Fiverr International Ltd. (FVRR) Cash Flow Statement

The consistently high OCF-to-net-income ratios indicate that cash generation has been driven by non-cash add-backs such as stock-based compensation and deferred revenue timing rather than by core operating profit alone. Operating income turned slightly negative in 2026Q3 while operating cash flow remained at $8.7M, so investors should monitor whether this cash cushion proves durable once working capital movements normalize. The 35.47x ratio in 2025Q1 reflects a very small net income base and is better read as noise than as a signal of earnings quality.

The decline from roughly $32.6M of quarterly FCF in 2025Q3 to $8.6M in 2026Q3 is steeper than revenue alone would imply, pointing to a deterioration in operating cash generation per dollar of sales. Free cash flow still remains positive, which indicates the business is not yet burning cash, but the trajectory warrants close monitoring. The lower capital intensity, with CapEx near 0.1% to 0.3% of revenue, means the compression is driven almost entirely by operating dynamics rather than investment spending.

Low CapEx against D&A of $3M to $4M per quarter suggests depreciation and amortization largely reflect previously capitalized software and intangibles rather than ongoing maintenance of physical plant. This asset-light profile supports high FCF conversion when revenue is stable, but it also means the company has limited levers to cut investment if revenue continues to contract. Investors should note that capitalized development costs, if any, are not separately visible in the supplied CapEx line and may warrant review in the filings.

Repurchasing stock during a period of declining revenue and narrowing operating margins may signal management confidence in intrinsic value, but it also redirects cash that could otherwise serve as a buffer against further contraction. Dividends are absent from the supplied data, so buybacks represent the sole shareholder return channel. Acquisition outflows of $21.4M in 2025Q4 and $30.2M in 2024Q3 are visible in the data and should be assessed for whether they contributed to the revenue trajectory.