Similarweb Announces Third Quarter 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 third quarter ended September 30, 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 ANNOUNCES Q3 2025 RESULTS - 11% revenue growth of in the quarter - Eighth consecutive quarter of positive free cash flow - Customer base increased by 15% to more than 6,100 customers

“We are proud of the third quarter financial results that reflect our focus on disciplined execution and sustained demand for our Digital Data. RPO increased by 26% year-on-year and customer count increased by 15%, in addition to the 11% revenue growth in the quarter,” stated Or Offer, Co-Founder and CEO of Similarweb. “Commercial interest in our Generative AI data and solutions remains strong and revenues from Generative AI data and solutions are among our fastest growing revenue streams this quarter.” Offer concluded, “We are just beginning to tap into the vast potential of our data and the addressable markets we serve.”

Third Quarter 2025 Financial Highlights

Recent Business Highlights

“Ran Vered will start at Similarweb as CFO in December. Ran brings more than two decades of finance experience with a proven track record in driving growth, efficiency, and strategic transformation. He has served as CFO at three companies, including two public companies that trade in the US and a SaaS Data company. We are super excited that he is joining us,” stated Or Offer, Co-Founder and CEO of Similarweb. “I would like to thank Jason Schwartz for his 10 years of service as CFO of Similarweb and wish him success in the future.”

Financial Outlook

The Company’s 2025 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 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, November 12, 2025. 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 2025 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 increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth 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 the October 2023 attack by Hamas and other terrorist organizations, and Israel's subsequent war against them, 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,

September 30,

2024

2025

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

63,869

65,464

Restricted deposits

10,572

10,983

Accounts receivable, net

50,975

41,838

Deferred contract costs

11,373

11,010

Prepaid expenses and other current assets

4,567

6,793

Total current assets

141,356

136,088

Property and equipment, net

25,921

22,910

Deferred contract costs, non-current

9,895

7,632

Operating lease right-of-use assets

34,393

34,453

Goodwill and intangible assets, net

30,846

46,521

Other non-current assets

500

667

Total assets

242,911

248,271

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

12,403

14,707

Payroll and benefit related liabilities

20,304

18,578

Deferred revenue

108,232

104,108

Other payables and accrued expenses

29,330

36,080

Operating lease liabilities

6,923

8,183

Total current liabilities

177,192

181,656

Deferred revenue, non-current

1,172

1,363

Operating lease liabilities, non-current

32,809

33,864

Other long-term liabilities

4,230

6,375

Total liabilities

215,403

223,258

Shareholders' equity

Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2024 and September 30, 2025 (Unaudited), 82,620,679 and 86,283,483 shares issued as of December 31, 2024 and September 30, 2025 (Unaudited), 82,618,511 and 86,281,315 outstanding as of December 31, 2024 and September 30, 2025 (Unaudited), respectively;

227

238

Additional paid-in capital

391,449

413,104

Accumulated other comprehensive income

388

1,666

Accumulated deficit

(364,556

)

(389,995

)

Total shareholders' equity

27,508

25,013

Total liabilities and shareholders' equity

242,911

248,271

Similarweb Ltd.

Consolidated Statements of Comprehensive Income (Loss)

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

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(Unaudited)

Revenue

184,326

209,842

64,707

71,789

Cost of revenue

39,483

42,835

14,243

14,597

Gross profit

144,843

167,007

50,464

57,192

Operating expenses:

Research and development

40,238

54,787

14,460

18,459

Sales and marketing

77,903

93,191

26,806

29,214

General and administrative

32,806

37,896

11,665

12,211

Total operating expenses

150,947

185,874

52,931

59,884

Loss from operations

(6,104

)

(18,867

)

(2,467

)

(2,692

)

Finance income (expenses), net

1,235

(3,577

)

(43

)

(935

)

Loss before income taxes

(4,869

)

(22,444

)

(2,510

)

(3,627

)

Provision for income taxes

1,168

2,995

704

Net loss

(6,037

)

(25,439

)

(2,566

)

(4,331

)

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

(0.08

)

(0.30

)

(0.03

)

(0.05

)

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

80,404,216

84,218,508

81,279,239

85,476,076

Net loss

(6,037

)

(25,439

)

(2,566

)

(4,331

)

Other comprehensive (loss) income, net of tax

Change in unrealized (loss) gain on cashflow hedges

(757

)

1,278

123

(776

)

Total other comprehensive (loss) income, net of tax

(757

)

1,278

123

(776

)

Total comprehensive loss

(6,794

)

(24,161

)

(2,443

)

(5,107

)

Share-based compensation costs included above:

U.S. dollars in thousands

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(Unaudited)

Cost of revenue

578

766

190

252

Research and development

4,181

5,183

1,378

1,680

Sales and marketing

3,101

3,824

1,109

1,071

General and administrative

5,232

6,436

1,830

1,253

Total

13,092

16,209

4,507

4,256

Similarweb Ltd.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(Unaudited)

Cash flows from operating activities:

Net loss

(6,037

)

(25,439

)

(2,566

)

(4,331

)

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

Depreciation and amortization

8,012

6,670

2,873

2,227

Finance income

(211

)

(2,319

)

(677

)

(1,119

)

Unrealized loss (gain) from hedging future transactions

(31

)

(19

)

Share-based compensation

13,092

16,209

4,507

4,256

Gain from sale of equipment

(10

)

(20

)

Changes in operating assets and liabilities:

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

(1,304

)

