Taxation and Regulatory Risks - The company may be classified as a passive foreign investment company (PFIC) if 75% or more of its gross income is passive income, which could lead to adverse U.S. federal income tax consequences for U.S. holders of its ordinary shares [249]. - The company does not believe it was classified as a PFIC for the taxable year ended December 31, 2025, but this determination must be made annually and could change based on income and asset composition [249]. - Changes in tax laws or regulations could increase the costs of the company's solutions and harm its business, potentially requiring the company or its customers to pay additional taxes [251]. - The application of indirect taxes to online businesses is complex and evolving, and the company may face substantial tax liabilities if required to collect taxes in jurisdictions where it has not historically done so [256]. - The company is expanding its international operations, which may subject it to adverse tax consequences depending on the application of tax laws in various jurisdictions [259]. - The enactment of legislation implementing changes in taxation of international business activities could impact the company's future financial position and results of operations [260]. Shareholder and Market Dynamics - The company's share price may be volatile, influenced by various factors including market conditions and analyst expectations, which could lead to investment losses [262]. - If the company does not meet the expectations of equity research analysts, its share price could decline, particularly if analysts issue unfavorable commentary or downgrade its shares [264]. - As of February 14, 2026, insiders beneficially owned approximately 41.8% of the company's ordinary shares, potentially limiting other shareholders' influence on corporate matters [265]. - As of December 31, 2025, there were 86,962,202 ordinary shares outstanding, with all shares freely transferable except those held by affiliates [270]. - The company had 8,360,757 shares available for future grants under its 2021 Plan, which increased to 12,708,867 shares as of January 1, 2026 [271]. - Future sales of ordinary shares in the public market could cause the market price of the shares to decline, impacting the company's ability to raise capital [268]. Operational and Geopolitical Risks - Conditions in Israel, including ongoing regional conflicts, may adversely affect the company's operations and limit its ability to market products, potentially leading to decreased revenues [285]. - The ongoing military conflicts in Israel have led to a deterioration of the country's economic standing, including credit rating downgrades by Moody's, S&P Global, and Fitch [288]. - The war has resulted in significant disruptions to operations, with many employees called to active military duty, potentially affecting business continuity [289]. - Cyberattacks on Israeli organizations and infrastructure may lead to increased operational costs and risks to employee safety, impacting financial performance [290]. - The global perception of Israel may result in increased sanctions and boycotts against Israeli companies, adversely affecting business operations [292]. - The volatile geopolitical situation in the region poses ongoing risks to business operations and access to capital [288]. - The ongoing geopolitical tensions, particularly the conflict between Russia and Ukraine, could disrupt the company's operations and increase costs [311]. Growth and Acquisition Strategies - The company has acquired three companies in 2025 and one additional company in Q1 2026 to enhance its platform and product offerings [305]. - Market opportunity estimates and growth forecasts are subject to significant uncertainty, and the company may not grow at similar rates as the market [302]. - The company may face challenges in identifying desirable acquisition targets, which could result in dilutive equity issuances or increased debt [306]. - Israeli corporate law provisions may delay or prevent acquisitions, impacting shareholder interests and company control [297]. - The company’s amended articles of association require a 65% shareholder vote for certain significant decisions, which may limit flexibility in governance [300]. Financial Position and Risks - The company is exposed to market risks from changes in exchange rates, interest rates, and inflation, which arise in the ordinary course of business [501]. - A hypothetical 10% change in foreign currency exchange rates would impact the company's net loss by $9.8 million and $11.2 million for the years ended December 31, 2024 and 2025, respectively [502]. - As of December 31, 2024 and 2025, the company had cash and cash equivalents of $74.4 million and $78.8 million, respectively, which are held for working capital purposes [503]. - The company had no outstanding borrowings under the SVB LSA as of December 31, 2025, with a variable interest rate that could be affected by changes in the prime rate [504]. - The company does not believe inflation has had a material effect on its historical results, but significant inflationary pressures could adversely affect its financial condition and results of operations [505]. - Litigation risks could harm the company's reputation and adversely affect its financial condition and cash flows [308]. Corporate Governance and Compliance - The company is classified as an "emerging growth company," allowing it to delay adopting new accounting standards until they apply to private companies [272]. - The company may lose its "foreign private issuer" status, which could result in significant additional costs and compliance requirements [278]. - The company is subject to evolving corporate governance and public disclosure regulations regarding environmental, social, and governance (ESG) matters, which could increase expenses and management attention [315]. - Compliance with varying ESG requirements across jurisdictions adds operational complexity and potential costs, impacting the company's reputation and access to capital markets [317].

