Similarweb Announces Fourth Quarter and Fiscal 2025 Results

TEL AVIV, Israel--( BUSINESS WIRE)--Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its fourth quarter and full year ended December 31, 2025. The Company published a letter to shareholders from management discussing these results, which can be accessed at the link: https://ir.similarweb.com/financials/quarterly-results, located on the Company's investor relations website.

"Similarweb’s unmatched view of the evolving digital world is a prime foundation for training and maintaining LLMs and powering the next generation of agentic AI tools with accuracy and trust." Similarweb CEO Or Offer

“The AI revolution fundamentally favors companies with proprietary, high-quality, and real-time data. Similarweb’s unmatched view of the evolving digital world is a prime foundation for training and maintaining LLMs and powering the next generation of agentic AI tools with accuracy and trust, as validated by our recent milestone partnership with Manus,” said Or Offer, Co-Founder and CEO of Similarweb. “While the scale of new larger, multi-year opportunities has resulted in longer sales cycles and revenue growth did not yet accelerate in the fourth quarter as we expected, the demand we see in the pipeline and the steps we have taken to upskill and specialize our sales force reinforce our confidence in our strategy to build an AI-driven data powerhouse that delivers profitable growth.”

Fourth Quarter 2025 Financial Highlights

(All results compared with the fourth quarter of 2024)

Fiscal Year 2025 Financial Highlights

(All results compared with fiscal year 2024)

Fourth Quarter 2025 Operational Highlights

Recent Business Highlights

Balance Sheet and Cash Flow

“I joined Similarweb because of the irreplaceable value of our data and the massive opportunity to enhance and leverage this asset as a critical necessity for companies to win their markets in the generative era,” said Ran Vered, Chief Financial Officer of Similarweb. “My first quarter at the company has been focused on ensuring our financial roadmap positions us to capitalize on these opportunities while remaining disciplined and delivering on our commitment to profitable growth and durable free cash flow. Our outlook for another year of growth in 2026 is prudently grounded in high-visibility core business drivers, while gaining momentum for large strategic AI deals.”

Financial Outlook

The Company’s first quarter and full year 2026 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating profit (loss), and similarly cannot provide a reconciliation of this measure to its closest GAAP equivalent without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, February 18, 2026. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (877) 407-0726 toll-free and at (201) 689-7806 internationally.

About Similarweb: Similarweb powers businesses to win their markets with Digital Data. By providing essential web and app data, analytics, and insights, we empower our users to discover business opportunities, identify competitive threats, optimize strategy, acquire the right customers, and increase monetization. Similarweb products are integrated into users’ workflow, powered by advanced technology, and based on leading comprehensive Digital Data.

Learn more: Similarweb | Similarweb Digital Data

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Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the first quarter and full year of 2026 described under "Financial Outlook". Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to successfully develop and market AI solutions and to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth rates, changes in currency exchange rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations, including those in Lebanon and Yemen, and potential hostilities with Iran, Lebanon, and/or other countries in the Middle East on geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete.

These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Form 20-F filed with the Securities and Exchange Commission on February 27, 2025, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, 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 we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.

Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release contains certain financial measures that are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP or as a measure of liquidity. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, non-operating foreign exchange gains or losses and the relevant net tax effect as applicable and indicated in the below tables.

Other Metrics

Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.

We define Annual Recurring Revenue (ARR) as the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. A contract is included in ARR for a particular period if it is active at the end of the applicable period and is excluded if it is not active at the end of the applicable period. Multi-year contracts are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by 12. ARR excludes non-recurring revenues, non-subscription revenues, revenues that are one-time in nature or revenues from subscriptions to our offerings for a period that is less than an annual subscription term.

ARR is an operational measure that management uses to evaluate the scale of our annual subscription contracts. While ARR is useful in assessing the scale of our contracted subscription business, it is not necessarily indicative of future GAAP revenue, which is subject to factors such as customer renewals, expansions, contractions, churn and upsell or cross-sell opportunities. Since ARR is not a defined measure under GAAP, investors should not consider ARR as a substitute for revenue recognized under GAAP or for other GAAP-related measures such as remaining performance obligations or deferred revenue. ARR differs from revenue recognized in accordance with GAAP because GAAP revenue is recognized as performance obligations are satisfied, includes non-recurring revenues, such as revenue that is one-time in nature, subscriptions with less than an annual term, non-subscription revenue and the effects of contract modifications.

Similarweb Ltd.

