SaaS Benchmarks 2025: New Report Details Real Data From $1M+ ARR Firms
Sep 3, 2026
K-38 Consulting releases a 2025 SaaS benchmarks report using data from $1M+ ARR firms, covering growth rates, gross margins, Net Dollar Retention, Rule of 40, ARR per employee, and department spending trends.
Raleigh, United States, September 3, 2026 /PressCable/ -- K-38 Consulting, a firm providing outsourced CFO, controller, and accounting services for startups and growing businesses, announced a new report examining SaaS benchmarks for 2025. The report draws on data from companies exceeding $1M in Annual Recurring Revenue (ARR) and arrives as the sector enters a third consecutive year of slowing growth, with companies shifting attention toward efficiency over expansion.
More information is available at https://k38consulting.com/truth-about-saas-benchmarks-1m-arr-companies/
This shift toward efficiency comes as growth figures decline across the industry. Median annual revenue growth for SaaS companies fell to 28% in 2025, according to industry reporting, marking a roughly 40% drop from 2024's median of 47%. That slowdown has pushed founders and finance leaders to reexamine which metrics actually indicate durable performance.
Despite the slower growth environment, certain benchmarks continue to separate stronger performers from the rest. K-38 Consulting's report notes that top SaaS companies maintain gross margins of 75% or higher, alongside a target Net Dollar Retention (NDR) near 111%. Together, these figures point to businesses retaining customers and controlling delivery costs even as top-line growth cools.
Among the various measures tracked, the Rule of 40 emerges as the most reliable single predictor of valuation, according to the report. Companies that clear this combined growth-and-profitability threshold command valuation multiples nearly three times higher than those at the bottom of the field, and given how few public SaaS companies currently meet that bar, the gap between those that do and those that don't remains substantial.
The report also breaks down operational efficiency at the staffing and spending level. Median ARR per employee rose to $129,724 in 2025, up from $125,000 the year before, reflecting leaner headcount relative to revenue at many growing firms. At the same time, R&D spending climbed to 22% of ARR and G&A spending rose to 14%, indicating that companies are reinvesting more even as they tighten overall efficiency.
For founders and financial executives working through these shifts, interpreting benchmark data accurately can be as important as the numbers themselves. K-38 Consulting's fractional CFO and controller teams work with SaaS companies to translate figures like gross margin, NDR, and ARR per employee into concrete operating decisions, and that guidance extends to fundraising preparation, where investors increasingly expect founders to speak fluently about Rule of 40 performance and department-level spending ratios.
As the SaaS industry continues to reward efficient, well-managed growth over rapid but costly expansion, benchmark data offers founders a clearer picture of where their companies stand. K-38 Consulting's new report gives SaaS leaders a detailed reference point for that assessment.
More information about K-38 Consulting's advisory services is available at https://k38consulting.com/
Contact Info:
Name: Dallas L Alford IV
Email: Send Email
Organization: K-38 Consulting
Address: 3809 La Costa Way, Raleigh, NC 27610, United States
Website: https://k38consulting.com/
Source: PressCable
Release ID: 89202376
Should you come across any errors, concerns, or inconsistencies within this press release's content, we urge you to reach out without delay by contacting [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our committed team will promptly address your feedback within 8 hours and take appropriate measures to resolve any identified issues or guide you through the removal process. Providing accurate and dependable information remains our utmost priority.
The late, great Patrick Stewart and his many videogame roles
Like everything else, he brought passion and commitment to the world of interactive entertainment After a brief battle with Alzheimer’s and Lewy body dementia, Sir Patrick Stewart passed away this week. Anyone with any contact with pop culture knows of Stewart. His portrayal of intrepid starship captain Jean-Luc Picard on television’s Star Trek: The Next
Can the Apple iPhone Duo capture ~30% of the foldable market in 2027?
TrendForce projects that Apple could ship 5 million iPhone Duo units this year. That puts it on course to challenge Samsung’s dominance in the foldable market.
