AISquared Experiences Rapid Growth in 2025, Solidifying Its Position as a Leading Player in Operationalizing AI in Enterprises

Rhea-AI Summary

AISquared (OTC:SEMR) reported rapid 2025 growth driven by enterprise and federal demand for secure, production-ready AI. Key metrics: 1,100% ARR growth, 115%+ net revenue retention, and 4x new customer growth. The company closed additional growth funding led by Coast Range Capital with participation from NEA and notable investors. AISquared highlighted federal traction including a collaboration with NASA JPL, expanded product offerings (Sparx, AI workflow builder), new governance controls, an IBM Agent Connect partnership, industry recognitions, and an "Awardable" status in the Department of War Tradewinds marketplace.

Management additions and board strengthening support go-to-market and product scaling as AISquared focuses on operationalizing AI at scale across regulated and mission-driven environments.

Positive

• ARR +1,100% growth in 2025
• Net revenue retention of 115%+
• 4x increase in new customers
• Secured growth funding led by Coast Range Capital with NEA participation
• Partnership with NASA JPL for planetary protection workflows
• IBM Agent Connect integration for Sparx and watsonx Orchestrate

Negative

• None.

News Market Reaction

-0.08%

1 alert

-0.08% News Effect

On the day this news was published, SEMR declined 0.08%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

ARR growth: 1,100% Net revenue retention: 115%+ Customer growth: 4x +5 more

8 metrics

ARR growth 1,100% Annual recurring revenue growth in 2025 for AISquared

Net revenue retention 115%+ AISquared net revenue retention rate

Customer growth 4x Increase in AISquared customers in 2025

AI pilots failure rate 95% Share of AI pilots that fail to reach production in cited study

Global Gen AI spending $632B IDC forecast for 2028 global Gen AI spending

Gen AI CAGR 29% IDC forecast compound annual growth rate to 2028

Enterprise AI spending $37B Enterprise AI spending in 2025 from cited study

Vertical AI growth 3x Year-over-year growth of vertical AI in cited study

Market Reality Check

Price: $11.88 Vol: Volume 7,037,902 is 3.25x...

high vol

$11.88 Last Close

Volume Volume 7,037,902 is 3.25x the 20-day average of 2,163,973, despite no price change. high

Technical Price at $11.89, trading above the 200-day MA at $9.18 and 36.6% below the 52-week high of $18.74.

Peers on Argus

Peers show mixed performance: ETWO -0.3%, YALA -5.12%, FSLY -0.86%, SPT -2.59% (...

1 Up

Peers show mixed performance: ETWO -0.3%, YALA -5.12%, FSLY -0.86%, SPT -2.59% (also flagged up 6.33% intraday in momentum scan), and VMEO +0.13%, indicating no clear sector-wide direction tied to this AISquared news.

Historical Context

5 past events · Latest: Dec 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	AI awards launch	Positive	+0.0%	Introduced AI Visibility Awards to recognize brands in AI search.
Dec 17	Product integration	Positive	+0.0%	Launched official Semrush app in ChatGPT for direct data access.
Nov 19	Acquisition deal	Positive	+74.0%	Adobe agreed to acquire Semrush for $12.00 per share in cash.
Nov 10	Investor conferences	Positive	+1.5%	Announced participation in two New York investor conferences.
Oct 29	AI platform launch	Positive	-6.5%	Launched Semrush One AI-era visibility intelligence platform.

Pattern Detected

Recent AI and product-related announcements often showed muted or negative next-day moves, while the Adobe acquisition news had a large positive reaction.

Recent Company History

Over the last six months, Semrush has focused on AI visibility and strategic transactions. The Adobe acquisition announcement on Nov 19, 2025 at $12.00/share drove a 73.96% move, defining the current deal framework. Earlier AI launches, including Semrush One on Oct 29, 2025 and prior AI tools, saw mixed to negative single-day reactions. Conference participation and AI awards news on Nov–Dec 2025 produced flat to modest price impacts, suggesting investors priced in many product-driven AI updates ahead of the pending acquisition.

Market Pulse Summary

This announcement centers on AISquared’s rapid 2025 expansion, including 1,100% ARR growth, 115%+ ne...

Analysis

This announcement centers on AISquared’s rapid 2025 expansion, including 1,100% ARR growth, 115%+ net revenue retention, and 4x customer growth, plus new leadership such as Semrush board chair Mark Vranish. For Semrush, the context is a stock trading near the announced $12.00 Adobe cash offer while AI-related releases have historically produced modest average moves of 3.1%. Investors may watch how such ecosystem ties and AI deployment trends intersect with the pending merger timeline.

