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Jun 30
Semrush Q2 2025 Earnings Report
Semrush reported strong revenue growth in Q2 2025, driven by accelerated adoption of AI and Enterprise products, despite a net loss from operations.
Key Takeaways
Semrush announced its second quarter 2025 financial results, reporting revenue of $108.9 million, a 20% increase year-over-year. The company experienced a loss from operations of $4.3 million, compared to an income of $3.4 million in the prior year. Non-GAAP income from operations was $12.0 million. Key highlights include significant growth in customers paying over $50,000 annually and the announcement of a $150 million share repurchase program.
Revenue for Q2 2025 reached $108.9 million, marking a 20% increase year-over-year.
The company reported a GAAP operating loss of $4.3 million, contrasting with an operating income of $3.4 million in the same period last year.
Customers paying over $50,000 annually increased by 83% year-over-year, indicating strong enterprise adoption.
Semrush initiated a $150 million share repurchase program, reflecting confidence in its financial health and future prospects.
Semrush
Semrush
Forward Guidance
Semrush is providing financial guidance for Q3 and full-year 2025, expecting continued revenue growth and stable non-GAAP operating margins, while revising annual revenue outlook due to softer demand at the lower end of the market.
Positive Outlook
- Expected Q3 2025 revenue in the range of $111.1 million to $112.1 million, representing approximately 15% year-over-year growth at the mid-point.
- Anticipated Q3 2025 non-GAAP operating margin of approximately 11.5%.
- Full-year 2025 revenue expected in the range of $443.0 million to $446.0 million, representing approximately 18% year-over-year growth at the mid-point.
- Full-year 2025 non-GAAP operating margin expected to be approximately 12%.
- Full-year 2025 free cash flow margin expected to be approximately 12%.
Challenges Ahead
- Annual revenue outlook revised to reflect softer demand at the lower end of the market.
- Softer demand at the lower end of the market is impacted by an increase in paid-search cost per click.
- Reconciliations of non-GAAP operating margin and free cash flow margin guidance to GAAP measures are not available without unreasonable efforts due to high variability and low visibility of certain charges.
- Variability of charges like share-based compensation expense, employer taxes, and tax deductions specific to equity compensation awards are expected to have a significant and potentially unpredictable impact on future GAAP financial results.
- The share repurchase program does not obligate Semrush to acquire a specified number of shares and may be suspended, modified, or terminated at any time without prior notice.