SMWB · Similarweb Ltd.

Similarweb's Q1 2026 results demonstrate solid execution with revenue of $73.9 million (+10% YoY) and non-GAAP operating profit of $2.4 million, both at the top end of guidance. The company continues to shift toward multi-year subscriptions, which now represent 64% of ARR (up from 52% a year ago), enhancing revenue visibility and customer stickiness. Customer count with ARR over $100K grew 12% YoY to 461, contributing 64% of total ARR. However, overall net retention rate (NRR) declined to 98% from 101% a year ago, while NRR for large customers was 103% (down from 111%). Normalized free cash flow remained positive at $6.6 million, marking the tenth consecutive quarter of positive normalized free cash flow. Management highlighted improved sales productivity and growing commercial interest in AI-related data solutions. The company signed a seven-digit LLM data training contract with an existing big tech customer in Q1, with another large contract expected in coming quarters. Guidance for Q2 2026 implies revenue of $74.5-$76.5 million (6% YoY growth at midpoint) and non-GAAP operating profit of $3-$5 million. Full-year 2026 guidance was raised at the low end to $307-$315 million revenue and $17-$19 million non-GAAP operating profit. The balance sheet remains healthy with $65.3 million cash and no debt disclosed.