Analysts downgrade Fiverr as AI headwinds accelerate

Investing.com -- Oppenheimer downgraded Fiverr International to Perform from Outperform in a note on Thursday, citing accelerating pressure from AI adoption after the company slashed its full-year guidance.

Analyst Jason Helfstein said pressure from large language model adoption "noticeably increase[d] intra-quarter," prompting Fiverr to cut full-year revenue and EBITDA guidance by 9% and 21%, respectively.

While the company is executing within higher-value services, Oppenheimer noted that lower-cost services make up 85% of gross merchandise value and "headwinds are accelerating."

The firm noted that second-quarter revenue fell 10% year over year, worse than the 2% decline in the first quarter, with trailing-twelve-month buyers down 22%.

Oppenheimer now forecasts full-year 2026 and 2027 revenue declining 16% and 38%, respectively, though it flagged "a low degree of confidence" in its model. Management expects the turnaround to take another six quarters.

Oppenheimer added that it is likely to wait for revenue stabilization, despite the stock trading near cash, at an enterprise value of just $28 million.

Elsewhere, Goldman Sachs also downgraded the shares to Neutral from Buy, cutting its price target to $13 from $26.

Analyst Eric Sheridan pointed to "dueling themes" in the freelance economy, with compression of high-volume, lower-value work alongside a shift toward higher-end, AI-driven projects. He said annual active buyers fell 22% while spend per buyer grew 16%.

Goldman needs visibility on "exit velocity, normalized growth, and normalized post-industry transition margin structure" before turning more positive, though it still sees Fiverr positively exposed to longer-term secular growth in flexible work.

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