Fiverr's stock crashes 17% after bleak 2026 revenue forecast shocks investors
Fiverr's stock market value plummeted after the company released its 2026 financial guidance on February 18, 2026. Shares dropped by 17.4% in pre-market trading, wiping out nearly 8.65% of its market capitalisation. The platform's value now sits between €394-397 million (around $425-428 million USD).
The sharp decline followed disappointing forecasts for the year ahead. Fiverr projected Q1 2026 revenue of $100-108 million, well below the $112.26 million analysts had expected. For the full year, the company guided revenue of $380-420 million—a potential drop of 3-12% compared to 2025.
Q4 2025 results showed mixed performance. Revenue grew by 3.4% year-over-year to $107.2 million, but this missed the $108.98 million consensus. Net profit also fell to $11.46 million, while free cash flow dropped by 26.5% to $21.8 million. Despite the challenges, adjusted earnings per share (EPS) came in at $0.86, beating the $0.74 estimate.
The company's valuation metrics have weakened. Its price-to-earnings (P/E) ratio now stands at 22.2, near a three-year low, with price-to-sales (P/S) and price-to-book (P/B) ratios also at historical lows. The stock's relative strength index (RSI) of 24.14 suggests it is oversold.
Fiverr's user base has shifted, too. Annual active buyers fell by 13.6% to 3.1 million, though spend per buyer rose by 13.3% to $342. The company also announced a leadership change, promoting Esti Levy Dadon to chief financial officer as part of a wider reshuffle.
The weak 2026 guidance has intensified pressure on Fiverr's stock, which had already lost 14.69% over the previous seven days. With revenue forecasts pointing to a possible decline and key metrics at multi-year lows, investors are watching closely for signs of stabilisation. The company's next steps will be critical in determining whether it can reverse the downward trend.
