Free cash flow remains volatile, compressing from a 20.4% margin in 2025Q1 to 12.6% in 2025Q4, with cash flow quality heavily distorted by $17.1 million in quarterly stock-based compensation.
| Cash from Operations | 59.58M | 47M | 7.99M | -9.62M | 23.76M | 5.85M | 1.88M |
| Operating CF Margin % | 13.43% | 12.47% | 2.6% | -3.78% | 12.64% | 4.69% | 2.04% |
| Operating CF Growth % | 26.78% | 488.48% | 182.98% | -140.5% | 306.03% | 212.11% | - |
| Net Income | -18.96M | 7.38M | 950K | -33.85M | -3.29M | -7.01M | -10.17M |
| Depreciation & Amortization | 11.76M | 10.07M | 6.79M | 6.65M | 3.54M | 1.48M | 1.05M |
| Stock-Based Compensation | 52.63M | 28M | 15.34M | 7.39M | 2.74M | 1.08M | 504K |
| Deferred Taxes | -370K | -1.09M | 301K | -253K | 59K | -90K | 83K |
| Other Non-Cash Items | 19.86M | 14.13M | 5.89M | 14.98M | 6.7M | 4.62M | 4.04M |
| Working Capital Changes | -5.34M | -11.48M | -21.28M | -4.54M | 14.01M | 5.77M | 6.37M |
| Change in Receivables | -18.16M | 708K | -3.79M | -3.32M | -791K | 738K | -744K |
| Change in Inventory | 0 | 0 | 0 | 0 | 8.83M | 0 | 0 |
| Change in Payables | 13.16M | 450K | -7.39M | 6.79M | 1.53M | 1.82M | 1.6M |
| Cash from Investing | 162.94M | -58.22M | -29.07M | -179.83M | -4.63M | -6.08M | -1.16M |
| Capital Expenditures | -1.79M | -3.8M | -2.49M | -4.23M | -3.78M | -3.4M | -1M |
| CapEx % of Revenue | 0.4% | 1.01% | 0.81% | 1.66% | 2.01% | 2.72% | 1.09% |
| Acquisitions | -5.57M | -25.9M | 0 | 0 | -350K | -2.69M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -13.49M | -21M | -10.23M | -15.7M | -1.4M | 0 | -162K |
| Cash from Financing | -7.54M | 1.87M | -19K | -345K | 215.32M | -1.67M | 5.1M |
| Debt Issued (Net) | -1.28M | -2.25M | -2.52M | -2.08M | -1.37M | -324K | 0 |
| Equity Issued (Net) | 3.88M | 4.12M | 0 | 0 | 215.37M | 252K | 5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.13M | 0 | 2.5M | 1.74M | 1.33M | -1.6M | 97K |
| Net Change in Cash | 215.41M | -9.79M | -20.92M | -190.08M | 233.99M | -1.9M | 5.81M |
| Free Cash Flow | 57.79M | 43.19M | 335K | -15.56M | 19.98M | 3.48M | 712K |
| FCF Margin % | 13.03% | 11.46% | 0.11% | -6.12% | 10.63% | 2.79% | 0.77% |
| FCF Growth % | 33.79% | 12793.73% | 102.15% | -177.91% | 473.26% | 389.47% | - |
| FCF per Share | 0.39 | 0.29 | 0.00 | -0.11 | 0.14 | 0.03 | 0.01 |
| FCF Conversion (FCF/Net Income) | -3.14x | 5.71x | 8.41x | 0.28x | -7.23x | -0.83x | -0.18x |
| Interest Paid | 0 | 0 | 197K | 229K | 321K | 0 | 0 |
| Taxes Paid | 0 | 12.85M | 3.1M | 603K | 248K | 0 | 323K |
SBC-driven cash flow distortion
According to recent financial disclosures, Semrush's operating cash flow frequently exceeds net income, with the 2025Q4 period showing a $14.9 million cash inflow against an $11.1 million net loss, largely driven by significant non-cash stock-based compensation adjustments totaling $17.1 million for that quarter.
The persistent gap between net income and operating cash flow suggests that the company's reported profitability is heavily reliant on non-cash accounting adjustments. Investors should monitor whether this reliance on equity-based incentives continues to obscure the underlying cash-generating capacity of the core subscription business.
As reported in quarterly filings, free cash flow margins have fluctuated significantly, peaking at 20.4% in 2025Q1 before compressing to 12.6% by 2025Q4, reflecting the company's ongoing struggle to balance aggressive market expansion with the need for sustainable, self-funded operational growth in a competitive landscape.
The erratic trajectory of free cash flow appears to correlate with shifts in marketing intensity and operational scaling. This volatility warrants further investigation into whether the company can achieve consistent cash generation without compromising its long-term competitive positioning in the SEO software market.
Based on historical data, Semrush maintains a remarkably low capital intensity, with CapEx as a percentage of revenue consistently remaining below 1% in recent periods, which suggests that the platform's primary value is derived from its existing data moat rather than heavy physical infrastructure investment.
The minimal capital expenditure requirements imply that the company's business model is highly scalable once the core data index is established. This low-capex profile provides a structural advantage, allowing the firm to direct the majority of its cash flow toward customer acquisition and product development.
As evidenced by recent cash flow statements, working capital changes have been inconsistent, swinging from a $13.2 million outflow in 2025Q2 to a $3.4 million inflow in 2025Q3, indicating potential sensitivity to the timing of annual subscription renewals and enterprise-level billing cycles.
The variability in working capital suggests that the company's cash conversion cycle is susceptible to shifts in customer payment behavior and contract duration. Analysts should monitor these fluctuations as they may indicate changes in the underlying health of the company's subscription-based revenue model.
Based on an analysis of recent SEC filings, the company's reliance on stock-based compensation as a primary bridge to positive cash flow may mask the true cost of talent acquisition, as these non-cash expenses have grown to represent a substantial portion of the operating cash flow.
The consistent use of equity to compensate for operational cash shortfalls suggests that the company's cash flow profile may be less robust than it appears on a headline basis. Investors should consider the dilutive impact of this strategy alongside the company's ability to generate cash from core operations.
Quick answers to the most common questions about buying SEMR stock.
Semrush Holdings, Inc. (SEMR) generated $59.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Semrush Holdings, Inc. (SEMR) generated $57.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Semrush Holdings, Inc. (SEMR) spent $1.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.