Similarweb Passes $300M ARR as Multiyear Subscriptions Grow

multiyear subscriptions similarweb Aug 12, 2026

Similarweb passed $300 million in annual recurring revenue as more of its subscription business moved into multiyear contracts and company-wide net revenue retention returned to 100%.

Similarweb crossed $300 million in annual recurring revenue in June, while a growing share of that business is now tied to longer customer commitments.

The digital data and analytics company reported second-quarter revenue of $77.2 million, up 9% from $71 million a year earlier. Similarweb also raised its full-year revenue outlook after reporting stronger-than-expected revenue and operating results.

For subscription operators, the more interesting story sits behind the top-line growth.

As of June 30, 66% of Similarweb's ARR was under multiyear subscriptions, up from 57% a year earlier. That share has continued to rise this year. Multiyear subscriptions represented 64% of ARR at the end of Q1.

More recurring revenue is tied to longer contracts

The move toward multiyear subscriptions gives Similarweb more visibility into revenue already under contract.

The company's remaining performance obligations, which represent contracted revenue that has not yet been recognized, increased 26% year over year to $345.3 million, up from $273.8 million.

That measure is different from ARR, but both point in the same direction. Similarweb has passed $300 million in annual recurring revenue while increasing the amount of future revenue already covered by customer contracts.

Similarweb defines ARR as the annualized subscription revenue it expects from active customer contracts, assuming those subscriptions don't increase or decrease. Multiyear contracts are converted to an annual amount when the company calculates ARR.

Net revenue retention returns to 100%

Similarweb reported company-wide net revenue retention of 100% in Q2, up from 98% in the first quarter. NRR was also 100% in Q2 2025.

At 100% NRR, Similarweb generated the same amount of ARR from the existing customer group as it did a year earlier, after accounting for expansion, contraction and churn.

Among customers generating at least $100,000 in ARR, NRR was higher at 107%, compared with 108% a year earlier. In that group, customer expansion more than offset reductions and churn.

Large enterprise customers account for more ARR

Similarweb is also getting more of its recurring revenue from larger customers.

The company ended Q2 with 473 customers generating at least $100,000 in ARR, up 9% from a year earlier. Those customers accounted for 69% of total ARR, compared with 63% at the end of Q2 2025.

A larger share of Similarweb's recurring revenue now comes from enterprise customers.

Similarweb signed three multiyear enterprise contracts during the quarter, each carrying a seven-figure ARR commitment. Together, the contracts represent about $60 million in total contract value.

AI demand is part of that enterprise growth. Similarweb said the new contracts include AI-focused companies and large global businesses using its data for AI initiatives.

The company also expanded its AI relationships during the quarter, including a new Perplexity integration and a broader partnership with Manus.

For Similarweb, some of that AI demand is now showing up in large subscription contracts.

Similarweb raises its 2026 outlook

Similarweb now expects full-year 2026 revenue of $314 million to $318 million, up from its Q1 forecast of $307 million to $315 million.

The company also raised its expected non-GAAP operating profit to $24 million to $26 million, compared with $17 million to $19 million after Q1.

Q2 was Similarweb's first quarter with a positive GAAP operating profit. Operating profit was about $744,000, compared with a $6.9 million operating loss a year earlier.

The company still reported a net loss of $3.6 million, improved from an $11.8 million loss in Q2 2025.

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nsider Take

The shift toward multiyear subscriptions may be the most useful number in Similarweb's quarter for subscription operators. Two-thirds of ARR is now covered by multiyear subscriptions, up from 57% a year ago. Longer commitments can give a subscription business more visibility into revenue already under contract.

NRR returning to 100% gives that contract growth useful context. A longer agreement tells us the customer is committed for a set period. It doesn't tell us whether that customer is expanding, cutting back or how healthy the relationship is. Similarweb's Q2 retention number shows that, across the existing customer base, expansion was enough to offset contraction and churn.

Similarweb is putting more recurring revenue into longer commitments while a growing share of ARR comes from large enterprise customers. The next thing to watch is whether those customers continue to expand within those relationships.

Related Member Resources

For a closer look at the signals behind subscription growth and how to assess whether that growth is healthy and durable:

Beyond Subscriber Adds: A Growth Quality Framework for Mature Subscription Businesses