Similarweb posts 2025 results and 2026 growth outlook
Similarweb Ltd. reported fourth-quarter and full-year 2025 results, with Q4 revenue rising 11% to $72.8 million and full-year revenue up 13% to $282.6 million.
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Form Type
6-K
Rhea-AI Filing Summary
Similarweb Ltd. reported fourth-quarter and full-year 2025 results, with Q4 revenue rising 11% to $72.8 million and full-year revenue up 13% to $282.6 million. Non-GAAP operating profit was $3.4 million in Q4 and $9.1 million for the year, while GAAP net loss widened to $32.9 million.
The company highlighted growing traction in AI-related products, with generative AI data and solutions contributing 11% of Q4 revenue and its GenAI intelligence product reaching about $3 million in ARR from roughly 200 customers. Multi-year subscriptions increased to 60% of ARR, remaining performance obligations grew 17% to $288.8 million, and 2025 marked the ninth consecutive quarter of positive free cash flow.
For 2026, Similarweb guides to total revenue of $305.0–$315.0 million, implying around 10% growth at the midpoint, and expects non-GAAP operating profit between $16.0 million and $19.0 million, while continuing to focus on AI-driven offerings and disciplined, profitable growth.
Insights
Moderate revenue growth, rising AI mix, but profitability remains limited.
Similarweb posted 2025 revenue of $282.6 million, up 13% year over year, with Q4 revenue of $72.8 million up 11%. Growth is increasingly supported by AI offerings, as generative AI data and solutions reached 11% of Q4 revenue.
Profitability is still modest. GAAP net loss widened to $32.9 million, and non-GAAP operating profit declined to $9.1 million for 2025, though Q4 non-GAAP margin improved to 5%. Net retention softened, with overall NRR at 98% and 103% for large customers, down from prior-year levels.
On the other hand, cash generation and revenue visibility improved. 2025 free cash flow was $13.0 million, cash stood at $72.4 million with no debt as of December 31 2025, multi-year contracts rose to 60% of ARR, and remaining performance obligations increased 17% to $288.8 million. Guidance for 2026 points to roughly 10% revenue growth and higher non-GAAP operating profit of $16.0–$19.0 million, contingent on execution in AI products and enterprise sales.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Similarweb (SMWB) perform financially in Q4 2025?
Similarweb delivered Q4 2025 revenue of $72.8 million, up 11% from $65.6 million a year earlier. Non-GAAP operating profit rose to $3.4 million, or 5% of revenue, while GAAP net loss was $7.5 million, reflecting ongoing investment and higher expenses.
What were Similarweb’s full-year 2025 results and profitability metrics?
For 2025, Similarweb generated $282.6 million in revenue, a 13% increase over $249.9 million in 2024. GAAP operating loss widened to $23.6 million, while non-GAAP operating profit declined to $9.1 million, or 3% of revenue, and free cash flow totaled $13.0 million.
What does Similarweb’s 2026 revenue and profit guidance indicate?
For 2026, Similarweb expects revenue between $305.0 million and $315.0 million, implying about 10% year-over-year growth at the midpoint. The company also guides to non-GAAP operating profit of $16.0–$19.0 million, signaling plans for improved profitability alongside continued investment in AI-driven products.
How strong is Similarweb’s customer base and retention exiting 2025?
Similarweb ended 2025 with 6,128 customers, up 11% year over year, and 454 customers above $100,000 in ARR. Large customers generated 63% of ARR. Overall NRR was 98%, and NRR for $100k+ customers was 103%, lower than 2024 but still above 100% for that segment.
What is Similarweb’s cash and free cash flow position as of year-end 2025?
As of December 31, 2025, Similarweb held $72.4 million in cash and cash equivalents and had no outstanding debt. Free cash flow for 2025 was $13.0 million, and Q4 2025 marked the company’s ninth consecutive quarter of positive free cash flow generation.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FORM 6-K
___________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2026
Commission File Number: 001-40394
___________________________
Similarweb Ltd.
(Translation of registrant’s name into English)
___________________________
33 Yitzhak Rabin Rd.,
Givatayim 5348303, Israel
(Address of principal executive offices)
___________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
EXHIBIT INDEX
On February 18, 2026, Similarweb Ltd. will hold a conference call regarding its financial results for the fourth quarter and the year ended December 31, 2025. A copy of the related press release is furnished as Exhibit 99.1 hereto.
Exhibit 99.1, other than the portions of Exhibit 99.1 under the caption "Financial Outlook", is hereby expressly incorporated by reference into the registrant’s registration statements on Form S-8 filed with the Securities and Exchange Commission on February 27, 2025 (File no. 333-285314), February 28, 2024 (File no. 333-277449), on March 23, 2023 (File no. 333-270793), on April 15, 2022 (File no. 333-264307) and on May 20, 2021 (File No. 333-256324) and registration statement on Form F-3 filed with the Securities and Exchange Commission on May 10, 2024 (File no. 333-279295).
| Exhibit No. | Description | |||||||
99.1 | Press Release of Similarweb Ltd., dated February 17, 2026 | |||||||
99.2 | Shareholder letter, dated February 17, 2026 | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Similarweb Ltd. | ||||||||
Date: February 17, 2026 | By: | /s/ Ran Vered | ||||||
Ran Vered Chief Financial Officer | ||||||||
Exhibit 99.1
SIMILARWEB ANNOUNCES FOURTH QUARTER AND FISCAL 2025 RESULTS
Revenue growth of 11% in the fourth quarter
Ninth consecutive quarter of positive free cash flow
Multi-year subscriptions reach 60% of ARR up from 49% a year ago
TEL AVIV, ISRAEL -- February 17, 2026 -- 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 fourth quarter and full year ended December 31, 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.
"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,” said Or Offer, Co-Founder and CEO of Similarweb. “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."
Fourth Quarter 2025 Financial Highlights
(All results compared with the fourth quarter of 2024)
•Total revenue was $72.8 million, an increase of 11%, compared to $65.6 million.
•GAAP loss from operations was $(4.7) million or (6)% of revenue, compared to $(3.6) million or (5)% of revenue. GAAP net loss was $(7.5) million compared to $(5.4) million. GAAP net loss per share was $(0.09), compared to $(0.07).
