Goldman Sachs has lowered its price objective for Fiverr International Ltd. to $24.00 from $44.00, while retaining a Buy rating on the stock. The move follows Fiverr's fourth-quarter report and a material reset to its guidance for the coming quarter and fiscal year 2026.
Analyst Eric Sheridan flagged that Fiverr met its Q4'25 targets for revenue and adjusted EBITDA as reported, but that the company trimmed its Q1 and full-year 2026 revenue and adjusted EBITDA guidance to levels below both Goldman Sachs' and the broader Street's estimates. The revised outlook has prompted several firms to re-evaluate their models.
Operationally, Fiverr described a marketplace that is shifting toward higher-value purchasers and more complex engagements. Management said spending per buyer continues to accelerate and that the mix of high-value projects in gross merchandise value - GMV - is rising. The company is positioning this evolution as a multi-year transformation structured around four core pillars: matching, product, go-to-market, and operational improvements.
Fiverr also noted organizational changes at the leadership level, expanding its executive suite and reallocating long-tenured employees to focus on capital allocation and the further formalization of business operations. Management framed these moves as part of its broader transformation agenda.
Key financial metrics remain noteworthy. InvestingPro data indicate Fiverr sustained 12.7% revenue growth over the past twelve months and reported a gross profit margin of 81.2%. Additionally, the analysis points to a strong free cash flow yield of 25%, a metric that suggests the business is generating meaningful cash relative to its market value.
Despite those underlying metrics, the market reaction is shaped by the guidance reset. In the fourth quarter, Fiverr exceeded profit expectations while slightly missing revenue estimates. The guidance for 2026 stands out as the more consequential development - management's projections for revenue and adjusted EBITDA are 12% and 37% below consensus Street expectations, respectively.
Broker responses have been swift. RBC Capital lowered its price target for Fiverr and cited AI-related challenges as a factor weighing on the business. Needham moved to downgrade the stock from Buy to Hold, calling attention to the strategic emphasis on higher-value clients and expecting that approach to reduce GMV in 2026. Needham also cut its EBITDA estimates by 38% for 2026 and by 63% for 2027.
At the time of these analyst moves, the shares were trading at $12.35, well under their 52-week high of $35.40. Analyst price targets among the universe range from $14 to $44. The market valuation implied by current prices sits considerably below many historical reference points, even as some operational measures remain solid.
For investors and market participants, the combination of a strategic shift toward higher-value work and a lowered near-term outlook presents a period of transition for Fiverr. Management highlights the growing importance of aligning high-quality talent with a shift toward AI-driven demand, while investors and analysts weigh the trade-off between near-term revenue and EBITDA compression and the prospect of a better-positioned marketplace over the longer term.
Summary
Goldman Sachs reduced its price target on Fiverr to $24 from $44 while keeping a Buy rating after the company met Q4'25 targets but cut its Q1 and fiscal 2026 revenue and adjusted EBITDA guidance below estimates. Management is directing the business toward higher-value buyers and more complex projects, supported by organizational changes and a four-pillar transformation plan. Underlying metrics such as 12.7% year-over-year revenue growth, an 81.2% gross profit margin, and a 25% free cash flow yield remain strong, but several analysts have trimmed estimates and ratings citing AI-related headwinds and expected declines in GMV for 2026.
Key points
- Goldman Sachs cut its price target to $24 from $44, maintaining a Buy rating despite the lower target.
- Fiverr met Q4'25 revenue and adjusted EBITDA targets but reset Q1 and fiscal 2026 guidance below Street expectations; projected 2026 revenue and EBITDA are 12% and 37% below consensus, respectively.
- Management is shifting the marketplace toward higher-value buyers and complex projects, organizing its multi-year strategy around matching, product, go-to-market, and operational improvements; this transition is expected to affect GMV and near-term results.
Risks and uncertainties
- Guidance shortfall - The company's reset for 2026 revenue and adjusted EBITDA is meaningfully lower than Street estimates, creating uncertainty for near-term top-line and profit recovery; this affects equity investors and analysts covering the internet services and freelance marketplace sectors.
- GMV pressure from strategic shift - Needham expects a decline in gross merchandise volume in 2026 as Fiverr targets higher-value clients, which could weigh on market-facing metrics and revenue growth in the short term.
- Sector exposure to AI-related disruption - RBC Capital cited AI-related challenges as a headwind; changes in demand dynamics related to AI could affect the broader online freelance marketplace and technology-enabled services sectors.