Semrush Holdings, Inc. (SEMR)
NYSE:SEMR
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SEMrush Holdings
(NYSE:SEMR)
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Rating:67Neutral
Price Target:
$13.00
▲(9.80% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by strong free cash flow and a low-debt balance sheet, which help offset volatility in profitability and a sharp slowdown in revenue growth. Neutral technicals and weak valuation metrics (negative P/E, no dividend) temper the outlook, while earnings-call guidance and AI/enterprise traction provide support amid customer and retention headwinds and merger-related legal uncertainty.
Positive Factors
Strong free cash flow
Consistent and growing free cash flow provides durable internal funding for product development, AI and enterprise investments, or integration costs tied to strategic transactions. Strong FCF also offers a multi-quarter buffer against operational volatility and supports capital allocation flexibility without relying on external financing.
Negative Factors
Revenue growth deceleration
A sharp slowdown in top-line growth reduces the operating leverage of a SaaS model and makes margin expansion harder to sustain. If deceleration persists, the company must rely more on upsells or cost cuts to preserve profitability, which can constrain long-term R&D and go-to-market investments needed for AI and enterprise scaling.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent and growing free cash flow provides durable internal funding for product development, AI and enterprise investments, or integration costs tied to strategic transactions. Strong FCF also offers a multi-quarter buffer against operational volatility and supports capital allocation flexibility without relying on external financing.
Read all positive factors
SEMrush Holdings (SEMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth19.87%
EPS Growth-136.93%
CountryUS
Employees1,561
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.12
Shares Outstanding130,339,390
10 Day Avg. Volume1,029,049
30 Day Avg. Volume1,588,462
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)6.12
Price to Sales (P/S)3.98
P/FCF Ratio30.56
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda-4.95K
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.42
Revenue Forecast (FY)$510.74M
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...
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, ...
SEMrush Holdings Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Measures revenue growth from existing customers over time, indicating customer satisfaction and the company’s ability to upsell and retain clients.
Measures revenue growth from existing customers over time, indicating customer satisfaction and the company’s ability to upsell and retain clients.
Data provided by:
The Fly
The FlySEMrush Holdings Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Semrush's strong revenue growth driven by the success of its AI and enterprise products. Despite a slight decrease in customer numbers and exchange rate impacts on margins, the company's performance and strategic direction towards AI and enterprise solutions indicate strong future prospects.Positive Updates
Strong Revenue Growth
Semrush reported a strong quarter with revenue of $112.1 million, reflecting a 14% year-over-year increase in annual recurring revenue (ARR) to $455.4 million.
Negative Updates
Decrease in Paying Customers
The paying customer count decreased to approximately 114,000, reflecting a strategic focus on higher-value customers.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue Growth
Semrush reported a strong quarter with revenue of $112.1 million, reflecting a 14% year-over-year increase in annual recurring revenue (ARR) to $455.4 million.
Read all positive updates
Company Guidance
During the Semrush Holdings Third Quarter 2025 Results Conference Call, the company provided guidance for both the fourth quarter and the full year of 2025. For Q4 2025, Semrush expects revenue between $117.5 million and $119.5 million, reflecting a 15.5% year-over-year growth at the midpoint, along with a non-GAAP operating margin of approximately 12.5%. For the full year, revenue is anticipated to range from $443.5 million to $445.5 million, representing approximately 18% growth at the midpoint. The company maintains its previous full-year guidance of approximately 12% for both non-GAAP operating margin and free cash flow margin. Currency exchange rate fluctuations have been noted as introducing a $10 million expense headwind, but despite this, Semrush underscores its strong cash flow and balance sheet, with cash, cash equivalents, and short-term investments totaling $275.7 million.SEMrush Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 443.64M | 376.81M | 307.68M | 254.32M | 188.00M |
| Gross Profit | 357.34M | 311.34M | 255.35M | 205.76M | 146.07M |
| EBITDA | 1.66M | 18.38M | 415.00K | -18.46M | 1.05M |
| Net Income | -18.96M | 8.24M | 950.00K | -33.85M | -3.29M |
Balance Sheet | |||||
| Total Assets | 454.14M | 390.94M | 331.49M | 298.69M | 300.07M |
| Cash, Cash Equivalents and Short-Term Investments | 269.28M | 235.57M | 238.57M | 237.54M | 269.67M |
| Total Debt | 12.54M | 12.27M | 14.61M | 12.62M | 0.00 |
| Total Liabilities | 163.14M | 124.59M | 107.17M | 98.79M | 74.53M |
| Stockholders Equity | 288.55M | 256.60M | 219.15M | 199.90M | 225.54M |
Cash Flow | |||||
| Free Cash Flow | 57.79M | 43.19M | 335.00K | -15.56M | 19.98M |
| Operating Cash Flow | 59.58M | 47.00M | 7.99M | -9.62M | 23.76M |
| Investing Cash Flow | 162.94M | -58.22M | -29.07M | -179.83M | -4.63M |
| Financing Cash Flow | -7.54M | 1.87M | -19.00K | -345.00K | 215.32M |
SEMrush Holdings Technical Analysis
Positive
11.84
Price Trends
11.88
Positive
11.27
Positive
9.69
Positive
Market Momentum
0.02
Positive
62.43
Neutral
54.35
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 11.84 is below the 20-day moving average (MA) of 11.92, below the 50-day MA of 11.88, and above the 200-day MA of 9.69, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 54.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEMR.
SEMrush Holdings Risk Analysis
SEMrush Holdings disclosed 47 risk factors in its most recent earnings report. SEMrush Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SEMrush Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.80B | -93.17 | -6.73% | ― | 19.87% | -136.93% | |
64 Neutral | $536.22M | 5.56 | 77.23% | ― | 7.01% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $895.97M | -17.26 | -32.90% | ― | 12.78% | -20.47% | |
59 Neutral | $342.34M | -15.25 | -22.88% | ― | 13.09% | 32.34% | |
46 Neutral | $255.85M | -10.79 | -32.94% | ― | 6.33% | -66.34% |
* Technology Sector Average
SEMR
SEMrush Holdings
11.93
2.36
24.66%
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AMPL
Amplitude
6.70
-3.85
-36.49%
SEMrush Holdings Corporate Events
M&A TransactionsShareholder Meetings
Semrush Shareholders Approve Merger Agreement with Adobe
Positive
Feb 3, 2026
On February 3, 2026, Semrush Holdings, Inc. held a special meeting of stockholders to vote on proposals related to its previously announced Agreement and Plan of Merger dated November 18, 2025 with Adobe Inc., under which an Adobe subsidiary will ...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Semrush Faces Shareholder Lawsuits Over Proposed Adobe Merger
Negative
Jan 26, 2026
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 agree...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.