Consolidated Balance Sheets

U.S. dollars in thousands (except share and per share data)

December 31,

2024

2025

Assets

Current assets:

Cash and cash equivalents

63,869

72,421

Restricted deposits

10,572

6,360

Accounts receivable, net

50,975

54,063

Deferred contract costs

11,373

11,551

Prepaid expenses and other current assets

4,567

5,949

Total current assets

141,356

150,344

Property and equipment, net

25,921

22,040

Deferred contract costs, non-current

9,895

8,177

Operating lease right-of-use assets

34,393

34,417

Goodwill and intangible assets, net

30,846

45,581

Other non-current assets

500

586

Total assets

242,911

261,145

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

12,403

13,871

Payroll and benefit related liabilities

20,304

20,342

Deferred revenue

108,232

112,169

Other payables and accrued expenses

29,330

41,342

Operating lease liabilities

6,923

8,841

Total current liabilities

177,192

196,565

Deferred revenue, non-current

1,172

1,226

Operating lease liabilities, non-current

32,809

34,455

Other long-term liabilities

4,230

5,573

Total liabilities

215,403

237,819

Shareholders' equity

Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2024 and December 31, 2025, 82,620,679 and 86,964,370 shares issued as of December 31, 2024 and December 31, 2025, 82,618,511 and 86,962,202 outstanding as of December 31, 2024 and December 31, 2025 , respectively;

227

240

Additional paid-in capital

391,449

419,578

Accumulated other comprehensive income

388

1,000

Accumulated deficit

(364,556

)

(397,492

)

Total shareholders' equity

27,508

23,326

Total liabilities and shareholders' equity

242,911

261,145

Similarweb Ltd.

Consolidated Statements of Comprehensive Income (Loss)

U.S. dollars in thousands (except share and per share data)

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

Revenue

249,913

282,600

65,587

72,758

Cost of revenue

54,814

57,802

15,331

14,967

Gross profit

195,099

224,798

50,256

57,791

Operating expenses:

Research and development

55,596

72,602

15,358

17,815

Sales and marketing

105,476

123,667

27,573

30,476

General and administrative

43,691

52,093

10,885

14,197

Total operating expenses

204,763

248,362

53,816

62,488

Loss from operations

(9,664

)

(23,564

)

(3,560

)

(4,697

)

Finance income (expenses), net

134

(5,210

)

(1,101

)

(1,633

)

Loss before income taxes

(9,530

)

(28,774

)

(4,661

)

(6,330

)

Provision for income taxes

1,927

4,162

759

1,167

Net loss

(11,457

)

(32,936

)

(5,420

)

(7,497

)

Net loss per share attributable to ordinary shareholders, basic and diluted

(0.14

)

(0.39

)

(0.07

)

(0.09

)

Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted

80,825,695

84,817,195

82,073,002

86,591,824

Net loss

(11,457

)

(32,936

)

(5,420

)

(7,497

)

Other comprehensive (loss) income, net of tax

Change in unrealized (loss) gain on cashflow hedges

(484

)

612

273

(666

)

Total other comprehensive (loss) income, net of tax

(484

)

612

273

(666

)

Total comprehensive loss

(11,941

)

(32,324

)

(5,147

)

(8,163

)

Share-based compensation costs included above:

U.S. dollars in thousands

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

Cost of revenue

812

1,024

234

258

Research and development

5,511

6,805

1,330

1,622

Sales and marketing

4,273

5,031

1,172

1,207

General and administrative

7,019

8,382

1,787

1,946

Total

17,615

21,242

4,523

5,033

Similarweb Ltd.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

Cash flows from operating activities:

Net loss

(11,457

)

(32,936

)

(5,420

)

(7,497

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

10,528

8,989

2,516

2,319

Finance loss (income)

500

(225

)

711

128

Unrealized loss (gain) from hedging future transactions

103

(32

)

Share-based compensation

17,615

21,242

4,523

5,033

Gain from sale of equipment

(12

)

(31

)

(11

)

Changes in operating assets and liabilities:

Change in operating lease right-of-use assets and liabilities, net

(1,078

)

3,540

226

1,285

Increase in accounts receivable, net

(2,127

)

(2,291

)

(15,488

)

(12,225

)

(Increase) decrease in deferred contract costs

(258

)

1,540

(1,846

)

(1,086

)

Decrease (increase) in other current assets

612

(716

)

1,366

181

(Increase) decrease in other non-current assets

)

(86

)

(89

)

Increase (decrease) in accounts payable

3,597

1,451

1,313

(799

)

Increase in deferred revenue

6,432

2,727

10,224

7,925

Increase (decrease) in other non-current liabilities

528

156

173

(59

)

Increase in other liabilities and accrued expenses

5,197

11,316

5,149

6,208

Net cash provided by operating activities

30,174

14,644

3,418

1,482

Cash flows from investing activities:

Purchase of property and equipment, net

(1,430

)

(1,490

)

(232

)

(281

)

Capitalized internal-use software costs

(1,304

)

(163

)

(511

)

(163

)

(Increase) decrease in restricted deposits

(552

)

4,212

(138

)

4,623

Payment for business combinations, net of cash acquired

(15,414

)

(15,787

)

—

Net cash (used in) provided by investing activities

(18,700

)

(13,228

)

(853

)

4,179

Cash flows from financing activities:

