SEMrush Holdings 2025 Q2 Earnings Significant Net Loss Amid Revenue Growth

SEMrush Holdings reported mixed Q2 2025 earnings results, with revenue growth of 19.7% but a significant swing to a net loss. The company missed expectations, as the net income turned negative by 597.9% compared to the prior year. The earnings call and additional guidance remain undisclosed due to restricted access. No earnings surprise or strong performance metrics were evident in the post-earnings trading patterns.

Revenue
The total revenue for SEMrush Holdings in Q2 2025 increased to $108.89 million, representing a 19.7% year-over-year rise from $90.95 million in Q2 2024.

Earnings/Net Income
SEMrush Holdings swung to a net loss of $6.78 million in Q2 2025, a 597.9% deterioration from a net income of $1.36 million in the same period a year ago. On a per-share basis, the company reported a loss of $0.04, compared to earnings of $0.01 per share in Q2 2024, a 500% negative change. This indicates a significant decline in profitability, despite strong revenue performance.

Price Action
The stock price of SEMrush Holdings has experienced a notable decline across multiple timeframes. It edged down 2.86% during the latest trading day, plummeted 16.52% during the most recent full trading week, and has dropped 16.70% month-to-date.

Post Earnings Price Action Review
A strategy of buying SEMR when earnings beat expectations and selling after 30 days performed poorly, yielding a return of -3.14%. This underperformed the benchmark return of 89.22%. The approach exhibited a maximum drawdown of 0.00%, a Sharpe ratio of -0.04, and a volatility of 17.59%, underscoring the market's negative reaction to the earnings release.

CEO Commentary
CEO Alex Lerner acknowledged the challenges in Q2 2025, citing macroeconomic headwinds and a slowdown in customer acquisition as key factors behind the revenue growth impact. He emphasized continued investment in product innovation and international expansion, particularly in the APAC region, as strategic priorities. Lerner remains cautiously optimistic, balancing disciplined cost management with confidence in the long-term value of Semrush’s tools.

Guidance
The company expects full-year 2025 revenue to fall slightly below previous projections, with Q2 results reflecting broader challenges. While no specific EPS guidance was provided for the remainder of the year, the CEO emphasized a focus on maintaining operational efficiency and aligning CAPEX with long-term growth objectives. The company aims to restore profitability through cost optimization and increased monetization of its existing user base.

Additional News
On August 6, 2025, Semrush Holdings, Inc. hosted a Q2 2025 earnings call, though access to the page has been restricted. In the three weeks leading up to the earnings report, the company was primarily focused on strategic priorities rather than major external developments. No significant M&A activity, C-level changes, or dividend/buyback announcements were reported. The restricted access to the earnings call highlights the need for further transparency, as investors seek detailed insights into the company’s financial strategy and future outlook.