Investment Rating - The report does not explicitly provide an investment rating for the industry but indicates a cautious outlook for enterprise SaaS multiples into 2026 due to global uncertainty and technological disruptions [6]. Core Insights - The median EV/TTM revenue multiple for public enterprise SaaS companies decreased to 5x at the end of Q4 2025, down from 5.3x in Q3 2025, and is expected to see limited upside into 2026 [6]. - Revenue growth rates for 2026 are anticipated to step down to high single digits or low double digits, with significant declines expected in several segments, while slight growth is expected in collaboration, productivity, and creative segments [9]. - The median gross margin for public enterprise SaaS companies increased to nearly 77% in 2025, with expectations of continued strength but limited substantial growth in 2026 [10]. - The median EBITDA margin rose to 19.8% in 2025, with expectations for further strengthening across most segments into 2026 [11]. Summary by Sections Revenue - Revenue growth rates for enterprise SaaS companies are projected to decline significantly in 2026, with the median growth rate barely in double digits, down from previous years' rates of 15% to 30% [9]. - The report highlights specific segments expected to experience declines, including CRM, sales, marketing & CX, finance, ERP, HR & payroll, and data, analytics & AI platforms [9]. Valuation - The report notes that valuation multiples have continued to decline, with 76 out of 102 tracked companies experiencing decreases in their EV/TTM revenue multiples from year-end 2024 to year-end 2025 [12]. - Notable companies that outperformed the broader SaaS decline include Unity, On24, and CS Disco, while companies like Ibotta and The Trade Desk saw significant decreases in their multiples [12]. Gross Margin and EBITDA - The median gross margin across public enterprise SaaS companies is projected to remain strong at 77% in 2026, with some segments like DevOps and vertical SaaS expected to see slight growth [10]. - The report anticipates that EBITDA margins will continue to improve, with the highest growth expected in data, analytics & AI platforms and collaboration, productivity & creative segments [11].

Investment Rating - The report indicates a bearish outlook for the Enterprise SaaS industry, with significant declines in valuation multiples and revenue growth expectations [6][9]. Core Insights - The median EV/TTM revenue multiple for enterprise SaaS dropped to 3.7x in Q1 2025, down from 4.8x in Q4 2024, marking a 79.4% decline from its peak of 18x in 2021 [6]. - The IPO landscape for SaaS companies was quiet in Q1 2025, with no major IPOs, and market turmoil has further delayed anticipated IPOs [6][7]. - Revenue growth rates for public enterprise SaaS companies are expected to decline to high single digits/low double digits in 2025, down from previous rates of 15% to 30% [6][7]. - Median gross margins across public SaaS companies increased to 74% in 2024, with expectations to rise to 76% in 2025 [9]. - The median EBITDA margin for public SaaS companies rose to 21.1% in 2024, with further improvements anticipated in 2025 [9]. Summary by Sections Key Takeaways - The report highlights a significant decline in EV/TTM revenue multiples, with Q1 2025 marking the lowest levels since 2016 [6]. - The SaaS market is facing challenges with revenue growth rates expected to decelerate further due to market conditions and tariff uncertainties [6][7]. Stock Returns - The report provides detailed stock performance metrics for various SaaS companies, indicating a general decline in stock prices across the sector [10][11]. Valuations - Valuations have seen substantial declines, with notable increases in EV/TTM revenue multiples for a few companies, while the majority experienced significant decreases [9][10]. Revenue - The report outlines actual revenue figures for several companies, showing a trend of declining year-over-year growth rates [22].