Similarweb Ltd. (SMWB) Earnings
Similarweb Ltd. is expected to report next earnings on August 11, 2026 (in NaN days), with a consensus EPS estimate of $0.03. SMWB has beaten EPS estimates in 5 of its last 9 reported quarters (average surprise +52.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $0.01 | $0.01 | +0.0% | $74M | +1.1% |
| Feb 17, 2026 | $0.01 | $0.03 | +200.0% | $73M | -4.7% |
| Aug 12, 2025 | $0.02 | $0.01 | -50.0% | $71M | -1.4% |
| Feb 13, 2024 | $0.02 | $0.03 | +59.3% | $57M | +1.6% |
| Feb 14, 2023 | $-0.21 | $-0.14 | +33.3% | $51M | -2.7% |
| Nov 15, 2022 | $-0.26 | $-0.18 | +30.8% | $50M | +1.7% |
| Feb 16, 2022 | $-0.27 | $-0.28 | -3.7% | $40M | +6.2% |
| Nov 10, 2021 | $-0.21 | $-0.20 | +4.8% | $36M | — |
| Aug 11, 2021 | $-0.28 | $-0.33 | -17.9% | $33M | +7.6% |
| Mar 31, 2021 | — | $-0.16 | — | $29M | — |
| Sep 30, 2020 | — | $-0.08 | — | $24M | — |
| Jun 30, 2020 | — | $-0.05 | — | $22M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Leadership Transition Announcement - CEO and co-founder Orr will step down after 19 years with the company, as he approaches his 20-year milestone and plans to realign personal priorities to spend more time with family. - The board has partnered with a leading external executive search firm to identify a new CEO; Orr will remain in the role through the search and transition period, with completion expected by mid-2027. - There are no planned changes to company strategy, operations, or financial outlook following the transition announcement. ### Core Business Fundamentals - Q1 results hit the top end of prior guidance, marking the 10th consecutive quarter of positive normalized free cash flow. - Net revenue retention (NRR) stabilized at 98% overall and 103% for customers with over $100,000 ARR; gross revenue retention (GRR) reached a new two-year peak in Q1, with continued strength expected in Q2. - Sales productivity has increased for three consecutive quarters, driving the best Q1 ARR growth since 2022; 86% of total ARR comes from customers with over $25,000 ARR, which grew 2% year-over-year to 1,840 customers, with average account value up 9% year-over-year to $132,000. - Going forward, the company will only disclose customer count for the >$25,000 ARR enterprise cohort, discontinuing total logo count to eliminate noise from self-service customer subscription term changes. - Q1 generated $6.6 million in normalized free cash flow; the company ended the quarter with $65 million in cash and cash equivalents and no debt, providing full financial flexibility. ### AI Strategy and Product Innovation - The company pursues three core AI-focused strategic priorities: powering LLMs and AI agents via data licensing, building proprietary AI-native customer solutions, and expanding distribution through ecosystem integrations. - Strong traction is growing for direct data licensing to leading LLM companies for pre- and post-training use cases; the company closed one large LLM contract pushed from Q4 2025, with additional large contracts in the active pipeline. - Launched SimilarWeb AI Studio, an AI-powered natural language interface that enables instant insight generation across all company datasets, expanding user access, increasing engagement, and enabling a new consumption-based monetization model with strong early adoption. - Launched MCP integrations with major AI platforms including ChatGPT and Cloud, and expanded a strategic partnership with Manos to embed SimilarWeb data directly into AI workflows, unlocking new customer access. - Launched two new core products: SimilarWeb Retail Intelligence, which unifies shopper behavior and performance data across 650+ online stores and marketplaces, and SimilarWeb Ad Intelligence, built on the 2024 Ad Metrics acquisition, which unifies paid media performance data across search, social, display, and upcoming LLM ad inventory.
