Freelance marketplace Fiverr stock slides 35% as AI fears mount

Fiverr’s stock has dropped over 35% this year amid concerns about AI’s impact on its business model.

The company, which earns revenue from transaction fees, reported weak guidance for 2026.

Projected revenue is expected to decline to US$380 million to US$420 million, down from US$430 million in 2025.

Its 2025 results showed 10% revenue growth and a net profit of US$21 million, but operating profit is expected to fall in 2026.

Leadership announced a shift to an “AI-first” strategy, including layoffs of about 25% of staff and office relocation.

Platform revenue declined 2% in 2025, with active buyers falling from 3.6 million to 3.1 million. However, revenue per user rose 13%.

The company also announced the retirement of CFO Ofer Katz, who will become president, with Esti Levy Dadon replacing him.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

Fiverr’s revenue comes from two lines. The Marketplace covers freelancer and buyer transactions, while Services includes ads, subscriptions, and e-commerce tools.
Total revenue rose 10% in 2025, yet Marketplace revenue lagged. Management said AI is taking some low-skill, small-scope work, with writing and translation “down 20% year over year” 1.
Services revenue climbed 18% in the fourth quarter and made up about a third of revenue 2.
The 2026 outlook ties to a deliberate choice to spend less effort boosting low-end transactions, which still make up most Marketplace activity, while shifting resources to higher-value and AI-native work 1.
Projects above $1,000 remain under 15% of marketplace GMV (gross merchandise value, a measure of total transaction volume), yet they grew 23% year over year in 2025 1.

AI is changing what buyers purchase on online work marketplaces, with effects that reach beyond freelance platforms.
Routine, low-cost tasks are getting automated. Management linked declines in simpler services to AI pressure, including writing, translation, and basic programming work such as simple website building 1.
Demand is tilting toward harder work that relies on human judgment and experience.
Higher-spend cohorts support that shift. Buyers spending over $10,000 annually rose 7% year over year 1.
More valuable work now leans on orchestration, judgment, and ownership of outcomes within human-in-the-loop workflows (where people supervise or refine AI outputs), rather than finishing standalone tasks 1.