Revenue growth has decelerated from 18.0% in 2024Q3 to 8.8% in 2026Q2, while gross margins have expanded to 80.7%, yet operating margins remain negative due to SG&A expenses consistently exceeding 55% of revenue.
Similarweb Ltd. (SMWB) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 295.61M | 282.6M | 249.91M | 218.02M | 193.23M | 137.67M | 93.49M | 70.59M |
| Revenue Growth % | 10.16% | 13.08% | 14.63% | 12.83% | 40.36% | 47.26% | 32.44% | - |
| Cost of Goods Sold | 60.14M | 57.8M | 54.81M | 47.09M | 53.27M | 31.75M | 21.42M | 20.51M |
| COGS % of Revenue | - | 20.45% | 21.93% | 21.6% | 27.57% | 23.06% | 22.91% | 29.06% |
| Gross Profit | 235.47M | 224.8M | 195.1M | 170.93M | 139.96M | 105.92M | 72.07M | 50.08M |
| Gross Margin % | 79.66% | 79.55% | 78.07% | 78.4% | 72.43% | 76.94% | 77.09% | 70.94% |
| Gross Profit Growth % | - | 15.22% | 14.14% | 22.13% | 32.14% | 46.96% | 43.91% | - |
| Operating Expenses | 245.35M | 248.36M | 204.76M | 199.74M | 227.82M | 172.02M | 91.74M | 66.19M |
| OpEx % of Revenue | - | 87.88% | 81.93% | 91.61% | 117.9% | 124.95% | 98.14% | 93.77% |
| Selling, General & Admin | 175.95M | 175.76M | 149.17M | 143.58M | 167.91M | 127.45M | 69.66M | 49.98M |
| SG&A % of Revenue | - | 62.19% | 59.69% | 65.86% | 86.9% | 92.58% | 74.51% | 70.8% |
| Research & Development | 73.3M | 72.6M | 55.6M | 56.16M | 59.9M | 45.24M | 22.09M | 16.21M |
| R&D % of Revenue | - | 25.69% | 22.25% | 25.76% | 31% | 32.86% | 23.62% | 22.97% |
| Other Operating Expenses | -716K | 0 | 0 | 0 | 290K | -667K | 0 | 0 |
| Operating Income | -9.88M | -23.56M | -9.66M | -28.81M | -87.86M | -66.11M | -19.67M | -16.11M |
| Operating Margin % | -3.34% | -8.34% | -3.87% | -13.21% | -45.47% | -48.02% | -21.04% | -22.82% |
| Operating Income Growth % | - | -143.83% | 66.45% | 67.21% | -32.9% | -236.01% | -22.11% | - |
| EBITDA | -1.12M | -14.57M | 864K | -18.55M | -77.27M | -63.8M | -17.71M | -14.34M |
| EBITDA Margin % | -0.38% | -5.16% | 0.35% | -8.51% | -39.99% | -46.35% | -18.94% | -20.31% |
| EBITDA Growth % | 91.97% | -1786.92% | 104.66% | 76% | -21.11% | -260.27% | -23.54% | - |
| D&A (Non-Cash Add-back) | 8.76M | 8.99M | 10.53M | 10.26M | 10.58M | 2.3M | 1.96M | 1.78M |
| EBIT | -9.7M | -28.77M | -9.53M | -27.87M | -83.14M | -65.91M | -19.67M | -16.11M |
| Net Interest Income | -8.33M | 0 | 134K | 815K | 4.75M | -1.89M | -1.68M | -1.14M |
| Interest Income | 0 | 0 | 134K | 815K | 4.75M | 0 | 0 | 0 |
| Interest Expense | 8.33M | 0 | 0 | 0 | 0 | 1.89M | 1.68M | 1.14M |
| Other Income/Expense | -7.57M | -5.21M | 134K | 941K | 4.71M | -1.89M | -1.68M | -1.14M |
| Pretax Income | -17.45M | -28.77M | -9.53M | -27.87M | -83.14M | -68M | -21.36M | -17.25M |
| Pretax Margin % | -5.9% | -10.18% | -3.81% | -12.78% | -43.03% | -49.39% | -22.84% | -24.44% |
| Income Tax | 4.33M | 4.16M | 1.93M | 1.51M | 516K | 981K | 640K | 458K |
| Effective Tax Rate % | -24.79% | -14.46% | -20.22% | -5.41% | -0.62% | -1.44% | -3% | -2.66% |
| Net Income | -21.78M | -32.94M | -11.46M | -29.37M | -83.66M | -68.98M | -22M | -17.71M |
| Net Margin % | -7.37% | -11.65% | -4.58% | -13.47% | -43.3% | -50.11% | -23.53% | -25.08% |
| Net Income Growth % | 25.15% | -187.47% | 60.99% | 64.89% | -21.28% | -213.6% | -24.22% | - |
| Net Income (Continuing) | -21.78M | -32.94M | -11.46M | -29.37M | -83.66M | -68.98M | -22M | -17.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.25 | -0.39 | -0.14 | -0.38 | -1.10 | -1.30 | -0.33 | -1.32 |
| EPS Growth % | 27.76% | -178.57% | 63.16% | 65.45% | 15.38% | -293.94% | 75% | - |
| EPS (Basic) | - | -0.39 | -0.14 | -0.38 | -1.10 | -0.92 | -0.33 | -1.32 |
| Diluted Shares Outstanding | 87.89M | 84.82M | 82.07M | 77.75M | 75.72M | 74.86M | 66.12M | 13.43M |
| Basic Shares Outstanding | 87.89M | 84.45M | 82.07M | 77.75M | 75.72M | 74.86M | 66.12M | 13.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SMWB stock.