Group 1 - The company Similarweb (SMWB) reported a decent set of results, but there is a rising intensity in R&D due to significant changes in the environment since the last coverage [2] - The company continues to offer its core SEO-oriented data suite, indicating a focus on maintaining its primary product offerings [2] Group 2 - The Value Lab is an investment group that focuses on long-only value ideas, aiming for a portfolio yield of about 4% and has performed well over the last five years [1] - The Valkyrie Trading Society is another team of analysts that shares high conviction and obscure developed market ideas, targeting downside-limited investments likely to generate non-correlated and outsized returns [2]

Upgrades - TD Cowen upgraded Medpace (MEDP) to Hold from Sell with a price target of $419, down from $462, indicating that shares now reflect fair value [2] - Citizens upgraded Rush Street Interactive (RSI) to Outperform from Market Perform with a price target of $24, highlighting the company's durable business model in the online gaming space [2] - Baird upgraded Itron (ITRI) to Outperform from Neutral with a price target of $128, up from $118, following a positive Q4 report [3] - Rosenblatt upgraded Cadence Design (CDNS) to Buy from Neutral with a price target of $360, up from $335, citing solid Q4 results [3] - Mizuho upgraded Palantir (PLTR) to Outperform from Neutral with an unchanged price target of $195, noting significant revenue growth and margin expansion [3] Downgrades - Citizens downgraded Workday (WDAY) to Market Perform from Outperform without a price target, due to the return of founder Aneel Bhusri as CEO and the need for time and investments for AI innovation [4] - Williams Trading downgraded Crocs (CROX) to Sell from Hold with a price target of $84, up from $75, citing eroding demand in the U.S. [4] - Citizens downgraded Similarweb (SMWB) to Market Perform from Outperform without a price target, following a significant revenue miss in Q4 and disappointing guidance [4] - Truist downgraded Genuine Parts (GPC) to Hold from Buy with a price target of $127, down from $162, noting ongoing disappointments in the auto business despite positive business separation [4] - BTIG downgraded Masimo (MASI) to Neutral from Buy after Danaher (DHR) announced an acquisition agreement for $180/share in cash [4]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 grew 11% year-over-year to $72.8 million, which was below guidance due to delays in closing two large LLM data training contracts [5][26] - Non-GAAP operating profit for Q4 was $3.4 million, reflecting a 5% margin, compared to $2.6 million and a 4% margin in Q4 2024 [27] - Free cash flow for the year was approximately $13 million, marking the ninth consecutive quarter of positive free cash flow [7] Business Line Data and Key Metrics Changes - AI-related revenue reached 11% of total sales in Q4, up from 8% at the end of Q2 2025, driven by innovative AI solutions [8][9] - 60% of Annual Recurring Revenue (ARR) is now multi-year contracts, up from 49% a year ago, indicating stronger customer relationships [10] - Customers generating over $100,000 annually now represent 63% of ARR, reinforcing the company's position in mission-critical enterprise use cases [10] Market Data and Key Metrics Changes - The company is experiencing strong demand for its AI offerings, with AI revenue growing 3x year-over-year [9] - The market for AI solutions is dynamic, with significant opportunities arising from the integration of AI into workflows [11] Company Strategy and Development Direction - The company is transitioning from a build phase to a scaling phase, focusing on embedding AI into workflows and leveraging trusted digital data as a strategic asset [11] - The strategy is built on three pillars: strengthening the data moat, deepening enterprise relationships, and scaling AI-first integrated solutions [12] - The company aims to capture long-term AI spending and expand its partnerships with leading LLM companies [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in 2025 but expresses optimism for 2026, focusing on disciplined execution and acceleration of growth [24][31] - The company is committed to improving net revenue retention (NRR), which stabilized at 98%, with a focus on expanding existing customer relationships [23][44] - Management is encouraged by the strong demand in the pipeline for larger AI deals, which are expected to drive future revenue growth [31][47] Other Important Information - The company ended the year with $72 million in cash and cash equivalents and no debt, providing financial flexibility [28] - The capital allocation priorities include investing in R&D and pursuing M&A opportunities that meet financial return criteria [29][30] Q&A Session Summary Question: Impact of large LLM contracts on NRR - Management clarified that there is no correlation between the core business and LLM contracts, as they serve different use cases [34] Question: Guidance philosophy regarding large deals - The CFO explained that the guidance