Similarweb Reports Q4 Results, Revenue Misses Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy SMWB?
Source: seekingalpha
Similarweb Ltd's stock fell sharply, crossing below its 5-day SMA, as the company reported its Q4 financial results. The firm posted a Non-GAAP EPS of $0.03, meeting expectations, but its revenue of $72.8 million fell short by $3.57 million, indicating challenges in revenue growth. Additionally, the GAAP operating loss widened to $23.6 million, reflecting ongoing pressure on cost control and a decline in the dollar-based net retention rate for high-value customers.
The disappointing revenue results and widening losses have raised concerns among investors, leading to a significant drop in the stock price. Despite a year-over-year revenue increase of 11% and a total customer count of 6,128, the challenges in maintaining high-value customer retention and the overall financial performance have overshadowed these positives.
As the market remains strong, with the Nasdaq-100 up 0.51%, Similarweb's decline appears to be a case of sector rotation, as investors react to the company's financial struggles amidst broader market gains.
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Analyst Views on SMWB
Wall Street analysts forecast SMWB stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 3.900
Low
10.00
Averages
12.50
High
14.00
Current: 3.900
Low
10.00
Averages
12.50
High
14.00
About SMWB
Similarweb Ltd is an Israel-based company, engaged primarily in the software sector. The Company is a global software development and data aggregation company that specializes in Web analytics, Web traffic, and digital world. The Company provides an online platform for digital intelligence, delivering a trusted, comprehensive and detailed view of the digital traffic. The platform collect, analyze and share the information with their clients to enable customers to be competitive in their markets. It presents estimated statistics of websites and mobile applications. The Company analyzes over 100 million websites and 8 million apps, offering a comprehensive view of digital traffic and market trends.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Similarweb Reports 11% Revenue Growth in Q4 2025
- Revenue Growth: Similarweb reported $72.8 million in revenue for Q4 2025, marking an 11% year-over-year increase, although this fell short of expectations due to the delayed closure of two major LLM data training contracts, which remain active and are anticipated to become significant multi-year revenue opportunities.
- Profitability Improvement: The company achieved a non-GAAP operating profit of $3.4 million in Q4, reflecting a 5% margin, an improvement from $2.6 million and a 4% margin in 2024, indicating enhanced profitability through disciplined cost management.
- AI Revenue Growth: AI-related revenue constituted 11% of total sales in Q4, up from 8% at the end of Q2 2025, demonstrating that investments in innovative AI solutions are driving business growth, with 60% of annual recurring revenue now derived from multi-year contracts.
- Future Outlook: Similarweb expects total revenue for 2026 to range between $305 million and $315 million, representing a 10% year-over-year growth, while Q1 revenue guidance is set at $72 million to $74 million, reflecting a cautiously optimistic outlook despite uncertainties in market demand.
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- Customer Growth Metrics: As of December 31, 2025, the total number of customers reached 6,128, an 11% increase year-over-year, with 454 customers generating annual recurring revenue (ARR) of $100,000 or more, up 12%, highlighting the appeal of high-value clients.
- Retention Rate Analysis: The dollar-based net retention rate for customers with ARR over $100,000 was 103% in Q4 2025, down from 112% in Q4 2024, indicating challenges in maintaining high-value customer retention.
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- Similarweb Rating Adjustment: Similarweb's RSI is at 29, nearing oversold territory, with a 10% drop in stock price over the past five days; analysts have reduced the price target from $12 to $10, indicating concerns about its short-term growth potential.
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- Revenue Growth: Similarweb reported $72.8 million in revenue for Q4 2025, marking an 11% year-over-year increase, although this fell short of expectations due to the delayed closure of two major LLM data training contracts, which remain active and are anticipated to become significant multi-year revenue opportunities.
- Profitability Improvement: The company achieved a non-GAAP operating profit of $3.4 million in Q4, reflecting a 5% margin, an improvement from $2.6 million and a 4% margin in 2024, indicating enhanced profitability through disciplined cost management.
- AI Revenue Growth: AI-related revenue constituted 11% of total sales in Q4, up from 8% at the end of Q2 2025, demonstrating that investments in innovative AI solutions are driving business growth, with 60% of annual recurring revenue now derived from multi-year contracts.