For fiscal year 2025, Similarweb Ltd. (SMWB) reported total revenue of $282.6M. This represents a 300.3% increase compared to $70.6M in 2019.
Similarweb Ltd. (SMWB) reported a net loss of $32.9M for the fiscal year ending 2025.
Similarweb Ltd. (SMWB) reported an operating income of $-23.6M, resulting in an operating profit margin of -8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Similarweb Ltd. (SMWB) generated $224.8M in gross profit for the year, representing a gross profit margin of 79.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Path to profitability remains unproven
Growth Deceleration Amidst Margin Push
Similarweb's revenue growth has decelerated from 18.0% in 2024Q3 to 8.8% in 2026Q2, suggesting the company is facing a more challenging demand environment for its digital intelligence platform.
The sequential decline in year-over-year growth rates indicates that the company's expansion is losing momentum, which may reflect broader enterprise software budget caution or increased competition. This deceleration is occurring alongside a recent pivot toward operating profitability, creating a strategic tension between growth investment and margin expansion that investors must monitor closely.
Gross Margin Resilience vs. Operating Drag
Gross margins have expanded to 80.7% in 2026Q2, up from 76.6% in 2024Q4, demonstrating the scalability of the data platform, yet operating margins remain negative due to persistent sales and marketing intensity.
The high and improving gross margin profile confirms the structural advantage of the company's data-as-a-service model, where incremental revenue carries minimal cost. However, the inability to translate this gross margin strength into positive operating income highlights a fundamental challenge in the go-to-market engine, suggesting that customer acquisition costs remain elevated relative to the lifetime value of new contracts.
Operating Leverage Remains Elusive
Despite a 31% increase in revenue from 2024Q1 to 2026Q2, operating losses have persisted, indicating that SG&A and R&D expenses are scaling nearly in line with top-line growth, preventing meaningful operating leverage.
The company's operating expense structure appears to be growing proportionally with revenue, which is atypical for a mature SaaS business and suggests that the sales and marketing spend required to acquire and retain customers is not yet declining as a percentage of sales. This lack of operating leverage is the primary reason the company remains unprofitable despite achieving significant scale, and it warrants investigation into the efficiency of the sales force and the potential for automation in customer onboarding.
Sales & Marketing Dominates Cost Structure
SG&A expenses consistently represent over 55% of total revenue, dwarfing R&D and COGS, which indicates that the primary constraint on profitability is the cost of customer acquisition and retention rather than product development or infrastructure.
The disproportionate size of the SG&A line item suggests that the company's growth model is heavily reliant on a human-driven sales process, which may be less scalable than a product-led growth approach. This cost structure implies that any meaningful margin expansion will require a strategic shift toward more efficient, lower-touch customer acquisition channels or a significant increase in net dollar retention from existing accounts.
Profitability Push May Sacrifice Growth
The recent improvement in operating margins to 1.0% in 2026Q2 coincides with the slowest revenue growth rate in the dataset, raising the question of whether the path to profitability is being achieved by cutting growth-oriented investments rather than through genuine operational efficiency.
A short-seller would focus on the possibility that the company is simply reducing its sales and marketing spend to show margin improvement, which could be a temporary tactic that ultimately undermines long-term growth potential. The data shows that SG&A as a percentage of revenue has decreased from 60.0% in 2024Q1 to 55.7% in 2026Q2, but this coincides with a growth deceleration from 11.8% to 8.8%, suggesting the two trends may be causally linked rather than independent improvements.