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    SMWB
    Earnings call· Jun 2026(Q2 FY26)

    SIMILARWEB Q2 FY26 earnings call SMWB

    Aug 12, 2026 Source

    Executive summary

    Similarweb Q2 FY26 — Record ARR, Profitability, and AI-Driven Enterprise Growth

    Similarweb reached a significant inflection point in Q2 FY26, marked by record net new ARR, positive GAAP operating profit, and improved retention metrics. The company's strategic focus on large enterprise customers and AI opportunities is yielding substantial multiyear contracts, solidifying its position as a critical data provider for the evolving AI ecosystem. This quarter's results validate the effectiveness of their strategy to strengthen data moat, deepen enterprise relationships, and scale AI-first solutions.

    Highlights

    5

    • Delivered the strongest quarter in Similarweb history for net new ARR.

    • Achieved positive GAAP operating profit for the first time ever.

    • NRR improved to 100% across all customers and 107% for customers above $100,000 of ARR.

    • Signed 3 very large multiyear enterprise contracts representing more than $60 million of accumulated contract value.

    • AI-related revenue reached 13% of total revenue in Q2 FY26, up from 11% in Q4 FY25.

    Concerns

    1

    • Experienced FX headwinds to profit from the strengthening Israeli shekel versus the U.S. dollar, which was mitigated by disciplined cost control.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $340 million to $380 million
    high materiality
    High
    Q3 2026 Revenue
    $80.5 million to $82.5 million
    medium materiality
    High
    Full-year 2026 Non-GAAP Operating Profit
    $24 million and $26 million
    high materiality
    High
    Q3 2026 Non-GAAP Operating Profit
    $7.5 million to $9.5 million
    medium materiality
    High
    Normalized Free Cash Flow
    positive on a quarterly basis
    medium materiality
    High
    NRR
    further improvement
    high materiality
    High

    Operational metrics

    14
    Non-GAAP operating profit
    $6.5 millionup from $2.4 million in Q2 FY25
    Q2 FY26

    Above guidance range, thanks to top line growth and disciplined cost control.

    AI-related revenue
    13%up from 11% in Q4 FY25
    Q2 FY26

    Expected to continue expanding.

    ARR contracted under multiyear contracts
    66%up from 57% last year
    Q2 FY26

    Demonstrates durability of revenues and importance of data to customers.

    Cash and investments balance
    $73.9 million
    end of Q2 FY26

    No debt.

    Available line of credit
    $75 million
    Q2 FY26
    Non-GAAP diluted EPS
    $0.06compared to $0.01 in Q2 FY25
    Q2 FY26
    Non-GAAP tax expense
    $1.2 millioncompared to $1.2 million in Q2 FY25
    Q2 FY26

    Expected to remain approximately at this level quarterly for the rest of the year.

    Non-GAAP finance expenses
    $108,000compared to $86,000 in Q2 FY25
    Q2 FY26

    Expected to remain approximately at this level quarterly for the rest of the year.

    Customers with ARR above $25,000
    1,815up from 1,809 in 2025
    end of Q2 FY26

    Reflects prioritization of large-scale opportunities over smaller SMB deals.

    Average account value for customers with ARR above $25,000
    $149,000up 19% year-over-year
    Q2 FY26
    Customers with ARR over $100,000
    473up 9% compared to 2025
    end of Q2 FY26
    Average account value for customers with ARR over $100,000
    $438,000up 18% compared to 2025
    Q2 FY26
    ARR contribution from customers with ARR above $25,000
    90%
    Q2 FY26

    Demonstrates Similarweb as an enterprise-focused data company.

    ARR contribution from customers with ARR over $100,000
    69%
    Q2 FY26

    Demonstrates Similarweb as an enterprise-focused data company.

    Industry KPIs

    10
    MetricValueDetails
    Revenue growth$77.2 millionUSD
    Arr net new arr100%%
    Rpo current rpo$345 millionUSD
    Pricing model mix—
    Customer account count1,815customers
    Large deal new logo metrics3contracts
    Gross retention renewal rate—
    Operating FCF margin rule of 408%%
    Ai product adoption monetization13%% of total revenue
    Net revenue net dollar retention100%%

    Orderbook & backlog

    2
    RPO$345 millionend of Q2 FY26

    up 26% year-over-year

    66% expected to be recognized as revenue over the next 12 months

    Deferred revenue$141 millionend of Q2 FY26

    up 21% year-over-year

    Product announcements

    1
    ProductTypeDetails
    Similarweb AI Studiolaunch

    Deals & partnerships

    5
    Multiple large enterprisesStrategic multiyear contracts for digital data accessmore than $60 million cumulativemultiyear

    Signed 3 very large multiyear enterprise contracts in Q2. These are strategically important and different from historical sales, focusing on Similarweb as a strategic source of digital data for AI systems.

