Similarweb (SMWB) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 11% year-over-year to $71.8 million, driven by new product adoption and customer growth, with annualized revenue reaching $287 million.

• Customer base expanded 15% year-over-year to over 6,100, with strong cross-sell momentum for App Intelligence and GenAI products.

• Eighth consecutive quarter of positive free cash flow, totaling $43 million over the past eight quarters.

• Leadership transition announced: new CFO Ran Vered to join in December, bringing extensive SaaS and public company experience.

• Recognized as a leader in multiple G2 categories for Fall 2025, reflecting strong market positioning.

Financial highlights

• Q3 2025 non-GAAP gross margin was 81%, and non-GAAP operating profit was $4.6 million (6% margin).

• Normalized free cash flow was $3 million for the quarter, representing a 4% margin.

• Remaining performance obligations (RPO) totaled $268 million, up 26% year-over-year.

• 58% of ARR is under multi-year contracts, up from 45% last year, indicating increased revenue durability.

• Q3 2025 GAAP net loss was $4.3 million, compared to $2.6 million in Q3 2024.

Outlook and guidance

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

• Non-GAAP operating profit guidance raised to $8.5–$9.5 million, reflecting disciplined execution and cost optimization.

• Q4 revenue guidance range widened due to timing uncertainty of large deals in the pipeline.

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

• Guidance based on assumptions subject to change; actual results may differ due to external factors.