Similarweb shifts to non-GAAP profit as enterprise momentum builds

Similarweb (NYSE:SMWB) reported a significant improvement in its financial health for the first quarter of 2026, swinging to a non-GAAP operating profit as the company scales its footprint among high-value enterprise clients.

Total revenue for the quarter ended March 31, 2026, reached $73.9 million, a 10% increase compared to the $67.1 million recorded in the prior-year period.

The quarter’s defining feature was the company’s transition to positive adjusted earnings.

Similarweb reported a non-GAAP operating profit of $2.4 million, representing a 3% margin, compared to a loss of $1.3 million a year ago.

On the bottom line, the company achieved non-GAAP net income of $1 million, or $0.01 per diluted share, successfully reversing the non-GAAP loss of $(0.03) seen in the first quarter of 2025.

While the company remains in a GAAP loss position of $(4.4) million, this represented a narrowing of the deficit by more than half from the previous year.

The move toward profitability was fueled by a strategic focus on large-scale corporate accounts.

The number of customers with annual recurring revenue (ARR) of $100,000 or more grew to 461, a 12% year-over-year increase.

These high-value clients now contribute 64% of Similarweb’s total ARR, up from 61% a year ago.

Furthermore, the company reported a substantial increase in long-term stability, with 64% of overall ARR now under multi-year subscriptions, compared to just 52% in 2025.

Operational metrics showed a mix of growth and normalization.

Remaining performance obligations (RPO)—a key indicator of future revenue visibility—rose 18% to $297.7 million.

However, the company faced some headwinds in expansion spending; the overall dollar-based net retention rate (NRR) dipped to 98% from 101% a year ago, reflecting a more cautious spending environment across the broader SaaS.