Fiverr has gotten torched over the last six months - since November 2025, its stock price has dropped 47.8% to $10.93 per share. This may have investors wondering how to approach the situation.
Is now the time to buy Fiverr, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is Fiverr Not Exciting?
Despite the more favorable entry price, we're swiping left on Fiverr for now. Here are three reasons there are better opportunities than FVRR and a stock we'd rather own.
1. Declining Active Buyers Reflect Product Weakness
As a gig economy marketplace, Fiverr generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Fiverr struggled with new customer acquisition over the last two years as its active buyers have declined by 12.3% annually to 2.9 million in the latest quarter. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Fiverr wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. 
2. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Fiverr’s revenue to drop by 7.2%, a decrease from This projection doesn't excite us and suggests its products and services will see some demand headwinds.
3. Inefficient Marketing Strategy Eats Into Profits
Consumer internet businesses like Fiverr grow from a combination of product virality, paid advertisement, and incentives (unlike enterprise software products, which are often sold by dedicated sales teams).
It’s relatively expensive for Fiverr to acquire new users as the company has spent 49.4% of its gross profit on sales and marketing expenses over the last year. This inefficiency indicates that Fiverr operates in a competitive market and must continue investing to maintain an acceptable growth trajectory. 
Final Judgment
Fiverr’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 1.2× forward price-to-gross profit (or $10.93 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're fairly confident there are better investments elsewhere. Let us point you toward the most dominant software business in the world.
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