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SEMrush Holdings, Inc. (SEMR) Stock Fundamental Analysis & AI Rating 2026

SEMR NYSE Services-Prepackaged Software DE CIK: 0001831840
Recently Updated • Analysis: Apr 15, 2026 • SEC Data: 2025-12-31
HOLD
45% Conf
Pending
Analysis scheduled

📊 SEMR Key Takeaways

Revenue: $443.6M
Net Margin: -4.3%
Free Cash Flow: $57.8M
Current Ratio: 2.11x
Debt/Equity: 0.00x
EPS: $-0.13
AI Rating: HOLD with 45% confidence
SEMrush Holdings, Inc. (SEMR) receives a HOLD rating with 45% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $443.6M, net profit margin of -4.3%, and return on equity (ROE) of -6.6%, SEMrush Holdings, Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete SEMR stock analysis for 2026.

Is SEMrush Holdings, Inc. (SEMR) a Good Investment?

Claude

SEMrush demonstrates strong revenue growth (+17.7% YoY) and exceptional free cash flow generation ($57.8M), backed by a fortress balance sheet with $264.3M cash and zero debt. However, persistent operating losses (-5.1% margin) and sharply deteriorating per-share profitability (-316.7% EPS YoY) signal execution challenges in converting gross profit to operating profit, creating uncertainty about the path to sustainable profitability.

Why Buy SEMrush Holdings, Inc. Stock? SEMR Key Strengths

Claude
  • + Exceptional gross margin of 80.5% demonstrates strong product-market fit and pricing power in SaaS market
  • + Positive free cash flow of $57.8M (13% FCF margin) with minimal capital intensity ($1.8M capex) shows efficient cash generation despite accounting losses
  • + Fortress balance sheet with $264.3M cash, zero long-term debt, and 2.11x current ratio provides substantial runway for operations and strategic investments

SEMR Stock Risks: SEMrush Holdings, Inc. Investment Risks

Claude
  • ! Persistent operating losses (-$22.8M, -5.1% margin) indicate company has not achieved operating leverage despite $357.3M gross profit, suggesting high fixed cost structure
  • ! Sharply deteriorating per-share profitability (EPS -316.7% YoY) indicates shareholder dilution is outpacing fundamental improvements, destroying shareholder value
  • ! Unproven profitability path: four consecutive periods of growth have not translated to operating profitability, raising questions about unit economics and expense scalability

Key Metrics to Watch

Claude
  • * Operating margin expansion trajectory and whether company can achieve operating breakeven within 12-24 months
  • * Revenue growth rate deceleration trend and annual contract value (ACV) metrics indicating pricing/market saturation
  • * Free cash flow conversion rate and ability to sustain positive FCF while moving toward operating profitability

SEMrush Holdings, Inc. (SEMR) Financial Metrics & Key Ratios

Revenue
$443.6M
Net Income
$-19.0M
EPS (Diluted)
$-0.13
Free Cash Flow
$57.8M
Total Assets
$454.1M
Cash Position
$264.3M

💡 AI Analyst Insight

Strong liquidity with a 2.11x current ratio provides a solid financial cushion.

SEMR Profit Margin, ROE & Profitability Analysis

Gross Margin 80.5%
Operating Margin -5.1%
Net Margin -4.3%
ROE -6.6%
ROA -4.2%
FCF Margin 13.0%

SEMR vs Technology Sector: How SEMrush Holdings, Inc. Compares

How SEMrush Holdings, Inc. compares to Technology sector averages

Net Margin
SEMR -4.3%
vs
Sector Avg 18.0%
SEMR Sector
ROE
SEMR -6.6%
vs
Sector Avg 22.0%
SEMR Sector
Current Ratio
SEMR 2.1x
vs
Sector Avg 2.5x
SEMR Sector
Debt/Equity
SEMR 0.0x
vs
Sector Avg 0.5x
SEMR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is SEMrush Holdings, Inc. Stock Overvalued? SEMR Valuation Analysis 2026

Based on fundamental analysis, SEMrush Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-6.6%
Sector avg: 22%
Net Profit Margin
-4.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

