Shares of Fiverr International Ltd. (NYSE: FVRR) plunged 5.04% in Wednesday's trading session following the release of the company's third-quarter 2025 earnings report. Despite beating analyst expectations on earnings per share, investors appeared concerned about declining user metrics and slowing revenue growth.
Fiverr reported adjusted earnings of $0.77 per share, surpassing the consensus estimate of $0.69. Revenue for the quarter came in at $107.9 million, representing an 8.3% year-over-year increase. However, the company's marketplace revenue declined by 2% compared to the same period last year, and the number of active buyers fell by 11.7% to 3.3 million.
While Fiverr highlighted strong growth in AI-related categories and expansion of value-added services, the decline in active buyers and slowing overall revenue growth rate appear to have overshadowed the earnings beat. The company's guidance for Q4 2025 revenue between $104.3 million and $112.3 million also suggests potential for flat or negative growth compared to Q3. These factors likely contributed to the negative market reaction, despite Fiverr's efforts to improve profitability and operational efficiency.