SEMrush Reports 20% Revenue Growth to $108.9 Million in Q2 2025 Despite Net Loss

SEMrush Holdings, Inc. reported significant financial results for the second quarter of 2025, with total revenue reaching $108.9 million, a 20% increase from $90.9 million in the same period last year. For the first half of 2025, revenue totaled $213.9 million, up 21% from $176.8 million in the prior year. Despite this growth, the company experienced a net loss of $6.8 million for the quarter, compared to a net income of $1.4 million in Q2 2024. The loss attributable to Semrush Holdings, Inc. was $6.6 million, translating to a loss per share of $0.04, down from earnings of $0.01 per share in the previous year.

The company's operating expenses also increased significantly, totaling $92.1 million for the second quarter, compared to $72.6 million in Q2 2024. This rise was driven primarily by higher sales and marketing costs, which surged by 29% to $45.0 million, reflecting a 16% increase in headcount and increased advertising expenditures. Research and development expenses rose by 23% to $23.8 million, while general and administrative costs increased by 27% to $23.3 million. The overall increase in operating expenses contributed to a loss from operations of $4.3 million for the quarter, compared to a profit of $3.4 million in the same period last year.

In terms of customer metrics, SEMrush reported an Annual Recurring Revenue (ARR) of $435.3 million as of June 30, 2025, up from $377.7 million a year earlier. The company had approximately 116,000 paying customers, although it noted a decrease of about 2,000 customers during the quarter, attributed to macroeconomic pressures affecting lower-end market segments. The dollar-based net revenue retention rate was approximately 105%, indicating a slight decline from 106% at the end of 2024, reflecting challenges in retaining customers in certain segments.

Strategically, SEMrush has been active in expanding its product offerings and geographic reach. The company has made several acquisitions, including Third Door Media and Ryte GmbH, aimed at enhancing its content and enterprise SEO solutions. As of June 30, 2025, SEMrush operates subsidiaries in multiple countries, including the U.S., U.K., and various European nations, which supports its global customer base. The company continues to invest in product development, particularly in AI-driven solutions, to enhance its competitive position in the online visibility management market.

Looking ahead, SEMrush anticipates continued growth in its subscription revenue, driven by increased demand for its services and ongoing product innovation. The company believes its existing cash and short-term investments, totaling $258.5 million, will be sufficient to meet its operational and capital needs for at least the next 12 months. However, it acknowledges potential risks from macroeconomic conditions and competitive pressures that could impact future performance.