SEMrush Holdings, Inc. Balance Sheet: SEMR Debt, Cash & Liquidity

Current Ratio
2.11x
Quick Ratio
2.11x
Debt/Equity
0.00x
Debt/Assets
35.9%
Interest Coverage
N/A
Long-term Debt
N/A

SEMR Revenue & Earnings Growth: 5-Year Financial Trend

SEMR 5-year financial data: Year 2021: Revenue $188.0M, Net Income -$10.2M, EPS $-0.11. Year 2022: Revenue $254.3M, Net Income -$7.0M, EPS $-0.07. Year 2023: Revenue $307.7M, Net Income -$3.3M, EPS $-0.03. Year 2024: Revenue $376.8M, Net Income -$33.8M, EPS $-0.24. Year 2025: Revenue $443.6M, Net Income $950.0K, EPS $0.01.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: SEMrush Holdings, Inc.'s revenue has grown significantly by 136% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.01 reflects profitable operations.

SEMR Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
13.0%
Free cash flow / Revenue

SEMR Quarterly Earnings & Performance

Quarterly financial performance data for SEMrush Holdings, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $97.4M $849.0K $0.01
Q2 2025 $91.0M $849.0K $0.01
Q1 2025 $85.8M $849.0K $0.01
Q3 2024 $78.7M -$279.0K $0.01
Q2 2024 $74.7M -$279.0K $0.00
Q1 2024 $70.9M $2.1M $0.01
Q3 2023 $65.8M -$279.0K $0.03
Q2 2023 $62.6M -$279.0K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

SEMrush Holdings, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$59.6M
Cash generated from operations
Capital Expenditures
$1.8M
Investment in assets
Dividends
None
No dividend program

SEMR SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for SEMrush Holdings, Inc. (CIK: 0001831840)

📋 Recent SEC Filings

Date Form Document Action
Apr 13, 2026 4 xslF345X06/wk-form4_1776116837.xml View →
Apr 3, 2026 4 xslF345X06/wk-form4_1775255964.xml View →
Apr 3, 2026 4 xslF345X06/wk-form4_1775255916.xml View →
Apr 3, 2026 4 xslF345X06/wk-form4_1775255850.xml View →
Mar 16, 2026 4 xslF345X05/wk-form4_1773692943.xml View →

Frequently Asked Questions about SEMR

What is the AI rating for SEMR?

SEMrush Holdings, Inc. (SEMR) has an AI rating of HOLD with 45% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SEMR's key strengths?

Claude: Exceptional gross margin of 80.5% demonstrates strong product-market fit and pricing power in SaaS market. Positive free cash flow of $57.8M (13% FCF margin) with minimal capital intensity ($1.8M capex) shows efficient cash generation despite accounting losses.

What are the risks of investing in SEMR?

Claude: Persistent operating losses (-$22.8M, -5.1% margin) indicate company has not achieved operating leverage despite $357.3M gross profit, suggesting high fixed cost structure. Sharply deteriorating per-share profitability (EPS -316.7% YoY) indicates shareholder dilution is outpacing fundamental improvements, destroying shareholder value.

What is SEMR's revenue and growth?

SEMrush Holdings, Inc. reported revenue of $443.6M.

Does SEMR pay dividends?

SEMrush Holdings, Inc. does not currently pay dividends.

Where can I find SEMR SEC filings?

Official SEC filings for SEMrush Holdings, Inc. (CIK: 0001831840) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SEMR's EPS?

SEMrush Holdings, Inc. has a diluted EPS of $-0.13.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SEMR a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, SEMrush Holdings, Inc. has a HOLD rating with 45% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SEMR stock overvalued or undervalued?

Valuation metrics for SEMR: ROE of -6.6% (sector avg: 22%), net margin of -4.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy SEMR stock in 2026?

Our dual AI analysis gives SEMrush Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SEMR's free cash flow?

SEMrush Holdings, Inc.'s operating cash flow is $59.6M, with capital expenditures of $1.8M. FCF margin is 13.0%.

How does SEMR compare to other Technology stocks?

Vs Technology sector averages: Net margin -4.3% (avg: 18%), ROE -6.6% (avg: 22%), current ratio 2.11 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 15, 2026 | Data as of: 2025-12-31 | Powered by Claude AI