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Similarweb
(NYSE:SMWB)
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Rating:64Neutral
Price Target:
$10.00
▲(10.38% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by improving operating trajectory and cash generation (positive and growing free cash flow) plus a constructive technical setup (price above key moving averages with positive MACD). This is tempered by weaker balance-sheet quality in the provided financial statements and limited valuation support given the negative P/E, despite a notably upbeat earnings call with raised guidance and improving profitability.
Positive Factors
Improving Profitability and Cash Flow
The move to positive GAAP operating profit and sustained positive free cash flow indicates operating leverage is emerging. Raised profit guidance and improving cash conversion strengthen the company’s ability to fund growth internally.
Negative Factors
GAAP Profitability Remains Incomplete
The first positive quarterly GAAP operating profit is encouraging, but ongoing TTM operating and net losses show that profitability is not yet fully established. This limits resilience if growth slows or investment needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability and Cash Flow
The move to positive GAAP operating profit and sustained positive free cash flow indicates operating leverage is emerging. Raised profit guidance and improving cash conversion strengthen the company’s ability to fund growth internally.
Read all positive factors
Similarweb (SMWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$774.39M
Dividend YieldN/A
Average Volume (3M)914.89K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth10.16%
EPS Growth28.29%
CountryUS
Employees1,000
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.25
Shares Outstanding87,600,540
10 Day Avg. Volume814,829
30 Day Avg. Volume914,892
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)27.12
Price to Sales (P/S)2.24
P/FCF Ratio48.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.50Price Target Upside15.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.21
Revenue Forecast (FY)$316.46M
Similarweb Business Overview & Revenue Model
Company Description
Similarweb Ltd. specializes in providing a comprehensive digital intelligence platform with a global reach spanning the United States, Europe, Asia Pacific, the United Kingdom, and Israel, among other international markets. Their array of solution...
How the Company Makes Money
Similarweb primarily makes money by selling subscriptions to its digital intelligence platform (SaaS). Customers—typically enterprises, mid-market firms, agencies, and other professional users—pay recurring fees to access datasets and analytics fe...
Similarweb Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call highlighted a clear inflection point: revenue above guidance, sustained improvement in retention and account metrics, significant enterprise contract wins (including LLM customers), the first positive GAAP operating profit, expanded AI-related revenue and stronger cash generation. Offsetting these positives are FX-related headwinds, rising tax expense, softer traffic trends among smaller customers and an increased concentration on a smaller set of large contracts (introducing timing and concentration risk). Overall, the positive operational and financial momentum—particularly profitable growth and sizeable enterprise AI contracts—outweighs the identified challenges.Positive Updates
Revenue Growth Above Guidance
Q2 revenue of $77.2M, up 9% year-over-year, above the top end of guidance. Company raised FY2026 revenue guidance to $340M–$380M (≈12% YoY growth at midpoint) and Q3 guidance to $80.5M–$82.5M (≈17.5% YoY at midpoint). Guidance was raised for the second time in 2026.
