Fiverr, the Israeli freelance platform, may be the clearest public-market example of what AI is doing to freelance work. In third-quarter results published last week, revenue fell 15.8% to $90.9 million, and marketplace revenue, the core business of matching clients with freelancers, fell 24.7% to $55.4 million.
The sharpest number is active buyers: 2.4 million, down 25.8% in a year. Those who remain spend more, $373 on average, up 12.9%, meaning the small customers, the ones ordering a logo, a short translation or marketing copy, are the ones disappearing. Most of those tasks can now be done with ChatGPT, Gemini or Claude.
Fiverr is leaning on the other side: services revenue, which includes tools and business solutions, rose 3.4% to $35.5 million. The company is profitable, with $1.3 million net income and $316 million in cash, and raised its full-year outlook to $374–380 million.
But next year looks harder: Fiverr expects a steeper decline in marketplace traffic through 2027 and will give full guidance with fourth-quarter results. For Israeli tech, Fiverr has become a symbol of a company where AI is not just changing the product but threatening the business model itself.