•Non-GAAP operating profit was $3.4 million or 5% of revenue, compared to $2.6 million or 4% of revenue. Non-GAAP net income was $2.3 million or 3% of revenue, compared to $1.6 million or 2% of revenue. Non-GAAP diluted net income per share was $0.03, compared to $0.02.
1
Exhibit 99.1
Fiscal Year 2025 Financial Highlights
(All results compared with fiscal year 2024)
•Total revenue was $282.6 million, an increase of 13% compared to $249.9 million.
•GAAP operating loss was $(23.6) million or (8)% of revenue, compared to $(9.7) million or (4)% of revenue. GAAP net loss per share was $(0.39), compared to $(0.14).
•Non-GAAP operating profit was $9.1 million or 3% of revenue, compared to $15.0 million or 6% of revenue. Non-GAAP net income was $5.1 million or 2% of revenue, compared to $11.6 million or 5% of revenue. Non-GAAP diluted net income per share was $0.06 compared to $0.13.
Fourth Quarter 2025 Operational Highlights
•Number of customers reached 6,128 as of December 31, 2025, an increase of 11% compared to December 31, 2024.
•Number of customers with annual recurring revenue (ARR) of $100,000 or more grew to 454 as of December 31, 2025, an increase of 12% year-over-year.
•Customers with ARR of $100,000 or more contributed 63% of the total ARR as of December 31, 2025, up from 61%.
•Dollar-based net retention rate (NRR), for customers with ARR of $100,000 or more was 103% in the fourth quarter of 2025, compared to 112% in the fourth quarter of 2024.
•Overall NRR was 98% in the fourth quarter of 2025, compared to 101% in the fourth quarter of 2024.
•60% of our overall ARR is contracted under multi-year subscriptions as of December 31, 2025, up from 49% a year ago.
•Remaining performance obligations (RPO) increased 17% year-over-year, to $288.8 million as of December 31, 2025, from $246.0 million as of December 31, 2024.
2
Exhibit 99.1
Recent Business Highlights
•The company recently released Similarweb AI Studio, a new AI agent-based product that represents a step-change in how customers access and extract value from Similarweb’s Digital Data. AI Studio introduces a conversational interface that sits on top of all of the Company’s proprietary datasets, allowing users to ask business questions in plain language and instantly receive comprehensive insights, dashboards, and analyses.
•In January, Similarweb announced a collaboration with Manus, a rapidly scaling autonomous AI agent platform, that opens a new distribution and monetization channel for Similarweb’s digital intelligence. By enabling Manus AI agents to access Similarweb’s proprietary web traffic and engagement data, we extend our datasets into agent-driven workflows where AI systems actively execute marketing analysis, competitive assessment, and strategic planning on behalf of users.
•Also in January, customer access to Similarweb data via the Bloomberg terminal expanded to {ALTD <GO>}, Bloomberg’s Alternative Data Analytics Platform that gives clients a decisive edge and timely data analytics on public and private company performance alongside traditional market data, broker research, estimates and news.
Balance Sheet and Cash Flow
•In the fourth quarter of 2025, net cash provided by operating activities was $1.5 million, compared to $3.4 million for the fourth quarter of 2024. Free cash flow was $1.0 million, compared to $2.7 million for the fourth quarter of 2024. Normalized free cash flow was $1.0 million, compared to $2.7 million for the fourth quarter of 2024.
•For the full year of 2025, net cash provided by operating activities was $14.6 million, compared to $30.2 in 2024. Free cash flow was $13.0 million, compared to $27.4 million in 2024. Normalized free cash flow was $14.7 million, compared to $27.7 million in 2024.
•Cash and cash equivalents totalled $72.4 million as of December 31, 2025, compared to $63.9 million as of December 31, 2024.
3
Exhibit 99.1
“I joined Similarweb because of the irreplaceable value of our data and the massive opportunity to enhance and leverage this asset as a critical necessity for companies to win their markets in the generative era,” said Ran Vered, Chief Financial Officer of Similarweb. “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. Our outlook for another year of growth in 2026 is prudently grounded in high-visibility core business drivers, while gaining momentum for large strategic AI deals."
Financial Outlook
•FY 2026 Guidance
◦Total revenue for fiscal year 2026 estimated between $305.0 million and $315.0 million, representing approximately 10% growth year-over-year at the mid-point of the range.
◦Non-GAAP operating profit for fiscal year 2026 estimated between $16.0 million and $19.0 million.
•Q1 2026 Guidance
◦Total revenue estimated between $72.0 million and $74.0 million, representing approximately 9% growth year-over-year at the mid-point of the range.
◦Non-GAAP operating profit estimated between $0.5 million and $2.5 million.
The Company’s first quarter and full year 2026 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 profit (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.
4
Exhibit 99.1
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, February 18, 2026. 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.
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 the first quarter and full year of 2026 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 successfully develop and market AI solutions and to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth rates, changes in currency exchange 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 Israel's war with
5
Exhibit 99.1
Hamas and other terrorist organizations, including those in Lebanon and Yemen, and potential hostilities with Iran, Lebanon, and/or other countries in the Middle East 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.
6
Exhibit 99.1
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.
7
Exhibit 99.1
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.
8
Exhibit 99.1
Press Contact:
David Carr
Similarweb
press@similarweb.com
Investor Contact:
Rami Myerson
Similarweb
rami.myerson@similarweb.com
9
Exhibit 99.1
Similarweb Ltd.
