SIMILARWEB LTD. (SMWB): Financial results for Q2 2026
SIMILARWEB LTD. (SMWB) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 SIMILARWEB ANNOUNCES SECOND QUARTER 2026 RESULTS Raising full-year guidance on strong AI demand and more than $60M in new contracts Revenue and Non-GAAP operating profit above the guidance range First ever quarter of positive GAAP operating profit Overall NRR increas
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance suggest a near‑term upside, while the new multi‑year AI contracts indicate longer‑term growth.
Market read
First‑hand earnings release with material numbers and guidance, likely to move SMWB and influence the analytics sector.
What to watch
Potential margin pressure if AI spending slows; reliance on a few large contracts.
SIMILARWEB ANNOUNCES SECOND QUARTER 2026 RESULTS Raising full-year guidance on strong AI demand and more than $60M in new contracts
Total revenue increased 9% to $77.2 million, GAAP profit from operations was $0.7 million versus a $(6.9) million loss, non-GAAP operating profit was $6.5 million versus $2.4 million, and the Company raised fiscal year 2026 revenue and non-GAAP operating profit guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $77.2 million | – | 9% |
| Gross profitGAAP | $ 62,312 (in thousands) | – | – |
| Non-GAAP gross profitnon-GAAP | $ 62,883 (in thousands) | – | – |
| Non-GAAP gross marginnon-GAAP | 81 % | – | – |
| Research and development expenseGAAP | $ 18,246 (in thousands) | – | – |
| Sales and marketing expenseGAAP | $ 30,034 (in thousands) | – | – |
| General and administrative expenseGAAP | $ 13,288 (in thousands) | – | – |
| Total operating expensesGAAP | $ 61,568 (in thousands) | – | – |
| Non-GAAP research and development expensenon-GAAP | $ 16,611 (in thousands) | – | – |
| Non-GAAP research and development marginnon-GAAP | 22 % | – | – |
| Non-GAAP sales and marketing expensenon-GAAP | $ 28,464 (in thousands) | – | – |
| Non-GAAP sales and marketing marginnon-GAAP | 37 % | – | – |
| Non-GAAP general and administrative expensenon-GAAP | $ 11,289 (in thousands) | – | – |
| Non-GAAP general and administrative marginnon-GAAP | 15 % | – | – |
| Profit (loss) from operationsGAAP | $0.7 million or 1% of revenue | – | – |
| Non-GAAP operating profitnon-GAAP | $6.5 million or 8% of revenue | – | – |
| Finance expenses, netGAAP | $ 3,199 (in thousands) | – | – |
| Loss before income taxesGAAP | $ 2,455 (in thousands) | – | – |
| Provision for income taxesGAAP | $ 1,136 (in thousands) | – | – |
| Net lossGAAP | $(3.6) million | – | – |
| Net loss per shareGAAP | $(0.04) | – | – |
| Non-GAAP net incomenon-GAAP | $5.2 million or 7% of revenue | – | – |
| Non-GAAP diluted net income per sharenon-GAAP | $0.06 | – | – |
| Customers with ARR of $100,000 or moreother | 473 | – | 9% |
| Customers with ARR of $100,000 or more contribution to total ARRother | 69% | – | – |
| Dollar-based net retention rate for customers with ARR of $100,000 or moreother | 107% | – | – |
| Overall NRRother | 100% | – | – |
| Overall ARR contracted under multi-year subscriptionsother | 66% | – | – |
| Remaining performance obligationsother | $345.3 million | – | 26% year-over-year |
| ARRother | surpassed $300 million in ARR in June | – | – |
| Net cash provided by operating activitiesGAAP | $9.0 million | – | – |
| Free cash flownon-GAAP | $8.7 million | – | – |
| Normalized free cash flownon-GAAP | $8.7 million | – | – |
| Cash and cash equivalentsGAAP | $73.9 million | – | – |
FY 2026 and Q3 2026 outlook
- RevenueFY 2026: $314.0 million and $318.0 million; Q3 2026: $80.5 million and $82.5 million
- NoteFY 2026 non-GAAP operating profit estimated between $24.0 million and $26.0 million.
- NoteFY 2026 total revenue representing approximately 11.8% growth year-over-year at the mid-point of the range.
- NoteQ3 2026 non-GAAP operating profit estimated between $7.5 million and $9.5 million.
- NoteQ3 2026 total revenue representing approximately 13.5% growth year-over-year at the mid-point of the range.
What drove it
- The Company cited strong performance across its book of business, including new sales and upsells, and continued growth in AI-related revenues.
- Similarweb signed three multi-year enterprise contracts in the quarter, each representing seven-figure ARR commitments, together worth approximately $60 million in total contract value.
- The Company said commercial demand for its AI-related data and solutions is strong and cited an expanding pipeline of opportunities.
- Remaining performance obligations increased 26% year-over-year to $345.3 million.
- The Company expanded its AI ecosystem through a new integration with Perplexity and expanded its Manus partnership.
Concerns
- Overall NRR was 100% in the second quarter of 2026, compared to 100% in the second quarter of 2025.
- Dollar-based net retention rate for customers with ARR of $100,000 or more was 107%, compared to 108% in the second quarter of 2025.
- GAAP net loss was $(3.6) million despite GAAP profit from operations of $0.7 million, reflecting $3.2 million of finance expenses, net, and a $1.1 million provision for income taxes.
- The Company identified risks related to customer acquisition and retention, development and marketing of AI solutions, sustaining profitability, competition, third-party data sources, regulatory compliance, macroeconomic conditions and geopolitical conditions.
