SEMrush Holdings (SEMR) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 19.87%
• EPS Growth: -136.93%
• Country: US
• Employees: 1,561
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 130,436,140
• 10 Day Avg. Volume: 1,311,616
• 30 Day Avg. Volume: 2,069,444
• PEG Ratio: 0.28
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 4.60
• P/FCF Ratio: 40.12
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.03
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 178.39
• 1Y Price Target: $10.25
• Price Target Upside: -13.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $510.74M

• Rating: 70 Outperform
• Price Target: $13.00 ▲(9.34% Upside)

The score is driven primarily by solid financial resilience (strong cash flow and low leverage) and positive earnings-call outlook (AI and enterprise momentum with reaffirmed margin/FCF guidance). Technicals are supportive but show overbought risk, while valuation is less favorable due to negative P/E. Corporate-event uncertainty from merger-related litigation modestly tempers the outlook.

Positive Factors

Strong free cash flow

Sustained FCF growth and high cash conversion provide durable internal funding for R&D, product development, and strategic initiatives. This cash generation reduces reliance on external financing and supports margin resilience and optionality through cycles over the next 2-6 months.

Low financial leverage

Minimal leverage gives the company financial flexibility to invest in AI and enterprise product expansion, absorb currency or macro headwinds, and pursue strategic transactions or integration work without straining the balance sheet for several quarters.

AI and enterprise product momentum

Rapid AI ARR growth and strong enterprise traction indicate scalable products with higher ACV and stickiness. This structural shift toward higher-value, AI-enabled offerings supports sustainable revenue mix improvement and long-term ARR expansion beyond short-term cycles.

Negative Factors

Negative profitability metrics

Despite high gross margins, persistent negative net margin and ROE signal structural profitability challenges after operating expenses. If not reversed via sustained pricing power or cost discipline, this limits free cash flow upside and investor returns over the medium term.

Declining paying customer count

A reduction in paying customers tied to an upmarket shift increases reliance on fewer, larger accounts. That concentration raises churn and retention risk, making ARR more dependent on enterprise expansions and upsells rather than broad-based user growth.

Merger-related litigation and closing risk

Ongoing shareholder litigation and supplemental disclosures create execution risk and potential delays to the Adobe transaction. Legal uncertainty can divert management attention, raise costs, and materially affect strategic plans and integration timelines over the coming months.

SEMrush Holdings Business Overview & Revenue Model

Company Description

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company was founded in 2008 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

SEMrush generates revenue primarily through subscription-based models, offering various tiers of service with different features and capabilities. The company has multiple pricing plans tailored to meet the needs of freelancers, small businesses, and large enterprises. Key revenue streams include monthly and annual subscriptions, with a significant portion of income derived from its Pro, Guru, and Business plans. Additionally, SEMrush may earn revenue from value-added services, such as training and consultancy. Strategic partnerships with digital marketing agencies and other tech platforms also contribute to its earnings by expanding its reach and enhancing its service offerings.

SEMrush Holdings Financial Statement Overview

Summary

Strong cash flow profile (TTM free cash flow growth 41.28% and high conversion of earnings to cash) and low leverage (debt-to-equity 0.046) support stability. Offsetting this, profitability remains weak with negative net margin and negative ROE despite strong gross margin (81.43%).

Income Statement

SEMrush Holdings shows a positive revenue growth trend with a TTM revenue growth rate of 3.54%. However, profitability is a concern as indicated by a negative net profit margin of -0.31% and a negative EBIT margin. The gross profit margin remains strong at 81.43%, suggesting efficient cost management at the gross level.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. However, the return on equity is negative at -0.49%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is strong with a significant free cash flow growth rate of 41.28% in the TTM period. The operating cash flow to net income ratio is 0.34, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.87, showing efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	428.63M	376.81M	307.68M	254.32M	188.00M	124.88M
Gross Profit	346.61M	311.34M	255.35M	205.76M	146.07M	94.94M
EBITDA	9.68M	18.38M	415.00K	-18.46M	1.05M	-4.66M
Net Income	-4.51M	8.24M	950.00K	-33.85M	-3.29M	-7.01M
Balance Sheet
Total Assets	450.41M	390.94M	331.49M	298.69M	300.07M	54.96M
Cash, Cash Equivalents and Short-Term Investments	275.70M	235.57M	238.57M	237.54M	269.67M	35.53M
Total Debt	13.94M	12.27M	14.61M	12.62M	0.00	0.00
Total Liabilities	151.86M	124.59M	107.17M	98.79M	74.53M	61.80M
Stockholders Equity	289.68M	256.60M	219.15M	199.90M	225.54M	-6.84M
Cash Flow
Free Cash Flow	48.03M	43.19M	335.00K	-15.56M	19.98M	3.48M
Operating Cash Flow	56.62M	47.00M	7.99M	-9.62M	23.76M	5.85M
Investing Cash Flow	-19.30M	-58.22M	-29.07M	-179.83M	-4.63M	-6.08M
Financing Cash Flow	-1.74M	1.87M	-19.00K	-345.00K	215.32M	-1.67M

SEMrush Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEMR, the sentiment is Positive. The current price of 11.89 is below the 20-day moving average (MA) of 11.90, above the 50-day MA of 11.76, and above the 200-day MA of 9.35, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEMR.

SEMrush Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEMR	70 Outperform	$1.80B	-387.30	-1.68%	―	19.87%	-136.93%
PD	62 Neutral	$972.83M	6.62	70.46%	―	7.01%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$535.84M	-11.19	-26.69%	―	13.09%	32.34%
LAW	54 Neutral	$390.57M	-6.23	-41.00%	―	6.33%	-66.34%
AMPL	52 Neutral	$1.23B	-11.54	-37.47%	―	12.78%	-20.47%

SEMrush Holdings Corporate Events

Semrush Faces Shareholder Lawsuits Over Proposed Adobe Merger

On December 29, 2025, Semrush Holdings, Inc. filed a definitive proxy statement with the SEC for a special shareholder meeting scheduled on February 3, 2026, to vote on its proposed acquisition by Adobe Inc., under a November 18, 2025 merger agreement that would see Semrush become a wholly owned Adobe subsidiary. Between January 13 and January 15, 2026, three Semrush stockholders filed lawsuits in New York and Massachusetts courts alleging that the proxy statement for the Adobe deal contained material misrepresentations and omissions, seeking to block completion of the merger; while Semrush considers the claims meritless, it has issued supplemental disclosures—detailing board deliberations, formation of a transaction committee, outreach to alternative bidders, Adobe’s revised offer terms, and specific valuation comparables—aimed at mooting the disclosure challenges and reducing litigation risk, though the ultimate outcome and any impact on closing the transaction remain uncertain.

The most recent analyst rating on (SEMR) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on SEMrush Holdings stock, see the SEMR Stock Forecast page.

SEMrush Holdings Updates Executive Employment Agreement

On November 21, 2025, Semrush Holdings, Inc. entered into an executive employment agreement with Eugene Levin, offering severance benefits but no new compensation changes. Levin’s base salary remains at $395,000 with eligibility for a bonus plan, and the agreement outlines severance terms in case of termination or change of control, including salary continuation and equity award acceleration.

The most recent analyst rating on (SEMR) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on SEMrush Holdings stock, see the SEMR Stock Forecast page.

SEMrush Holdings Announces Merger with Adobe Inc.

On November 18, 2025, SEMrush Holdings entered into a merger agreement with Adobe Inc., where SEMrush will become a wholly owned subsidiary of Adobe. The merger agreement includes a cash consideration for SEMrush’s common stock and outlines the treatment of equity awards. The completion of the merger is subject to customary closing conditions, including stockholder approval and regulatory clearances. The merger is expected to strengthen Adobe’s position in the digital marketing space, with significant support from SEMrush’s stockholders.

The most recent analyst rating on (SEMR) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on SEMrush Holdings stock, see the SEMR Stock Forecast page.