Consolidated Balance Sheets
U.S. dollars in thousands (except share and per share data)
Consolidated Balance Sheets
U.S. dollars in thousands (except share and per share data)
| December 31, | December 31, | ||||||||||
| 2024 | 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 63,869 | $ | 72,421 | |||||||
| Restricted deposits | 10,572 | 6,360 | |||||||||
| Accounts receivable, net | 50,975 | 54,063 | |||||||||
| Deferred contract costs | 11,373 | 11,551 | |||||||||
| Prepaid expenses and other current assets | 4,567 | 5,949 | |||||||||
| Total current assets | 141,356 | 150,344 | |||||||||
| Property and equipment, net | 25,921 | 22,040 | |||||||||
| Deferred contract costs, non-current | 9,895 | 8,177 | |||||||||
| Operating lease right-of-use assets | 34,393 | 34,417 | |||||||||
| Goodwill and intangible assets, net | 30,846 | 45,581 | |||||||||
| Other non-current assets | 500 | 586 | |||||||||
| Total assets | $ | 242,911 | $ | 261,145 | |||||||
| Liabilities and shareholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | 12,403 | 13,871 | |||||||||
| Payroll and benefit related liabilities | 20,304 | 20,342 | |||||||||
| Deferred revenue | 108,232 | 112,169 | |||||||||
| Other payables and accrued expenses | 29,330 | 41,342 | |||||||||
| Operating lease liabilities | 6,923 | 8,841 | |||||||||
| Total current liabilities | 177,192 | 196,565 | |||||||||
| Deferred revenue, non-current | 1,172 | 1,226 | |||||||||
| Operating lease liabilities, non-current | 32,809 | 34,455 | |||||||||
| Other long-term liabilities | 4,230 | 5,573 | |||||||||
| Total liabilities | 215,403 | 237,819 | |||||||||
| Shareholders' equity | |||||||||||
Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2024 and December 31, 2025, 82,620,679 and 86,964,370 shares issued as of December 31, 2024 and December 31, 2025, 82,618,511 and 86,962,202 outstanding as of December 31, 2024 and December 31, 2025 , respectively; | 227 | 240 | |||||||||
| Additional paid-in capital | 391,449 | 419,578 | |||||||||
| Accumulated other comprehensive income | 388 | 1,000 | |||||||||
| Accumulated deficit | (364,556) | (397,492) | |||||||||
| Total shareholders' equity | 27,508 | 23,326 | |||||||||
| Total liabilities and shareholders' equity | $ | 242,911 | $ | 261,145 | |||||||
10
Exhibit 99.1
Similarweb Ltd.
Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Comprehensive Income (Loss)
U.S. dollars in thousands (except share and per share data)
| Year Ended December 31, | Three Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||||||||
| Revenue | $ | 249,913 | $ | 282,600 | $ | 65,587 | $ | 72,758 | |||||||||||||||
| Cost of revenue | 54,814 | 57,802 | 15,331 | 14,967 | |||||||||||||||||||
| Gross profit | 195,099 | 224,798 | 50,256 | 57,791 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 55,596 | 72,602 | 15,358 | 17,815 | |||||||||||||||||||
| Sales and marketing | 105,476 | 123,667 | 27,573 | 30,476 | |||||||||||||||||||
| General and administrative | 43,691 | 52,093 | 10,885 | 14,197 | |||||||||||||||||||
| Total operating expenses | 204,763 | 248,362 | 53,816 | 62,488 | |||||||||||||||||||
| Loss from operations | (9,664) | (23,564) | (3,560) | (4,697) | |||||||||||||||||||
| Finance income (expenses), net | 134 | (5,210) | (1,101) | (1,633) | |||||||||||||||||||
| Loss before income taxes | (9,530) | (28,774) | (4,661) | (6,330) | |||||||||||||||||||
| Provision for income taxes | 1,927 | 4,162 | 759 | 1,167 | |||||||||||||||||||
| Net loss | $ | (11,457) | $ | (32,936) | $ | (5,420) | $ | (7,497) | |||||||||||||||
| Net loss per share attributable to ordinary shareholders, basic and diluted | $ | (0.14) | $ | (0.39) | $ | (0.07) | $ | (0.09) | |||||||||||||||
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted | 80,825,695 | 84,817,195 | 82,073,002 | 86,591,824 | |||||||||||||||||||
| Net loss | $ | (11,457) | $ | (32,936) | $ | (5,420) | $ | (7,497) | |||||||||||||||
| Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||
| Change in unrealized (loss) gain on cashflow hedges | (484) | 612 | 273 | (666) | |||||||||||||||||||
| Total other comprehensive (loss) income, net of tax | (484) | 612 | 273 | (666) | |||||||||||||||||||
| Total comprehensive loss | $ | (11,941) | $ | (32,324) | $ | (5,147) | $ | (8,163) | |||||||||||||||
11
Exhibit 99.1
Share-based compensation costs included above:
U.S. dollars in thousands
| Year Ended December 31, | Three Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||||||||
| Cost of revenue | $ | 812 | $ | 1,024 | $ | 234 | $ | 258 | |||||||||||||||
| Research and development | 5,511 | 6,805 | 1,330 | 1,622 | |||||||||||||||||||
| Sales and marketing | 4,273 | 5,031 | 1,172 | 1,207 | |||||||||||||||||||
| General and administrative | 7,019 | 8,382 | 1,787 | 1,946 | |||||||||||||||||||
| Total | $ | 17,615 | $ | 21,242 | $ | 4,523 | $ | 5,033 | |||||||||||||||
12
Exhibit 99.1
Similarweb Ltd.
