SEMrush Holdings, Inc. (SEMR) saw its stock price plunge 12.92% in trading on Monday, following the release of its second quarter 2025 financial results and forward guidance. The online visibility management and content marketing SaaS solutions provider reported a wider-than-expected loss and provided an outlook that fell short of market expectations, triggering a significant sell-off.

For Q2 2025, SEMrush reported a loss of $0.04 per share, missing the analyst consensus estimate of $0.01 by a wide margin. This represents a stark reversal from the $0.01 per share earnings reported in the same period last year. While quarterly revenue rose 19.82% year-over-year to $108.98 million, slightly beating estimates of $108.84 million, the bottom-line miss overshadowed the top-line growth. The company's operating expenses climbed to $92.127 million, contributing to a net loss of $6.777 million for the quarter.

Adding to investor concerns, SEMrush's forward guidance appeared cautious. The company forecasts Q3 revenue between $111.1 million and $112.1 million, with full-year revenue projected at $443 million to $446 million. This outlook, combined with the Q2 losses, seems to have sparked worries about the company's growth trajectory and profitability. In an attempt to boost investor confidence, SEMrush also announced a $150 million share repurchase program. However, this move did little to offset the negative sentiment surrounding the earnings report. Despite the current challenges, Wall Street maintains a generally positive view on SEMrush, with a median 12-month price target of $16.00, representing a potential upside of over 40% from its last closing price.