Free cash flow volatility remains a primary concern, with margins contracting from a peak of 16.4% in 2024Q1 to -0.1% in 2026Q1, highlighting inconsistent cash conversion.
| Cash from Operations | 10M | 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 % | -218.26% | -51.47% | 1093.22% | 93.41% | -66.75% | -634.71% | 61.21% | - |
| Net Income | -30.04M | -32.94M | -11.46M | -29.37M | -83.66M | -68.98M | -22M | -17.71M |
| Depreciation & Amortization | 8.96M | 8.99M | 10.53M | 10.26M | 10.58M | 3.17M | 1.96M | 1.78M |
| Stock-Based Compensation | -10.06M | 0 | 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 | 31.94M | 25.13M | 591K | 1.59M | 950K | -31K | 113K | -435K |
| Working Capital Changes | 9.19M | 13.46M | 12.9M | -3.64M | 9.07M | 27.05M | 11.36M | 4.67M |
| Change in Receivables | -8.23M | -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 | -1.8M | 0 | 3.6M | 1.25M | -4.28M | 6.63M | 1.29M | -189K |
| Cash from Investing | -10.37M | -13.23M | -18.7M | -2.59M | -33.01M | 7.36M | -30.76M | 479K |
| Capital Expenditures | -1.54M | -1.49M | -1.43M | -1.56M | -28.26M | -2.31M | -748K | -284K |
| CapEx % of Revenue | 0.53% | 0.53% | 0.57% | 0.72% | 14.62% | 1.68% | 0.8% | 0.4% |
| Acquisitions | -13.02M | -15.79M | -15.41M | 0 | -3.49M | -9.51M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 4.18M | 4.05M | -1.86M | -1.03M | -1.26M | -10.82M | -30.01M | 763K |
| Cash from Financing | 6.39M | 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) | 43K | 0 | 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 | 6.35M | 6.91M | 6.16M | 1.19M | 4.12M | 1.22M | 1.44M | 589K |
| Net Change in Cash | 5.76M | 8.55M | -7.86M | -6.08M | -51.07M | 104.94M | 16.91M | 1.23M |
| Free Cash Flow | 8.7M | 13.15M | 27.44M | -5.42M | -77.24M | -30.74M | -4.89M | -11.5M |
| FCF Margin % | 3.01% | 4.65% | 10.98% | -2.49% | -39.97% | -22.33% | -5.24% | -16.29% |
| FCF Growth % | -60.69% | -52.06% | 606.46% | 92.99% | -151.29% | -527.95% | 57.43% | - |
| FCF per Share | 0.10 | 0.16 | 0.33 | -0.07 | -1.02 | -0.41 | -0.07 | -0.86 |
| FCF Conversion (FCF/Net Income) | -0.29x | -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 | 1.46M | 0 | 1.17M | 1.88M | 485K | 468K | 190K | 326K |
Persistent Operating Margin Deficit
Based on reported financial statements, Similarweb exhibits a persistent disconnect between net losses and operating cash flow, with OCF/NI ratios frequently showing negative values, suggesting that reported net income is not a reliable proxy for the company's actual ability to generate cash from its core operations.
The consistent gap between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are the primary drivers of the company's cash position. Investors should monitor whether this divergence narrows as the company attempts to scale, as current figures suggest that operational cash generation remains highly sensitive to accounting adjustments rather than pure earnings power.
As reported in recent quarterly filings, Similarweb's free cash flow margins have fluctuated significantly, peaking at 16.4% in 2024Q1 before contracting to -0.1% in 2026Q1, which highlights the inherent instability in the company's ability to convert revenue into sustainable, recurring free cash flow.
The sharp decline in FCF margins in the most recent quarter warrants further investigation into whether this represents a structural shift in spending or a temporary timing issue related to enterprise contract renewals. The lack of a consistent upward trajectory in FCF suggests that the business model has yet to achieve the operational maturity required to self-fund its growth initiatives.
According to historical cash flow data, working capital changes have frequently served as a primary source of liquidity, with positive contributions like the $8.0 million inflow in 2025Q3 masking the underlying weakness in cash generation from the company's core subscription-based business model.
The reliance on working capital swings to bolster operating cash flow suggests that the company's cash position is susceptible to the timing of customer payments and deferred revenue recognition. This volatility implies that the company's cash flow profile may be less predictable than the recurring nature of its SaaS revenue would otherwise suggest.
Based on an analysis of recent SEC filings, the company's cash flow statement is significantly impacted by stock-based compensation, which reached $16.2 million in 2025Q4, effectively obscuring the true economic cost of maintaining the firm's specialized engineering workforce and diluting the value of reported cash flow metrics.
The heavy reliance on equity-based compensation to manage cash outflows suggests that the company is effectively trading future shareholder dilution for current operational liquidity. Analysts should treat these non-cash adjustments with caution, as they may be masking the true cash-burn rate required to sustain the company's competitive position in the data intelligence market.
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.