Is Fiverr a Multimillionaire-Maker Stock?

Earning outstanding returns in equity markets sometimes requires a contrarian mindset and the ability to identify stocks that, despite significant challenges, can recover and perform well over the long run. Does that description fit Fiverr (NYSE: FVRR)? The company has lost substantial market value over the past five years, but if Fiverr can bounce back from recent woes and benefit from industrywide tailwinds, it might deliver superior returns to patient investors. However, does it have what it takes to turn average investors into millionaires? Let's find out.

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The gig economy is expanding

Fiverr is a platform that helps freelancers promote themselves, market their skills, and connect with businesses seeking their services. For freelancers, Fiverr is a quick, easy way to get started without building a website from scratch, and companies can also hire workers quickly on a freelance or contract basis. Fiverr earns money primarily by taking a cut of the total amount for each transaction it facilitates on its platform. So, as more people join the gig economy -- be it on a full-time or part-time basis to earn some extra cash -- and as more businesses look for such services, Fiverr's addressable market will expand. According to some estimates, the gig economy will grow at a compound annual rate of 15.79% through 2035.

How much will Fiverr benefit from that? The company has a recognizable brand name in the field and an existing, deep ecosystem of buyers and sellers, which arguably grants it a network effect. Fiverr is also profiting from the increased demand for artificial intelligence (AI)-related services. If the AI industry maintains its momentum, Fiverr could ride that wave for a while. That said, the company faces headwinds. Here are two of them. First, Fiverr's top-line has been fairly unimpressive in recent years. In 2025, Fiverr's revenue increased by 10% year over year to $430.9 million. That's a much lower growth rate than what Fiverr used to post several years ago.

FVRR Revenue (Annual YoY Growth) data by YCharts

True, the company's earnings per share climbed by almost 17% year over year to $0.56 in 2025. But overall, the market expects more, especially on the top-line, for a small-cap company looking to establish itself in a large and growing market. Second, Fiverr's active buyers are declining. It ended 2025 with 3.1 million active buyers, a 13.6% year-over-year drop. The company is still growing its revenue because spend per buyer is improving, but if it continues to bleed users, that will harm its top-line.

Fiverr is a high-risk stock

Fiverr might still perform well over the long run if the gig economy expands significantly and the company can maintain a solid market share, while growing revenue faster than in recent years and remaining profitable. However, there is substantial uncertainty. Fiverr faces plenty of competition, including from larger platforms like Upwork, while the gig economy might not progress as fast as projections say, and even if it does, many freelancers could choose to start their own websites.

That does take longer, but it helps them avoid the fees associated with using Fiverr and similar platforms. Generating the kinds of returns needed to make investors millionaires typically requires sustained, strong financial performances over at least two or three decades, backed by a solid lead in a rapidly growing market, and a strong moat. Fiverr lacks the required characteristics; even its network effect appears to be weakening as it loses buyers. The stock could still take off if enough things go its way, but its outlook is too uncertain for us to call it a multimillionaire-maker stock.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International. The Motley Fool recommends Upwork. The Motley Fool has a disclosure policy.