Semrush Holdings, Inc.

Q3 revenue was $112.1 million. Non-GAAP operating margin was 12.6%, with non-GAAP operating income of $14.1 million. Cash flow from operations was $21.9 million, free cash flow was $17 million, and ARR increased 14% year over year to $455.4 million. Average ARR per paying customer increased to $4,000, up more than 17% year over year, while paying customers were approximately 114,000. For Q4 2025, Semrush guided to revenue of $117.5 million to $119.5 million, implying about 15.5% growth at the midpoint, and non-GAAP operating margin of about 12.5%. For full-year 2025, it guided to revenue of $443.5 million to $445.5 million, about 18% growth at the midpoint, and reiterated about 12% for both non-GAAP operating margin and free cash flow margin. Management said FX is creating about a $10 million expense headwind, with approximately 30% of expenses denominated in euros.

Bill Wagner framed the quarter as evidence that Semrush is benefiting from a broader shift in online discoverability, where AI search is compounding rather than replacing SEO. He emphasized that the company’s data advantage, large SEO base, and new AI products position it to win as marketers need to be visible in both classic search and LLM-generated answers. His tone was confident and expansionary, highlighting Semrush One, enterprise upmarket progress, and the belief that the company is early in a larger opportunity.

Brian Mulroy highlighted the financial inflection in net new ARR, calling the $20 million sequential increase a meaningful step-up driven by Enterprise and AI adoption. He cited 33% ARR growth in the Enterprise segment, 125% Enterprise net revenue retention, nearly 150% NRR for customers using at least one AI solution, $21.9 million of operating cash flow, $17 million of free cash flow, and $275.7 million in cash, cash equivalents, and short-term investments. He also noted the full-year margin outlook includes an approximate $10 million FX headwind and said that absent currency effects, operating margin would have shown about 230 basis points of year-over-year expansion.

Analysts focused on Semrush One, the Q3 rebound in net new ARR, 2026 growth inflection drivers, sales capacity, pricing, capital allocation, and competition in AI optimization. Management said Semrush One is not just a bundle but a more integrated workflow that combines SEO and AI visibility, and it argued that growth re-accelerated because of new product launches, lapping 2024 acquisitions, and a scaling enterprise go-to-market organization. On capital allocation, management said organic investment remains the first priority, but M&A and share repurchases remain on the table; it also said no repurchases occurred in the quarter because of litigation the company was working through. In competition, management said many AI visibility start-ups lack SEO foundations and Semrush’s data, brand, and installed base are key advantages.