Overall Score

Revenue Model

Semrush still appears to monetize a subscription-led digital marketing platform with strong gross margins (80.5% TTM).

Revenue productivity remains acceptable with revenue per share at 2.96 and a current ratio of 2.11, supporting a stable recurring model.

Profitability

Profitability remains weak, with TTM net margin at -4.3% and operating margin at -5.1%.

Return metrics are still negative across ROA (-4.2%), ROE (-6.7%), and ROIC (-7.5%), indicating the business is not yet consistently converting scale into earnings.

Cash Generation

Cash generation remains solid enough to support operations, with free cash flow yield at 2.9% and free cash flow of $56.5M TTM.

Capex remains light at 1.4% of revenue and FCF conversion is high, with free cash flow to operating cash flow at 89.5%.

Balance Sheet

The balance sheet remains conservative, with net debt to EBITDA still deeply negative at -41.0x, implying net cash.

Liquidity is healthy with a current ratio of 2.11 and cash ratio of 1.72, while debt-to-equity remains low at 0.04.

Operating Efficiency

Working capital efficiency remains decent, with a cash conversion cycle of -78.8 days and receivables outstanding of 21.8 days.

High SG&A intensity at 63.8% of revenue continues to weigh on operating leverage despite strong gross margins.