Q2 FY2026
Filed Aug 12, 2026SIMILARWEB 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.