Fiverr International Ltd. (FVRR) Income Statement

The shift from double-digit growth in 2024 and early 2025 to negative year-over-year rates through 2026 suggests demand for the marketplace has weakened rather than being a temporary timing effect. Investors should monitor whether buyer volumes or average transaction value are driving the decline, since the reported data does not separate these components. Until the trend turns, the revenue base appears to be shrinking rather than compounding.

A gross margin in the low 80s points to a platform-style cost base where incremental revenue carries high contribution, consistent with the peer group where Upwork reports 77.8%. The stability through revenue decline suggests cost of revenue is largely fixed or scaling with the business rather than with transaction value. The margin strength is therefore a real asset, but it is being offset by the expense base below gross profit.

Gross profit fell from about $88M to $73M over the same window while SG&A stayed in the mid-$50M to mid-$60M range, indicating that operating expenses have not flexed down with revenue. This suggests the cost structure has high fixed-cost characteristics, which amplifies margin compression when top-line volume declines. Management's ability to reduce overhead in line with revenue will be a key determinant of whether operating losses are temporary.

SBC levels in the mid-to-high teens of millions per quarter, sitting alongside SG&A in the $56-67M range, indicate that equity compensation is a major economic cost that headline operating figures may partly obscure. The reported SBC figures are sporadic across quarters, which suggests timing or disclosure variability that warrants further investigation. Persistent equity-based pay tends to dilute shareholders, so the true cost of the current cost base is likely higher than GAAP operating margins imply.