Adobe-bound Semrush (NYSE: SEMR) lifts ARR to $471.4M in 2025
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Semrush Holdings, Inc. reported strong growth for the fourth quarter and full year 2025 while preparing to be acquired by Adobe. Fourth quarter revenue was $117.7 million, up 15% year-over-year, and full year revenue reached $443.6 million, up 18%.
Annual recurring revenue was $471.4 million as of December 31, 2025, up 15%, with AI products at $38 million and the Enterprise platform at $37 million in ARR. Non-GAAP income from operations was $15.0 million in Q4 and $53.3 million for 2025, for non-GAAP operating margins of 12.8% and 12%.
GAAP results showed a 2025 net loss attributable to Semrush of $18.96 million, but cash flow from operations was solid at $59.6 million for the year. The acquisition by Adobe, announced in November 2025, is expected to close in the first half of 2026, and Semrush will not hold future earnings calls or give 2026 guidance due to the pending transaction.
Positive
- Strong 2025 growth and profitability: Revenue rose to
$443.6 million , up18% year-over-year, ARR reached$471.4 million , up15% , and non-GAAP income from operations grew to$53.3 million with a12% margin. - Healthy cash generation: Cash flow from operations was
$59.6 million in 2025 and free cash flow was$42.9 million , supporting ongoing investment without relying on external financing. - Transformative Adobe acquisition: The planned acquisition by Adobe, expected to close in the first half of
2026 after regulatory clearance and stockholder approval, represents a significant liquidity and strategic event for shareholders.
Negative
- None.
Insights
Semrush delivers double-digit growth and strong cash flow ahead of Adobe acquisition.
Semrush grew full year revenue to
Despite a GAAP operating loss of
The pending acquisition by Adobe, expected to close in the first half of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):March 2, 2026
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction
of Incorporation)
(Commission File Number) | (I.R.S. Employer Identification No.) | |||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
(800 ) 851-9959
(Registrant’s Telephone Number, Including Area Code)
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, If Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | |||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On March 2, 2026, Semrush Holdings, Inc. (the “Company”) announced its financial results for the fiscal quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
99.1 | Press Release issued by the registrant on March 2, 2026, furnished herewith. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SEMRUSH HOLDINGS, INC. | |||||||||||
| Date: March 2, 2026 | By: | /s/ David Mason | |||||||||
| Name: David Mason | |||||||||||
| Title: Chief Legal Officer and Secretary | |||||||||||
Exhibit 99.1
Semrush Announces Fourth Quarter and Full Year 2025 Financial Results
•Q4 net new ARR was $16.1 million, up 48% year-over-year, driven by continued adoption of AI products and the Enterprise Platform.
•AI Products surpassed $38 million in ARR as of December 31, 2025, up from $4 million as of the prior year period.
•Enterprise platform ARR grew to $37 million as of December 31, 2025, across 579 customers, up from $9 million a year ago.
•Together, AI products and the Enterprise platform represented $63 million of ending ARR as of December 31, 2025, contributing to total ARR of $471.4 million.
March 2, 2026 – BOSTON – (BUSINESS WIRE) – Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter and Full Year 2025 Financial Highlights
•Fourth quarter revenue of $117.7 million, up 15% year-over-year. Full year revenue of $443.6 million, up 18% year-over-year.
•Loss from operations of $(13.9) million for the fourth quarter and loss from operations of $(22.8) million for the full year.
•Non-GAAP income from operations of $15.0 million for the fourth quarter for a non-GAAP operating margin of 12.8%, compared to non-GAAP income from operations of $11.8 million in the prior year period.
•Non-GAAP income from operations of $53.3 million for the full year 2025 for a non-GAAP operating margin of 12%, compared to non-GAAP income from operations of $45.8 million in the prior year period.
•Cash flow from operations was $14.9 million in the fourth quarter, representing a cash flow from operations margin of 12.7%.
•Cash flow from operations was $59.6 million for the full year 2025, representing a cash flow from operations margin of 13.4%.
•ARR of $471.4 million as of December 31, 2025, up 15% year-over-year.
•Dollar-based net revenue retention of 104%, as of December 31, 2025.
See “Non-GAAP Financial Measures & Definitions of Key Metrics” below for how Semrush defines ARR, dollar-based net revenue retention, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and free cash flow margin, and the financial tables that accompany this release for reconciliations of each non-GAAP financial measure to its closest comparable GAAP financial measure.
