Fiverr International Ltd. (FVRR) reported its Q4 FY25 earnings on February 18, resulting in a significant drop in earnings estimates for 2026 by 27% and 26% for 2027. This led to a Zacks Rank #5 (Strong Sell), as the company faces challenges from the rapid adoption of AI tools disrupting its freelance marketplace.
In 2025, Fiverr’s revenue increased by 10% to $430.9 million, but the stock has suffered amid concerns of sustainability in a post-COVID landscape and competition from AI. CEO Micha Kaufman announced a shift towards integrating AI in operational strategies, emphasizing a plan to navigate complexity while connecting businesses with talented freelancers.
The company’s transformation includes expanding into high-value projects, with a focus on remaining competitive in an evolving gig economy.