What to watch
- Execution against Q3 2026 total revenue guidance of $80.5 million to $82.5 million and non-GAAP operating profit guidance of $7.5 million to $9.5 million.
- Execution against FY 2026 total revenue guidance of $314.0 million to $318.0 million and non-GAAP operating profit guidance of $24.0 million to $26.0 million.
- Conversion of the approximately $60 million in total contract value from three multi-year enterprise contracts and the expanding AI-related opportunity pipeline.
- Sustainability of overall NRR of 100%, dollar-based net retention rate of 107% for customers with ARR of $100,000 or more, and RPO of $345.3 million.
- Continued cash generation following $8.7 million of normalized free cash flow and the Company's eleventh consecutive quarter of positive normalized free cash flow.
Balance sheet and cash flow
- Cash and cash equivalents was $73.9 million as of June 30, 2026, compared to $72.4 million as of December 31, 2025.
- Net cash provided by operating activities was $9.0 million, compared to $2.9 million for the second quarter of 2025.
- Free cash flow was $8.7 million, compared to $2.7 million for the second quarter of 2025.
- Normalized free cash flow was $8.7 million, compared to $3.8 million for the second quarter of 2025.
- Total assets were $ 282,118 (in thousands) as of June 30, 2026, compared to $ 261,145 (in thousands) as of December 31, 2025.
- Total liabilities were $ 259,349 (in thousands) as of June 30, 2026, compared to $ 237,819 (in thousands) as of December 31, 2025.
- Total shareholders' equity was $ 22,769 (in thousands) as of June 30, 2026, compared to $ 23,326 (in thousands) as of December 31, 2025.
Analysis
Similarweb reported $77.2 million of second-quarter revenue, up 9% from $71.0 million. The Company said revenue and non-GAAP operating profit were above its guidance range. It also stated that strong performance across new sales and upsells, along with continued growth in AI-related revenues, drove the quarter.
Profitability improved materially. GAAP profit from operations was $0.7 million, or 1% of revenue, compared with a GAAP operating loss of $(6.9) million, or (10)% of revenue. Non-GAAP operating profit rose to $6.5 million, or 8% of revenue, from $2.4 million, or 3% of revenue. GAAP net loss narrowed to $(3.6) million from $(11.8) million, while non-GAAP net income increased to $5.2 million from $1.1 million. Non-GAAP gross margin was 81% in both periods, while non-GAAP sales and marketing margin declined to 37% from 41%.
The operating indicators show increasing concentration in larger customers and longer contractual commitments. Customers with ARR of $100,000 or more accounted for 69% of total ARR, compared with 63%, and 66% of overall ARR was under multi-year subscriptions, compared with 57%. RPO increased 26% year-over-year to $345.3 million. Overall NRR remained 100%, while dollar-based NRR for customers with ARR of $100,000 or more was 107%, compared with 108%.
The Company cited three multi-year enterprise agreements, each with seven-figure ARR commitments and approximately $60 million of total contract value combined. Similarweb also surpassed $300 million in ARR in June and expanded integrations with Perplexity and Manus. These activities support management's stated view of strong commercial demand for AI-related data and solutions.
Cash generation strengthened, with $9.0 million of net cash provided by operating activities, $8.7 million of free cash flow and $8.7 million of normalized free cash flow. Cash and cash equivalents were $73.9 million as of June 30, 2026, compared with $72.4 million as of December 31, 2025. The Company raised FY 2026 guidance to $314.0 million to $318.0 million of revenue and $24.0 million to $26.0 million of non-GAAP operating profit, and guided Q3 revenue to $80.5 million to $82.5 million with non-GAAP operating profit of $7.5 million to $9.5 million.
Management, verbatim
We delivered a strong second quarter that I believe marks an important inflection point for Similarweb, with revenue and profit ahead of our expectations.
Or Offer, Co-Founder and CEO of Similarweb
Commercial demand for our AI-related data and solutions is strong, and an expanding pipeline of opportunities gives us confidence to raise our guidance for the second time this year.
Or Offer, Co-Founder and CEO of Similarweb
We generated $8.7 million in normalized free cash flow, our eleventh consecutive quarter of positive normalized free cash flow, while delivering an 8% non-GAAP operating margin and our first ever quarter of GAAP operating profit.
Ran Vered, Chief Financial Officer of Similarweb
Not in the filing
stated, not guessed- Prior-quarter revenue, profitability, EPS, margin, operating metric and cash-flow comparisons were not provided for the Q2 2026 metrics.
- GAAP gross margin was not reported.
- Debt was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Segment revenue and segment profitability were not reported.
- Prior-period guidance was not provided, so no comparison of actual results with prior guidance is available.
- Guidance for gross margin, operating expenses and tax rate was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Similarweb, a digital data and analytics provider, filed a Form 6‑K with the SEC presenting its Q2 2026 results and updated guidance.
Ticker impact
Similarweb reported Q2 2026 revenue of $77.2M, GAAP profit and raised full-year guidance, a primary earnings disclosure.
Potential short-term price rally of 5-8% as investors digest stronger results and guidance.
First report of earnings with better-than-expected numbers and upward guidance; market typically reacts positively to such news.
Market effects
Strengthens outlook for digital data and analytics sector, may lift peers.
Positive for Israeli tech listings and AI‑related services.
Highlights growing demand for AI‑driven data, supporting broader tech market sentiment.
Counterpoint
If guidance proves overly optimistic, the stock could face a pullback on future miss.
Key entities
- CompanySimilarweb Ltd.
Provider of web and app data analytics, listed on NYSE as SMWB.
- ExecutiveOr Offer
Co‑Founder and CEO of Similarweb, quoted on the earnings call.
