Similarweb (SMWB) AI Stock Analysis

• Market Cap: $233.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 14.25%
• EPS Growth: -211.21%
• Country: US
• Employees: 1,085
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 0.03
• Shares Outstanding: 86,962,204
• 10 Day Avg. Volume: 2,965,394
• 30 Day Avg. Volume: 1,481,317
• PEG Ratio: -0.11
• Price to Book (P/B): 27.12
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 48.09
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: -16.42
• 1Y Price Target: $5.60
• Price Target Upside: 106.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): $309.91M

• Rating: 50 Neutral
• Price Target: $3.00 ▲(10.70% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by mixed financial performance: strong gross margins and positive free cash flow, but continued net losses and a still-risky balance-sheet profile per the provided statements. Technicals meaningfully weigh on the rating due to a strong downtrend (price far below major moving averages) despite oversold readings. Earnings call guidance and profitability progress provide support, but deal timing uncertainty and sub-100% NRR remain key risks.

Positive Factors

High Gross Margins

Sustained gross margins near 78–79% reflect a scalable software/data model and durable unit economics. High gross margins give Similarweb room to invest in R&D and sales while pursuing profitability, supporting long‑term margin sustainability even as revenue growth moderates.

Cash Generation & Liquidity

Consecutive positive free cash flow and a cash balance with no debt materially improve financial flexibility. This cash generation supports continued R&D investment, product development, and absorption of sales cadence volatility without forcing dilutive financing in the near term.

Enterprise Traction & Multi‑year ARR

Growing enterprise customers, higher multi‑year ARR and accelerating AI revenue signal deeper platform embedding. Larger, multi‑year contracts increase visibility and stickiness, improving long‑term revenue durability and the potential to convert one‑time AI deals into recurring streams.

Negative Factors

Below‑target NRR

NRR under 100% indicates expansion across the broad customer base is insufficient to offset churn, limiting organic ARR growth. Over time this reduces leverage from installed customers, forcing heavier reliance on new sales to sustain growth and pressuring unit economics.

Dependence on Lumpy AI/LLM Deals

Material reliance on large, one‑time AI/LLM deals creates revenue lumpiness and guidance volatility. If management cannot convert these into predictable, recurring contracts, growth visibility and forecasting remain impaired, complicating resource allocation and long‑term planning.

Thin Equity & Profitability Risk

While leverage has improved, limited equity and deeply negative ROE leave a narrow capital cushion if losses persist. Continued unprofitable results could erode flexibility, increase refinancing risk, or necessitate dilutive capital raises absent sustained profit improvement.

Similarweb Business Overview & Revenue Model

Company Description

Similarweb Ltd. provides a platform for digital intelligence in the United States, Europe, Asia Pacific, the United Kingdom, Israel, and internationally. It offers digital research intelligence solutions that allow senior leaders, strategy, business intelligence, and consumer insights teams to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing solutions, which enable marketing leaders, search engine optimization, and content managers, pay-per-click, performance marketers, affiliate marketers, and media buyers to understand their competitors' online acquisition strategies in each marketing channel. The company also provides shopper intelligence solutions that allows digital commerce leadership, and category and product managers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process; and sales intelligence solutions, which enables sales management and operations, sales representatives, and account management teams to access relevant buying signals and digital insights of their customers in to generate leads quickly. In addition, it offers investor intelligence solution that allows portfolio managers, investment professionals, data scientists, and research analysts to access an end-to-end view of market, sector or company performance to ideate and monitor investment opportunities, forecast market performance, and perform due diligence. The company serves retail, consumer packaged goods, travel, consumer finance, business-to-business software, and logistics companies; and consultancies, marketing and advertising agencies, media and publishers, payment processors, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Similarweb generates revenue primarily through subscription-based models, offering tiered pricing plans for its analytics tools and services. This includes access to its comprehensive data sets and insights, which are essential for businesses aiming to optimize their online strategies. Key revenue streams include monthly and annual subscriptions from businesses seeking competitive intelligence and market analysis. Additionally, Similarweb may earn revenue through partnerships with other digital marketing and analytics platforms, providing integrated solutions that enhance their service offerings. The company's focus on delivering actionable insights to a diverse range of clients further contributes to its sustained earnings.

Similarweb Financial Statement Overview

Summary

Revenue has grown over time and gross margins are strong (~78–79%), and free cash flow is positive (2024 and TTM). However, the company remains loss-making (TTM net margin ~-11.2%), EBITDA margin worsened in TTM versus 2024, and the balance sheet still shows limited equity cushion versus debt per the provided statements.

Income Statement

Revenue has scaled meaningfully over time (from $93.5M in 2020 to $249.9M in 2024 and $282.6M in TTM (Trailing-Twelve-Months)), and gross margins remain strong and stable (~78–79%), consistent with a software/data model. However, profitability remains the key gap: the company is still loss-making (TTM net margin ~-11.2%), and operating profitability weakened versus 2024 (EBITDA margin moved from slightly positive in 2024 to ~-5.1% in TTM (Trailing-Twelve-Months)). Growth also appears to be slowing materially versus earlier years, which reduces the ability to “grow out” of losses.

