Second quarter was the fourth-highest for gross payments.
Freelancer Limited (ASX: FLN, OTCQX: FRLCY) today released its results for the first half of 2026, highlighting particularly strong performance from its Escrow.com business. The report shows notable growth in payment volumes and expansion into new verticals, even as the company’s flagship Marketplace platform encountered headwinds.
Escrow.com reported a 55% year-over-year increase in Gross Marketplace Value when measured on a constant currency basis. Because the Australian dollar strengthened against the U.S. dollar during the period, the growth measured in Australian dollars was 39.0%, rising from A$372.5 million to A$517.6 million. It is important to note that the majority of Escrow.com’s transactions are settled in U.S. dollars, which is why constant currency figures are a useful way to view operational momentum.
On a U.S. dollar basis, the company’s investor presentation highlighted that gross payments in the second quarter of 2026 ranked as the fourth-highest quarter in Escrow.com’s history. This milestone underscores strong demand and continued transaction activity across the platform.
A significant portion of Escrow.com’s volume came from domain transactions. The company handled US$255 million in domain-related transactions during the first half of 2026, with US$128 million recorded in the first quarter and roughly the same amount processed in the second quarter. Overall, domain transactions by total value grew 56% in the first half of 2026 compared to the same period in 2025.
That said, growth in the second quarter was not limited to domain sales. Gross Payment Volume in Q2 increased by approximately 20% compared with Q1, indicating that other categories contributed meaningfully to the expansion. Escrow.com noted that it has entered the wholesale electronics market and anticipates that this vertical could become its second-largest over time. The platform also continues to support transactions in automobiles, IPv4 address blocks, and other specialty categories, broadening the range of goods and services that can be transacted securely via its escrow services.
From a product perspective, Escrow.com confirmed plans to launch a refreshed front-end experience in the third quarter. This planned update aims to improve usability for buyers and sellers and to streamline the transaction flow, which should support conversion and retention over time.
While Escrow.com delivered a strong performance, Freelancer Limited’s core Marketplace business, Freelancer.com, faced challenges during the first half of 2026. Management attributed the weaker results to several operational issues that affected traffic, user experience, and payment processing.
- Mitigation efforts against scraper bots. The company implemented measures intended to reduce automated scraping activity. Those efforts had the unintended consequence of SEO de-indexing, which reduced organic search visibility and contributed to lower inbound traffic.
- Security changes that affected returning users. The introduction of two-factor authentication and additional security controls—implemented to protect accounts and transactions—led to some churn among returning customers who found the new processes disruptive to their usual workflow.
- Payment gateway migration problems. A failed migration to a new payment gateway revealed pre-existing, long-running payment gateway issues. These complications impeded some transactions and likely had a negative effect on user confidence and conversion rates until resolved.
In summary, the first half results paint a mixed picture: Escrow.com has delivered robust growth in transaction volumes and is expanding into promising new verticals, while Freelancer.com experienced operational setbacks that management is working to address. The planned product improvements and ongoing efforts to stabilize payments and recover organic traffic will be key areas to watch as the company moves through the remainder of 2026.