Similarweb (SMWB) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 17% year-over-year to $71 million, driven by strong demand for digital data, GenAI, and LLM training, with GenAI-related streams contributing nearly 8% of revenue.

• Customer base expanded 18% year-over-year to 5,951, with large customers ($100K+ ARR) up 13% and now contributing 63% of total ARR.

• Achieved seventh consecutive quarter of positive free cash flow and returned to positive non-GAAP operating profit.

• Multi-year subscriptions now account for 57% of ARR, up from 44% last year, indicating strong customer commitment.

• Recognized as a leader in multiple G2 Spring 2025 categories, underscoring market position.

Financial highlights

• Q2 2025 revenue reached $71 million, up 17% from Q2 2024, with annualized revenue at $284 million.

• Non-GAAP operating profit was $2.4 million (3% margin); normalized free cash flow was $3.8 million (5% margin).

• Dollar-based net retention rate (NRR) for all customers was 100%, and 108% for $100K+ ARR customers.

• Remaining performance obligations (RPO) totaled $274 million, up 26% year-over-year.

• Average annualized revenue per customer was $48K, while $100K+ ARR customers averaged $370K.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $285–$288 million, representing 15% year-over-year growth at midpoint.

• Non-GAAP operating profit for 2025 raised to $5–$7 million.

• Q3 2025 revenue expected between $71.5–$72 million; non-GAAP operating profit forecasted at $1.5–$2 million.

• Target model aims for 85% gross margin, 25% operating margin, and 30% normalized free cash flow margin long-term.

• Growth strategy focuses on accelerating customer acquisition, expanding within existing accounts, deepening product portfolio, and M&A.