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
U.S. dollars in thousands
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net loss | $ | (11,457) | $ | (32,936) | $ | (5,420) | $ | (7,497) | ||||||||||||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Depreciation and amortization | 10,528 | 8,989 | 2,516 | 2,319 | ||||||||||||||||||||||
| Finance loss (income) | 500 | (225) | 711 | 128 | ||||||||||||||||||||||
| Unrealized loss (gain) from hedging future transactions | 103 | (32) | 62 | (1) | ||||||||||||||||||||||
| Share-based compensation | 17,615 | 21,242 | 4,523 | 5,033 | ||||||||||||||||||||||
| Gain from sale of equipment | (12) | (31) | (2) | (11) | ||||||||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
| Change in operating lease right-of-use assets and liabilities, net | (1,078) | 3,540 | 226 | 1,285 | ||||||||||||||||||||||
| Increase in accounts receivable, net | (2,127) | (2,291) | (15,488) | (12,225) | ||||||||||||||||||||||
| (Increase) decrease in deferred contract costs | (258) | 1,540 | (1,846) | (1,086) | ||||||||||||||||||||||
| Decrease (increase) in other current assets | 612 | (716) | 1,366 | 181 | ||||||||||||||||||||||
| (Increase) decrease in other non-current assets | (6) | (86) | (89) | 81 | ||||||||||||||||||||||
| Increase (decrease) in accounts payable | 3,597 | 1,451 | 1,313 | (799) | ||||||||||||||||||||||
| Increase in deferred revenue | 6,432 | 2,727 | 10,224 | 7,925 | ||||||||||||||||||||||
| Increase (decrease) in other non-current liabilities | 528 | 156 | 173 | (59) | ||||||||||||||||||||||
| Increase in other liabilities and accrued expenses | 5,197 | 11,316 | 5,149 | 6,208 | ||||||||||||||||||||||
| Net cash provided by operating activities | 30,174 | 14,644 | 3,418 | 1,482 | ||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Purchase of property and equipment, net | (1,430) | (1,490) | (232) | (281) | ||||||||||||||||||||||
| Capitalized internal-use software costs | (1,304) | (163) | (511) | (163) | ||||||||||||||||||||||
| (Increase) decrease in restricted deposits | (552) | 4,212 | (138) | 4,623 | ||||||||||||||||||||||
| Payment for business combinations, net of cash acquired | (15,414) | (15,787) | 28 | — | ||||||||||||||||||||||
| Net cash (used in) provided by investing activities | (18,700) | (13,228) | (853) | 4,179 | ||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Proceeds from exercise of stock options | 4,677 | 4,587 | 953 | 255 | ||||||||||||||||||||||
| Proceeds from employee share purchase plan | 1,486 | 2,324 | 931 | 1,169 | ||||||||||||||||||||||
| Repayment of Credit Facility | (25,000) | — | — | — | ||||||||||||||||||||||
| Net cash (used in) provided by financing activities | (18,837) | 6,911 | 1,884 | 1,424 | ||||||||||||||||||||||
| Effect of exchange rates on cash and cash equivalents | (500) | 225 | (711) | (128) | ||||||||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (7,863) | 8,552 | 3,738 | 6,957 | ||||||||||||||||||||||
| Cash and cash equivalents, beginning of period | 71,732 | 63,869 | 60,131 | 65,464 | ||||||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 63,869 | $ | 72,421 | $ | 63,869 | $ | 72,421 | ||||||||||||||||||
13
Exhibit 99.1
| Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||||
| Interest received, net | $ | (1,225) | $ | (1,332) | $ | (291) | $ | (290) | ||||||||||||||||||
| Taxes paid | $ | 1,168 | $ | 1,723 | $ | 303 | $ | 131 | ||||||||||||||||||
| Supplemental disclosure of non-cash financing activities: | ||||||||||||||||||||||||||
| Additions to operating lease right-of-use assets and liabilities | $ | 6,064 | $ | 7,176 | $ | 1,611 | $ | 1,611 | ||||||||||||||||||
| Share-based compensation included in capitalized internal-use software | $ | 104 | $ | 12 | $ | 42 | $ | 12 | ||||||||||||||||||
| Deferred proceeds from exercise of share options included in other current assets | $ | 29 | $ | 6 | $ | 29 | $ | 6 | ||||||||||||||||||
| Deferred costs of property and equipment incurred during the period included in accounts payable | $ | 227 | $ | 137 | $ | 227 | $ | 137 | ||||||||||||||||||
14
Exhibit 99.1
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Reconciliation of GAAP gross profit to non-GAAP gross profit
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||||
| GAAP gross profit | $ | 195,099 | $ | 224,798 | $ | 50,256 | $ | 57,791 | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 812 | 1,024 | 234 | 258 | ||||||||||||||||||||||
| Retention payments related to business combinations | 65 | 72 | 21 | 15 | ||||||||||||||||||||||
| Amortization of intangible assets related to business combinations | 4,191 | 1,770 | 815 | 560 | ||||||||||||||||||||||
| Non-GAAP gross profit | $ | 200,167 | $ | 227,664 | $ | 51,326 | $ | 58,624 | ||||||||||||||||||
| Non-GAAP gross margin | 80 | % | 81 | % | 78 | % | 81 | % | ||||||||||||||||||
Reconciliation of Loss from operations (GAAP) to Non-GAAP operating profit
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||||
| Loss from operations | $ | (9,664) | $ | (23,564) | $ | (3,560) | $ | (4,697) | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 17,615 | 21,242 | 4,523 | 5,033 | ||||||||||||||||||||||
| Retention payments related to business combinations | 1,886 | 7,943 | 539 | 2,076 | ||||||||||||||||||||||
| Amortization of intangible assets related to business combinations | 4,862 | 3,497 | 1,067 | 1,018 | ||||||||||||||||||||||
| Secondary offering costs | 350 | — | — | — | ||||||||||||||||||||||
| Non-GAAP operating profit | $ | 15,049 | $ | 9,118 | $ | 2,569 | $ | 3,430 | ||||||||||||||||||
| Non-GAAP operating margin | 6 | % | 3 | % | 4 | % | 5 | % | ||||||||||||||||||
15
Exhibit 99.1
Reconciliation of GAAP operating expenses to non-GAAP operating expenses
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||||
| GAAP research and development | $ | 55,596 | $ | 72,602 | $ | 15,358 | $ | 17,815 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 5,511 | 6,805 | 1,330 | 1,622 | ||||||||||||||||||||||
| Retention payments related to business combinations | 38 | 2,387 | 11 | 702 | ||||||||||||||||||||||
| Non-GAAP research and development | $ | 50,047 | $ | 63,410 | $ | 14,017 | $ | 15,491 | ||||||||||||||||||
| Non-GAAP research and development margin | 20 | % | 22 | % | 21 | % | 21 | % | ||||||||||||||||||
| GAAP sales and marketing | $ | 105,476 | $ | 123,667 | $ | 27,573 | $ | 30,476 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 4,273 | 5,031 | 1,172 | 1,207 | ||||||||||||||||||||||
| Retention payments related to business combinations | 1,783 | 2,888 | 507 | 651 | ||||||||||||||||||||||
| Amortization of intangible assets related to business combinations | 671 | 1,727 | 252 | 458 | ||||||||||||||||||||||
| Non-GAAP sales and marketing | $ | 98,749 | $ | 114,021 | $ | 25,642 | $ | 28,160 | ||||||||||||||||||
| Non-GAAP sales and marketing margin | 40 | % | 40 | % | 39 | % | 39 | % | ||||||||||||||||||
| GAAP general and administrative | $ | 43,691 | $ | 52,093 | $ | 10,885 | $ | 14,197 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 7,019 | 8,382 | 1,787 | 1,946 | ||||||||||||||||||||||
| Retention payments related to business combinations | — | 2,596 | — | 708 | ||||||||||||||||||||||
| Secondary offering costs | 350 | — | — | — | ||||||||||||||||||||||
| Non-GAAP general and administrative | $ | 36,322 | $ | 41,115 | $ | 9,098 | $ | 11,543 | ||||||||||||||||||
| Non-GAAP general and administrative margin | 15 | % | 15 | % | 14 | % | 16 | % | ||||||||||||||||||
16
Exhibit 99.1
Reconciliation of Net loss (GAAP) to non-GAAP Net income
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| (In thousands, except for share and per share amounts) | (In thousands, except for share and per share amounts) | |||||||||||||||||||||||||
