Similarweb (SMWB) AI Stock Analysis

• Market Cap: $495.25M
• Dividend Yield: N/A
• Average Volume (3M): 296.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 14.25%
• EPS Growth: -211.21%
• Country: US
• Employees: 1,085
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 0.05
• Shares Outstanding: 86,281,320
• 10 Day Avg. Volume: 357,001
• 30 Day Avg. Volume: 296,313
• PEG Ratio: 1.61
• Price to Book (P/B): 42.28
• Price to Sales (P/S): 4.65
• P/FCF Ratio: 42.38
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: -32.61
• 1Y Price Target: $11.10
• Price Target Upside: 97.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.21
• Revenue Forecast (FY): $324.27M

• Rating: 50 Neutral
• Price Target: $5.50 ▼(-2.31% Downside)

Similarweb's overall stock score is driven by its strong revenue growth and positive earnings call sentiment, which highlight potential for future profitability. However, significant financial risks due to high leverage and ongoing profitability challenges weigh heavily on the score. The technical analysis and valuation further reflect a cautious outlook, with bearish trends and a lack of profitability impacting the stock's attractiveness.

Positive Factors

Consistent revenue growth

Sustained double-digit revenue growth driven by product expansion and customer additions shows the core subscription model is scaling. This supports long-term top-line durability and funds further product investment and go-to-market expansion over the next several quarters.

Reliable cash generation

Eight consecutive quarters of positive free cash flow indicate the business converts revenue into operating cash consistently. That cash generation provides flexibility for product development, debt servicing, and selective M&A without relying solely on equity financing.

Rising multiyear contract mix

A growing proportion of ARR in multiyear contracts materially increases revenue visibility and reduces churn sensitivity. This structural shift improves forecastability and supports stable renewal and upsell economics over multi-quarter planning horizons.

Negative Factors

High leverage

A debt-to-equity ratio near 1.74 implies material financial leverage, raising interest and refinancing risk. With ongoing GAAP losses, high leverage constrains strategic flexibility and increases the importance of consistent cash generation to meet obligations and fund growth.

Ongoing unprofitability

Negative net and EBIT margins signal structural profitability issues despite strong gross margins. Until the company consistently converts gross profit into operating income, shareholder returns remain uncertain and cash must be managed carefully to support growth investments.

Declining net revenue retention

NRR below 100% implies expansions and upsells are not fully offsetting churn for the broader base. Persistently sub-100% NRR would limit organic ARR growth, increase pressure on new customer acquisition, and weaken long-term unit economics.

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

Similarweb shows strong revenue growth and gross profit margins, indicating a solid business model. However, the company faces challenges with profitability, as evidenced by negative net profit margins and EBIT margins. The high debt-to-equity ratio and negative return on equity highlight financial risks, while cash flow management shows some resilience despite declining free cash flow growth.

Income Statement

Similarweb's revenue has shown consistent growth over the years, with a TTM revenue growth rate of 2.64%. The gross profit margin remains strong at approximately 78.46% for the TTM, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins, which suggest ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.74 in the TTM, indicating significant leverage. The return on equity is negative, reflecting losses and potential risks for equity holders. The equity ratio is low, suggesting a reliance on debt financing, which could pose risks if not managed properly.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 31.34% in the TTM, which is concerning. However, the operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is also strong, suggesting efficient cash management relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.43M	249.91M	218.02M	193.23M	137.67M	93.49M
Gross Profit	217.26M	195.10M	170.93M	139.96M	105.92M	72.07M
EBITDA	-14.18M	864.00K	-18.55M	-77.27M	-63.61M	-17.71M
Net Income	-30.86M	-11.46M	-29.37M	-83.66M	-68.98M	-22.00M
Balance Sheet
Total Assets	248.27M	242.91M	239.01M	246.04M	227.00M	103.63M
Cash, Cash Equivalents and Short-Term Investments	65.46M	63.87M	71.73M	77.81M	128.88M	53.94M
Total Debt	42.05M	39.73M	67.42M	74.17M	0.00	26.85M
Total Liabilities	223.26M	215.40M	223.47M	224.09M	142.09M	112.88M
Stockholders Equity	25.01M	27.51M	15.55M	21.95M	84.91M	-9.25M
Cash Flow
Free Cash Flow	12.66M	27.44M	-5.42M	-77.24M	-30.74M	-4.89M
Operating Cash Flow	14.61M	30.17M	-3.04M	-46.06M	-27.63M	-3.76M
Investing Cash Flow	-18.26M	-18.70M	-2.59M	-33.01M	7.36M	-30.76M
Financing Cash Flow	7.37M	-18.84M	1.19M	29.12M	125.25M	51.23M

Similarweb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 5.63 is below the 20-day moving average (MA) of 6.59, below the 50-day MA of 7.11, and below the 200-day MA of 8.05, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 26.55 is Positive, neither overbought nor oversold. The STOCH value of 18.24 is Positive, 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	76 Outperform	$681.64M	11.48	10.76%	7.14%	13.06%	66.19%
TBLA	72 Outperform	$1.19B	56.67	2.63%	―	10.96%	―
FVRR	64 Neutral	$614.90M	28.47	6.18%	―	12.68%	133.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NXDR	58 Neutral	$788.14M	-12.58	-14.07%	―	6.65%	50.32%
SMWB	50 Neutral	$495.25M	-15.25	-120.56%	―	14.25%	-211.21%
GETY	50 Neutral	$540.62M	-5.89	-13.79%	―	3.10%	-264.21%

Similarweb Corporate Events

Similarweb Reports Q3 2025 Results with Revenue Growth and New CFO Appointment

On November 11, 2025, Similarweb Ltd. announced its financial results for the third quarter ended September 30, 2025, highlighting an 11% revenue growth and a 15% increase in customer base. The company reported its eighth consecutive quarter of positive free cash flow and emphasized strong commercial interest in its Generative AI data and solutions as key growth drivers. Despite a GAAP net loss of $4.3 million, the company achieved a non-GAAP net income of $4.4 million. Additionally, Similarweb announced the appointment of Ran Vered as the new CFO starting December, succeeding Jason Schwartz after a decade of service.

The most recent analyst rating on (SMWB) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Similarweb stock, see the SMWB Stock Forecast page.