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Fiverr Announces Third Quarter 2025 Results

1. Fiverr's Q3 2025 revenue rose to $107.9 million, up 8.3% YoY. 2. Adjusted EBITDA hit record levels, enhancing operational efficiency. 3. Marketplace revenue decreased by 2% YoY, but services revenue grew 39.6%. 4. Annual active buyers declined by 11.7%, highlighting customer retention challenges. 5. Strong investments in AI and services aim to boost growth into 2026.

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FAQ

Why Bullish?

Despite a decline in active buyers and marketplace revenue, significant EBITDA growth and strategic AI investments indicate positive long-term potential. Historical trends show that such pivots can lead to rebounds, similar to previous recovery phases following strategic refocusing.

How important is it?

The financial health and operational strategies outlined in the article represent significant factors for FVRR’s future performance, thus meriting attention from investors and analysts. The shifts in revenue dynamics, while concerning, are offset by strong strategic positioning.

Why Long Term?

The strategic investments in AI and service offerings are positioned to enhance growth beyond Q4 2025, likely influencing long-term stock performance positively. Historical market reactions often favor companies realigning capabilities towards future-oriented growth sectors.

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Strong Q3 results: Q3’25 represents another quarter of Rule-of-30, with revenue above the midpoint and Adjusted EBITDA exceeding the high end of our guidance. The continued growth of AI, upmarket, and value-added services led to revenue strength, and we delivered the highest-ever quarter of Adjusted EBITDA and Adjusted EBITDA margin as we accelerated our pace towards long-term targets.Acceleration in Spend per Buyer growth: With tailwinds from both AI-related categories and the expansion of Managed Services and Dynamic Matching, Marketplace revenue continued to benefit from strong growth in complex projects, resulting in higher ticket-sized purchases and growth of customer wallet size.Continued strength of Services revenue: Services revenue continued to grow at a robust pace, with Fiverr Go serving as a key driver for Seller Plus adoption, which grew over 20% y/y. Fiverr Ads maintained double-digit growth as we expanded ads into the Fiverr Pro catalog. AutoDS benefited from synergies with Fiverr and the partnership with Shopify.Positioning the business for 2026: As we look to close 2025 with strong execution, we are working through the transformation to position the business for a successful 2026. This includes focused investments in AI and upmarket to reaccelerate marketplace growth, as well as continued expansion of our value-added service portfolio, which remains a key driver of growth. NEW YORK, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is transforming the way the world creates and works together, today reported financial results for the third quarter of 2025. Additional operating results and management commentary can be found in the Company’s shareholder letter, which is posted to its investor relations website at investors.fiverr.com. “With AI continuing to run through every facet of the business, our commitment to driving AI transformation and re-accelerating GMV growth is as focused as ever. Our recent strategic restructuring has prepared us to further this transformation and truly establish an AI-first mentality. What the market wants is clear, high-quality specialized talent, and the intentional investments we are making are already allowing us to capture these higher-value client projects,” said Micha Kaufman, founder and CEO of Fiverr. “As we leverage our data and the latest AI technologies to build more nuanced product capabilities, we look forward to unlocking this next phase of growth.” "We delivered another strong quarter, with solid execution across both revenue and profitability. Adjusted EBITDA and Adjusted EBITDA margin were our highest-ever for a quarter, highlighting the scalability in our marketplace and our disciplined approach to operational efficiency,” said Ofer Katz, President and CFO of Fiverr. “As we close out the year, we’re proud to have delivered Rule-of-30 in a dynamic environment. We believe this resiliency and consistent execution position us well for continued momentum