Guidance
- For full year 2026, management raised the lower bound of revenue guidance to a range of $307 million to $315 million, representing 10% year-over-year growth at the midpoint, reflecting improved confidence from solid Q1 performance and a strong commercial pipeline. - Full year 2026 non-GAAP operating profit guidance was also raised to a range of $17 million to $19 million. - For Q2 2026, revenue is expected in the range of $74.5 million to $76.5 million, representing 6% year-over-year growth at the midpoint; the lower growth rate reflects a tough comparison from a one-time revenue pull-forward into Q2 2025. - Q2 2026 non-GAAP operating profit is expected between $3 million and $5 million. - Management expects revenue growth acceleration in the second half of 2026, driven by the strong current commercial pipeline. - NRR is expected to improve throughout 2026, driven by execution of the customer expansion playbook and growing upsell demand across the existing customer base. - The company expects to continue generating positive normalized free cash flow on a quarterly basis going forward, accounting for normal seasonal fluctuations. - Non-GAAP quarterly interest expense and tax expense are expected to remain stable at approximately $3,000 and $1.3 million, respectively, for the remainder of 2026.
Segment performance
SimilarWeb does not break out public financial performance for distinct product segments in this call. Overall company Q1 FY2026 revenue grew 10% year-over-year to $73.9 million, hitting the top end of prior guidance. AI-related revenue is a fast-growing portion of total revenue, with new AI products and large LLM data contracts contributing to growth. Core digital intelligence products (the company's legacy offering) continue to generate stable recurring revenue, with 64% of total annual recurring revenue (ARR) contracted under multi-year agreements, up from 52% in the prior year. Remaining performance obligation (RPO) totaled $298 million at quarter-end, up 18% year-over-year, with approximately 70% expected to be recognized as revenue over the next 12 months.
Risks & headwinds
- Forward-looking statements are inherently uncertain, and actual results may differ from expectations due to unforeseen risks; additional risk factor details are available in the company's recent Form 20-F filing and earnings release. - A strengthening Israeli shekel relative to the U.S. dollar creates headwinds for profitability, as approximately half of the company's employees are based in Israel; the company is diversifying its cost base via expansion of its R&D center in Prague to offset this pressure. - While the company sees strong traction for new AI products and large LLM contracts, closing of future large deals is not guaranteed, and timing of revenue recognition from these contracts could impact full year results if deals slip into future periods.
Analyst Q&A
Q: The guidance implies a steep second half revenue ramp after closing one large LLM contract. How confident is management in this ramp, and how dependent is it on closing the second expected large LLM contract? /
A: Management notes that the commercial pipeline is very strong, with the dedicated LLM/OEM go-to-market team executing well. The company already closed the first delayed LLM contract, and the second contract remains in the pipeline alongside multiple additional new LLM-related deals, giving management high confidence in second half 2026 performance.
Q: What is driving confidence in an NRR inflection after several quarters of flat performance, and what changes are supporting higher upsell and cross-sell? /
A: The reported NRR is a four-quarter trailing average, so recent quarterly improvements in NRR and GRR have not yet shown up in the headline metric. GRR hit a two-year high in Q1 and remains strong in early Q2, and existing customers are increasingly buying additional products and data, creating clear upward momentum for NRR through 2026.
Q: How are MCP integrations impacting new customer win rates and retention, and what is the impact of lower-end customer churn on the business? /
A: MCP integrations primarily improve ROI and retention for existing customers by increasing data usage, rather than driving higher new customer win rates. Higher new customer win rates come from the new GenAI visibility solution. The decline in total customer count is limited to low-value self-service customers, and reflects testing of monthly vs annual subscription defaults that do not impact the core enterprise business, which is why the company will only disclose enterprise cohort metrics going forward.
Q: How is SimilarWeb approaching pricing model changes amid industry shifts to consumption-based pricing for AI-enabled products, and what are the margins for consumption-based revenue? /
A: The company already shifted away from pure seat-based pricing some time ago, and agrees that consumption-based pricing aligned to usage and outcomes is the right long-term model for AI-driven data products, which aligns with the company's existing data-access monetization structure. Consumption-based revenue has equal or better margins than core legacy products, because it requires less customer success support and has higher stickiness, with no incremental UI development overhead.