Key Terms

arr, net revenue retention, cagr, saas, +4 more

8 terms

arr financial

"1100% ARR growth in 2025, 115%+ net revenue retention, and 4x customer growth"

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

net revenue retention financial

"1100% ARR growth in 2025, 115%+ net revenue retention, and 4x customer growth"

Net revenue retention measures how much revenue a company keeps from its existing customers over a set period after accounting for customers who leave, reductions in spending, and any increases from upsells or cross-sells. For investors it shows whether a company can grow sales from the customers it already has—like checking whether a store is making more or less money from its regular shoppers—which signals business health and future revenue durability.

cagr financial

"IDC forecasts that global Gen AI spending is expected to reach $632B by 2028 at a ~29% CAGR"

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.

saas technical

"We do this by leveraging our SaaS or on-prem platform which combines data sources"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

on-prem technical

"leveraging our SaaS or on-prem platform which combines data sources with advanced AI/ML"

On-prem (short for on-premises) means a company runs its software and stores its data on equipment located in its own buildings instead of using remote cloud services. For investors, whether a business is on-prem influences recurring revenue versus one-time sales, capital and operating costs, security and upgrade responsibilities, and how quickly the company can scale—similar to the difference between owning and maintaining your own car versus using a ride-hailing service.

ai/ml technical

"platform which combines data sources with advanced AI/ML functionality and embeds intelligent insights"

AI/ML stands for artificial intelligence and machine learning, software systems that identify patterns in data and make predictions or automate decisions, improving performance as they process more information. Investors care because these technologies can boost revenue, cut costs and create competitive advantages — like a factory that learns to produce goods faster and with fewer mistakes — while also introducing execution, ethical and regulatory risks that can affect a company’s value.

no-code technical

"Launch of Sparx, delivering enterprise-grade AI for mid-market organizations with a no-code setup"

No-code describes software platforms that let people build apps, automations, or websites using visual tools, drag-and-drop blocks and prebuilt templates instead of writing computer code. For investors, no-code matters because it can speed product launch and cut development costs—like assembling a piece of furniture from a kit instead of crafting it by hand—while also creating considerations around scalability, vendor dependence and long-term maintenance that can affect a company’s growth and margins.

edge computing technical

"having previously worked with ZEDEDA, an open-source Edge Computing Operating Systems provider"

Edge computing is a technology that processes data close to where it is generated, such as sensors or devices, rather than sending it all to a distant central location. This allows for faster decision-making and reduces delays, much like having a local office handle urgent matters instead of waiting for instructions from a main headquarters. For investors, it signifies improved efficiency and real-time insights, which can enhance the performance of technology-dependent industries.

AI-generated analysis. Not financial advice.

1100% ARR growth in 2025, 115%+ net revenue retention, and 4x customer growth as AISquared scales secure, production-ready enterprise AI across commercial and federal markets

WASHINGTON, Jan. 14, 2026 /PRNewswire/ -- AISquared, a provider of enterprise data and AI infrastructure platform, today announced strong business momentum and continued customer adoption, reflecting growing demand for secure, production-ready AI across enterprise and federal environments.

In 2025, AISquared achieved 1,100% growth in ARR, driven by expansion within existing accounts and steady acquisition of new customers. Net revenue retention remains strong at 115%+, indicating sustained customer value and long-term platform usage. The company also added 4x new customers, expanding its footprint across commercial, regulated, and federal markets.

AISquared continues to see demand across industries where compliance, data control, and speed to value are critical. Enterprises are at an inflection point in AI adoption. A recent study shows that 95% of AI pilots fail to reach production, highlighting a wide gap between investment and real-world impact. At the same time, IDC forecasts that global Gen AI spending is expected to reach $632B by 2028 at a ~29% CAGR, driven by demand for AI that works within existing systems and delivers measurable outcomes. The growing disconnect between experimentation and execution represents a major market opportunity for platforms that help organizations move AI into production securely and at scale.

Growing Momentum Across Enterprise & Federal Markets

AISquared's traction extends beyond enterprises to high-stakes, mission-driven federal agencies. The company closed the year with increased adoption across federal agencies, reflecting a significant expansion in use cases. This success reinforces that the AISquared approach is the most cost-effective and fastest way to modernize legacy applications with AI insights.

This momentum is exemplified by our collaboration with NASA's Jet Propulsion Laboratory (JPL) to modernize planetary protection workflows for the robotic exploration of Mars. This partnership highlights a shared vision of accelerating the adoption of AI, data integration, and digital modernization across the Space enterprise, demonstrating confidence in AISquared's platform to deliver AI-driven insights directly into mission workflows.

Growth Funding

AISquared raised a growth funding round led by Coast Range Capital with participation from existing investor New Enterprise Associates (NEA), from Roger Ferguson, former Vice Chairman of the Federal Reserve, former CEO of TIAA, and a current member of Alphabet's Board of Directors and Darren Kimura AISquared's Chairman, President and CEO.

Accelerating Enterprise AI deployment with focus on product development, go-to-market expansion, and continued investment in enterprise and federal use cases.

"AI promises transformation, but too often it gets stuck in pilot mode," said Darren Kimura, Chairman and CEO of AISquared. "Studies show that 95% of AI projects fail to reach production. Our mission is to solve that last-mile challenge and make AI operationally ready, scalable, and secure. With this financing, we can help organizations bring AI into the field and deliver real business and mission impact."