in the year ahead.” Third Quarter 2025 Financial Highlights Revenue in the third quarter of 2025 was $107.9 million, compared to $99.6 million in the third quarter of 2024, an increase of 8.3% year over year.Marketplace revenue in the third quarter of 2025 was $73.6 million, compared to $75.1 million in the third quarter of 2024, a decline of 2.0% year over year.Annual active buyers1 as of September 30, 2025, were 3.3 million, compared to 3.7 million as of September 30, 2024, a decline of 11.7% year over year.Annual spend per buyer1 as of September 30, 2025, reached $330, compared to $295 as of September 30, 2024, an increase of 11.7% year over year.Marketplace take rate1 for the twelve months period ended September 30, 2025, was 27.6%, a decrease of 20 basis points from 27.8% for the twelve months period ended September 30, 2024.Services revenue in the third quarter of 2025 was $34.3 million, compared to $24.6 million in the third quarter of 2024, an increase of 39.6% year over year.GAAP gross margin in the third quarter of 2025 was 81.7%, an increase of 70 basis points from 81.0% in the third quarter of 2024. Non-GAAP gross margin1 in the third quarter of 2025 was 84.2%, an increase of 20 basis points from 84.0% in the third quarter of 2024.GAAP net income in the third quarter of 2025 was $5.5 million, or $0.15 basic and diluted net income per share, compared to $1.4 million GAAP net income, or $0.04 basic and diluted net income per share in the third quarter of 2024.Non-GAAP net income1 in the third quarter of 2025 was $30.5 million, or $0.84 basic non-GAAP net income per share1 and $0.77 diluted non-GAAP net income per share1, compared to $24.6 million non-GAAP net income1, or $0.69 basic non-GAAP net income per share1 and $0.64 diluted non-GAAP net income per share1, in the third quarter of 2024.Net cash provided by operating activities in the third quarter of 2025 was $29.2 million, compared to $10.9 million in the third quarter of 2024, an increase of 168.8% year over year. Excluding the impact from the one-time escrow payment for contingent consideration of $12.2 million in the third quarter of 2024, net cash provided by operating activities grew 26.8% year over year.Free cash flow1 in the third quarter of 2025 was $29.1 million, compared to $10.6 million in the third quarter of 2024, an increase of 175.4% year over year. Excluding the impact from the one-time escrow payment for contingent consideration of $12.2 million in the third quarter of 2024, free cash flow grew 28.1% year over year.Adjusted EBITDA1 in the third quarter of 2025 was $24.2 million, compared to $19.7 million in the third quarter of 2024. Adjusted EBITDA margin1 was 22.4% in the third quarter of 2025, compared to 19.7% in the third quarter of 2024, representing a 270 basis points improvement year over year. Financial Outlook Our Q4’25 and full-year 2025 guidance reflect the recent trends in our marketplace.  Q4 2025FY 2025Revenue$104.3 - $112.3 million$428 - $436 milliony/y growth1% - 8%9% - 11%Adjusted EBITDA(1)$23.9 - $27.9 million$88 - $93 million  Conference Call and Webcast Details Fiverr’s management will host a conference call to discuss its financial results on Wednesday, November 5, 2025, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr’s Investor Relations website. An archived version will be available on the website after the call. To participate in the conference call, please register using the link here. About Fiverr Fiverr’s mission is to transform the way the world creates and works together. We’re shaping the future of work with the world’s leading open platform, seamlessly connecting top talent and cutting-edge technology with businesses around the globe. From expert freelancers in over 750 skilled categories to best-in-class GenAI models and agents, Fiverr provides the most advanced and comprehensive talent and tools for digital services—helping businesses get mission-critical projects done fast and cost-effectively. From small businesses to Fortune 500 companies, millions trust Fiverr for projects in software and AI development, digital marketing, finance, business consulting, video animation, music, architecture, and more. Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, X, and Facebook. 1 See “Key Performance Metrics and Non-GAAP Financial Measures” and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release. Investor Relations:Jinjin Qianinvestors@fiverr.com Press:Jenny Changpress@fiverr.com Source: Fiverr International Ltd.  