AI Continues to Hit Fiverr: Revenues Slashed and Outlook for the Rest of the Year

Fiverr reported disappointing second-quarter results: revenues fell 10% to $97.8 million, active customers dropped 22% to 2.7 million, and operating cash flow plunged 45%. The company cuts its annual revenue forecast to $356-372 million, a decline of about 15% compared to 2025, amid rapid adoption of artificial intelligence that renders simple services on the platform obsolete.

Fiverr released its financial results for the second quarter of 2026, revealing a decline in nearly all parameters. The company's revenues fell 10% to $97.8 million, at the low end of analyst expectations. The number of active customers dropped 22% to 2.7 million from 3.4 million a year ago, as artificial intelligence renders simple services like translation, logo design, and basic programming obsolete. Operating cash flow plunged 45% to just $13.2 million. On the bottom line, the company recorded a profit of $4.4 million, similar to operating profit. The forecast for the third quarter indicates a deepening decline: revenues of $80-88 million, a drop of more than 20% compared to the same quarter in 2025. Accordingly, Fiverr cuts its annual forecast to $356-372 million, down from a previous forecast of over $400 million, a decline of about 15% compared to 2025. CEO Micha Kaufman attributed the weakness to a faster-than-expected market shift due to rapid AI adoption, calling it a transformative process that will last several quarters. The company already laid off a quarter of its employees a year ago, and now appears to need further efficiency measures. Additionally, Fiverr withdrew from its plan to move to the WIX campus in Glilot and is negotiating to become a subtenant of Kaito in its existing Tel Aviv offices. The stock is plunging more than 16% in pre-market trading, and the market cap is expected to fall below $400 million, close to the cash on hand.