2,255

1,209

427

Decrease in accounts receivable, net

13,361

9,934

3,742

1,092

Decrease in deferred contract costs

1,588

2,626

1,005

514

(Increase) decrease in other current assets

(754

)

(897

)

2,163

(276

)

Decrease (increase) in other non-current assets

(167

)

291

Increase in accounts payable

2,284

2,250

5,542

5,351

Decrease in deferred revenue

(3,792

)

(5,198

)

(11,108

)

(10,939

)

Increase (decrease) in other non-current liabilities

355

215

(265

)

104

Increase in other liabilities and accrued expenses

5,108

2,905

5,810

Net cash provided by operating activities

26,756

11,196

9,344

3,450

Cash flows from investing activities:

Purchase of property and equipment, net

(1,198

)

(1,209

)

(290

)

(500

)

Capitalized internal-use software costs

(793

)

—

(324

)

—

Increase in restricted deposits

(414

)

(411

)

(125

)

(139

)

Payment for business combinations, net of cash acquired

(15,442

)

(15,787

)

(11,609

)

(116

)

Net cash used in investing activities

(17,847

)

(17,407

)

(12,348

)

(755

)

Cash flows from financing activities:

Proceeds from exercise of stock options

3,724

4,332

667

2,309

Proceeds from employee share purchase plan

555

1,155

—

Repayment of Credit Facility

(25,000

)

—

Net cash (used in) provided by financing activities

(20,721

)

5,487

667

2,309

Effect of exchange rates on cash and cash equivalents

211

2,319

677

1,119

Net (decrease) increase in cash and cash equivalents

(11,601

)

1,595

(1,660

)

6,123

Cash and cash equivalents, beginning of period

71,732

63,869

61,791

59,341

Cash and cash equivalents, end of period

60,131

65,464

60,131

65,464

Supplemental disclosure of cash flow information:

Interest received, net

(848

)

(1,042

)

(291

)

(362

)

Taxes paid

1,151

1,592

303

301

Supplemental disclosure of non-cash financing activities:

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

6,064

5,308

1,611

2,565

Share-based compensation included in capitalized internal-use software

—

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

174

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

Reconciliation of GAAP gross profit to non-GAAP gross profit

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(In thousands)

GAAP gross profit

144,843

167,007

50,464

57,192

Add:

Share-based compensation expenses

578

766

190

252

Retention payments related to business combinations

Amortization of intangible assets related to business combinations

3,376

1,210

1,152

405

Non-GAAP gross profit

148,841

169,040

51,825

57,868

Non-GAAP gross margin

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

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(In thousands)

Loss from operations

(6,104

)

(18,867

)

(2,467

)

(2,692

)

Add:

Share-based compensation expenses

13,092

16,209

4,507

4,256

Retention payments related to business combinations

1,347

5,867

528

2,094

Amortization of intangible assets related to business combinations

3,795

2,479

1,448

895

Secondary offering costs

350

—

350

—

Non-GAAP operating profit

12,480

5,688

4,366

4,553

Non-GAAP operating margin

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(In thousands)

GAAP research and development

40,238

54,787

14,460

18,459

Less:

Share-based compensation expenses

4,181

5,183

1,378

1,680

Retention payments related to business combinations

1,685

707

Non-GAAP research and development

36,030

47,919

13,071

16,072

Non-GAAP research and development margin

GAAP sales and marketing

77,903

93,191

26,806

29,214

Less:

Share-based compensation expenses

3,101

3,824

1,109

1,071

Retention payments related to business combinations

1,276

2,237

498

659

Amortization of intangible assets related to business combinations

419

1,269

296

490

Non-GAAP sales and marketing

73,107

85,861

24,903

26,994

Non-GAAP sales and marketing margin

GAAP general and administrative

32,806

37,896

11,665

12,211

Less:

Share-based compensation expenses

5,232

6,436

1,830

1,253

Retention payments related to business combinations

—

1,888

—

709

Secondary offering costs

350

—

350

—

Non-GAAP general and administrative

27,224

29,572

9,485

10,249

Non-GAAP general and administrative margin

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

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

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

GAAP Net loss

(6,037

)

(25,439

)

(2,566

)

(4,331

)

Add:

Share-based compensation expenses

13,092

16,209

4,507

4,256

Retention payments related to business combinations

1,347

5,867

528

2,094

Amortization of intangible assets related to business combinations

3,795

2,479

1,448

895

Secondary offering costs

350

—

350

—

Non-operating foreign exchange (gains) losses

(972

)

3,989

325

1,332

Tax effect of adjustments, net

(1,426

)

(635

)

148

Non-GAAP net income

10,149

3,123

3,957

4,394

Non-GAAP net income margin

Weighted average number of ordinary shares - basic

80,404,216

84,218,508

81,279,239

85,476,076

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

0.13

0.04

0.05

Weighted average number of ordinary shares - diluted

85,676,291

89,085,715

86,511,629

89,585,609

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

0.12

0.04

0.05

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

Nine Months Ended September 30,

Three Months Ended September 30,

2024

2025

2024

2025

(In thousands)

Net cash provided by operating activities

26,756

11,196

9,344

3,450

Purchases of property and equipment, net

(1,198

)

(1,209

)

(290

)

(500

)

Capitalized internal use software costs

(793

)

—

(324

)

—

Free cash flow

24,765

9,987

8,730

2,950

Deferred payments related to business combinations

265

1,660

265

—

Normalized free cash flow

25,030

11,647

8,995

2,950