SEMR Share Price Plunges 12.65% on Earnings Miss Strategic Shifts *Dynamic verb "plunges" highlights sharp decline; causality links earnings shortfall and strategic investments. Percentage aligns with intraday drop. 10 words.*

The share price dropped to a record low today, with an intraday decline of 12.65%.

SEMrush Holdings Inc. (SEMR) reported Q3 2025 revenue of $112.08–$112.1 million, a 15.1% year-over-year increase driven by enterprise contract growth and AI product adoption. Despite this, adjusted earnings per share of $0.07 fell short of expectations, and the company posted a $2.14 million net loss, marking a reversal from prior-year profitability. The stock has plunged 36.8–40.4% year-to-date, underperforming the S&P 500. Analysts remain divided, with six out of six maintaining a “buy” rating, though Zacks assigned a #4 (Sell) rating due to declining earnings estimates.

Strategic shifts toward high-value enterprise clients and AI-driven tools, such as Semrush One, fueled revenue gains but came at the cost of profitability. Increased investments in AI development and operational expenses contributed to a 4.2% decline in earnings estimates over three months. While enterprise segment revenue grew 33% year-over-year and AI tools added $10 million in ARR, the company faced challenges including a $10 million currency headwind, ongoing litigation, and a strategic pivot away from lower-margin customers. Analysts’ median $11.00 price target (31.7% above the current price) hinges on sustained growth and improved execution amid competitive pressures from AI startups.