Proceeds from exercise of stock options

4,677

4,587

953

255

Proceeds from employee share purchase plan

1,486

2,324

931

1,169

Repayment of Credit Facility

(25,000

)

—

Net cash (used in) provided by financing activities

(18,837

)

6,911

1,884

1,424

Effect of exchange rates on cash and cash equivalents

(500

)

225

(711

)

(128

)

Net (decrease) increase in cash and cash equivalents

(7,863

)

8,552

3,738

6,957

Cash and cash equivalents, beginning of period

71,732

63,869

60,131

65,464

Cash and cash equivalents, end of period

63,869

72,421

63,869

72,421

Supplemental disclosure of cash flow information:

Interest received, net

(1,225

)

(1,332

)

(291

)

(290

)

Taxes paid

1,168

1,723

303

131

Supplemental disclosure of non-cash financing activities:

Additions to operating lease right-of-use assets and liabilities

6,064

7,176

1,611

Share-based compensation included in capitalized internal-use software

104

Deferred proceeds from exercise of share options included in other current assets

Deferred costs of property and equipment incurred during the period included in accounts payable

227

137

227

137

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

Reconciliation of GAAP gross profit to non-GAAP gross profit

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

(In thousands)

GAAP gross profit

195,099

224,798

50,256

57,791

Add:

Share-based compensation expenses

812

1,024

234

258

Retention payments related to business combinations

Amortization of intangible assets related to business combinations

4,191

1,770

815

560

Non-GAAP gross profit

200,167

227,664

51,326

58,624

Non-GAAP gross margin

Reconciliation of Loss from operations (GAAP) to Non-GAAP operating profit

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

(In thousands)

Loss from operations

(9,664

)

(23,564

)

(3,560

)

(4,697

)

Add:

Share-based compensation expenses

17,615

21,242

4,523

5,033

Retention payments related to business combinations

1,886

7,943

539

2,076

Amortization of intangible assets related to business combinations

4,862

3,497

1,067

1,018

Secondary offering costs

350

—

Non-GAAP operating profit

15,049

9,118

2,569

3,430

Non-GAAP operating margin

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

(In thousands)

GAAP research and development

55,596

72,602

15,358

17,815

Less:

Share-based compensation expenses

5,511

6,805

1,330

1,622

Retention payments related to business combinations

2,387

702

Non-GAAP research and development

50,047

63,410

14,017

15,491

Non-GAAP research and development margin

GAAP sales and marketing

105,476

123,667

27,573

30,476

Less:

Share-based compensation expenses

4,273

5,031

1,172

1,207

Retention payments related to business combinations

1,783

2,888

507

651

Amortization of intangible assets related to business combinations

671

1,727

252

458

Non-GAAP sales and marketing

98,749

114,021

25,642

28,160

Non-GAAP sales and marketing margin

GAAP general and administrative

43,691

52,093

10,885

14,197

Less:

Share-based compensation expenses

7,019

8,382

1,787

1,946

Retention payments related to business combinations

—

2,596

—

708

Secondary offering costs

350

—

Non-GAAP general and administrative

36,322

41,115

9,098

11,543

Non-GAAP general and administrative margin

Reconciliation of Net loss (GAAP) to non-GAAP Net income

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

(In thousands, except for share and per share amounts)

GAAP Net loss

(11,457

)

(32,936

)

(5,420

)

(7,497

)

Add:

Share-based compensation expenses

17,615

21,242

4,523

5,033

Retention payments related to business combinations

1,886

7,943

539

2,076

Amortization of intangible assets related to business combinations

4,862

3,497

1,067

1,018

Secondary offering costs

350

—

Non-operating foreign exchange losses

224

5,718

1,196

1,729

Tax effect of adjustments, net

(1,850

)

(334

)

(323

)

(86

)

Non-GAAP net income

11,630

5,130

1,582

2,273

Non-GAAP net income margin

Weighted average number of ordinary shares - basic

80,825,695

84,817,195

82,073,002

86,591,824

Non-GAAP basic net income per share attributable to ordinary shareholders

0.14

0.06

0.02

0.03

Weighted average number of ordinary shares - diluted

86,428,066

89,271,537

88,666,263

89,907,570

Non-GAAP diluted net income per share attributable to ordinary shareholders

0.13

0.06

0.02

0.03

Reconciliation of Net cash provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow

Year Ended December 31,

Three Months Ended December 31,

2024

2025

2024

2025

(In thousands)

Net cash provided by operating activities

30,174

14,644

3,418

1,482

Purchases of property and equipment, net

(1,430

)

(1,490

)

(232

)

(281

)

Capitalized internal use software costs

(1,304

)

(163

)

(511

)

(163

)

Free cash flow

27,440

12,991

2,675

1,038

Deferred payments related to business combinations

265

1,660

—

Normalized free cash flow

27,705

14,651

2,675

1,038