Similarweb (NYSE:SMWB) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Similarweb beat quarterly expectations: Revenue rose 9% year over year to $77.2 million, exceeding estimates, while EPS reached $0.06 versus the $0.03 consensus. The company also recorded its first positive GAAP operating profit and $8.7 million in normalized free cash flow.
• Enterprise and AI demand are accelerating: Net new ARR reached a quarterly record, NRR improved to 100% overall and 107% among larger customers, and three multiyear contracts totaled more than $60 million. AI-related revenue increased to 13% of quarterly revenue, helping drive the company’s growth.
• Management raised its 2026 outlook, but flagged challenges: Full-year revenue guidance increased to $340 million-$380 million, with non-GAAP operating profit projected at $24 million-$26 million. However, customer growth above $25,000 in ARR remained nearly flat, and website traffic—especially from search—declined.

Similarweb (NYSE:SMWB - Get Free Report) released its earnings results on Wednesday. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.03, FiscalAI reports. Similarweb had a negative net margin of 10.38% and a negative return on equity of 48.57%. The company had revenue of $77.19 million for the quarter, compared to analysts' expectations of $75.57 million.

Here are the key takeaways from Similarweb's conference call:

• Q2 revenue and profitability exceeded expectations: Revenue rose 9% year over year to $77.2 million, non-GAAP operating profit reached $6.5 million, and the company posted its first-ever positive GAAP operating profit. Normalized free cash flow was $8.7 million, or an 11% margin.
• Similarweb reported its strongest quarter for net new ARR, improved NRR to 100% overall and 107% for customers above $100,000 in ARR, and signed three multi-year enterprise contracts worth more than $60 million in cumulative contract value. A fourth large contract was signed in July, with management citing an unusually strong pipeline.
• AI is becoming a larger growth driver: AI-related revenue increased to 13% of Q2 revenue from 11% at the end of 2025, while demand is expanding beyond LLM training into AI agents, OEM data applications, brand intelligence, and investor use cases. Multi-year contracts now represent 66% of ARR, up from 57% a year ago.
• Management raised full-year 2026 guidance for revenue to $340 million-$380 million and non-GAAP operating profit to $24 million-$26 million, while forecasting Q3 revenue of $80.5 million-$82.5 million and 17.5% year-over-year growth at the midpoint.
• The company is prioritizing large enterprise expansion over smaller inbound business, leaving the number of customers above $25,000 in ARR nearly flat year over year at 1,815. Management also noted broader declines in website visitor traffic, particularly from search, although it said average deal value and win rates were stable.

Similarweb Stock Performance

NYSE:SMWB traded up $1.05 during trading hours on Wednesday, reaching $8.30. The stock had a trading volume of 2,152,647 shares, compared to its average volume of 868,358. The stock has a market capitalization of $727.09 million, a PE ratio of -23.71 and a beta of 1.14. Similarweb has a 52 week low of $2.22 and a 52 week high of $10.75. The company has a 50 day moving average price of $6.06 and a two-hundred day moving average price of $4.29.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on SMWB shares. Citigroup increased their price target on Similarweb from $3.00 to $7.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Northland Securities upgraded Similarweb from a "market perform" rating to an "outperform" rating and upped their price target for the stock from $5.00 to $10.00 in a research note on Wednesday. Oppenheimer increased their price objective on shares of Similarweb from $7.00 to $8.50 and gave the company an "outperform" rating in a report on Wednesday, August 5th. Finally, Barclays lowered their target price on shares of Similarweb from $7.00 to $5.00 and set an "overweight" rating on the stock in a report on Monday, April 20th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Similarweb has an average rating of "Hold" and an average target price of $9.00.

Insider Transactions at Similarweb

In other Similarweb news, Director Tamar Rapaport-Dagim acquired 40,000 shares of the stock in a transaction on Monday, May 18th. The stock was acquired at an average price of $3.22 per share, for a total transaction of $128,800.00. Following the completion of the transaction, the director directly owned 63,584 shares of the company's stock, valued at $204,740.48. This trade represents a 169.61% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Or Offer bought 53,000 shares of Similarweb stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $3.58 per share, for a total transaction of $189,740.00. Following the completion of the acquisition, the chief executive officer owned 4,694,396 shares in the company, valued at approximately $16,805,937.68. The trade was a 1.14% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 271,105 shares of company stock valued at $1,020,726 over the last quarter.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Larson Financial Group LLC purchased a new stake in Similarweb during the third quarter valued at approximately $25,000. Wexford Capital LP purchased a new stake in Similarweb during the 3rd quarter valued at $64,000. Brooklyn Investment Group bought a new stake in Similarweb in the fourth quarter worth $85,000. Boothbay Fund Management LLC purchased a new position in Similarweb during the fourth quarter worth $90,000. Finally, Fox Run Management L.L.C. purchased a new position in Similarweb during the fourth quarter worth $146,000. Hedge funds and other institutional investors own 57.59% of the company's stock.

Similarweb Company Profile

Similarweb Ltd. NYSE: SMWB is a digital intelligence company that provides insights into website and mobile app performance. Its cloud-based platform aggregates and analyzes data on global web traffic, user engagement, and referral sources, enabling businesses to benchmark their digital presence against competitors. The company’s core offering includes metrics on audience behavior, traffic acquisition channels, and industry trends, which are designed to inform strategic decisions in marketing, sales, and product development.

Similarweb’s platform delivers a suite of tools for market research, competitor analysis, and performance optimization.

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