2025 SaaS Benchmarks Report by High Alpha
Contents
Introduction
Executive Summary
AI-Driven Market Rebound
Growth & Efficiency
SaaS Metrics & Trends
People
Founder Insights
Closing
Although Tradeo ff s Exist, Growth Far Outweighs Lower Gross Margins
PERFORMANCE WHEN AI IS CORE TO THE PRODUCT VS. SUPPORTING FEATURE Companies Where AI Is Core to the Product Are Scaling Rapidly, Signaling High Customer Demand Despite Heavier Infrastructure and Compute Costs
AI Is a Supporting Feature AI Is Core to the Product
Year-Over-Year Growth Rate
Software Gross Margin
Rule of 40
! INSIGHTS
300%
90%
60
Companies with AI at the core of their products are growing over three times faster than peers, but with roughly five points lower in median gross margin. The tradeoff highlights that AI-first products drive outsized growth and Rule of 40 performance, even as delivery costs rise. Surprisingly, median gross revenue retention and net revenue retention were identical between companies where AI is core to the product and those where AI is a supporting feature.
50
250%
85%
40
30
200%
80%
20
150%
75%
10
0
100%
70%
-10
-20
50%
65%
-30
Source: 2025 SaaS Benchmarks Report by High Alpha
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