Similarweb Ltd (NYSE:SMWB) Posts Mixed Q3 2025 Results, Provides Cautious Full-Year Outlook

Digital intelligence platform provider Similarweb Ltd (NYSE:SMWB) reported financial results for the third quarter of 2025, delivering a mixed performance against analyst expectations and providing an updated outlook for the full fiscal year.

Third Quarter Financial Performance

For the quarter ended September 30, 2025, Similarweb posted revenue of $71.8 million, representing an 11% increase compared to the $64.7 million reported in the same period last year. However, this figure fell short of analyst estimates, which had projected revenue of approximately $73.4 million.

The company's profitability metrics presented a more favorable picture relative to expectations. Similarweb reported a non-GAAP net income of $4.4 million, or $0.05 per share. This exceeded the analyst consensus estimate of $0.0275 for non-GAAP earnings per share.

Key financial highlights from the quarter include:

• GAAP net loss: $(4.3) million, compared to $(2.6) million in Q3 2024
• Cash and cash equivalents: $65.5 million as of September 30, 2025
• Non-GAAP operating profit: $4.6 million, representing a 6% margin

Market Reaction and Business Highlights

Following the earnings release, the stock experienced downward pressure in after-market trading, declining approximately 3.9%. This reaction suggests investor focus may have centered on the revenue miss and the company's increased GAAP net loss year-over-year, despite the earnings per share beat.

The quarter also showed several positive operational trends. The company grew its total customer count to 6,127, a 15% year-over-year increase. More significantly, the number of customers contributing annual recurring revenue (ARR) of $100,000 or more grew to 447, up 13% from the previous year. These larger customers now represent 63% of total ARR, indicating a strengthening enterprise business.

CEO Or Offer highlighted the company's remaining performance obligations (RPO), which increased 26% year-over-year to $267.6 million, calling it a reflection of "sustained demand for our Digital Data." He also noted that revenues from Generative AI data and solutions were "among our fastest growing revenue streams this quarter."

Financial Outlook and Analyst Estimates

Looking ahead, Similarweb provided updated guidance for the full 2025 fiscal year. The company now expects:

• Total revenue: Between $285.0 million and $288.0 million
• Non-GAAP operating profit: Between $8.5 million and $9.5 million

This revenue guidance, which represents approximately 15% growth at the midpoint, appears conservative when compared to the analyst consensus estimate for full-year 2025 sales of $292.4 million. The company's forecast range suggests it may fall short of current market expectations for the full year. For the upcoming fourth quarter, analysts are projecting revenue of $78.2 million and non-GAAP EPS of $0.045.

Management Transition

The company also announced a forthcoming leadership change, with Ran Vered set to join as Chief Financial Officer in December. He will be replacing Jason Schwartz, who is departing after ten years in the CFO role.

For a detailed look at historical earnings performance and future analyst estimates for Similarweb, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.