Trump says US looking into Binance hack: 'We don't know' if North Korea responsible
President Trump said Friday his administration is looking into the $6.3 billion hacking of the cryptocurrency exchange Binance, the largest such hack on record. “We don’t know,” Trump said in the Oval Office when asked if the hack should be attributed to a suspected North Korean hacker group. “We’re looking at that,” he continued. TraderTraitor,...
Meta settles with second plaintiff during trial over social media addiction
Meta settled a social media addiction lawsuit with an 18-year-old plaintiff on Friday, avoiding its next bellwether trial, which began jury selection this week. The case, filed by a woman from Mississippi dubbed "K.D.B.," alleged her use of Instagram and Snapchat as a child worsened her mental health and contributed to her eating disorder, suicidal...
Vivo X500 Pro Max officially lands in Singapore *Updated*
Only the Vivo X500 and X500 Pro Max are coming to Singapore’s shores. Availability and pricing details within!
North Korea linked to $6.3B Binance hack
A North Korea-based cybercrime group appears to be behind a $6.3 billion hack of the cryptocurrency exchange Binance, according to two blockchain intelligence firms. Both TRM Labs and Chainalysis tied the largest crypto hack on record to TraderTraitor, a North Korean hacking unit that has previously targeted the digital asset industry. Billions of dollars' worth...
Top Science Democrat probes cuts to research spending at National Science Foundation
A key Democrat is looking into a massive amount of money that was appropriated to the National Science Foundation (NSF) but reportedly not spent. In a letter first shared with The Hill, House Committee on Science, Space and Technology ranking member Zoe Lofgren (D-Calif.) accused the foundation of violating “Congress’ power of the purse and...
AI, fuelled by advanced chips, set to power semiconductor manufacturing: industry veteran
Artificial intelligence is no longer merely the driving force behind global semiconductor demand, but is also actively reinventing how chips are designed and built, industry leaders and scientists said at a major science forum in Shanghai on Friday. Chen Yunji, co-founder of AI chipmaker Cambricon Technologies, predicted that the integration between AI and chip design would eventually automate the chip design process entirely. “In the [next] 10 years, the most important development … is the RSI...
Backlash against AI data centers threatens GOP's grip on Ohio, Texas
The importance of AI data centers is growing this election cycle as the fight over the infrastructure's costs and environmental impacts may be threatening Republicans in battleground states like Texas and Ohio. Grassroots movements in rural communities, particularly where President Trump won by double-digit margins in each of his presidential bids, are threatening the rural...
Starlink drama puts spotlight on Musk's global stature
Elon Musk and his business's role in a recent dispute over Ukraine's access to Starlink and its military network is putting a spotlight on the tech mogul's outsized influence on the international stage. Following about 10 days of confusion and finger-pointing over what caused the slowdown of Starlink and its military-grade version — Starshield — in Ukraine, Musk acknowledged his company, SpaceX, was behind the restrictions on Starlink's...
Amid brutal sell-off, what comes next for Google, Amazon and other Big Tech titans?
Soaring artificial intelligence revenues have failed to shield Intel, Amazon and Google’s parent company Alphabet from a brutal Wall Street sell-off, as their latest quarterly results deepened investor jitters over mounting capital spending and delayed returns. Intel plunged about 23 per cent in extended trading on Thursday, while Amazon shed 7.3 per cent. Alphabet tumbled 12.6 per cent during the regular session in its worst day on record, dragging the Nasdaq Composite down 1.4 per cent and...
Roblox hands Fave founder Joel Neoh the keys to SEA. His first job isn’t growth, it’s trust
Joel Neoh has spent two decades selling things to adults: group-buying deals at Groupon, cashback at Fave, DNA kits and supplements at Prenetics. His new job asks him to build a business on a platform where a large slice of the audience still needs a parent’s permission to buy anything. Roblox has appointed the Malaysian […] The post Roblox hands Fave founder Joel Neoh the keys to SEA. His first job isn’t growth, it’s trust appeared first on e27.
Hanwha bags 1st US Navy shipbuilding order
[WEEKENDER] Unknown at home, big abroad
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.