- Future Outlook: Similarweb expects total revenue for 2026 to range between $305 million and $315 million, representing a 10% year-over-year growth, while Q1 revenue guidance is set at $72 million to $74 million, reflecting a cautiously optimistic outlook despite uncertainties in market demand.
See More
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- Market Performance: U.S. stocks broadly rose on Wednesday, with the Nasdaq Composite gaining over 1% and the Dow up 0.57% to close at 49,814.98, indicating positive market sentiment and increased investor confidence.
- Sector Dynamics: Energy stocks rose by 1.6% on Wednesday, reflecting optimistic expectations for energy demand, while real estate stocks fell by 1.2% on Tuesday, highlighting challenges faced by the sector amid market uncertainties.
- Durable Goods Orders: U.S. durable goods orders fell by 1.4% month-over-month in December, contrasting sharply with a revised 5.4% gain in November, suggesting a potential slowdown in economic growth that could impact future consumer and investment decisions.
- Commodity Markets: Oil prices increased by 4.2% to $64.93 per barrel, gold rose by 2.3% to $5,020.40, and silver climbed 6.2% to $78.120, indicating a rising demand for commodities as investors seek safe-haven assets.
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- Strong Earnings Report: Palo Alto Networks reported fiscal Q2 revenue of $2.59 billion, surpassing analyst expectations of $2.58 billion, indicating robust performance in the cybersecurity sector despite a challenging market environment.
- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
See More
Pitney Bowes Q4 Earnings Beat Expectations, Shares Surge
- Earnings Surprise: Pitney Bowes reported an adjusted EPS of 45 cents for Q4, surpassing the analyst consensus of 38 cents, indicating strong profitability and boosting investor confidence.
- Sales Miss: The quarterly sales of $478 million fell short of the expected $486.68 million, highlighting some market demand challenges that could impact future revenue growth.
- Stock Surge: The company's shares jumped 7.9% to $11.05 in pre-market trading, reflecting optimistic market sentiment regarding its future prospects and potentially attracting more investor interest.
- Positive Guidance: Pitney Bowes issued FY26 adjusted EPS guidance with a midpoint above estimates, further strengthening market confidence in its long-term growth potential.
See More
Similarweb Q4 Financial Results Analysis
- Financial Overview: Similarweb reported a Q4 Non-GAAP EPS of $0.03, meeting expectations, but revenue of $72.8 million, up 11% year-over-year, fell short by $3.57 million, indicating challenges in revenue growth.
- Annual Financial Highlights: Total revenue for FY 2025 reached $282.6 million, a 13% increase from $249.9 million in FY 2024; however, GAAP operating loss widened to $23.6 million or 8% of revenue, reflecting pressure on cost control.
- Customer Growth Metrics: As of December 31, 2025, the total number of customers reached 6,128, an 11% increase year-over-year, with 454 customers generating annual recurring revenue (ARR) of $100,000 or more, up 12%, highlighting the appeal of high-value clients.
- Retention Rate Analysis: The dollar-based net retention rate for customers with ARR over $100,000 was 103% in Q4 2025, down from 112% in Q4 2024, indicating challenges in maintaining high-value customer retention.
See More
Figma, Nutanix Among Oversold Tech Stocks Presenting Buying Opportunities
- Figma Stock Performance: Figma's RSI stands at 26.9, indicating an oversold condition, with a 28% decline in stock price over the past month; analysts have lowered the price target from $65 to $48, reflecting cautious market sentiment regarding its future performance.
- Similarweb Rating Adjustment: Similarweb's RSI is at 29, nearing oversold territory, with a 10% drop in stock price over the past five days; analysts have reduced the price target from $12 to $10, indicating concerns about its short-term growth potential.
- Nutanix Downgrade: Nutanix's RSI is at 27.9, also indicating oversold status, with a 14% decline in stock price over the past five days; analysts have lowered the price target from $64 to $53, reflecting a reassessment of its future profitability.
- Market Rebound Signs: Despite recent declines in Figma and Nutanix's stock prices, both saw increases of 5% and 3.4% respectively on Thursday, suggesting potential rebound interest from the market, which may present buying opportunities for investors.
See More
