Free cash flow has been volatile, swinging from a 16.4% margin in 2024Q1 to -0.1% in 2026Q1 before recovering to 11.4% in 2026Q2, with working capital changes being the dominant driver of operating cash flow volatility.
Similarweb Ltd. (SMWB) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 16.14M | 14.64M | 30.17M | -3.04M | -46.06M | -27.63M | -3.76M | -9.69M |
| Operating CF Margin % | - | 5.18% | 12.07% | -1.39% | -23.84% | -20.07% | -4.02% | -13.73% |
| Operating CF Growth % | 57.27% | -51.47% | 1093.22% | 93.41% | -66.75% | -634.71% | 61.21% | - |
| Net Income | -21.78M | -32.94M | -11.46M | -29.37M | -83.66M | -68.98M | -22M | -17.71M |
| Depreciation & Amortization | 8.76M | 8.99M | 10.53M | 10.26M | 10.58M | 3.17M | 1.96M | 1.78M |
| Stock-Based Compensation | 18.43M | 21.24M | 17.61M | 18.13M | 16.99M | 11.17M | 4.8M | 2M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 18.06M | -288K | 591K | 1.59M | 950K | -31K | 113K | -435K |
| Working Capital Changes | -7.35M | 17.64M | 12.9M | -3.64M | 9.07M | 27.05M | 11.36M | 4.67M |
| Change in Receivables | -16.96M | -2.29M | -2.13M | -9.73M | -6.88M | -5.13M | -6.62M | -6.01M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 3.04M | 1.45M | 3.6M | 1.25M | -4.28M | 6.63M | 1.29M | -189K |
| Cash from Investing | -4.28M | -13.23M | -18.7M | -2.59M | -33.01M | 7.36M | -30.76M | 479K |
| Capital Expenditures | -1.51M | -1.49M | -1.43M | -1.56M | -28.26M | -2.31M | -748K | -284K |
| CapEx % of Revenue | 0.51% | 0.53% | 0.57% | 0.72% | 14.62% | 1.68% | 0.8% | 0.4% |
| Acquisitions | -6.62M | -15.79M | -15.41M | 0 | -3.49M | -9.51M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 3.85M | 4.05M | -1.86M | -1.03M | -1.26M | -10.82M | -30.01M | 763K |
| Cash from Financing | 4.35M | 6.91M | -18.84M | 1.19M | 29.12M | 125.25M | 51.23M | 10.39M |
| Debt Issued (Net) | 0 | 0 | -25M | 0 | 25M | -26.91M | 10M | 9.8M |
| Equity Issued (Net) | 3.78M | 4.59M | 0 | 0 | 0 | 150.94M | 39.78M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 577K | 2.32M | 6.16M | 1.19M | 4.12M | 1.22M | 1.44M | 589K |
| Net Change in Cash | 14.63M | 8.55M | -7.86M | -6.08M | -51.07M | 104.94M | 16.91M | 1.23M |
| Free Cash Flow | 14.7M | 13.15M | 27.44M | -5.42M | -77.24M | -30.74M | -4.89M | -11.5M |
| FCF Margin % | 4.97% | 4.65% | 10.98% | -2.49% | -39.97% | -22.33% | -5.24% | -16.29% |
| FCF Growth % | -20.29% | -52.06% | 606.46% | 92.99% | -151.29% | -527.95% | 57.43% | - |
| FCF per Share | 0.17 | 0.16 | 0.33 | -0.07 | -1.02 | -0.41 | -0.07 | -0.86 |
| FCF Conversion (FCF/Net Income) | -0.68x | -0.44x | -2.63x | 0.10x | 0.55x | 0.40x | 0.17x | 0.55x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 531K | 1.15M | 879K |
| Taxes Paid | 598K | 0 | 1.17M | 1.88M | 485K | 468K | 190K | 326K |
Quick answers to the most common questions about buying SMWB stock.
Similarweb Ltd. (SMWB) generated $14.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Similarweb Ltd. (SMWB) generated $13.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Similarweb Ltd. (SMWB) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Path to profitability remains unproven
Cash Flow Outpaces GAAP Losses
Similarweb's operating cash flow consistently exceeds its net loss, with the OCF/NI ratio turning sharply positive in 2026Q2 at -2.50, suggesting significant non-cash charges are masking underlying cash generation.
The persistent gap between negative net income and positive operating cash flow is primarily driven by substantial stock-based compensation, which averaged $4.9M per quarter over the last ten periods. This indicates the core business is generating cash despite GAAP losses, but the quality of earnings is heavily dependent on non-cash adjustments. Investors should monitor whether this conversion can be sustained as the company pursues profitability, as a reduction in SBC could narrow the gap and pressure cash flow.
FCF Volatility Amidst Profitability Push
Free cash flow has been volatile, swinging from a 16.4% margin in 2024Q1 to -0.1% in 2026Q1, before recovering to 11.4% in 2026Q2, indicating an unstable trajectory as the company balances growth and margin expansion.
The FCF margin trajectory does not show a clear, sustained improvement, which is inconsistent with the narrative of a smooth path to profitability. The sharp recovery in 2026Q2 to an 11.4% margin appears to be driven by a large working capital inflow rather than a fundamental shift in operating leverage. This volatility suggests that near-term FCF is highly sensitive to balance sheet movements, making it an unreliable indicator of the company's underlying cash-generating power.
Working Capital Swings Drive Cash Flow
Working capital changes have been the dominant driver of operating cash flow volatility, with a $10.8M outflow in 2026Q2 following a $478K outflow in 2026Q1, indicating unpredictable cash conversion cycles.
The large negative working capital change in 2026Q2, which coincided with the strongest operating cash flow quarter, suggests a significant release of cash from receivables or deferred revenue. This pattern indicates that cash flow is not yet being driven by stable, recurring operations but by lumpy balance sheet movements. For a subscription business, this level of volatility in working capital is atypical and warrants investigation into the timing of large customer payments or contract structures.
Minimal Capital Returns, Strategic Acquisitions
Similarweb has deployed minimal capital for shareholder returns, with zero dividends or buybacks, while using cash for strategic acquisitions like the $6.5M purchase in 2026Q1, indicating a focus on growth over capital return.
The absence of dividends and share repurchases is consistent with a company prioritizing reinvestment and maintaining a strong balance sheet. The use of cash for acquisitions, such as the $6.5M outflow in 2026Q1, suggests management is seeking to expand its data capabilities or customer base. However, the lack of disclosed returns on these investments makes it difficult to assess their value creation, and investors should monitor whether these acquisitions contribute to future cash flow generation.
SBC and Capex Mask True Cash Costs
Stock-based compensation, averaging $4.9M per quarter, is a significant non-cash expense that inflates operating cash flow, while minimal capital expenditures of 0.2-0.9% of revenue suggest the business model is not capital-intensive.
The cash flow statement obscures the true economic cost of employee compensation through SBC, which is a material portion of operating expenses. While this is a non-cash charge, it represents a real dilutive cost to shareholders that is not reflected in operating cash flow. Furthermore, the very low capital expenditure ratio indicates that the company's primary investments are in human capital and data acquisition, not physical assets, which is typical for a software firm but means future growth is heavily dependent on continued SBC to attract talent.