Following two years of recalibration, private SaaS companies are regaining momentum. Leaders are balancing disciplined operations with reinvigorated expansion strategies, a shift reflected in this year’s survey, which shows the industry actively harnessing AI as the bridge between efficiency and growth.

Now in its 16th year, the KeyBanc Capital Markets SaaS Survey remains a trusted benchmark for private software company performance. For the third year, Sapphire Ventures has partnered with KeyBanc to broaden the report’s perspective, offering insights into how operators and investors are navigating the intersection of AI innovation, efficiency, and growth.

Nearly every company surveyed increased its AI investment in 2025, utilizing automation and intelligent tools to enhance productivity, refine go-to-market strategies, and unlock sustainable value—marking a shift from experimentation to execution.

Key trends you will find in this year’s survey report: 

• ARR growth is projected to accelerate from 15% in 2024 to 20% in 2025, marking the first rebound in three years
• EBITDA margins have steadily improved since 2022 and are expected to turn positive by 2026
• SaaS companies are maintaining gross retention near 90% and net retention above 100%, with AI-native and AI-enabled companies leading the way, expected to further improve retention through smarter onboarding, personalized experiences, and proactive support systems
• Nearly all companies surveyed plan to increase AI budgets, with over half boosting spend by 20% or more, and two-thirds already monetizing AI through subscription or hybrid models
• Sales efficiency continues to improve, with account executive payback periods expected to shorten to 18 months by 2026, reflecting refined go-to-market strategies and AI-driven productivity gains

Access the full 2025 SaaS Survey to explore detailed benchmarks, financial insights, and operator perspectives shaping the year ahead.