Negative Points

• Revenue growth of 9% year-over-year was modest, and the company noted a tough comparison from Q2 2025, indicating potential deceleration in the core business.

• The number of customers with ARR above $25,000 remained nearly flat sequentially (1,815 vs. 1,809), reflecting a strategic shift away from smaller deals that could limit near-term customer growth.

• FX headwinds from the strengthening Israeli shekel continue to pressure profitability, requiring ongoing cost control measures to mitigate the impact.

• The company faces execution risks in scaling its go-to-market strategy to support the growing pipeline of large enterprise opportunities, as highlighted by the need for significant cross-functional effort in closing deals.

• The CEO search is still in progress, creating potential leadership uncertainty during a critical transformation period.

• The company's reliance on a few large AI-related deals (e.g., the second large AI deal still in pipeline) introduces concentration risk, with timing of closures uncertain.

Q & A Highlights

Q: Can you talk a little bit more about those large customers that you signed and how they are showing up in the pipeline? Is this using Similarweb data in a much broader sense than we've seen classically? A: Or Offer (CEO): Yes, you're right. The most advanced enterprises now realize that with AI, they can crunch much more data and get much better insights and recommendations. The ROI for the same data is now much higher, and they can consume much more data. We're seeing this trend, and we think we will continue to see great success onboarding more enterprises to use our data in this approach.

Q: You mentioned that NRR could potentially trend up. What gives you the confidence there? How much of that is mechanical versus underlying activity? A: Or Offer (CEO) and Ran Vered (CFO): We have very high confidence because the NRR we report is the average of the previous four quarters. Since we know this quarter's NRR was very high, we already know the next quarter's NRR will continue to increase. We also see very strong gross retention trends, and the changes we made to have account management focus more on expansion are already bearing fruit.

Q: When you look at the quarter, how much of the strong pipeline results was execution from the go-to-market refresh versus an underlying change in customer actions where data is proliferating across organizations? A: Or Offer (CEO): A lot of it came from focusing people on doing the right things that can produce the highest outcome. We took some of our best people and put them on the strategic ALO team to build better, bigger relationships with top enterprises. Moving those priorities, including having account managers focus on expansion, is bearing fruit.

Q: A couple of quarters ago, you saw variability in two large AI deals. Can we get an update on the second one? Is it still in the pipeline? A: Or Offer (CEO): Funny enough, the second one is still in the pipeline, and we still think this could be another surprise that can come at the end of the year.

Q: Regarding the $60 million in new deals, can you give us a sense of how the ARR is split between pre-training, post-training, and production use cases? A: Or Offer (CEO) and Ran Vered (CFO): We cannot go into the full breakdown, but of the three big deals, each is above an eight-figure engagement. Only one is for LLM training (pre and post). The other two are big enterprises leveraging our data in different ways, which is much more exciting. We see great demand across all marketsLLM, OEM, brands, and investorsfor integrating our data at scale because of AI's ability to digest more data.

Q: As you think about the new use cases, are you changing the pricing of the platform to evolve with them, or are the pricing mechanisms the same? A: Or Offer (CEO): The pricing is the same because most of those big deals are around data. It's more about consumption and data access rather than software. We are selling much more data and many more different data sets because AI is changing the equation, allowing companies to consume more data and get more ROI.

Q: Are there any one-time revenues to be cognizant of from these large deals, and what is the timing of those revenues? A: Ran Vered (CFO): Those deals are ARR deals. If there is a one-time element, it is quite negligible and immaterial. Usually, it is recognized at the initiation of the deal or a couple of months later at max. These are pure ARR deals with small and immaterial one-time amounts, if at all.

Q: Is there anything to call out on the SMB or smaller customer cohort? Are they seeing macro pressures, and how is growth looking there? A: Or Offer (CEO): Nothing special there. Overall, digital traffic to websites is going down, and there is less traffic coming from search, which is a broader market trend. But overall, average order value is the same, and win rates are the same. More commercial people are now moving to drive more expansion as we see this opportunity.

Q: Are you seeing trends with initial customer contracts coming in at higher price points, and how much focus is on cross-sell and upsell versus outbound net new customers? A: Or Offer (CEO): Most of our senior commercial people doing outbound enterprise new sales have been moved to focus more on expansion. We have an amazing book of business and already engage with most of the best and biggest companies in the world. We now have a new opportunity for cross-sell and upsell with the changes happening with AI.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .