SEMrush Holdings (SEMR) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 22.16%
• EPS Growth: -107.92%
• Country: US
• Employees: 1,561
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 127,685,800
• 10 Day Avg. Volume: 970,981
• 30 Day Avg. Volume: 1,138,077
• 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: 0.97
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 99.26
• 1Y Price Target: $11.15
• Price Target Upside: 45.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $8.00 ▲(4.17% Upside)

SEMrush Holdings' overall score reflects strong revenue growth and strategic focus on high-value enterprise and AI segments, as highlighted in the earnings call. However, profitability challenges, negative valuation metrics, and mixed technical indicators weigh on the score. The company's robust balance sheet and strategic initiatives provide a positive long-term outlook, but near-term financial and market challenges remain.

Positive Factors

Enterprise Segment Expansion

Expansion in the enterprise segment indicates a successful strategy shift towards high-value customers, enhancing long-term revenue stability.

AI Product Success

Rapid growth in AI products showcases innovation and positions SEMrush as a leader in emerging tech, driving future revenue streams.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility and reduces risk, supporting long-term strategic initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder investment in growth initiatives and affect long-term financial health and shareholder returns.

Cash Flow Management

Declining free cash flow growth indicates potential cash management issues, which could constrain operational flexibility and growth investments.

Softness in Lower Market Segments

Weakness in lower market segments suggests vulnerability to competitive pressures, potentially impacting overall customer base diversity.

SEMrush Holdings Business Overview & Revenue Model

Company Description

SEMrush Holdings (SEMR) is a leading digital marketing software as a service (SaaS) company that provides online visibility management, search engine optimization (SEO), and advertising analytics services. The company serves a diverse clientele, including marketing professionals, agencies, and businesses of all sizes, helping them improve their online presence and performance across various digital channels. SEMrush's core products include tools for keyword research, site audits, competitive analysis, content marketing, and social media management, positioning it as a comprehensive solution for digital marketers worldwide.

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

SEMrush Holdings demonstrates strong revenue growth and efficient cost management, as seen in its high gross profit margin. However, profitability remains a concern with negative net income and EBIT margins. The balance sheet is robust with low leverage, but shareholder returns are lacking. Cash flow management shows room for improvement, particularly in free cash flow growth. The company is on a growth trajectory but needs to address profitability and cash flow challenges to enhance its financial health.

Income Statement

SEMrush Holdings shows a positive revenue growth trend with a 4.53% increase in TTM, indicating a steady expansion. However, the company struggles with profitability, as evidenced 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. Overall, while revenue is growing, profitability remains a challenge.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.046, indicating minimal leverage and financial risk. However, the return on equity is negative at -0.49%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a solid capital structure. Overall, the company maintains a strong balance sheet with low leverage but needs to improve shareholder returns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -16.91% in TTM, indicating potential cash management issues. The operating cash flow to net income ratio is 0.34, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is high at 0.87, showing that the company is converting a significant portion of its earnings into free cash flow. Overall, cash flow management needs improvement despite strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.96M	376.81M	307.68M	254.32M	188.00M	124.88M
Gross Profit	337.11M	311.34M	255.35M	205.76M	146.07M	94.94M
EBITDA	11.14M	18.38M	-306.00K	-19.03M	1.05M	-4.66M
Net Income	-1.28M	8.24M	950.00K	-33.85M	-3.29M	-7.01M
Balance Sheet
Total Assets	424.95M	390.94M	331.49M	298.69M	300.07M	54.96M
Cash, Cash Equivalents and Short-Term Investments	258.55M	235.57M	238.57M	237.54M	269.67M	35.53M
Total Debt	12.82M	12.27M	14.61M	12.62M	0.00	0.00
Total Liabilities	136.78M	124.59M	107.17M	98.79M	74.53M	61.80M
Stockholders Equity	279.05M	256.60M	219.15M	199.90M	225.54M	-6.84M
Cash Flow
Free Cash Flow	37.15M	43.19M	335.00K	-15.56M	19.98M	2.45M
Operating Cash Flow	42.87M	47.00M	7.99M	-9.62M	23.76M	5.85M
Investing Cash Flow	-69.06M	-58.22M	-29.07M	-179.83M	-4.63M	-6.08M
Financing Cash Flow	-1.77M	1.87M	-19.00K	-345.00K	215.32M	-1.67M

SEMrush Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEMR, the sentiment is Neutral. The current price of 7.68 is above the 20-day moving average (MA) of 7.33, above the 50-day MA of 7.50, and below the 200-day MA of 10.12, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEMR.

SEMrush Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLNK	―	$1.48B	―	-5.41%	―	5.96%	50.29%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEMR	―	$1.14B	―	-0.50%	―	22.16%	-107.92%
SPT	―	$662.12M	―	-32.50%	―	14.79%	27.52%
PD	―	$1.51B	―	-8.04%	―	8.20%	82.75%
AMPL	―	$1.34B	―	-33.99%	―	9.93%	-11.15%
LAW	―	$440.84M	―	-36.64%	―	4.05%	-100.64%

SEMrush Holdings Corporate Events

Semrush Reports Strong Q2 2025 Performance

Semrush Holdings, Inc. is a leading SaaS platform specializing in online visibility management, offering tools for search engine optimization, advertising, content, social media, and competitive research to businesses worldwide.

Semrush Holdings’ Earnings Call: Growth Amid Challenges

Semrush Holdings, Inc. recently held its earnings call, revealing a mixed sentiment characterized by robust growth in its enterprise and AI segments, juxtaposed with challenges in the lower market segment and rising costs in paid search acquisition. Despite these hurdles, the company remains optimistic about its long-term growth, as evidenced by the introduction of a new share repurchase program.

Semrush Holdings Announces $150 Million Share Buyback

On August 4, 2025, Semrush Holdings announced a $150 million share repurchase program for its Class A common stock, reflecting confidence in its business and commitment to shareholder value. The company reported a 20% year-over-year revenue increase to $108.9 million for the second quarter of 2025, despite a loss from operations. Semrush continues to expand its offerings, particularly in AI and enterprise solutions, and was named a Leader in SEO Solutions by Forrester.

The most recent analyst rating on (SEMR) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on SEMrush Holdings stock, see the SEMR Stock Forecast page.