| GAAP Net loss | $ | (11,457) | $ | (32,936) | $ | (5,420) | $ | (7,497) | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Share-based compensation expenses | 17,615 | 21,242 | 4,523 | 5,033 | ||||||||||||||||||||||
| Retention payments related to business combinations | 1,886 | 7,943 | 539 | 2,076 | ||||||||||||||||||||||
| Amortization of intangible assets related to business combinations | 4,862 | 3,497 | 1,067 | 1,018 | ||||||||||||||||||||||
| Secondary offering costs | 350 | — | — | — | ||||||||||||||||||||||
| Non-operating foreign exchange losses | 224 | 5,718 | 1,196 | 1,729 | ||||||||||||||||||||||
| Tax effect of adjustments, net | (1,850) | (334) | (323) | (86) | ||||||||||||||||||||||
| Non-GAAP net income | $ | 11,630 | $ | 5,130 | $ | 1,582 | $ | 2,273 | ||||||||||||||||||
| Non-GAAP net income margin | 5 | % | 2 | % | 2 | % | 3 | % | ||||||||||||||||||
| Weighted average number of ordinary shares - basic | 80,825,695 | 84,817,195 | 82,073,002 | 86,591,824 | ||||||||||||||||||||||
| Non-GAAP basic net income per share attributable to ordinary shareholders | $ | 0.14 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||||||||||||
| Weighted average number of ordinary shares - diluted | 86,428,066 | 89,271,537 | 88,666,263 | 89,907,570 | ||||||||||||||||||||||
| Non-GAAP diluted net income per share attributable to ordinary shareholders | $ | 0.13 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||||||||||||
17
Exhibit 99.1
Reconciliation of Net cash provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow
| Year Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 30,174 | $ | 14,644 | $ | 3,418 | $ | 1,482 | ||||||||||||||||||
| Purchases of property and equipment, net | (1,430) | (1,490) | (232) | (281) | ||||||||||||||||||||||
| Capitalized internal use software costs | (1,304) | (163) | (511) | (163) | ||||||||||||||||||||||
| Free cash flow | $ | 27,440 | $ | 12,991 | $ | 2,675 | $ | 1,038 | ||||||||||||||||||
| Deferred payments related to business combinations | 265 | 1,660 | — | — | ||||||||||||||||||||||
| Normalized free cash flow | $ | 27,705 | $ | 14,651 | $ | 2,675 | $ | 1,038 | ||||||||||||||||||
18
Exhibit 99.2 Dear Shareholders, The AI revolution presents tremendous opportunities for Similarweb as an essential data foundation to make AI models and agents smarter and more accurate and provide actionable insights into a rapidly changing and complex digital world. The early traction and strong commercial interest in our new AI offerings reinforces our confidence that our comprehensive and proprietary data is becoming a critical requirement for companies to win their markets in the generative AI era. Revenue from generative AI data and solutions is scaling fast and accounted for 11% of revenue in Q4-25, up from 8% at the beginning of the year. Our GenAI intelligence product, just launched at the beginning of Q3-25, is already responsible for one of our fastest growing revenue streams, approaching 200 customers with an ARR of approximately $3 million. We intend to continue to ramp and roll out new products in 2026, and we started the year by announcing a milestone partnership with Manus, validating our data’s foundational role in powering the next generation of agentic AI tools. The current transition period of AI adoption has introduced some short-term variability, and revenue growth in the fourth quarter was slower than expected mostly due to the timing of two large LLM data training contracts that did not close yet but remain active in our pipeline. However, we believe Similarweb’s long-term prospects are brighter than ever. Overall revenue performance in Q4-25 also continued to be impacted by broader market weakness as companies reallocate current budgets toward the AI transition and the modernization of their tech stacks. This shift is disruptive in the short term but ultimately supports our AI-led strategy to reaccelerate growth in 2026 and beyond. In addition to the external environment, we have identified specific commercial execution shortfalls this year and initiated corrective actions to better enable us to capture the emerging opportunities ahead of us. This includes upskilling our go-to-market organization to sell in the new AI world and creating a dedicated team for selling to LLMs. As we innovate and invest to capture AI opportunities and accelerate the top line, we remain committed to profitable growth and strong free cash flow, which is reflected in our results. Even though revenue growth did not step up as expected in Q4-25, non-GAAP operating profit for the quarter slightly surpassed our target with disciplined cost 1 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 management. For the full year, 2025 was our second consecutive year of positive non-GAAP operating profit and Free Cash Flow. While we are not satisfied with our overall performance in 2025, we are entering 2026 with conviction in the unrivaled value of our data and with a clear strategy to leverage it into accelerated and profitable revenue growth in the AI-driven future. Business performance Total revenue for Q4-25 was $72.8 million, an increase of 11% compared to $65.6 million in the fourth quarter of 2024. Our Q4-25 results benefited from growth in overall customers as well as increased revenues from some of the new products we launched over the last year including App Intelligence and Gen AI Intelligence. YoY growth was slower than expected primarily due to the timing of two large LLM data training contracts that did not close yet but remain active in our pipeline. Given the size and complexity of these AI contracts, sales cycles can take longer to complete. The pipeline for these contracts continues to expand but the timing and form mean closing can vary reflecting their scale. Our $100K+ ARR customer segment continues to expand and deepen as we focus our sales team on expanding our presence with larger enterprise customers that recognize the importance of our digital data. As of December 31, 2025, this group represented 63% of total ARR. The sustained growth demonstrates the demand from larger organizations seeking mission-critical intelligence, and we believe this focus further strengthens our resilience and supports our long-term growth. 2 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 The number of customers who generate more than $100,000 in ARR grew from 405 as of December 31, 2024, to 454 as of December 31, 2025, representing an increase of 12% YoY. While the average annual revenue per customer decreased slightly year-over-year to approximately $370k, from $376k in Q4-24, this is up sequentially from $366k in Q3-25. 3 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 While our largest customers continue to grow, we are equally encouraged by the solid momentum in new customer acquisition. As of December 31, 2025 our total ARR customer base grew to 6,128 accounts, representing an 11% increase year-over-year. We view this growth as a healthy indicator of demand and a leading signal for future expansion. It reflects growing awareness of the value of Similarweb’s digital data across a wide range of customers, industries and use cases. In Q4-25, we achieved an overall NRR of 98% across all customers and an NRR of 103% among customers with over $100k ARR, a decrease from 101% and 112% respectively in Q4-24. This decline reflects the strong expansion activity in 2024, particularly from large 4 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 contracts booked during the second and fourth quarter of last year. It is important to note that our NRR calculations exclude LLM data evaluation contracts which start as one-time engagements but are expected to convert into ARR contracts in the future. We are encouraged that our GRR has remained stable in recent quarters despite the decline in NRR. This is a direct result of the investments made in our account management and customer success teams as well as improvements to our product onboarding experience and overall engagement. Adoption of AI tools by our customer success and account management teams has also supported these efforts. These initiatives are already driving healthier engagement and are expected to support improvement in NRR overall and across enterprise segments during 2026. 