Similarweb’s Data-Fueled Inflection: From Software Seats to AI Consumption
A Quarter That Changed the Trajectory
For Similarweb, Q2 2026 wasn’t just a beat-and-raise quarter—it was a structural turning point. The company delivered its strongest net new ARR quarter in history, achieved positive GAAP operating profit for the first time ever, and signed three multiyear contracts worth more than $60 million in cumulative value. The most telling signal, however, is not the size of the deals but what they represent: Similarweb is no longer selling a software subscription; it is becoming an use case-driven enterprise data company, monetizing data access and consumption rather than seats.
The inflection is visible across every key metric. NRR improved to 100% overall and 107% for customers above $100k ARR, a remarkable recovery after several quarters of softness. Management’s confidence in further NRR gains is grounded in mechanics—the reported NRR is a trailing four-quarter average, and this quarter’s cohort is exceptionally strong. As Or Offer explained, “We have a very, very high confidence because the NRR we report to the market, as we said, is the average of the previous 4 quarters. And because we know that this quarter NRR was very, very high, we already know that the next quarter's NRR will continue to increase.” — Or Offer, CEO and Co-Founder · 2026-08-12
AI Changes the Economics of Data
The core of the narrative is AI’s effect on data value. Historically, the ROI of Similarweb data was capped by human analytical capacity. With AI, that constraint evaporates. As Or put it,
The result is that the ROI from the same underlying data can increase dramatically. And this is the part of the story that I think is still underappreciated. AI doesn't make our data less valuable, it make our data much more valuable.
This is not just about LLM training—though that remains a significant opportunity. One of the quarter’s large contracts was with a leading big‑tech customer for LLM training data, making it Similarweb’s third customer with over $10M ARR. But the other two large deals were for broader enterprise AI use cases, demonstrating that Large Enterprise customers are now embedding Similarweb data into multiple AI-driven workflows. As Or noted, “The most advanced enterprise are now realized that with AI, they can get – they can first crunch much more data and they can get much more better insight and recommendation and the ROI dramatically for the same data is now much higher.” — Or Offer, CEO and Co-Founder · 2026-08-12
This pivot is reflected in the company’s new strategic ALO (AI, LLM, OEM) go‑to‑market team, created at the end of 2025, which has been instrumental in building a pipeline “materially larger than what we have historically seen.” In July, a fourth large contract was signed, and the pipeline remains robust.
Enterprise Focus and Financial Acceleration
Similarweb’s customer base is shifting decisively upmarket. Customers generating over $100k in ARR now account for almost 70% of revenue, up from 63% a year ago. Multiyear ARR grew to 66% from 57%. The company now has 473 customers over $100k, with average account value up 18% to $438k. This is a direct result of prioritizing large‑scale opportunities over smaller inbound deals.
Financially, revenue grew 9% y/y to $77.2M, with AI‑related revenue reaching 13% of total, up from 11% at the end of 2025. Q3 guidance implies an acceleration to ~17.5% y/y growth at the midpoint—a notable step‑up. Non‑GAAP operating profit hit $6.5M (8% margin), and normalized free cash flow was $8.7M (11% margin). The company ended the quarter with $73.9M cash, no debt, and a $75M credit line. RPO grew 26% y/y to $345M, providing strong visibility.
This is a far cry from earlier quarters, when LLM training deals were lumpy and NRR fell as onetime evaluation contracts masked recurring expansion. As Or said back in February, “So I think there's no correlation between the core business when we sell our regular software ... versus our motion of selling data for LLM use case.” — Or Offer · 2026-02-18 Now, the two are converging—AI has become a tailwind for the entire data asset.
Still, the company faces headwinds: SMB customer growth has softened, FX remains a drag on margins (with ~50% of employees in Israel), and the CEO search is ongoing. Yet the improvement in NRR and the surge in large‑enterprise momentum suggest the core thesis is playing out.
The Data Moat Deepens
Similarweb is positioning itself as the digital data layer for the AI era. While the market often worries that generative AI will commoditize web data, Similarweb’s thesis is the opposite—AI is making trusted, comprehensive, and structured data more valuable. As Ran Vered noted, “We expect revenue growth to accelerate in the second half of 2026, supported by the growth in ARR in the second quarter and the accelerated momentum in our business.” — Ran Vered, Chief Financial Officer · 2026-08-12
The quarter’s results are not just a beat; they signal a durable business model shift. With a stronger enterprise mix, a higher share of recurring multiyear revenue, and AI‑driven consumption, Similarweb has moved from “building to scaling.” The CEO‑search progress and the company’s decision to raise full‑year revenue and profit guidance for the second time underscore management’s conviction.
Similarweb has become an enterprise data company.
If Q2 is any indication, that statement is no longer ambition—it is the new reality. The company’s data at scale is becoming as critical to enterprise AI strategies as the models themselves.