Recent Business Highlights
We are committed to empowering our customers with a best-in-class platform designed to boost their online presence and gain an edge in the market.
•Semrush customers who pay more than $10,000 annually grew by 31% year-over-year.
•Semrush customers paying over $50,000 annually grew by over 74% year-over-year.
•Launched official Semrush app in ChatGPT, enabling marketers, SEO teams, and marketing analysts using Semrush to access live Semrush data and intelligence directly within ChatGPT.
Semrush’s acquisition by Adobe, announced in November 2025, is expected to close in the first half of 2026, subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions. The waiting period applicable under the United States Hart-Scott-Rodino Act expired in January, and Semrush obtained stockholder approval for the transaction in February.
Semrush will not hold an earnings call or provide guidance for the first quarter of 2026 or the full-year 2026 due to the anticipated closing of the Adobe transaction.
About Semrush
Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “positioning,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; and statements about future operating results, including revenue, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; assumptions regarding foreign exchange rates.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in our filings with the SEC, including our most recent annual report on Form 10-K, and our subsequently filed quarterly reports and other SEC filings. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no
assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Additional information regarding these and other factors that could affect our results is included in our SEC filings, which may be obtained by visiting our Investor Relations page on its website at investors.semrush.com or the SEC's website at www.sec.gov.
Non-GAAP Financial Measures & Definitions of Key Metrics
We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but also to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. We also believe that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. We also believe free cash flow margin is useful to investors as we monitor it as a measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allows us to better understand the cash needs of our business. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release.
Annual Recurring Revenue (ARR) is defined as the total subscription revenue as of a given date that we expect to contractually receive over the subsequent 12 months from customers on an annualized basis, assuming no increases, reductions or cancellations.
Dollar-based net revenue retention is defined as (a) the revenue from our customers during the twelve-month period ending one year prior to such period as the denominator and (b) the revenue from those same customers during the twelve months ending as of the end of such period as the numerator. This calculation excludes revenue from new customers and any non-recurring revenue.
Free cash flow and free cash flow margin. We define free cash flow, a non-GAAP financial measure, as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. We define free cash flow margin as free cash flow divided by GAAP revenue.
Non-GAAP income (loss) from operations, and non-GAAP operating margin. We define non-GAAP income (loss) from operations as GAAP income (loss) from operations, excluding Stock Based Compensation, Amortization of Acquired Intangible Assets, Acquisition Related Costs, Restructuring Costs and other one-time expenses outside the ordinary course of business. We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by GAAP revenue. We believe investors may want to consider our results with and without the effects of these items in order to compare our financial performance with that of other companies that exclude such items and to compare our results to prior periods.
Stock-based compensation.
Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense allows for financial results that are more indicative of our operational performance and provide for a useful comparison of our operating results to prior periods and to our peer companies because stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies, timing of awards and changes in stock price.
Amortization of acquired intangible assets.
Excluding amortization of acquired intangible assets from non-GAAP expense and income measures allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation.
Restructuring and other costs.
Restructuring and other costs include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business. Restructuring expenses consist of employee severance costs, charges for the closure of excess facilities and other contract termination costs. Other costs include litigation contingency reserves, asset impairment charges, and gains or losses on the sale or disposition of certain non-strategic assets or product lines.
Acquisition-related costs.
In recent years, we have completed a number of acquisitions, which result in transition, integration and other acquisition-related expense which would not otherwise have been incurred, are unpredictable and dependent on a significant number of factors that are deal-specific or outside of our control, are not indicative of our operational performance (or that of the acquired businesses or assets) and are likely to fluctuate as our acquisition activity increases or decreases in future periods. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us.
