to put a somewhat positive spin on it.

Address the topic, Fiverr CEO Micha Kaufman said that is was “clear that we are living through a significant shift in AI adoption,” but he argued that this AI adoption would make humans “more essential, not less.”

“By moving toward an agentic economy, where AI helps navigate complexity, we are ensuring that we remain the bridge between businesses and the most exceptional human talent,” Kaufman argued. “With our expansive global talent network, outcome based hiring model, and depth of proprietary data, Fiverr has a unique right to win in this new age of AI.”

Whether or not AI actually has a positive impact on Fiverr’s marketplace remains to be seen. It will likely be one of the main points of focus for Fiverr investors in 2026.

FVRR has had a horrible 2026 so far

As of the time of this writing, FVRR stock is down nearly 21% in premarket trading to $10.79 per share.

As of yesterday, the company’s stock price had already fallen more than 33% for the year to $13.10.

Unfortunately, looking back further doesn’t help the company’s position. Over the past year, FVRR shares have lost more than 60% of their value as of yesterday’s close. Last May, the stock was trading at over $33 per share at one point.

During the same 12-month period, the New York Stock Exchange composite index has risen by nearly 6%.

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