Negative Updates
FX Headwinds and Higher Tax Expense
Strengthening Israeli shekel vs USD created profit headwinds; management noted ongoing FX impact (about half of employees based in Israel). Non-GAAP tax expense rose to $1.2M in the quarter (versus $86K in the comparable period), and management expects similar quarterly levels going forward.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
Q2 revenue of $77.2M, up 9% year-over-year, above the top end of guidance. Company raised FY2026 revenue guidance to $340M–$380M (≈12% YoY growth at midpoint) and Q3 guidance to $80.5M–$82.5M (≈17.5% YoY at midpoint). Guidance was raised for the second time in 2026.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance and expects revenue of $340–$380 million (≈12% y/y at the midpoint) with Q3 revenue of $80.5–$82.5 million (≈17.5% y/y at the midpoint); full‑year non‑GAAP operating profit is now guided to $24–$26 million with Q3 non‑GAAP operating profit of $7.5–$9.5 million. The company noted Q2 results that underpin the raise: $77.2 million revenue (9% y/y), positive GAAP operating profit, $8.7 million normalized free cash flow (11% FCF margin), AI‑related revenue at 13% of sales, RPO of $345 million (+26% y/y) with ~66% of RPO expected to convert to revenue in the next 12 months, deferred revenue of $141 million (+21% y/y), cash of ~$73.9 million with no debt and a $75 million credit line, ARR under multiyear contracts at 66% (vs. 57% a year ago), and NRR at 100% overall (107% for >$100k ARR); management expects further NRR improvement, continued quarterly positive normalized FCF, and that non‑GAAP finance (~$108k) and tax (~$1.2M) run rates will remain roughly steady.Similarweb Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 295.61M | 282.60M | 249.91M | 218.02M | 193.23M | 137.67M |
| Gross Profit | 235.47M | 224.80M | 195.10M | 170.93M | 139.96M | 105.92M |
| EBITDA | -933.00K | -19.79M | 998.00K | -17.61M | -72.56M | -63.61M |
| Net Income | -21.78M | -32.94M | -11.46M | -29.37M | -83.66M | -68.98M |
Balance Sheet | ||||||
| Total Assets | 282.12M | 261.14M | 242.91M | 239.01M | 246.04M | 227.00M |
| Cash, Cash Equivalents and Short-Term Investments | 73.90M | 72.42M | 63.87M | 71.73M | 77.81M | 128.88M |
| Total Debt | 45.72M | 43.30M | 39.73M | 67.42M | 74.17M | 0.00 |
| Total Liabilities | 259.35M | 237.82M | 215.40M | 223.47M | 224.09M | 142.09M |
| Stockholders Equity | 22.77M | 23.33M | 27.51M | 15.55M | 21.95M | 84.91M |
Cash Flow | ||||||
| Free Cash Flow | 14.70M | 13.15M | 27.44M | -5.42M | -77.24M | -30.74M |
| Operating Cash Flow | 16.14M | 14.64M | 30.17M | -3.04M | -46.06M | -27.63M |
| Investing Cash Flow | -4.28M | -13.23M | -18.70M | -2.59M | -33.01M | 7.36M |
| Financing Cash Flow | 4.35M | 6.91M | -18.84M | 1.19M | 29.12M | 125.25M |
Similarweb Technical Analysis
Positive
9.06
Price Trends
7.51
Positive
5.60
Positive
5.31
Positive
Market Momentum
0.46
Positive
59.88
Neutral
43.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMWB, the sentiment is Positive. The current price of 9.06 is above the 20-day moving average (MA) of 8.65, above the 50-day MA of 7.51, and above the 200-day MA of 5.31, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMWB.
Similarweb Risk Analysis
Similarweb disclosed 85 risk factors in its most recent earnings report. Similarweb reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Similarweb Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.04B | 9.35 | 12.80% | ― | 8.00% | 991.05% | |
66 Neutral | $866.54M | -28.50 | -7.27% | ― | 9.79% | 53.33% | |
64 Neutral | $774.39M | -35.21 | -94.75% | ― | 10.16% | 28.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $332.54M | 11.14 | 7.20% | ― | -0.18% | 63.89% | |
49 Neutral | $212.08M | -1.01 | -39.81% | 24.04% | -10.81% | -409.24% | |
40 Underperform | $99.61M | -0.61 | -29.19% | ― | 3.29% | -35.93% |
* Technology Sector Average
SMWB
Similarweb
8.84
-1.23
-12.21%
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TBLA
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Similarweb Corporate Events
Similarweb Posts First GAAP Operating Profit as Q2 2026 AI Deals Top $60 Million
Aug 12, 2026
On August 12, 2026, Similarweb reported second-quarter 2026 results that marked its first-ever positive GAAP operating profit, with revenue rising 9% year-on-year to $77.2 million and both revenue and non-GAAP operating profit exceeding guidance. ...
Similarweb Shareholders Approve All AGM Proposals and Refresh Audit Committee Leadership
May 28, 2026
Similarweb Ltd. reported the results of its annual general shareholders meeting held on May 28, 2026, in Givatayim, Israel, where investors approved all proposals presented in the company’s proxy statement and an updated compensation policy....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.