SEMrush Holdings (SEMR) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 182.6
• Beta (1Y): 1.59
• 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: 1,064,339
• 30 Day Avg. Volume: 1,369,497
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 150.98
• 1Y Price Target: $10.52
• Price Target Upside: 33.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: $8.00 ▲(1.27% Upside)

SEMrush Holdings' overall stock score is primarily influenced by its strong revenue growth and strategic focus on high-value enterprise and AI segments, as highlighted in the earnings call. However, the stock's bearish technical indicators and negative valuation metrics, including a negative P/E ratio, weigh heavily on its attractiveness. The company's robust balance sheet and strategic initiatives provide a positive long-term outlook, but immediate profitability and cash flow challenges need to be addressed.

Positive Factors

Capital Management

A $150mm share repurchase program was announced, which is seen as a reasonable use of capital.

Growth Drivers

AI and Enterprise traction are the most significant growth drivers for the company.

Revenue Growth

SEMR reported a solid 1Q with Enterprise SEO momentum and cross-sell/upsell traction driving 20%+ growth results.

Negative Factors

Customer Segment Challenges

Weakness in the smallest segment and an increase in paid-search cost per click resulted in a decline in overall customer count.

Financial Performance

A slight Q2 revenue beat was overshadowed by FY25 targets coming down 140 bps to +18% YoY.

Stock Rating Downgrade

The stock rating has been downgraded from overweight to equal-weight, indicating a less favorable outlook.

SEMrush Holdings Business Overview & Revenue Model

Company Description

SEMrush Holdings (SEMR) is a leading provider of online visibility management software-as-a-service (SaaS). The company offers a comprehensive suite of marketing tools designed to help businesses improve their online presence across various digital marketing channels. SEMrush's platform includes tools for search engine optimization (SEO), pay-per-click (PPC) advertising, social media management, content marketing, and competitive research. By leveraging its extensive database and sophisticated analytics, SEMrush enables businesses to optimize their digital marketing strategies and achieve measurable results.

How the Company Makes Money

SEMrush generates revenue primarily through subscription fees for access to its SaaS platform. Customers can choose from various subscription tiers, each offering different levels of access to SEMrush’s tools and features. The company also offers custom solutions for larger enterprises requiring more comprehensive services. Key revenue streams include individual and business subscriptions, with options for monthly or annual billing. SEMrush benefits from a high customer retention rate due to the value and insights its platform provides. Additionally, the company may engage in strategic partnerships with other digital marketing firms or technology providers to enhance its service offerings and expand its customer base, further contributing to its revenue growth.

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	7.32M	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: Negative
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEMR, the sentiment is Negative. The current price of 7.9 is above the 20-day moving average (MA) of 7.60, below the 50-day MA of 8.52, and below the 200-day MA of 11.23, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEMR.

SEMrush Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	74 Outperform	$2.24B	21.06	17.50%	―	6.75%	97.06%
SPT	62 Neutral	$917.33M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
SEMR	60 Neutral	$1.17B	182.58	-0.50%	―	22.16%	-107.92%
DSP	59 Neutral	$654.69M	309.52	5.20%	―	30.92%	―
PRO	58 Neutral	$745.65M	―	29.80%	―	7.96%	83.62%
AMPL	55 Neutral	$1.51B	―	-33.99%	―	9.93%	-11.15%

SEMrush Holdings Corporate Events

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.

SEMrush Holdings Amends CFO Employment Agreement

On June 11, 2025, SEMrush Holdings, Inc. amended the employment agreement with CFO Brian Mulroy, enhancing severance benefits and salary terms. Additionally, at the annual stockholders’ meeting on June 5, 2025, key proposals were approved, including director elections, ratification of Ernst & Young LLP as auditors, and annual advisory votes on executive compensation, reflecting shareholder support for the company’s governance practices.