5 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Our ability to scale from a single initial use case to an enterprise-wide, multi-solution relationship continues to be a powerful driver of long-term ARR growth. A leading global payments and financial services company illustrates this progression. The relationship began in 2017 with a ~$10k Web Intelligence engagement within the marketing team, initially deployed alongside a competitor to validate data accuracy and demonstrate value. Over time, adoption expanded across international marketing, merchant sales, and the small business division. As usage deepened, the customer broadened access through additional users, API integrations, expanded country coverage, and custom reporting, and later Sales Intelligence was added to support merchant prospecting and lead enrichment. Similarweb data is now embedded across the customer’s B2B marketing and sales workflows, informing audience strategy, competitive benchmarking, and regional sales prioritization, particularly across EMEA. In 2025, Similarweb insights enabled the U.S. B2B organization of the customer to optimize affiliate, paid, and organic search strategies, reducing spend while improving performance across all channels. Most recently, the customer expanded into Pro access and consulting services for additional B2B financial products. As a result, ARR increased to more than $400k representing a ~40x expansion over eight years. 6 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 We are super proud that Similarweb Digital Data has become deeply embedded in our customers’ decision processes at all levels of their organizations. As of the end of Q4-25, 60% of our ARR was generated from customers who contracted under multi-year subscription commitments, compared to 49% at the same time last year and 42% two years ago. We believe this is a strong indicator of the long-term durability of our customer relationships and demand for our solutions. Another strong example of our customer expansion is a global leader in high-performance athletic footwear and lifestyle apparel that began its journey as a Similarweb customer in 2015 with a small, self-service package for their e-commerce team. Over the following decade, the relationship scaled significantly, expanding in 2019 to a ~$60k contract for European e-commerce data and then to a global Digital Partner Commerce (DPC) rollout in 2022, that empowered the brand with the data to track market share across all key retailers and channels. In 2025, the partnership expanded over multiple regions including North America, LATAM, and Emerging Markets, with the customer also adding our Shopper Intelligence for its Amazon e-commerce team in Europe. Since 2015 this account has grown by ~100x to an ARR of $500k, demonstrating how a localized e-commerce tool can evolve into a multi-solution strategic asset for a complex 7 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 global organization. We are super proud that Similarweb Digital Data has become deeply embedded in our customers’ e-commerce teams. Business highlights At our core, we are a data company. Our unique data asset, Similarweb Digital Data, provides the foundation for our solutions and consists of our proprietary estimations of the performance of companies, markets, products, consumer behavior, and trends in the digital world. We invest continuously in our technology and analytics to expand and enhance our data in order to deliver the most comprehensive and valuable understanding of the ever-changing digital landscape. In 2025, we translated this data strength into new intelligence products — expanding across advertising, mobile apps, and AI — to provide our customers with faster, deeper insights into how people and businesses engage online. Similarweb and the AI revolution The AI revolution is accelerating, and we are already seeing clear traction across key use cases. As a leading supplier of digital data, the AI revolution presents significant opportunities. High quality, comprehensive, actionable and trusted data, like Similarweb’s, is a critical and foundational component for every AI and LLM tech stack. We remain focused on the three high-impact opportunities we discussed in the past and they are showing sustained traction: data for LLM training. GenAI Intelligence and AI agents. We are excited by the opportunities provided by our partnerships with new AI driven players and our recently launched AI-Studio which democratizes access to our data. Similarweb’s AI Studio - revolutionizing access to our data A few weeks ago, we launched Similarweb’s AI Studio, a new AI agent–based product that represents a step-change in how customers access and extract value from Similarweb’s Digital Data. AI Studio introduces a conversational interface that sits on top of all our 8 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 proprietary datasets, allowing users to ask business questions in plain language and instantly receive comprehensive insights, dashboards, and analyses. AI Studio unifies web traffic, search, app, and shopper intelligence into a single experience, removing the historical learning curve associated with advanced analytics platforms. Instead of navigating complex workflows or building reports manually, users can move from question to insight in seconds. This simplicity dramatically expands the number of active users within customer accounts and accelerates time-to-value across teams. Strategically, AI Studio strengthens our competitive moat by combining Similarweb’s unmatched proprietary data with AI purpose-built to understand and operate on that data—an advantage competitors cannot easily replicate. It also marks the foundation of our enterprise-grade AI offering, creating a new entry point for larger customers and enabling expanded adoption, cross-sell, and monetization opportunities over time. We believe AI Studio positions Similarweb at the forefront of AI-powered market intelligence and meaningfully enhances our long-term growth trajectory. Similarweb Partners with Manus In January 2026, we announced an exciting collaboration with Manus, a rapidly scaling autonomous AI agent platform, that opens a new distribution and monetization channel for Similarweb’s digital intelligence. By enabling Manus AI agents to access Similarweb’s proprietary web traffic and engagement data, we extend our datasets into agent-driven 9 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 workflows where AI systems actively execute marketing analysis, competitive assessment, and strategic planning on behalf of users. Manus surpassed $100 million in annual recurring revenue less than nine months after launch, highlighting the pace at which agent-based AI platforms are being adopted. This partnership positions Similarweb as a core data provider for this emerging category and enables monetization through data access and expanded entitlements. We believe integrations like this represent an important growth vector, embedding Similarweb data directly into third-party AI ecosystems and creating incremental revenue opportunities beyond our traditional platform. Kipp Bodnar, Hubspot’s CMO and a director on our board, recently discussed how corporate marketing executives can leverage the context Similarweb’s data provides to build market research reports and presentations on Hubspot’s “Marketing Against the Grain” podcast available here: This AI Tool Works Like a $300,000 McKinsey Consultant Bloomberg deepens integration of Similarweb alternative on the Terminal In January 2026, Bloomberg expanded Similarweb datasets our mutual customers can see in the Bloomberg Terminal with its {ALTD <GO>} investment research solution for alternative data. This supports advanced use cases including faster KPI nowcasting, deeper company and peer benchmarking, and more timely identification of performance inflection points ahead of earnings that may differ from consensus expectations. 