SEMrush (SEMR) - 2025 Q4 - Annual Results

Financial Performance - Q4 net new ARR was $16.1 million, up 48% year-over-year, driven by the adoption of AI products and the Enterprise Platform[5] - Total ARR reached $471.4 million as of December 31, 2025, up 15% year-over-year[5] - Q4 revenue was $117.7 million, up 15% year-over-year, while full year revenue was $443.6 million, up 18% year-over-year[5] - For the fiscal year ended December 31, 2025, Semrush reported a net loss of $19,497 thousand compared to a net income of $7,375 thousand in 2024[30] - Non-GAAP income from operations for Q4 was $15.0 million, with a non-GAAP operating margin of 12.8%[5] - Non-GAAP income from operations for the three months ended December 31, 2025, was $15,028 thousand, representing a 13% operating margin, compared to $11,819 thousand and a 12% margin in 2024[26] - Free cash flow for the fiscal year ended December 31, 2025, was $42,925 thousand, a 9.7% margin, up from $35,332 thousand and a 9.4% margin in 2024[26] Customer Growth - Customers paying more than $10,000 annually grew by 31% year-over-year, while those paying over $50,000 grew by over 74%[12] - AI Products surpassed $38 million in ARR as of December 31, 2025, up from $4 million in the prior year[5] - Enterprise platform ARR grew to $37 million as of December 31, 2025, across 579 customers, up from $9 million a year ago[5] Cash and Assets - Cash flow from operations was $14.9 million in Q4, representing a margin of 12.7%[5] - Cash and cash equivalents increased significantly to $264,280 thousand as of December 31, 2025, from $48,875 thousand in 2024[28] - Total assets rose to $454,136 thousand as of December 31, 2025, compared to $390,943 thousand in 2024[28] - The company reported net cash provided by operating activities of $59,583 thousand for the fiscal year 2025, compared to $46,996 thousand in 2024[30] Liabilities and Equity - Total liabilities increased to $163,141 thousand in 2025 from $124,591 thousand in 2024[28] - Semrush's total stockholders' equity attributable to the company increased to $288,550 thousand in 2025 from $256,604 thousand in 2024[28] Deferred Revenue and Expenses - Deferred revenue increased to $93,187 thousand as of December 31, 2025, compared to $71,827 thousand in 2024[28] - Stock-based compensation expense for the fiscal year 2025 was $52,625 thousand, up from $27,999 thousand in 2024[30] Acquisition and Guidance - Semrush's acquisition by Adobe is expected to close in the first half of 2026, pending regulatory approvals[7] - Semrush will not provide guidance for Q1 2026 or full-year 2026 due to the anticipated closing of the Adobe transaction[8]