Similarweb Ltd. reported fourth‑quarter 2025 revenue of $72.8 million, an 11 % increase from $65.6 million in Q4 2024, but the figure fell short of the consensus estimate of $75.7 million. Non‑GAAP earnings per share were $0.03, beating the consensus estimate of $0.01 by $0.02 and reflecting disciplined cost management amid a slower revenue acceleration.
The company posted nine consecutive quarters of positive free cash flow, with Q4 cash flow of $13.0 million, and noted that 60 % of its annual recurring revenue now comes from multi‑year contracts, up from 49 % a year earlier. Total customers reached 6,128, including 454 large accounts that represent 63 % of ARR.
Non‑GAAP operating profit rose to $3.4 million in Q4, a 5 % margin compared with 4 % in Q4 2024, driven by higher mix of high‑margin AI‑related services. However, GAAP net loss widened to $(7.5) million from $(5.4) million, and the company’s overall net retention rate slipped to 98 % from 101 % year‑over‑year.
For fiscal 2026, Similarweb guided revenue of $305.0 million to $315.0 million, a 10 % increase from the prior year but below the consensus estimate of $331.1 million. Q1 2026 revenue guidance of $72.0 million to $74.0 million also trails analyst expectations, signaling a cautious outlook amid longer sales cycles for large contracts.
CEO Or Offer said, “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.” He added, “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.” CFO Ran Vered noted, “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.”
Investors reacted negatively, citing the revenue miss and the more conservative guidance for 2026. The market highlighted the headwind of longer sales cycles for large, multi‑year contracts and the headwind of a decelerating revenue growth rate, while noting the tailwind of growing demand for data in the generative‑AI era.
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