In the high-stakes battle for the future of the “human-plus-AI” workforce, Upwork Inc (NASDAQ: UPWK) and Fiverr International (NYSE: FVRR) are moving in opposite directions.
While both platforms reported their calendar Q4 results this month, their divergent strategies – and the market’s reaction – reveal a widening gap in how they handle the AI transition.
At the time of writing, UPWK is extending gains as Fiverr stock crumbles under the weight of its weaker-than-expected revenue ($107 million) and shockingly dismal full-year outlook.
Active buyer crisis hitting Fiverr stock harder
The most glaring difference lies in user retention. Both platforms are intentionally shedding “low-quality” users to focus on higher spenders – but the scale of the exodus differs.
Fiverr’s active buyer count crashed about 13.6% year-on-year in its second financial quarter to 3.1 million, representing a loss of nearly 900,000 buyers since the pandemic started subsiding in 2022.
While spend per buyer rose 13%, the rapid contraction of the base suggests Fiverr is struggling to replace departing “gig” buyers with high-value corporate clients.
Meanwhile, Upwork also saw a decline, but it was far less severe.
Its active clients declined only 6%, and its spend per client at $5,129 (up 7% year-over-year) is on a different planet compared to Fiverr’s $342 only.
What it means: Upwork is successfully positioning itself as the “enterprise” choice, while Fiverr is still viewed as a marketplace for quick, one-off tasks, which makes FVRR shares significantly less attractive as a long-term holding.
Both platforms are betting the farm on AI, but their terminologies and execution paths are distinct:
| Feature | Upwork’s Strategy | Fiverr’s Strategy |
|---|---|---|
| Core AI Product | Fiverr Neo: An AI matching engine designed to help buyers navigate the complex “gig” catalogue. | Focusing on “AI-native” services. Management is deprioritising simple tasks that AI can now do for free (like basic translation). |
| Revenue Impact | $300M+ annualised GSV from AI-related work (up 50% YoY). AI Automation work alone grew 90%. | Focusing on “AI-native” services. Management is deprioritizing simple tasks that AI can now do for free (like basic translation). |
| Big Move | OpenAI Partnership: Upwork is certifying 10 million freelancers in OpenAI tools to create an elite “AI-certified” workforce. | The “Agentic” Shift: Transitioning toward a model where AI agents handle project flow, but this has led to a 2026 revenue “reset”. |
Why Fiverr shares are crashing harder?
While Upwork did also slide after earnings on Feb. 9, its guidance for 2026 was far more optimistic than Fiverr’s.
It sees revenue growth falling between 6% to 8% this year and expects to maintain EBITDA margin at 29%. FVRR’s outlook – in comparison – was a disaster.
Projecting a 12% decline in revenue, it told investors today that the pivot to high-value AI services will be much more painful and slower than anticipated.
Taken together, these insights suggest UPWK is winning the “quality over quantity” war – with a much higher revenue-per-user and a clearer path to AI-driven growth.
Meanwhile, Fiverr shares are in the middle of an identity crisis, trying to shed its “five-dollar gig” reputation while its buyer base shrinks.
https://invezz.com/news/2026/02/18/fiverr-stock-why-is-it-losing-the-ai-war-against-upwork/