CONSOLIDATED BALANCE SHEETS(In thousands)       September 30, December 31,   2025   2024   (Unaudited) (Audited)Assets    Current assets:    Cash and cash equivalents $559,661  $133,472 Marketable securities  152,809   288,947 User funds  168,291   153,309 Bank deposits  39,000   144,843 Restricted deposit  1,502   1,315 Other receivables  35,269   34,198 Total current assets  956,532   756,084      Long-term assets:    Marketable securities  -   122,009 Property and equipment, net  3,562   4,271 Operating lease right of use asset  3,179   5,122 Intangible assets, net  30,014   41,882 Goodwill  110,218   110,218 Other non-current assets  32,136   30,388 Total long-term assets  179,109   313,890      TOTAL ASSETS $1,135,641  $1,069,974      Liabilities and Shareholders' Equity    Current liabilities:    Trade payables $4,873  $5,533 User accounts  155,704   141,691 Deferred revenue  19,624   20,090 Other account payables and accrued expenses  74,643   57,167 Operating lease liabilities  2,917   2,608 Convertible notes, net  459,786   457,860 Total current liabilities  717,547   684,949      Long-term liabilities:    Operating lease liabilities  860   2,747 Other non-current liabilities  18,586   19,628 Total long-term liabilities  19,446   22,375      TOTAL LIABILITIES $736,993  $707,324      Shareholders' equity:    Share capital and additional paid-in capital  772,916   727,176 Accumulated deficit  (379,190)  (366,193)Accumulated other comprehensive income  4,922   1,667 Total shareholders' equity  398,648   362,650      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,135,641  $1,069,974       CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)         Three Months Ended Nine Months Ended September 30, September 30,  2025   2024   2025   2024  (Unaudited) (Unaudited)Revenue$107,903  $99,628  $323,735  $287,815 Cost of revenue 19,766   18,893   60,546   50,365 Gross profit 88,137 - 80,735   263,189 - 237,450         Operating expenses:       Research and development 25,150   22,424   72,771   67,912 Sales and marketing 40,669   42,970   132,903   126,446 General and administrative 22,214   18,817   64,595   53,032 Total operating expenses 88,033   84,211   270,269   247,390 Operating loss 104   (3,476)  (7,080)  (9,940)Financial income, net 6,815   6,881   20,694   22,044 Income before taxes on income 6,919   3,405   13,614   12,104 Taxes on income (1,382)  (2,052)  (4,091)  (6,696)Net income attributable to ordinary shareholders$5,537  $1,353  $9,523  $5,408 Basic net income per share attributable to ordinary shareholders$0.15  $0.04  $0.26  $0.14 Basic weighted average ordinary shares 36,415,189   35,435,532   36,340,110   37,426,914 Diluted net income per share attributable to ordinary shareholders$0.15  $0.04  $0.26  $0.14 Diluted weighted average ordinary shares 37,237,699   36,205,992   37,343,283   38,188,945          CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)         Three Months Ended Nine Months Ended September 30, September 30,  2025   2024   2025   2024  (Unaudited) (Unaudited)Cash flows from operating activities:       Net income$5,537  $1,353  $9,523  $5,408 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization 3,074   3,392   11,447   6,148 Amortization of premium and accretion of discount of marketable securities, net 772   (858)  (825)  (3,106)Amortization of discount and issuance costs of convertible notes 643   640   1,926   1,915 Shared-based compensation 11,925   18,464   41,734   55,922 Exchange rate fluctuations and other items, net (169)  (106)  (513)  60 Impairment of intangible assets 2,400   -   2,400   - Revaluation of earn out 2,274   143   9,603   143 Changes in assets and liabilities:       User funds (4,172)  (3,032)  (14,982)  (7,724)Operating lease ROU assets and liabilities 53   82   365   (193)Other receivables 1,798   (893)  (1,713)  (6,066)Trade payables (2,004)  (2,482)  (642)  (3,062)Deferred revenue (1,215)  673   (466)  1,791 User accounts 3,657   2,794   14,013   6,085 Payment of earn out (2,714)    (2,714)  Escrow payment for contingent consideration -   (12,168)  -   (12,168)Other accounts payable and accrued expenses 7,387   2,735   13,674   6,869 Non-current liabilities (40)  130   (111)  1,012 Net cash provided by operating activities 29,206   10,867   82,719   53,034         Investing Activities:       