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Free Cash Flow Margin Benchmarks

Public SaaS Companies — 29 companies tracked

Median FCF Margin23.7%

Cash Flow +28

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FCF Margin — Top 20 Companies

Sorted highest to lowest. Red bars = negative FCF. Dashed line = median.

Ranked FCF Margin Data

#	Company	Ticker	Sector	FCF Margin	vs. Median
1	VS Veeva Systems Inc.	VEEV	Vertical SaaS	44.2%	+20.5pp
2	ZC Zoom Communications, Inc.	ZM	Communications	39.5%	+15.8pp
3	DI Dropbox, Inc.	DBX	Cloud Storage	36.9%	+13.2pp
4	ZT ZoomInfo Technologies Inc.	ZI	Sales Intelligence	36.1%	+12.4pp
5	SI Salesforce, Inc.	CRM	CRM & Sales	34.7%	+11.0pp
6	SI ServiceNow, Inc.	NOW	IT Service Management	34.5%	+10.8pp
7	OI Okta, Inc.	OKTA	Security	30.0%	+6.3pp
8	BI Box, Inc.	BOX	Cloud Storage	29.8%	+6.1pp
9	DI Datadog, Inc.	DDOG	DevTools & Observability	29.2%	+5.5pp
10	WI Workday, Inc.	WDAY	HR Tech	29.1%	+5.4pp
11	PI Pegasystems Inc.	PEGA	Low-Code / No-Code	28.1%	+4.4pp
12	PH Paylocity Holding Corporation	PCTY	HR Tech	27.5%	+3.9pp
13	TT The Trade Desk, Inc.	TTD	Marketing Tech	27.5%	+3.8pp
14	SI Snowflake Inc.	SNOW	Data & Analytics	23.9%	+0.2pp
15	BH Bill.com Holdings, Inc.	BILL	Fintech	23.7%	+0.0pp
—	Median Benchmark	—	All Sectors	23.7%	—
16	RI RingCentral, Inc.	RNG	Communications	23.4%	-0.3pp
17	GI GitLab Inc.	GTLB	DevTools & Observability	23.2%	-0.4pp
18	HI HubSpot, Inc.	HUBS	Marketing Tech	22.6%	-1.1pp
19	MI MongoDB, Inc.	MDB	Data & Analytics	20.3%	-3.4pp
20	DH DigitalOcean Holdings, Inc.	DOCN	Cloud Infrastructure	20.0%	-3.6pp
21	TI Twilio Inc.	TWLO	Communications	18.9%	-4.8pp
22	EN Elastic N.V.	ESTC	DevTools & Observability	17.6%	-6.0pp
23	WI WEX Inc.	WEX	Fintech	17.0%	-6.7pp
24	TI Toast, Inc.	TOST	Vertical SaaS	10.5%	-13.2pp
25	AC Appian Corporation	APPN	Low-Code / No-Code	8.2%	-15.5pp
26	SI SentinelOne, Inc.	S	Security	7.6%	-16.1pp
27	NR New Relic, Inc.	NEWR	DevTools & Observability	5.5%	-18.2pp
28	CI Confluent, Inc.	CFLT	Data & Analytics	5.2%	-18.5pp
29	DI Domo, Inc.	DOMO	Data & Analytics	-0.6%	-24.3pp

What is Free Cash Flow Margin?

Free cash flow (FCF) margin is the percentage of revenue a company converts into free cash flow — operating cash flow minus capital expenditures. Unlike GAAP net income, FCF excludes non-cash charges and reflects the actual cash a company generates, making it the preferred profitability metric for SaaS investors evaluating long-term sustainability.

Formula: FCF Margin = (Operating Cash Flow − Capital Expenditures) / Revenue × 100

What good looks like: A FCF margin above 15% is considered strong for growth-stage SaaS companies. Mature SaaS businesses (Salesforce, ServiceNow) consistently generate 20–30%+ FCF margins. Negative FCF is expected during hypergrowth phases — investors typically accept this if revenue growth is high enough that the combined Rule of 40 score is positive.