    Leading big tech companyData for LLM trainingover $10 million ARR engagement

    One of the largest contracts signed this quarter is with a leading big tech company for data used to train its large language model.

    Undisclosed large enterpriseStrategic multiyear contract

    A fourth large contract was signed in July, following the three in Q2.

    PerplexityIntegration of Similarweb digital data into AI-native workflow

    Expanded relationship with Perplexity to bring Similarweb digital data directly into its AI-native workflow.

    ManusIntegration of Similarweb data

    Expanded partnership with Manus following the successful launch of Similarweb data on the platform.

    Risks & headwinds

    1
    FX headwinds from Israeli shekel strengthening against USDQ2 FY26 and ongoing

    Impacted profit, approximately half of employees are based in Israel.

    Mitigation: Disciplined cost control and efforts to offset the headwinds.

    What to watch in Q3 FY26

    4

    NRR improvement

    over 2026
    Current100% (all customers), 107% (> $100k ARR)
    Targetfurther improvement

    Why it matters

    NRR is a key indicator of customer satisfaction, expansion, and revenue durability, crucial for the investment thesis.

    We expect further improvement in NRR over 2026.

    Q&A highlights

    7

    Are the new large enterprise customers using Similarweb data in a much broader sense, and can the organization support the potential growth?

    Yes, advanced enterprises realize AI allows them to crunch more data for better insights and higher ROI, leading to increased data consumption. The company is currently set up to support this growth, leveraging existing engagements with large enterprises and increasing those relationships.

    “The most advanced enterprise are now realized that with AI, they can get -- they can first crunch much more data and they can get much more better insight and recommendation and the ROI dramatically for the same data is now much higher, and they can consume much more data.”

    asked by Raimo Lenschow · answered by Or Offer

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Shift to Enterprise and AI Monetization

    Similarweb is undergoing a fundamental transition, moving upmarket to serve the world's largest enterprises. This strategy is validated by the signing of three multiyear contracts with a cumulative value exceeding $60 million in Q2, plus a fourth in July. These deals signify a shift from a land-and-expand model to one where Similarweb's digital data is viewed as critical infrastructure for AI systems, enabling enterprises to extract significantly higher ROI from the data.

    02

    AI as a Growth Catalyst

    AI is dramatically expanding the opportunity for Similarweb's data, creating new customers, use cases, and distribution channels. AI-related revenue reached 13% of total revenue in Q2, up from 11% in Q4 2025. The company is powering LLMs and AI Agents, building AI-native products like Similarweb AI Studio, and expanding distribution through partnerships with platforms like Perplexity and Manus, reinforcing its position as a critical data layer for AI-driven research.

    03

    Improved Financial Performance and Efficiency

    The company delivered strong financial results, with revenue growing 9% year-over-year to $77.2 million, exceeding guidance. Non-GAAP operating profit reached $6.5 million, an 8% margin, and for the first time, Similarweb achieved positive GAAP operating profit. This profitability is a direct result of disciplined cost control, improved sales productivity, and sharpened go-to-market execution, alongside continued strategic investments.

    04

    Strengthening Customer Metrics and Retention

    Customer metrics showed significant improvement, with NRR increasing to 100% across all customers and 107% for customers with over $100,000 ARR. Gross retention also saw strong trends. The portion of business from customers generating over $100,000 in ARR grew to almost 70%, up from 63% a year ago, and multiyear contract commitments expanded to 66% of ARR from 57% last year, indicating increased durability of revenues.

    05

    Data Consumption Model and Expansion Opportunities

    Similarweb is increasingly monetizing access and consumption of its data rather than just selling software seats. The ability of AI systems to analyze vast amounts of information across numerous use cases at speed and scale dramatically increases the potential consumption of Similarweb's data within large enterprises. This creates powerful expansion opportunities as more use cases are unlocked, making the data more valuable and deepening Similarweb's integration within organizations.

    AI-generated summary of the company’s earnings call. Not investment advice.