Investment in marketable securities -   -   (55,652)  (30,734)Proceeds from maturities of marketable securities 136,505   25,258   316,776   133,855 Investment in short-term bank deposits (187)  (10,112)  (2,187)  (46,350)Proceeds from short-term bank deposits 107,000   1,862   107,843   8,213 Acquisition of business, net of cash acquired -   (30,192)  -   (39,355)Purchase of property and equipment (77)  (290)  (549)  (977)Capitalization of internal-use software -   -   (661)  (20)Other receivables and non-current assets -   (300)  -   (300)Net cash provided by (used in) investing activities 243,241   (13,774)  365,570   24,332         Financing Activities       Repurchases of common stock (22,520)  (22,980)  (22,520)  (100,081)Proceeds from exercise of share options 632   530   3,211   2,360 Payment of earn out (2,486)  -   (2,486)  - Proceeds from withholding tax related to employees' exercises of share options and RSUs (2,073)  (240)  (785)  (20)Repayment of debt to previous shareholder of the acquired business -   (3,992)  -   (3,992)Net cash (used in) financing activities (26,447)  (26,682)  (22,580)  (101,733)        Effect of exchange rate fluctuations on cash and cash equivalents 141   105   480   (62)        Increase (decrease) in cash, cash equivalents 246,141   (29,484)  426,189   (24,429)Cash, cash equivalents at the beginning of period 313,520   188,729   133,472   183,674 Cash and cash equivalents at the end of period$559,661  $159,245  $559,661  $159,245          REVENUE BREAKDOWN(In thousands1)         Three Months Ended Nine Months Ended September 30, September 30,  2025   2024   2025   2024 Marketplace Revenue$73,592  $75,056  $225,955$229,558 Annual Active Buyers 3,297   3,733   3,297   3,733 Annual Spend per Buyer$330  $295  $330  $295 Marketplace Take Rate 27.6%  27.8%  27.6%  27.8%        Services Revenue$34,311  $24,572  $97,780  $58,257 Total Revenue$107,903  $99,628  $323,735$287,815         1. Except for Annual Spend per Buyer and Marketplace Take Rate          RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT(In thousands, except gross margin data)               Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY 2023 FY 2024     (Unaudited)     (Audited) (Audited)GAAP gross profit$80,735  $83,465  $86,788  $88,264  $88,137  $299,529  $320,915 Add:             Share-based compensation 514   445   423   403   365   2,497   2,136 Depreciation and amortization 2,415   3,198   3,164   3,155   2,186   3,253   7,017 Restructuring costs -   -   -   -   238   -   - Earn-out revaluation, acquisition related costs and other 11   17   44   -   (43)  -   28 Non-GAAP gross profit$83,675  $87,125  $90,419  $91,822  $90,883  $305,279  $330,096 Non-GAAP gross margin 84.0%  84.0%  84.4%  84.5%  84.2%  84.5%  84.3%                                          RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME AND NET INCOME PER SHARE(in thousands, except share and per share data)               Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY 2023 FY 2024     (Unaudited)     (Audited) (Audited)GAAP net income attributable to ordinary shareholders$1,353  $12,838  $798  $3,188  $5,537  $3,681  $18,246 Add:             Depreciation and amortization 3,392   4,328   4,284   4,089   3,074   5,987   10,476 Share-based compensation 18,464   18,020   15,754   14,055   11,925   68,698   73,942 Impairment of intangible assets -   -   -   -   2,400   -   - Restructuring costs -   -   -   -   3,567   -   - Earn-out revaluation, acquisition related costs and other 1,273   4,240   4,599   5,294   3,111   (359)  5,631 Convertible notes amortization of discount and issuance costs 640   640   641   642   643   2,541   2,555 Taxes on income related to non-GAAP adjustments (290)  (16,249)  (380)  (351)  (235)  -   (16,610)Exchange rate (gain)/loss, net (221)  1,108   (642)  531   431   (131)  859 Non-GAAP net income$24,611  $24,925  $25,054  $27,448  $30,453  $80,417  $95,099 Weighted average number of ordinary shares - basic 35,435,532   35,658,287   36,019,143   36,585,998   36,415,189   38,066,203   36,984,757 Non-GAAP basic net income per share attributable to ordinary shareholders$0.69  $0.70  $0.70  $0.75  $0.84  $2.11  $2.57               Weighted average number of ordinary shares - diluted 38,359,853   38,947,644   39,446,707   39,653,165   39,391,560   41,304,907   39,994,015 Non-GAAP diluted net income per share attributable to ordinary