Balance Sheet

Leverage has improved from a stressed position in 2022–2023 (debt-to-equity above 3x and as high as ~4.3x) to ~1.44x in 2024 and ~1.68x in TTM (Trailing-Twelve-Months), which is a positive trajectory. That said, equity remains thin ($23.3M in TTM (Trailing-Twelve-Months) against $43.3M of debt), and returns on equity are deeply negative (TTM ROE about -123%), reflecting ongoing losses and limited balance-sheet cushion. Overall, the balance sheet is improving but still carries elevated risk if profitability does not stabilize.

Cash Flow

Cash generation is a clear bright spot: operating cash flow and free cash flow are positive in 2024 ($30.2M and $27.4M) and remain positive in TTM (Trailing-Twelve-Months) ($14.6M and $13.2M). Free cash flow compares favorably to net losses (free cash flow to net income ~0.87 in TTM (Trailing-Twelve-Months)), suggesting losses are not fully cash-funded. The main weakness is the step-down in cash flow versus 2024, indicating volatility and less consistency than ideal, particularly while earnings remain negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	282.60M	249.91M	218.02M	193.23M	137.67M
Gross Profit	224.80M	195.10M	170.93M	139.96M	105.92M
EBITDA	-19.79M	864.00K	-18.55M	-77.27M	-63.61M
Net Income	-32.94M	-11.46M	-29.37M	-83.66M	-68.98M
Balance Sheet
Total Assets	261.14M	242.91M	239.01M	246.04M	227.00M
Cash, Cash Equivalents and Short-Term Investments	72.42M	63.87M	71.73M	77.81M	128.88M
Total Debt	43.30M	39.73M	67.42M	74.17M	0.00
Total Liabilities	237.82M	215.40M	223.47M	224.09M	142.09M
Stockholders Equity	23.33M	27.51M	15.55M	21.95M	84.91M
Cash Flow
Free Cash Flow	13.15M	27.44M	-5.42M	-77.24M	-30.74M
Operating Cash Flow	14.64M	30.17M	-3.04M	-46.06M	-27.63M
Investing Cash Flow	-13.23M	-18.70M	-2.59M	-33.01M	7.36M
Financing Cash Flow	6.91M	-18.84M	1.19M	29.12M	125.25M

Similarweb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMWB, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 3.39, below the 50-day MA of 5.22, and below the 200-day MA of 7.60, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 25.15 is Positive, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMWB.

Similarweb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	65 Neutral	$621.36M	14.82	8.28%	7.14%	13.06%	66.19%
FVRR	64 Neutral	$400.72M	34.17	5.42%	―	12.68%	133.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TBLA	61 Neutral	$873.32M	33.98	4.32%	―	10.96%	―
NXDR	51 Neutral	$639.75M	-14.97	-12.25%	―	6.65%	50.32%
SMWB	50 Neutral	$233.06M	-19.21	-129.58%	―	14.25%	-211.21%
GETY	50 Neutral	$327.07M	9.18	-13.79%	―	3.10%	-264.21%

Similarweb Corporate Events

Similarweb Posts 2025 Revenue Growth as It Pushes Deeper Into AI Data Partnerships

Similarweb on February 17, 2026 reported fourth-quarter and full-year 2025 results showing revenue growth but pressure on profitability as it invests to align its data platform with AI-driven demand. Q4 revenue rose 11% year-over-year to $72.8 million, marking a ninth straight quarter of positive free cash flow, while full-year revenue grew 13% to $282.6 million even as GAAP operating loss widened and non-GAAP profit margins narrowed.

Operational metrics highlighted deeper enterprise penetration and greater revenue visibility, with total customers up 11% to 6,128, large customers generating $100,000 or more in ARR rising 12% to 454, and multi-year subscriptions climbing to 60% of ARR; however, dollar-based net retention declined, reflecting slower expansion within the base. Similarweb is leaning into generative AI opportunities, launching its AI Studio conversational analytics product and signing a collaboration with Manus to embed its traffic data into autonomous AI agents, while also expanding distribution via Bloomberg’s alternative data platform.

Despite softer cash generation versus 2024, the company ended 2025 with $72.4 million in cash and continues to emphasize disciplined, profitable growth under new CFO Ran Vered, who joined during the fourth quarter. Management plans to discuss the results and strategic trajectory, including AI-led growth initiatives, on a February 18, 2026 conference call, underscoring the firm’s intent to strengthen its position as a key data supplier in the evolving AI and digital intelligence landscape.

The most recent analyst rating on (SMWB) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Similarweb stock, see the SMWB Stock Forecast page.