Semrush Holdings, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three months ended December 31, | Fiscal Year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenue | $ | 117,659 | $ | 102,642 | $ | 443,644 | $ | 376,815 | |||||||||||||||
| Cost of revenue ¹ | 23,107 | 18,812 | 86,308 | 65,477 | |||||||||||||||||||
| Gross profit | 94,552 | 83,830 | 357,336 | 311,338 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing ¹ | 45,934 | 39,730 | 176,593 | 144,340 | |||||||||||||||||||
| Research and development ¹ | 25,749 | 21,305 | 97,170 | 80,080 | |||||||||||||||||||
| General and administrative ¹ | 36,772 | 21,054 | 106,385 | 78,610 | |||||||||||||||||||
| Total operating expenses | 108,455 | 82,089 | 380,148 | 303,030 | |||||||||||||||||||
| (Loss) income from operations | (13,903) | 1,741 | (22,812) | 8,308 | |||||||||||||||||||
| Other income, net | 4,091 | 2,927 | 12,710 | 12,094 | |||||||||||||||||||
| (Loss) income before income taxes | (9,812) | 4,668 | (10,102) | 20,402 | |||||||||||||||||||
| Provision for income taxes | 1,168 | 1,375 | 9,395 | 13,027 | |||||||||||||||||||
| Net (loss) income | (10,980) | 3,293 | (19,497) | 7,375 | |||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest in consolidated subsidiaries | 118 | (52) | (540) | (861) | |||||||||||||||||||
| Net (loss) income attributable to Semrush Holdings, Inc. | $ | (11,098) | $ | 3,345 | $ | (18,957) | $ | 8,236 | |||||||||||||||
| Net (loss) income attributable to Semrush Holdings, Inc. per share attributable to common stockholders—basic: | $ | (0.07) | $ | 0.02 | $ | (0.13) | $ | 0.06 | |||||||||||||||
| Net (loss) income attributable to Semrush Holdings, Inc. per share attributable to common stockholders—diluted: | $ | (0.07) | $ | 0.02 | $ | (0.13) | $ | 0.06 | |||||||||||||||
| Weighted-average number of shares of common stock used in computing net (loss) income per share attributable to common stockholders—basic: | 149,758 | 146,763 | 148,540 | 145,865 | |||||||||||||||||||
| Weighted-average number of shares of common stock used in computing net (loss) income per share attributable to common stockholders—diluted: | 149,758 | 149,483 | 148,540 | 148,862 | |||||||||||||||||||
| ¹ includes stock-based compensation expense as follows: | |||||||||||||||||||||||
| Three months ended December 31, | Fiscal Year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Cost of revenue | $ | 120 | $ | 70 | $ | 406 | $ | 239 | |||||||||||||||
| Sales and marketing | 2,035 | 1,535 | 7,425 | 4,742 | |||||||||||||||||||
| Research and development | 4,483 | 2,192 | 14,764 | 5,906 | |||||||||||||||||||
| General and administrative | 10,465 | 4,346 | 30,030 | 17,112 | |||||||||||||||||||
| Total stock-based compensation | $ | 17,103 | $ | 8,143 | $ | 52,625 | $ | 27,999 | |||||||||||||||
The following table sets forth a reconciliation of our (loss) income from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin (percentage amounts may not sum due to rounding):
| Three months ended December 31, | Fiscal Year ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP income from operations | ($) | (%) | ($) | (%) | ($) | (%) | ($) | (%) | |||||||||||||||||||||||||||
| (Loss) income from operations | $ | (13,903) | (12) | % | $ | 1,741 | 2 | % | $ | (22,812) | (5) | % | $ | 8,308 | 2 | % | |||||||||||||||||||
| Stock-based compensation | 17,103 | 15 | % | 8,143 | 8 | % | 52,625 | 12 | % | 27,999 | 7 | % | |||||||||||||||||||||||
| Amortization of acquired intangibles | 1,691 | 1 | % | 1,384 | 1 | % | 5,966 | 1 | % | 4,346 | 1 | % | |||||||||||||||||||||||
| Restructuring and other costs | 412 | — | % | (101) | — | % | 6,621 | 1 | % | 2,230 | 1 | % | |||||||||||||||||||||||
| Acquisition-related costs | 9,725 | 8 | % | 652 | 1 | % | 10,938 | 2 | % | 2,917 | 1 | % | |||||||||||||||||||||||
| Non-GAAP income from operations | $ | 15,028 | 13 | % | $ | 11,819 | 12 | % | $ | 53,338 | 12 | % | $ | 45,800 | 12 | % | |||||||||||||||||||
The following table sets forth a reconciliation of our net cash provided by operating activities to free cash flow (percentage amounts may not sum due to rounding):