shareholders$0.64  $0.64  $0.64  $0.69  $0.77  $1.95  $2.38                                           RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA(in thousands, except Adjusted EBITDA margin data)               Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY 2023 FY 2024     (Unaudited)     (Audited) (Audited)GAAP net income$1,353  $12,838  $798  $3,188  $5,537  $3,681  $18,246 Add:             Financial expenses (income), net (6,881)  (5,662)  (7,325)  (6,554)  (6,815)  (20,163)  (27,706)Taxes on income (tax benefit) 2,052   (13,054)  1,332   1,377   1,382   1,373   (6,358)Depreciation and amortization 3,392   4,328   4,284   4,089   3,074   5,987   10,476 Share-based compensation 18,464   18,020   15,754   14,055   11,925   68,698   73,942 Impairment of intangible assets -   -   -   -   2,400   -   - Restructuring costs -   -   -   -   3,567   -   - Earn-out revaluation, acquisition related costs and other 1,273   4,240   4,599   5,294   3,111   (359)  5,631 Adjusted EBITDA$19,653  $20,710  $19,442  $21,449  $24,181  $59,217  $74,231 Adjusted EBITDA margin 19.7%  20.0%  18.1%  19.7%  22.4%  16.4%  19.0%                                          RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES(In thousands)               Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY 2023 FY 2024     (Unaudited)     (Audited) (Audited)GAAP research and development$22,424  $22,329  $23,627  $23,994  $25,150  $90,720  $90,241 Less:             Share-based compensation 5,273   5,563   4,730   4,129   3,229   24,310   23,569 Depreciation and amortization 190   247   265   313   309   799   831 Restructuring costs -   -   -   -   2,258   -   - Earn-out revaluation, acquisition related costs and other 700   (672)  65   62   (83)  -   28 Non-GAAP research and development$16,261  $17,191  $18,567  $19,490  $19,437  $65,611  $65,813               GAAP sales and marketing$42,970  $45,232  $47,390  $44,844  $40,669  $161,208  $171,678 Less:             Share-based compensation 3,605   3,162   2,246   1,369   1,338   13,304   13,592 Depreciation and amortization 721   770   716   550   507   1,601   2,308 Restructuring costs -   -   -   -   829   -   - Earn-out revaluation, acquisition related costs and other 67   1,811   1,197   1,147   805   -   1,878 Non-GAAP sales and marketing$38,577  $39,489  $43,231  $41,778  $37,190  $146,303  $153,900               GAAP general and administrative$18,817  $21,782  $20,966  $21,415  $22,214  $62,710  $74,814 Less:             Share-based compensation 9,072   8,850   8,355   8,154   6,993   28,587   34,645 Depreciation and amortization 66   113   139   71   72   334   320 Impairment of intangible assets -   -   -   -   2,400   -   - Restructuring costs -   -   -   -   242   -   - Earn-out revaluation, acquisition related costs and other 495   3,084   3,293   4,085   2,432   (359)  3,697 Non-GAAP general and administrative$9,184  $9,735  $9,179  $9,105  $10,075  $34,148  $36,152                                           RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW(In thousands)               Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY 2023 FY 2024     (Unaudited)     (Audited) (Audited)Net cash provided by operating activities$10,867  $30,034  $28,309  $25,204  $29,206  $83,186  $83,068 Purchase of property and equipment (290)  (326)  (287)  (185)  (77)  (1,053)  (1,303)Capitalization of internal-use software -   (83)  (661)  -   -   (60)  (103)Free cash flow$10,577  $29,625  $27,361  $25,019  $29,129  $82,073  $81,662                Key Performance Metrics and Non-GAAP Financial Measures This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow, as well as operating metrics, including marketplace Gross Merchandise Value or GMV, annual active buyers, annual spend per buyer and marketplace take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts. As of the fourth quarter of 2024, we updated the definitions of annual active buyers, GMV, annual spend per buyer and marketplace take rate to align our supplemental revenue presentation, which disaggregates revenue into two components, marketplace revenue and services revenue. These metrics will now exclusively reflect the marketplace, as amounts related to services previously included in these metrics are deemed immaterial. We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, contingent consideration revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible