Semrush Holdings (SEMR) Returns To EPS Loss In Q4 FY 2025 Challenging Bullish Margin Story

Semrush Holdings (SEMR) just posted its FY 2025 numbers with Q4 revenue of US$117.7 million and a basic EPS loss of US$0.07, alongside a full year trailing revenue line of US$443.6 million and a trailing basic EPS loss of US$0.13. Over recent periods the company has seen quarterly revenue move from US$97.4 million in Q3 FY 2024 to US$117.7 million in Q4 FY 2025. Basic EPS has shifted from a profit of US$0.02 in Q4 FY 2024 to a loss of US$0.07 in Q4 FY 2025, which highlights a situation where topline scale is building while margins remain under pressure.

See our full analysis for Semrush Holdings.

With the headline figures on the table, the next step is to see how these results line up with the widely followed growth and profitability narratives that have built around Semrush over the past year.

See what the community is saying about Semrush Holdings

Revenue Keeps Building, Profits Still Under Pressure

• Across FY 2025, revenue moved from US$97.4 million in Q3 FY 2024 to US$117.7 million in Q4 FY 2025, while trailing 12 month revenue reached US$443.6 million alongside a trailing net income loss of US$19.0 million.
• Consensus narrative talks about long term margin improvement helped by enterprise and AI products, yet the latest trailing 12 month Basic EPS is a loss of US$0.13 and Q4 FY 2025 net income is a loss of US$11.1 million, which means the story of future higher margins is sitting against a period where profitability on the reported numbers is still negative.
  • Analysts expect revenue to grow around 16.2% per year with margins moving from roughly break even to 12.4%, while the last two reported years of trailing 12 month net income show a move from an US$8.2 million profit in Q4 FY 2024 to a US$19.0 million loss in Q4 FY 2025.
  • That tension between higher forecast margins and current losses is the key thing to keep in mind if you are leaning toward the consensus narrative that the business is setting up for better long term profitability.

Share Price Sits Near DCF Fair Value

• With the share price at US$11.93 and DCF fair value of US$12.52, the stock is described as trading at a small discount while the company is unprofitable on a trailing 12 month net income loss of US$19.0 million and a reported P/S of 4.1x compared with 3.3x for the wider US Software group.
• What bullish investors point to is that revenue is forecast to grow 13.5% per year and earnings are forecast to grow very quickly from current losses, and they pair that with the small gap between the current price and the DCF fair value of US$12.52 as support for the view that the current valuation can be reasonable even with a premium P/S multiple.
  • The bulls' focus on faster revenue growth than the cited US market rate of 10.2% sits beside the fact that the trailing 12 month Basic EPS has gone from a profit of US$0.06 in Q4 FY 2024 to a loss of US$0.13 in Q4 FY 2025, so the upbeat view is leaning more on forecasts than on the recent profitability track record.
  • They also lean on the history that losses have been reduced over roughly five years at about 16.9% a year, which they see as part of the path toward the projected move into profitability within three years, even though the latest full year still reports a loss.

Have a look at how bullish commentators frame that path using both the recent EPS loss and the DCF gap to US$12.52 in their case for Semrush, then compare it with your own view of the risks and rewards. 🐂 Semrush Holdings Bull Case

Bears Focus On Ongoing Losses And Premium P/S

• Bears highlight that trailing 12 month net income has swung from a profit of US$8.2 million in Q4 FY 2024 to a loss of US$19.0 million in Q4 FY 2025, while the P/S multiple of 4.1x sits above both the US Software industry average of 3.3x and peer average of 3.5x even as the business remains loss making.
• Critics argue that reliance on core SEO tools, competition from low cost and AI powered alternatives, and exposure to customer churn at the low end could limit how far margins improve, and they see the combination of a premium P/S and recent shift back into losses as a clear challenge to the more optimistic profitability path that assumes the company reaches healthy double digit margins in a few years.
  • That cautious stance leans on the fact that quarterly Basic EPS has gone from a profit of US$0.02 in Q4 FY 2024 to a loss of US$0.07 in Q4 FY 2025, with every quarter of FY 2025 except Q1 in loss making territory, so recent data is not yet showing the margin profile that the forecasts point toward.Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Semrush Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    If the mixed tone of this update leaves you undecided, it may be a good time to review the data yourself and determine your own position. Take a closer look at the balance of 2 key rewards and 1 important warning sign so you can weigh both sides and form your own view.

    See What Else Is Out There

    Semrush is still reporting losses on both EPS and net income while carrying a premium P/S multiple, so the recent profitability trend is a clear weak spot.

    If that mix of ongoing losses and a rich sales multiple feels uncomfortable, you can instead shift your focus to 76 resilient stocks with low risk scores to quickly review companies where the risk profile looks more controlled.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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