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Why Fiverr Stock Is Falling Hard Today

The Motley FoolJul 29, 2026 6:16 PM
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Key Points

  • Fiverr's second-quarter revenue and earnings missed analysts' consensus estimates.

  • The company lowered its 2026 guidance amid increasing pressure from AI disruption.

Shares of Fiverr International (NYSE: FVRR), a platform for freelance workers, tumbled today after the company reported second-quarter results that missed Wall Street's consensus estimates.

Investors have already been concerned about the company's ability to thrive amid AI disruption, and the latest results didn't put their fears to rest.

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Fiverr stock was down by 19.4% as of 1:48 p.m.

A person looking at a computer.

Image source: Getty Images.

A disappointing quarter

Fiverr investors have been running for the hills over the past year, with its share price dropping about 63% over the past 12 months. They've been concerned that the work many freelancers do will be replaced by artificial intelligence, resulting in Fiverr's platform being far less valuable than it was just several years ago.

Shareholders didn't get the reassurance they were looking for, as the company reported revenue of $97.8 million in the second quarter -- a 10% decline from the year-ago quarter. Fiverr's sales also missed analysts' consensus revenue estimate of $99.8 million.

The company's earnings also failed to impress, with adjusted non-GAAP earnings of $0.50 per share falling short of Wall Street's consensus estimate of $0.52 per share.

Fiverr CEO Micha Kaufman noted that the company is repositioning itself toward listing higher-value projects, like those worth $1,000 or more, saying,

"Our second quarter performance reflects the early stages of a significant transition, as we manage an accelerated shift in how rapid AI adoption impacts low-value, transactional work."

Tough times ahead

Fiverr shareholders will likely have some more tough times ahead, as the company lowered its full-year guidance.

Management now estimates 2026 revenue will be $364 million, down from its previous guidance of $400 million, both at the midpoint. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now estimated to be $57 million for the year, far below its previous guidance of $72 million, both at the midpoint.

Given the revenue decline in the second quarter, the revenue and earnings miss, and the company lowering its 2026 guidance, it's not surprising to see investors questioning whether Fiverr stock is worth holding on to.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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