SEMRush FY25 Projections: 12% Non-GAAP Operating Margin and Free Cash Flow Margin.

Semrush reports Q2 2025 revenue of $108.9 million, a 20% YoY increase. The company also announced a $150 million share repurchase program and named a Leader in SEO Solutions by Forrester. However, it reported a loss from operations of $4.3 million, down from a previous income from operations of $3.4 million. Semrush's ARR increased 15% YoY to $435.3 million.

Semrush Holdings, Inc. (NYSE: SEMR) reported its financial results for the second quarter ended June 30, 2025, with a significant increase in revenue and the announcement of a substantial share repurchase program. The company's Q2 revenue reached $108.9 million, marking a 20% year-over-year (YoY) increase, which exceeded FactSet's estimate of $108.8 million [1]. This growth was driven by the accelerated adoption of the company's AI and Enterprise products, as highlighted by CEO Bill Wagner.

Despite the revenue growth, Semrush reported a loss from operations of $4.3 million for the second quarter, compared to income from operations of $3.4 million in the previous year's quarter. The non-GAAP operating margin for the second quarter was 11.0%, a decrease from 13.4% in the prior year's period. This indicates a decrease in profitability, which the company attributes to softer demand and an increase in paid-search cost per click [2].

Semrush also announced a $150 million share repurchase program, reflecting the company's strong conviction in its business and the attractiveness of its valuation. The program aims to underscore the company's commitment to delivering shareholder value by repurchasing shares on the open market or through privately negotiated transactions [2].

The company's annual recurring revenue (ARR) increased by 15% YoY to $435.3 million as of June 30, 2025, indicating a robust customer base and growth in subscription services. Additionally, Semrush was named a Leader in SEO Solutions by Forrester, recognizing its competitive intelligence, robust analytics, and vision for SEO as the "engine of digital discoverability" [2].

Looking ahead, Semrush expects its revenue for the third quarter to be in a range of $111.1 million to $112.1 million, representing a 15% YoY growth, and full-year 2025 revenue to be in a range of $443.0 to $446.0 million, indicating a 18% YoY growth. The company also expects its full-year non-GAAP operating margin to be approximately 12% and free cash flow margin to be approximately 12% [2].

References:
[1] https://www.marketscreener.com/news/semrush-q2-revenue-up-20-meets-estimates-ce7c5edbd98bff2c
[2] https://finance.yahoo.com/news/semrush-announces-second-quarter-2025-203000023.html