| Three months ended December 31, | Fiscal Year ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Reconciliation of Free cash flow | ($) | (%) | ($) | (%) | ($) | (%) | ($) | (%) | |||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 14,896 | 12.7 | % | $ | 11,933 | 11.6 | % | $ | 59,583 | 13.4 | % | $ | 46,996 | 12.5 | % | |||||||||||||||||||
| Purchases of property and equipment | (67) | (0.1) | % | (391) | (0.4) | % | (1,793) | (0.4) | % | (3,802) | (1.0) | % | |||||||||||||||||||||||
| Capitalization of internal-use software costs | (3,878) | (3.3) | % | (2,020) | (2.0) | % | (14,865) | (3.4) | % | (7,862) | (2.1) | % | |||||||||||||||||||||||
| Free cash flow | $ | 10,951 | 9.3 | % | $ | 9,522 | 9.3 | % | $ | 42,925 | 9.7 | % | $ | 35,332 | 9.4 | % | |||||||||||||||||||
Semrush Holdings, Inc.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands)
| As of | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 264,280 | $ | 48,875 | |||||||
| Short-term investments | 4,996 | 186,693 | |||||||||
| Accounts receivable, net | 26,489 | 8,955 | |||||||||
| Deferred contract costs, current portion | 13,281 | 10,044 | |||||||||
| Prepaid expenses and other current assets | 15,800 | 21,617 | |||||||||
| Total current assets | 324,846 | 276,184 | |||||||||
| Property and equipment, net | 5,349 | 6,534 | |||||||||
| Operating lease right-of-use assets | 11,248 | 11,126 | |||||||||
| Intangible assets, net | 40,735 | 32,055 | |||||||||
| Goodwill | 60,123 | 56,139 | |||||||||
| Deferred contract costs, net of current portion | 5,596 | 3,080 | |||||||||
| Other long-term assets | 6,239 | 5,825 | |||||||||
| Total assets | $ | 454,136 | $ | 390,943 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 23,797 | $ | 10,463 | |||||||
| Accrued expenses | 27,369 | 20,216 | |||||||||
| Deferred revenue | 93,187 | 71,827 | |||||||||
| Current portion of operating lease liabilities | 5,407 | 4,669 | |||||||||
| Other current liabilities | 4,290 | 6,913 | |||||||||
| Total current liabilities | 154,050 | 114,088 | |||||||||
| Deferred revenue, net of current portion | 469 | 235 | |||||||||
| Deferred tax liability | 1,475 | 1,621 | |||||||||
| Operating lease liabilities, net of current portion | 7,134 | 7,602 | |||||||||
| Other long-term liabilities | 13 | 1,045 | |||||||||
| Total liabilities | 163,141 | 124,591 | |||||||||
| Stockholders' equity | |||||||||||
Class A common stock | 1 | 1 | |||||||||
Class B common stock | — | — | |||||||||
| Additional paid-in capital | 368,781 | 322,586 | |||||||||
| Accumulated other comprehensive income (loss) | 2,487 | (2,221) | |||||||||
| Accumulated deficit | (82,719) | (63,762) | |||||||||
| Total stockholders' equity attributable to Semrush Holdings, Inc. | 288,550 | 256,604 | |||||||||
| Noncontrolling interest in consolidated subsidiaries | $ | 2,445 | $ | 9,748 | |||||||
| Total stockholders’ equity | 290,995 | 266,352 | |||||||||
| Total liabilities and stockholders' equity | $ | 454,136 | $ | 390,943 | |||||||
Semrush Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Fiscal Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating Activities | |||||||||||
| Net (loss) income | $ | (19,497) | $ | 7,375 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | |||||||||||
| Depreciation and amortization expense | 13,865 | 10,068 | |||||||||
| Amortization of deferred contract costs | 14,650 | 12,451 | |||||||||
| Amortization (accretion) of premiums and discounts on investments | (2,101) | (3,270) | |||||||||
| Non-cash lease expense | 5,011 | 4,570 | |||||||||
| Stock-based compensation expense | 52,625 | 27,999 | |||||||||
| Change in fair value included in other income, net | (948) | (1,114) | |||||||||
| Deferred taxes | (370) | (1,094) | |||||||||
| Intangible asset impairment expense | 188 | 511 | |||||||||
| Other non-cash items | 1,502 | 978 | |||||||||
| Changes in operating assets and liabilities | |||||||||||
| Accounts receivable | (18,156) | 708 | |||||||||
| Deferred contract costs | (20,402) | (12,915) | |||||||||
| Prepaid expenses and other current assets | (1,710) | (4,786) | |||||||||
| Accounts payable | 13,158 | 450 | |||||||||
| Accrued expenses | 5,489 | 1,384 | |||||||||
| Other current liabilities | 3 | (507) | |||||||||
| Deferred revenue | 21,893 | 8,479 | |||||||||
| Other long-term liabilities | (357) | 91 | |||||||||
| Change in operating lease liability | (5,260) | (4,382) | |||||||||