10 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 {ALTD <GO>} is Bloomberg’s Alternative Data Analytics Platform that gives Bloomberg Terminal clients a decisive edge and timely data on public and private company performance alongside traditional market data, broker research, estimates and news. Bloomberg selected Similarweb as its premium alternative data provider of digital metrics tracking company growth and momentum. All {ALTD <GO>} users get access to traffic data, while those who are also Similarweb customers can take advantage of the Data Entitlements in {ALTD <GO>} to get more timely access to an expanded data set – also including unique visitors, average visit duration, bounce rate, and page views – for a more comprehensive picture of digital performance. The inclusion of Similarweb data in the Bloomberg Terminal underscores the value, credibility, and relevance of our digital intelligence at the highest levels of investment management and the broader financial markets community. We view this collaboration as further validation of our datasets as a powerful resource for data-driven decision-making and a continued expansion of our capabilities within the global institutional investment industry. 11 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Financial Results When examining our financial results, please note that references to expenses and operating results (other than revenue) are presented both on a GAAP and on a non-GAAP basis below, and that all non-GAAP results are reconciled to the most directly comparable GAAP results in the financial statements exhibits presented at the end of this letter. Revisiting our top-line results, in Q4-25 we delivered revenue of $72.8 million, reflecting 11% growth as compared to Q4-24, driven primarily by an increase in the number of customers as well as increased revenue from some of the new products we launched over the last year, including App Intelligence and Gen AI Intelligence, as discussed above. Our GAAP gross profit totaled $57.8 million and our non-GAAP gross profit totaled $58.6 million in Q4-25, compared to $50.3 million and $51.3 million in Q4-24, respectively. Non-GAAP gross margin increased to 81% in Q4-25, versus 78% in Q4-24. Our GAAP operating expenses increased to $62.5 million and our non-GAAP operating expenses increased to $55.2 million in Q4-25 from $53.8 million and $48.8 million in Q4-24, respectively. As a percentage of revenue, non-GAAP operating expenses increased to 76% in Q4-25, compared to 74% in Q4-24. Specific components of our fourth quarter 2025 operating expenses: GAAP research and development investment increased to $17.8 million and our non-GAAP research and development investment increased to $15.5 million in Q4-25, from $15.4 million and $14.0 million in Q4-24, respectively. As a percentage of revenue, non-GAAP research and development expenses remained 21% in Q4-25, as in Q4-24. We expect non-GAAP research and development expenses to increase in absolute dollars as we continue to invest in our data moat and innovation and expand our R&D team. GAAP sales and marketing expenses increased to $30.5 million and non-GAAP sales and marketing expenses increased to $28.2 million in Q4-25, from $27.6 million and $25.6 million in Q4-24, respectively, driven primarily by the increased investment in our sales force. As a percentage of revenue, non-GAAP sales and marketing expenses remained at 39% in Q4-25, as in Q4-24. 12 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 GAAP general and administrative costs increased to $14.2 million from $10.9 million in Q4-24, and our non-GAAP general and administrative costs increased to $11.5 million in Q4-25 from $9.1 million in Q4-24. As a percentage of revenue, non-GAAP general and administrative expenses increased to 16% in Q4-25, from 14% in Q4-24. * non-GAAP Q4-25 GAAP operating loss was ($4.7) million or (6%) of revenue, compared to ($3.6) million or (5%) of revenue for the fourth quarter of 2024. Q4-25 non-GAAP operating profit was $3.4 million or 5% of revenue, compared to a non-GAAP operating profit of $2.6 million or 4% of revenue for Q4-24 . We expect to sustain positive non-GAAP operating profit in 2026. GAAP net loss was ($7.5) million compared to ($5.4) million for Q4-24. Non-GAAP net income was $2.3 million or 3% of revenue, compared to $1.6 million or 2% of revenue in the prior-year period. GAAP net loss per share was ($0.09), compared to ($0.07) for the fourth quarter of 2024. Non-GAAP basic and diluted income per share was $0.03, an improvement relative to $0.02 for the fourth quarter of 2024. Our Remaining Performance Obligations (RPO) totaled $288.8 million at the end of Q4-25, up 17% YoY from $246.0 million at the end of Q4-24. We expect to recognize approximately 69% of total Q4-25 RPO as revenue over the next 12 months. We ended the fourth quarter with $72.4 million in cash and cash equivalents and no outstanding debt. Net cash generated from operating activities was $1.5 million in Q4-25, 13 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 compared to $3.4 million in Q4-24. Non-GAAP normalized free cash flow was $1.0 million in Q4-25, compared to $2.7 million in Q4-24. Importantly, Q4-25 is the ninth consecutive quarter of positive free cash flow, which we aim to sustain going forward. Our Business Outlook For the full year of 2026, we expect total revenue in the range of $305.0 million to $315.0 million, representing approximately 10% YoY growth at the midpoint of the range. In the first quarter of 2026, we expect total revenue in the range of $72.0 million to $74.0 million, representing approximately 9% YoY growth at the midpoint of the range. For the full year of 2026, we expect non-GAAP operating profit to be between $16.0 million and $19.0 million. We expect non-GAAP operating profit for the first quarter of 2026, to be in the range of $0.5 million to $2.5 million. Our Focus on Profitable Growth At the beginning of 2025, we shared with you our three strategic objectives for the year and are pleased with the progress that we made during 2025: (1) To expand our investment to enhance our Digital Data to provide our customers with the tools and capabilities to compete and win in the rapidly evolving digital world. During 2025 we launched a series of new products, including Gen AI Intelligence, App Intelligence and Ad Intelligence, as part of our efforts to provide the most comprehensive view of the digital world. We are super pleased with the adoption of these products by our customers. (2) Expand our GTM teams and land additional enterprise customers as we continue to expand the existing enterprise customer base. We are encouraged by the 11% YoY increase in total customer accounts and 12% YoY growth in $100,000 customers that account for 63% of revenues. The increase in multi-year customers as a percentage of ARR to 60% is also encouraging and provides increased visibility during a volatile economic environment. 