Revenue growth has slowed from 23.7% in 2024Q3 to 14.6% in 2025Q4, while operating margins have compressed significantly to -11.8% due to rising SG&A expenses.
| Sales/Revenue | 443.64M | 376.81M | 307.68M | 254.32M | 188M | 124.88M | 92.11M |
| Revenue Growth % | 17.74% | 22.47% | 20.98% | 35.27% | 50.55% | 35.57% | - |
| Cost of Goods Sold | 86.31M | 65.48M | 52.33M | 48.55M | 41.93M | 29.93M | 22.54M |
| COGS % of Revenue | 19.45% | 17.38% | 17.01% | 19.09% | 22.31% | 23.97% | 24.47% |
| Gross Profit | 357.34M | 311.34M | 255.35M | 205.76M | 146.07M | 94.94M | 69.57M |
| Gross Margin % | 80.55% | 82.62% | 82.99% | 80.91% | 77.69% | 76.03% | 75.53% |
| Gross Profit Growth % | 14.77% | 21.93% | 24.1% | 40.87% | 53.84% | 36.48% | - |
| Operating Expenses | 380.15M | 303.03M | 263.01M | 242.14M | 148.56M | 101.09M | 77.79M |
| OpEx % of Revenue | 85.69% | 80.42% | 85.48% | 95.21% | 79.02% | 80.95% | 84.46% |
| Selling, General & Admin | 282.98M | 222.95M | 204.28M | 189.67M | 124.24M | 83.56M | 63.57M |
| SG&A % of Revenue | 63.78% | 59.17% | 66.4% | 74.58% | 66.08% | 66.92% | 69.01% |
| Research & Development | 97.17M | 80.08M | 57.44M | 41.2M | 24.32M | 17.53M | 14.22M |
| R&D % of Revenue | 21.9% | 21.25% | 18.67% | 16.2% | 12.94% | 14.04% | 15.44% |
| Other Operating Expenses | 0 | 0 | 1.29M | 11.26M | 0 | 0 | 0 |
| Operating Income | -22.81M | 8.31M | -7.67M | -36.37M | -2.49M | -6.14M | -8.22M |
| Operating Margin % | -5.14% | 2.2% | -2.49% | -14.3% | -1.33% | -4.92% | -8.93% |
| Operating Income Growth % | -374.58% | 208.36% | 78.92% | -1359.01% | 59.43% | 25.26% | - |
| EBITDA | -11.05M | 18.38M | -877K | -29.72M | 1.04M | -4.66M | -7.17M |
| EBITDA Margin % | -2.49% | 4.88% | -0.29% | -11.69% | 0.55% | -3.73% | -7.79% |
| EBITDA Growth % | -160.12% | 2195.33% | 97.05% | -2952.5% | 122.36% | 35.01% | - |
| D&A (Non-Cash Add-back) | 11.76M | 10.07M | 6.79M | 6.65M | 3.54M | 1.48M | 1.05M |
| EBIT | -10.1M | 8.31M | -6.38M | -25.11M | -2.48M | -6.14M | -9.7M |
| Net Interest Income | 0 | 10.03M | 9.45M | 3.05M | -532K | 0 | 0 |
| Interest Income | 0 | 10.03M | 9.45M | 3.05M | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 532K | 0 | 0 |
| Other Income/Expense | 12.71M | 12.09M | 12.31M | 3.46M | -522K | -290K | -1.48M |
| Pretax Income | -10.1M | 20.4M | 4.65M | -32.92M | -3.02M | -6.43M | -9.7M |
| Pretax Margin % | -2.28% | 5.41% | 1.51% | -12.94% | -1.6% | -5.15% | -10.53% |
| Income Tax | 9.39M | 13.03M | 3.7M | 931K | 270K | 577K | 464K |
| Effective Tax Rate % | -93% | 63.85% | 79.55% | -2.83% | -8.96% | -8.97% | -4.78% |
| Net Income | -18.96M | 8.24M | 950K | -33.85M | -3.29M | -7.01M | -10.17M |
| Net Margin % | -4.27% | 2.19% | 0.31% | -13.31% | -1.75% | -5.62% | -11.04% |
| Net Income Growth % | -330.17% | 766.95% | 102.81% | -930.38% | 53.15% | 31.03% | - |
| Net Income (Continuing) | -19.5M | 7.38M | 950K | -33.85M | -3.29M | -7.01M | -10.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.44M | 9.75M | 5.17M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.13 | 0.06 | 0.01 | -0.24 | -0.02 | -0.05 | -0.08 |
| EPS Growth % | -335.08% | - | 102.71% | -930.04% | 55.19% | 31.03% | - |
| EPS (Basic) | -0.13 | 0.06 | 0.01 | -0.24 | -0.02 | -0.05 | -0.08 |
| Diluted Shares Outstanding | 148.54M | 148.86M | 146.07M | 141.16M | 140.71M | 134.9M | 134.9M |
| Basic Shares Outstanding | 148.54M | 145.87M | 142.59M | 141.16M | 140.71M | 134.9M | 134.9M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
S&M efficiency and churn
As reported in recent financial filings, Semrush's year-over-year revenue growth has decelerated from 23.7% in 2024Q3 to 14.6% by 2025Q4, suggesting that the company's product-led growth motion is encountering increased market saturation or heightened competitive pressure within its core small-to-medium business customer segment.
The consistent decline in top-line growth rates over the last ten quarters indicates that the initial rapid adoption phase may be maturing. Investors should monitor whether this deceleration reflects a structural ceiling in the current addressable market or a temporary pause in enterprise-tier expansion.
Based on the company's reported income statements, Semrush has maintained a robust gross margin profile, consistently hovering around 80% to 83% over the past ten quarters, which highlights the inherent scalability of its proprietary data-driven software platform despite fluctuations in underlying cloud infrastructure costs.
This high gross margin suggests significant pricing power and a low marginal cost of service delivery. However, the slight compression observed in recent periods warrants investigation into whether increased data crawling requirements or competitive pricing adjustments are beginning to weigh on unit economics.
According to the provided quarterly data, Semrush's operating margin has shifted from a positive 3.7% in 2024Q2 to a negative 11.8% in 2025Q4, indicating that operating expenses, particularly SG&A, are currently scaling significantly faster than the company's gross profit generation capabilities.
The inability to achieve operating leverage suggests that the company is prioritizing aggressive customer acquisition or market share defense over immediate profitability. This trend implies that the current cost structure requires a substantial increase in revenue efficiency to reach a sustainable break-even point.
As evidenced by the latest financial statements, Semrush's net income has been consistently pressured by rising stock-based compensation, which reached $17.1 million in 2025Q4, effectively masking the underlying operational performance and contributing to the company's recent transition into negative net income territory.
The reliance on equity-based incentives appears to be a significant factor in the divergence between the company's gross profit growth and its bottom-line results. Analysts should carefully evaluate the impact of this non-cash expense on long-term shareholder dilution and the true cost of talent retention.
Quick answers to the most common questions about buying SEMR stock.
For fiscal year 2025, Semrush Holdings, Inc. (SEMR) reported total revenue of $443.6M. This represents a 381.7% increase compared to $92.1M in 2019.
Semrush Holdings, Inc. (SEMR) reported a net loss of $19.0M for the fiscal year ending 2025.
Semrush Holdings, Inc. (SEMR) reported an operating income of $-22.8M, resulting in an operating profit margin of -5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Semrush Holdings, Inc. (SEMR) generated $357.3M in gross profit for the year, representing a gross profit margin of 80.5%. This demonstrates the company's core pricing power and production efficiency.