note, financial (income) expenses, net. Amortization of acquired intangible assets is excluded from the measures, however, the revenue from the acquired companies is included, and their assets actively contribute to revenue generation. Non-GAAP gross profit margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as a net cash provided by operating activities less capital expenditures. We define GMV or marketplace Gross Merchandise Value as the total value of transactions ordered through our marketplace, excluding value-added tax, goods and services tax, service chargebacks and refunds. Annual active buyers on any given date is defined as buyers who have ordered a Gig on our marketplace within the last 12-month period, irrespective of cancellations. Annual spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of annual active buyers as of such date. Marketplace take rate for a given period means marketplace revenue for such period divided by GMV for such period. When we refer in this release to the marketplace we refer to transactions conducted between buyers and freelancers on Fiverr.com. When we refer to the platform we refer to the marketplace and our additional services. We define Rule-of-30 as percentage of revenue growth plus Adjusted EBITDA Margin. Management and our board of directors use certain metrics as supplemental measures of our performance that are not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs. Free cash flow should not be used as an alternative to, or superior to, cash from operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, annual active buyers, annual spend per buyer and marketplace take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business. These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measures of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein are not necessarily comparable to similarly titled captions of other companies due to different methods of calculation. See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. We are not able to provide a reconciliation of Adjusted EBITDA guidance to net income (loss), the nearest comparable GAAP measure, and Adjusted EBITDA margin guidance for the fourth quarter of 2025, the fiscal year ending December 31, 2025, or the period ending December 31, 2027, because certain items that are excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be reasonably predicted or are not in our control. We are also not able to provide a reconciliation of free cash flow guidance for the three year period from 2024-2027 to cash from operating activities, the nearest comparable GAAP measure, because certain items that are reflected in free cash flow cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA and Adjusted EBITDA margin, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, and in the case of free cash flow, we are unable to forecast property and equipment purchases and capitalized software costs, in each case, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future. Forward Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including, our business plans and strategy, the growth of our business, AI services and developments, future investments, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our reduction in force could adversely affect our business, results of operations and financial condition; our ability to successfully implement our business plan within adverse economic conditions that may impact consumers, business spending and the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to maintain profitability or positive net cash flow generated by operating activities; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our websites; our ability to maintain user engagement on our websites and to maintain and improve the quality of our platform; our operations within a competitive market; political, economic and military instability in Israel, including related to the war in Israel; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations, including with regulatory frameworks around the development and use of AI; our ability to attract, recruit, retain and develop qualified employees; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption “Risk Factors” in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on February 19, 2025, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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