Semrush Posts Q2 Revenue in Line with Estimates, Stock Drops 13.6%

Semrush Q2 sales met Wall Street estimates at $108.9 million, a 19.7% YoY increase, but the company's GAAP loss was significantly below estimates. Next quarter's revenue guidance of $111.6 million was 2.9% below analysts' estimates. The stock dropped 13.6% despite the strong revenue growth, which is a 22.9% compounded annual growth rate over the last three years.

Semrush Holdings (NYSE: SEMR) reported its second-quarter (Q2) 2025 earnings, with revenue meeting Wall Street estimates at $108.9 million, a 19.7% year-over-year (YoY) increase [1]. However, the company's GAAP loss was significantly below estimates, with an earnings per share (EPS) of $-0.04, $0.12 worse than the analyst estimate of $0.08 [1]. Despite the strong revenue growth, which represents a 22.9% compounded annual growth rate over the last three years, the stock dropped 13.6% in response to the earnings report [1].

The company guided revenue for the third quarter (Q3) 2025 to be in a range of $111.1 million to $112.1 million, which was 2.9% below analysts' estimates [2]. Semrush also provided its full-year (FY) 2025 revenue guidance, expecting revenue in a range of $443.0 million to $446.0 million, a 18% YoY increase [2]. The company's stock closed at $9.21, down -7.90% in the last 3 months and -28.66% in the last 12 months [1].

Semrush's second-quarter 2025 financial highlights included:
- Revenue of $108.9 million, up 20% YoY [2].
- Loss from operations of ($4.3) million, compared to income from operations of $3.4 million in the prior year’s quarter [2].
- Non-GAAP income from operations of $12.0 million for a non-GAAP operating margin of 11.0% [2].
- Cash flow from operations was $0.7 million in the second quarter [2].
- ARR of $435.3 million as of June 30, 2025, up 15% YoY [2].
- Approximately 116,000 paying customers as of June 30, 2025 [2].
- Dollar-based net revenue retention of 105% as of June 30, 2025 [2].

Semrush also announced a $150 million share repurchase program, reflecting the company's strong conviction in its business and the attractive valuation opportunity [2]. The company is committed to empowering its customers with a best-in-class platform designed to boost their online presence and gain an edge in the market [2].

Semrush will host a conference call and webcast to discuss its financial results, business highlights, outlook, and other matters on August 5, 2025, at 8:30 a.m. ET [2].

References:
[1] https://www.investing.com/news/earnings/semrush-holdings-earnings-missed-by-012-revenue-topped-estimates-4168878
[2] https://finance.yahoo.com/news/semrush-announces-second-quarter-2025-203000023.html