SEMrush Holdings, Inc. (SEMR), a provider of online visibility management and content marketing SaaS solutions, saw its stock price plummet 17.26% in pre-market trading on Tuesday. This sharp decline comes in the wake of the company's disappointing second-quarter 2025 financial results and downward revision of its full-year guidance, which have shaken investor confidence.

The company reported a loss of $0.04 per share for Q2 2025, a significant downturn from the $0.01 per share profit recorded in the same period last year. This result fell short of analyst expectations, who had forecast a modest profit of $0.02 per share. Despite reporting a 19.82% year-over-year increase in revenue to $108.9 million, slightly beating the consensus estimate of $108.8 million, the unexpected loss has overshadowed the top-line growth.

Adding to investor concerns, SEMrush provided a cautious outlook for the remainder of the year. The company lowered its full-year 2025 revenue guidance to between $443 million and $446 million, down from its previous forecast of $448 million to $453 million. Furthermore, the Q3 revenue projection of $111.1 million to $112.1 million falls below analyst expectations of $114.4 million. In an attempt to bolster investor confidence, SEMrush announced a $150 million share repurchase program. However, this move appears to have done little to offset the market's negative reaction to the earnings report and reduced guidance.