range was widened due to uncertainty around the timing of large deals, which could significantly impact revenue [36] Question: Core business growth challenges - Management indicated that the core business is still growing, despite the impact of delayed large deals, and emphasized the importance of expanding existing customer relationships [42][44] Question: Breakdown of AI revenue components - AI revenue includes various offerings, such as Gen AI models and partnerships, not solely dependent on LLM data [62] Question: Sales cycle elongation reasons - Management attributed elongated sales cycles to rapid hiring and a shift towards outbound sales strategies, which were less effective than expected [80]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 grew 11% year-over-year to $72.8 million, which was below guidance due to delays in closing two large LLM data training contracts [5][26] - Non-GAAP operating profit for the quarter was $3.4 million, reflecting a 5% margin compared to $2.6 million and a 4% margin in Q4 2024 [27] - The company generated approximately $13 million in free cash flow for the year, marking the ninth consecutive quarter of positive free cash flow [7][28] Business Line Data and Key Metrics Changes - AI-related revenue reached 11% of total sales in Q4, up from 8% at the end of Q2 2025, driven by innovative AI solutions [8][9] - 60% of Annual Recurring Revenue (ARR) is now multi-year contracts, up from 49% a year ago, indicating stronger customer relationships [10][15] - The number of customers generating over $100,000 annually increased to 63% of ARR, reinforcing the company's position in mission-critical enterprise use cases [10][15] Market Data and Key Metrics Changes - The company is seeing strong demand for its AI offerings, with AI revenue growing significantly and contributing to overall sales [8][9] - The market for digital data is evolving, with increased competition and a shift in customer budgets towards AI and digital intelligence solutions [84][86] Company Strategy and Development Direction - The company aims to transition from building to scaling its AI-driven solutions, focusing on strengthening its data moat and deepening enterprise relationships [11][12] - The strategy is built on three pillars: enhancing data quality, expanding enterprise relationships, and scaling AI-first integrated solutions [11][12] - The launch of AI Studio is seen as a significant step in democratizing access to data and insights, making it easier for users to interact with the company's offerings [21][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025 but expressed optimism for 2026, focusing on disciplined execution and capturing long-term AI spending [23][30] - The company is committed to generating profitable growth and maintaining a strong balance sheet to weather market volatility [28][30] - Management highlighted the importance of converting one-time AI evaluation deals into recurring revenues and improving net revenue retention (NRR) [23][44] Other Important Information - The company ended the year with $72 million in cash and cash equivalents and no debt, along with a $75 million line of credit [28] - The company plans to invest around 20% of revenues in R&D to enhance its digital data capabilities [29] Q&A Session Summary Question: Impact of large LLM contracts on NRR - Management clarified that there is no correlation between the core business and LLM contracts, indicating that both operate in different use cases [34] Question: Guidance philosophy regarding large deals - The CFO mentioned a cautious approach to guidance due to the uncertainty of timing for large deals, which could significantly impact revenue [36][37] Question: Challenges in core business growth - Management stated that the core business is still growing, despite the impact of delayed large deals, and emphasized the need to improve expansion efforts to enhance NRR [42][44] Question: Breakdown of AI revenue components - AI revenue includes various offerings such as Gen AI models and partnerships, with one or two smaller LLM deals closing in the quarter [62] Question: Sales cycle elongation reasons - Management attributed elongated sales cycles to rapid hiring and a shift towards outbound sales strategies, which were less effective than expected [80]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 grew 11% year-over-year to $72.8 million, which was below guidance due to delays in closing two large LLM data training contracts [4][25] - Non-GAAP operating profit for the quarter was $3.4 million, reflecting a 5% margin compared to $2.6 million and a 4% margin in Q4 2024 [26] - The company generated approximately $13 million in free cash flow for the year, marking the ninth consecutive quarter of positive free cash flow [5][25] Business Line Data and Key Metrics Changes - AI-related revenue reached 11% of total sales in Q4, up from 8% at the end of Q2 2025, driven by innovative AI solutions [6][21] - Net revenue retention for all clients was 98%, while it was 103% for clients generating over $100,000 