| Net cash provided by operating activities | 59,583 | 46,996 | |||||||||
| Investing Activities | |||||||||||
| Purchases of property and equipment | (1,793) | (3,802) | |||||||||
| Capitalization of internal-use software costs | (14,865) | (7,862) | |||||||||
| Purchases of short-term investments | (140,797) | (151,170) | |||||||||
| Proceeds from sales and maturities of short-term investments | 324,592 | 147,500 | |||||||||
| Purchases of convertible debt securities | — | (3,650) | |||||||||
| Funding of investment loan receivables | — | (7,757) | |||||||||
| Proceeds from repayment of investment loan receivables | 7,757 | — | |||||||||
| Cash paid for acquisition of assets and businesses, net of cash acquired | (5,574) | (25,902) | |||||||||
| Purchase of noncontrolling interest | (6,378) | (5,383) | |||||||||
| Purchases of other investments | — | (196) | |||||||||
| Net cash provided by (used in) investing activities | 162,942 | (58,222) | |||||||||
| Financing Activities | |||||||||||
| Proceeds from exercise of stock options | 3,879 | 4,118 | |||||||||
| Taxes paid related to net share settlement of equity awards | (10,135) | — | |||||||||
| Repayment of acquired debt | (1,090) | (1,618) | |||||||||
| Payment of finance leases | (189) | (630) | |||||||||
| Net cash (used in) provided by financing activities | (7,535) | 1,870 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 415 | (432) | |||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 215,405 | (9,788) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 49,060 | 58,848 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 264,465 | $ | 49,060 | |||||||
Investor
Brinlea C. Johnson
The Blueshirt Group
Semrush Holdings, Inc.
ir@semrush.com
Media
Rachel Pearce
Director of Communications
Semrush Holdings, Inc.
rachel.pearce@semrush.com
FAQ
How did Semrush (SEMR) perform financially in Q4 2025?
Semrush delivered solid Q4 2025 growth with revenue of $117.7 million , up 15% year-over-year. The company also generated non-GAAP income from operations of $15.0 million , for a 12.8% non-GAAP operating margin, reflecting improving operating efficiency alongside continued investment.
What were Semrush (SEMR) full year 2025 revenue and ARR results?
For 2025, Semrush reported revenue of $443.6 million , an increase of 18% year-over-year. Annual recurring revenue reached $471.4 million as of December 31, 2025 , up 15% , showing strong subscription momentum and the durability of its SaaS business model.
How important are AI products and the Enterprise platform to Semrush (SEMR)?
AI products and the Enterprise platform are becoming key growth drivers. AI products reached $38 million in ARR and the Enterprise platform reached $37 million in ARR by December 31, 2025 , together contributing $63 million to Semrush’s total ARR of $471.4 million .
Is Semrush (SEMR) profitable on a non-GAAP basis for 2025?
Yes. While Semrush posted a GAAP operating loss of $22.8 million in 2025, non-GAAP income from operations was $53.3 million , representing a 12% non-GAAP operating margin. This excludes stock-based compensation, amortization of acquired intangibles, restructuring, and acquisition-related costs.
What do Semrush (SEMR) cash flow results show for 2025?
Semrush generated strong cash flows in 2025, with net cash provided by operating activities of $59.6 million . After capital expenditures and capitalized software development, free cash flow was $42.9 million , implying a free cash flow margin of about 9.7% on GAAP revenue.
What is the status of the Adobe acquisition of Semrush (SEMR)?
Semrush’s acquisition by Adobe, announced in November 2025 , is expected to close in the first half of 2026 , subject to remaining conditions. The U.S. Hart-Scott-Rodino waiting period expired in January, and Semrush obtained stockholder approval for the transaction in February.
Will Semrush (SEMR) continue to issue earnings guidance in 2026?
No. Semrush stated it will not hold an earnings call or provide guidance for the first quarter or full year 2026. This reflects the anticipated closing of the Adobe transaction, after which Semrush’s financial reporting will be determined within Adobe’s broader disclosure framework.
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Mar 2, 2026
[144] SEMrush Holdings, Inc. SEC Filing