14 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 (3) To operate efficiently. 2025 was our second consecutive year of positive non-GAAP operating profit, and positive free cash flow. Q4-25 was our ninth consecutive quarter of positive free cash flow. We are proud of these operational achievements during a challenging period. In 2026, we plan to remain profitable on a non-GAAP basis and cash-generative on a quarterly basis. We believe that our culture of disciplined execution will continue to create opportunities for us to perform well in the future. We remain focused on working to become a “Rule of 40” company on an annual basis over time. As we turn our attention to 2026 we intend to increase our investment to capitalize on the significant market opportunities while remaining focused on generating profitable growth on an annual basis. First, In 2026, we will focus on accelerating the opportunities and monetizing the benefits that the AI revolution provides. The AI world is evolving rapidly and we continue to identify additional opportunities. We plan to expand the supply of our proprietary Digital Data to support LLM training, while scaling sales and adoption of our GenAI Intelligence products across existing and new customers. We will continue to roll out AI agents across specific workflows to reduce time-to-value and increase utilization of our data. In parallel, we will invest in scaling AI Studio through tighter product integration and focused go-to-market execution to broaden access, drive usage, and accelerate monetization. Second, we will focus on improving our go-to-market execution to sell effectively in a rapidly evolving, AI-driven market. We are investing in upskilling our go-to-market teams to address new buyer needs, longer and more complex sales cycles, and emerging AI-focused use cases. This includes dedicated enablement around GenAI Intelligence, AI Studio, and data partnerships, as well as the continued build-out of specialized teams selling to LLM and AI-native customers. We are also encouraging our GTM teams to actively adopt AI tools in their daily workflows to improve prospecting, deal execution, and customer engagement. By aligning product, pricing, and sales motions to this new environment, we aim to improve deal velocity, increase win rates on AI-related opportunities, and more consistently convert pipeline into contracted ARR. Lastly, we will continue to operate efficiently. Q4-25 was our ninth consecutive quarter of positive free cash flow and we reported positive non-GAAP operating profit, exceeding our 15 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 expectations. We believe that our culture of disciplined execution will continue to create opportunities for us to perform well in the future. We remain focused on working to become a “Rule of 40” company on an annual basis over time. As we shared with you in the past, global macroeconomic conditions may continue to present challenges for our business and for our customers, but we believe that much of what we believe is needed to achieve our strategic objectives is within our control. New Chief Financial Officer We are excited that Ran Vered has joined Similarweb at this junction in our journey. Ran shares our conviction that the Digital Data powerhouse that Or and the team have built is a unique asset that is well positioned to succeed in the AI era. We continue to make significant progress towards our long-term profit and free cash flow margin targets and look forward to sharing our progress with you. As we like to say, we are still “just getting started”. Thank you for your continued support as a shareholder. Sincerely, Or Offer Founder and Chief Executive Officer Ran Vered Chief Financial Officer 16 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Consolidated Balance Sheets 17 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Consolidated Statements of Comprehensive Income (Loss) 18 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Share-based compensation costs included above: 19 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Consolidated Statements of Cash Flows 20 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Reconciliation of GAAP gross profit to Non-GAAP gross profit 21 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Reconciliation of Loss from operations (GAAP) to Non-GAAP operating profit 22 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Reconciliation of GAAP operating expenses to non-GAAP operating expenses 23 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Reconciliation of Net loss (GAAP) to non-GAAP Net income Reconciliation of net cash provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow 24 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 Forward-Looking Statements This letter to shareholders 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 2026 described under "Business Outlook,” the expected performance of our business, future financial results, strategy, long-term growth and overall future prospects, and our acquisitions and our offerings, our customers’ continued investment in digital transformation and reliance on digital intelligence, our products and solutions and the size of, and our ability to capitalize on, our market opportunity and our plans to invest in sales and R&D. 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 successfully develop and market AI solutions and to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth rates, changes in currency exchange rates, rising interest rates, rising global inflation and current macroeconomic conditions, and challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations, including those in Lebanon and Yemen, and potential hostilities with Iran, Lebanon, and/or other countries in the Middle East 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. 25 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 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 letter. Except as required by law, we undertake no duty to update any forward-looking statements contained in this letter as a result of new information, future events, changes in expectations, or otherwise. Certain information contained in this letter relates to or is based on studies, publications, surveys, and other data obtained from third-party sources and the Company's own internal estimates and research. While the Company believes these third-party sources to be reliable as of the date of this letter, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources. In addition, all of the market data included in this letter involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while we believe our own internal research is reliable, such research has not been verified by any independent source. Non-GAAP Financial Measures This letter to shareholders 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 and should not be considered a measure of liquidity. Free cash flow represents net cash provided by 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 headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, 26 Similarweb Q4 2025 Shareholder Letter
Exhibit 99.2 non-GAAP research and development expenses, non-GAAP research and development margin, non-GAAP sales and marketing expenses, non-GAAP sales and marketing margin, and non-GAAP general and administrative expenses, non-GAAP net income (loss) and non-GAAP 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 above 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, 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. 27 Similarweb Q4 2025 Shareholder Letter