Fiverr International Ltd. Q4 FY2025 earnings call

• 2025 was an execution year with revenue growth, adjusted EBITDA growth, and meeting targets. Products like dynamic matching and managed services are enabling expansion into larger projects. • AI is reshaping work, with Fiverr positioned to connect businesses with human talent in the AI - enabled talent economy. • Developed a multiyear plan with four pillars: matching, product, go - to - market, and operational excellence. • Ofer Katz is transitioning from CFO, with Esti Levy Dadon and Jinjin Qian taking on new roles.

In 2025, revenue grew 10% with adjusted EBITDA reaching $92,000,000, up 23% year over year with a 21% margin. Fourth quarter 2025 revenue was $107,200,000, up 3% year over year. Marketplace revenue in Q4 was $71,500,000, driven by 3,100,000 active buyers, $342 in spend per buyer, and a 27.7% marketplace take rate. GMV from transactions over $1,000 grew 22.8% in Q4. Services revenue in Q4 was $35,600,000, up 18% year over year and accounting for 33% of total revenue.

• Full year 2026 revenue expected in range of $380,000,000 to $420,000,000, representing year - over - year growth of negative 12% to negative 3%. • First quarter 2026 revenue expected between $101,000,000 to $108,000,000, year - over - year growth of negative 7% to 1%. • Adjusted EBITDA for 2026 expected in range of $60,000,000 to $80,000,000, adjusted EBITDA margin at midpoint 18%. • First quarter 2026 adjusted EBITDA expected $19,000,000 to $23,000,000, adjusted EBITDA margin at midpoint 20%.

Q: Talk about how investments in four core areas unfold and M&A capital allocation.

A: Investments are to deprioritize low - end transactions and focus on high - end. M&A is looking for tuck - ins and larger transactions to support high - end flywheel.

Q: How does deprioritization manifest in financials and OpEx?

A: Deprioritization shifts resources to high - end, core business profitability stays north of 20%, and transformational investment impacts adjusted EBITDA by ~200 basis points.

Q: Margin profile and Fiverr Go?

A: Short - term lower margin due to R&D investment, long - term expected to go back to ~25% EBITDA. Fiverr Go assets integrated into product.

Q: Impact of restructuring on revenue and OpEx growth?

A: Revenue not impacted by restructuring, OpEx core business margin stays 20% plus, transformational investment impacts adjusted EBITDA by ~200 basis points.

Q: High - value work reaching majority and go - to - market for enterprise and AI - native?

A: High - value growth will increase its portion, no specific partnerships called out but based on existing proof of concepts.

Q: Why revenue declines in back half and free cash flow?

A: Combination of trends and uncertainty, free cash flow largely follows EBITDA.

Q: Products for recurring work and buybacks vs M&A?

A: Upgrading data infrastructure, etc. for recurring work, disciplined capital allocation with buyback authorization and opportunistic M&A.

Q: New business formations and S&M as percentage of revenue?

A: New business formations impact small part of catalog, no change anticipated for S&M percentage.

Q: Heaviest lift in next 12 - 18 months and services revenue mix?

A: Heaviest lift in data infrastructure and matching algorithm, services revenue growth moderated this year but has long - term runway