annually [5][22] - 60% of annual recurring revenue (ARR) is now multi-year contracts, up from 49% a year ago, indicating stronger customer relationships [8][14] Market Data and Key Metrics Changes - The company is seeing strong demand for its AI offerings, with AI revenue growing 3x year-over-year [21][90] - The market for AI solutions is competitive, with significant attention and budget allocation from customers towards AI and digital intelligence solutions [81][84] Company Strategy and Development Direction - The company aims to strengthen its data moat, deepen enterprise relationships, and scale AI-first integrated solutions [10][12] - 2026 is positioned as a transformation year, focusing on scaling operations and embedding AI into workflows [10][21] - The company is committed to operational excellence to drive durable, profitable, and cash-generative growth [13][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025 but expressed optimism for 2026, focusing on disciplined execution and capturing long-term AI spending [22][30] - The company is refining its go-to-market strategy and enhancing talent to improve net revenue retention and overall growth [22][66] - Management believes that AI will serve as a significant monetization tailwind going forward [8][21] Other Important Information - The company ended the year with $72 million in cash and cash equivalents and no debt, providing financial flexibility [27] - The partnership with Manus is expected to unlock new distribution channels and broaden the user base [16][72] Q&A Session Summary Question: Impact of large LLM contracts on NRR - Management clarified that there is no correlation between the core business and LLM contracts, as they serve different use cases [32][33] Question: Guidance philosophy regarding large deals - The CFO mentioned a cautious approach to guidance due to the uncertainty of closing large deals, which could significantly impact revenue [34][35] Question: Core business growth challenges - Management stated that the core business is still growing, despite the impact of delayed large deals, and emphasized the importance of focusing on expansion [41][42] Question: Breakdown of AI revenue components - AI revenue includes various offerings, such as Gen AI models and partnerships, not solely dependent on LLM data [61][62] Question: Sales cycle elongation reasons - Management indicated that the rapid addition of sales personnel disrupted the sales cycle, leading to elongated timelines for closing deals [78][79]

INVESTOR PRESENTATION Q4 2025 INVESTOR PRESENTATION INVESTOR PRESENTATION Q4 2025 Q4 2025 1 NOTES REGARDING THIS PRESENTATION This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements relating to the expected performance of our business, future financial results, strategy, long-term growth and overa ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Beneficient (BENF) is up 48% at $5.67 - Rush Street Interactive, Inc. (RSI) is up 22% at $20.71 - Global-E Online Ltd. (GLBE) is up 16% at $34.68 - urban-gro, Inc. (UGRO) is up 12% at $3.63 - Quantum Corporation (QMCO) is up 11% at $6.28 - Rich Sparkle Holdings Limited (ANPA) is up 10% at $19.89 - VivoPower International PLC (VVPR) is up 9% at $2.66 - Goosehead Insurance, Inc. (GSHD) is up 8% at $55.00 - Urban One, Inc. (UONE) is up 7% at $12.88 - Pitney Bowes Inc. (PBI) is up 8% at $11.12 [3] Premarket Losers - Similarweb Ltd. (SMWB) is down 20% at $3.15 - Fiverr International Ltd. (FVRR) is down 14% at $11.21 - Axcelis Technologies, Inc. (ACLS) is down 12% at $85.99 - TechPrecision Corporation (TPCS) is down 12% at $3.90 - Recursion Pharmaceuticals, Inc. (RXRX) is down 12% at $3.02 - Applied Digital Corporation (APLD) is down 8% at $30.85 - Neo-Concept International Group Holdings Limited (NCI) is down 8% at $2.70 - Algorhythm Holdings, Inc. (RIME) is down 8% at $2.36 - MKS Inc. (MKSI) is down 7% at $243.10 - Mega Fortune Company Limited (MGRT) is down 6% at $6.64 [4]

分组1 - Similarweb reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, compared to a loss of $0.03 per share a year ago, representing an earnings surprise of +347.76% [1] - The company posted revenues of $72.76 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 3.89%, but increased from $65.59 million year-over-year [2] - Similarweb shares have declined approximately 46.9% since the beginning of the year, contrasting with the S&P 500's slight decline of 0.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $77.27 million, and for the current fiscal year, it is $0.15 on revenues of $320.03 million [7] - The Zacks Industry Rank indicates that the Internet - Content sector is currently in the top 20% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - Similarweb Ltd. announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting its role as a leading digital data and analytics company that supports critical business decisions [1] Financial Results - The company published a letter to shareholders discussing the financial results, which can be accessed through its investor relations page [1]