Strengthening the Board and Executive Team

To support its next phase of growth, AISquared continues to invest in leadership depth across technology, field operations, and industry focus areas.

• We added Mark Vranish, former CFO of Zynga and current Chairman of the Board of Directors of Semrush (NASDAQ: SEMR), as a new member of our board of directors. 
• Raghu Vatte joined as Field CTO and Head of Customer Success. He brings more than 20 years of experience in enterprise technology leadership, having previously worked with ZEDEDA, an open-source Edge Computing Operating Systems provider; Skyport Systems; Cisco Systems; and Juniper Networks. 
• Shashi Prakash joined as the Vertical CTO role for Midmarket and Cybersecurity. He brings 16 years of experience building ML systems, including co-founding and serving as CTO at Bolster.AI and, before that, at Cisco Systems. 
• Michael Thompson joined as the Vertical CTO of Industrials. Mike has 14 years of multidisciplinary engineering and product development experience across industrial process and equipment domains, previously serving as co-founder and CTO of PeopleFlo, which was acquired by Baker Hughes.

These technical leaders bring deep experience in enterprise systems, security, and applied AI, aligning closely with customer needs.

"Enterprise AI is moving fast, but the biggest gains are coming from vertical use cases where AI is built around real workflows," says Darren. "According to a recent study, enterprise AI spending reached $37 billion in 2025, with over half going to AI applications, and vertical AI grew nearly 3x year over year. That data reinforces our focus on building vertical AI solutions that work within the systems customers already use, whether in cybersecurity, industrial operations, or regulated environments."

Product Innovation Focused on Delivering Secure AI Where Work Happens

AISquared continues to advance its platform with a clear goal of bringing AI into existing business workflows in a secure and governed way. Recent product developments reinforce this direction, including:

• Launch of Sparx, delivering enterprise-grade AI for mid-market organizations with a no-code setup, simplified operations, and faster decision-making
• Enhancements to the AI workflow builder, enabling teams to build, test, and deploy AI workflows into existing business systems without heavy engineering effort
• Expanded governance, security, and compliance controls, supporting regulated industries and federal deployments

These capabilities help organizations move AI from experimentation into daily operations, while maintaining oversight and control.

Partnerships and Industry Recognition

AISquared continues to strengthen its partner ecosystem to extend value for customers. The company recently became an IBM Agent Connect Partner, combining Sparx and IBM watsonx Orchestrate to bring contextual AI insights directly into business workflows. The integration allows customers to access insights across systems from a single interface, reduce manual work and decision delays, and deploy enterprise-grade AI quickly with built-in security and governance.

AISquared's approach continues to gain recognition across the industry. Recent highlights include:

• Named one of the 10 Hottest AI Companies to Watch in 2025 and Stellar Startups 2025 by CRN
• Recognized in the Smart AI 100 Startups by Smart Venture Media
• Recognized as a DCA dual-use company, supporting both commercial and federal use cases
• Awarded as "High Performer" in G2's Grid for "Embedded Business Intelligence Software" Fall 2025

In our Federal business, we achieved "Awardable" status in the Department of War's "Tradewinds Solutions Marketplace", enabling faster procurement and expanded engagement with defense agencies. This momentum aligns with our mission of supporting federal agencies with their AI innovation and adoption goals for 2026.

With strong financial momentum, continued product innovation, and growing trust across enterprise and federal customers, AISquared is positioned to build on this progress as organizations look to deploy AI securely, at scale, and with measurable impact.

For more information about AISquared's solutions, visit aisquared.ai

About AISquared:

AISquared helps large organizations bring AI to where work happens. We do this by leveraging our SaaS or on-prem platform which combines data sources with advanced AI/ML functionality and embeds intelligent insights into business applications. Trusted by the largest financial institutions, the most complicated supply chain logistics companies, and the US Department of Defense, we enable seamless collaboration between data science teams and business users, driving faster, more informed decision-making.

Contact
5WPR
aisquared@5wpr.com

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SOURCE AISquared

FAQ

What were AISquared's headline 2025 growth metrics for SEMR?

AISquared reported 1,100% ARR growth, 115%+ net revenue retention, and 4x new customer growth in 2025.

Who led the AISquared growth funding round announced January 14, 2026 for SEMR?

The growth round was led by Coast Range Capital with participation from New Enterprise Associates.

What federal or mission partnerships did AISquared (SEMR) highlight in Jan 2026?

AISquared cited a collaboration with NASA Jet Propulsion Laboratory and achieved "Awardable" status in the Department of War Tradewinds marketplace.

What new products and integrations did AISquared announce for enterprise AI?

Key developments include Sparx for mid-market no-code AI, enhancements to the AI workflow builder, expanded governance controls, and integration with IBM watsonx Orchestrate.

How is AISquared strengthening leadership and board for growth (SEMR)?

AISquared added Mark Vranish to the board and hired senior technical leaders including a Field CTO and vertical CTOs to scale product and customer success.