Fiverr's stock plunges 17% after weak 2026 revenue forecast shocks investors
Fiverr's stock fell sharply after the company released weaker-than-expected guidance for 2026. Shares dropped 17.4% in pre-market trading as investors reacted to forecasts suggesting a possible revenue decline. Despite beating earnings estimates in the last quarter, the outlook overshadowed the positive results. The company reported Q4 revenue of $107.2 million, a 3.4% increase from the same period last year. However, this figure fell short of the $108.98 million analysts had predicted. Adjusted earnings per share came in at $0.86, outperforming the $0.74 estimate. For Q1 2026, Fiverr expects revenue between $100 million and $108 million, below the $112.26 million consensus. The full-year forecast of $380 million to $420 million suggests a potential decline of 3-12% compared to 2025. This guidance weighed heavily on investor sentiment, pushing the stock into oversold territory with an RSI of 24.14. Active buyers on the platform dropped 13.6% year-over-year to 3.1 million. However, those who remained spent more, with average spend per buyer rising 13.3% to $342. Free cash flow also declined, falling 26.5% to $21.8 million in Q4. Fiverr's valuation metrics now sit near three-year lows, with a P/E ratio of 22.2. Both price-to-sales and price-to-book ratios are also close to historical lows, reflecting the market's cautious reaction. The company's guidance for 2026 signals potential challenges ahead, with revenue projections falling below expectations. While earnings per share beat estimates in Q4, the decline in active buyers and weaker cash flow have raised concerns. Investors will be watching closely to see how Fiverr addresses these trends in the coming months.
