Semrush Holdings

SEMR

Software - Application · Technology

Price

$12.00

+0.00 (+0.00%)

Market Cap

$1.81B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+5.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 140.7M (2021) → 148.5M (2025)

Semrush makes software that helps businesses get found on the internet. Its main tools track search engine rankings, analyze competitors' websites, and help companies plan their online marketing. The primary customers are marketers, small businesses, and digital agencies who want more website traffic without guessing what works.

Semrush earns money through monthly and annual subscriptions, with plans ranging from small business tiers to enterprise packages. The company operates globally but generates most of its revenue from North America and Europe, and it serves over 100,000 paying customers. Its moat comes from the depth of its data — it has built a large proprietary database of keywords and web traffic estimates that would take years for a competitor to replicate. The main risk is that the market for SEO and digital marketing tools is crowded, with competitors like Ahrefs and Moz offering similar features, and Semrush has not yet reached consistent profitability despite strong gross margins.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-438.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$97M/ year

↑ Rising (+21% vs prior year)

21.9% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

71.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$264M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Semrush Holdings is putting 22% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

80.4%

Premium pricing power — 80.4% gross margin

Operating Margin

-11.8%

Losing money on operations — -11.8%

ROCE

-4.6%

Weak — -4.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+17.7%

Fast-growing sales (17.7% YoY)

EPS YoY

-330.1%

Earnings shrinking (-330.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

12.0%

Converts sales into free cash efficiently (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.04

Conservative — low debt load (0.04)

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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