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Gross Margin Benchmarks

Public SaaS Companies — 159 companies tracked

Median Gross Margin74.6%
Excellent (75%+)77
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Gross Margin — Top 20 Companies

Sorted highest to lowest. Dashed line = median.

Gross margin measures the percentage of revenue remaining after direct costs of delivering the product. For SaaS companies, gross margins above 70% are considered healthy; above 80% is exceptional. Below are all 159 companies ranked by gross margin, sourced from the most recent 10-Q or 10-K filing.

Ranked Gross Margin Data

#CompanyTickerSectorGross Marginvs. Median
1
BI
Block, Inc.		SQVertical SaaS324.4%+249.8pp
2
VS
VARONIS SYSTEMS INC		VRNSVertical SaaS181.9%+107.3pp
3
OI
OOMA INC		OOMAVertical SaaS150.1%+75.5pp
4
IV
i3 Verticals, Inc.		IIIVVertical SaaS149.7%+75.1pp
5
WC
Weave Communications, Inc.		WEAVCommunications101.1%+26.5pp
6
EI
EVERTEC, Inc.		EVTCVertical SaaS99.6%+25.0pp
7
II
INTUIT INC.		INTUVertical SaaS98.7%+24.1pp
8
CD
CADENCE DESIGN SYSTEMS INC		CDNSVertical SaaS98.5%+23.9pp
9
WI
Workday, Inc.		WDAYHR Tech98.4%+23.8pp
10
IE
Inspired Entertainment, Inc.		INSEVertical SaaS97.5%+22.9pp
11
NI
NERDWALLET, INC.		NRDSVertical SaaS92.4%+17.8pp
12
RC
Roblox Corp		RBLXVertical SaaS91.7%+17.1pp
13
RI
Reddit, Inc.		RDDTVertical SaaS91.0%+16.5pp
14
AI
Autodesk, Inc.		ADSKVertical SaaS90.8%+16.2pp
15
CI
CarGurus, Inc.		CARGVertical SaaS89.5%+14.9pp
16
AI
Adobe Inc.		ADBEMarketing Tech89.3%+14.7pp
17
AI
Asana, Inc.		ASANProject Management89.0%+14.4pp
18
SI
Skillz Inc.		SKLZVertical SaaS87.3%+12.7pp
19
GI
GitLab Inc.		GTLBDevTools & Observability87.2%+12.6pp
20
NI
Nutanix, Inc.		NTNXVertical SaaS87.1%+12.5pp
21
CI
Cars.com Inc.		CARSVertical SaaS86.6%+12.0pp
22
AI
AppFolio, Inc.		APPFVertical SaaS85.7%+11.1pp
23
FI
Freshworks Inc.		FRSHVertical SaaS84.8%+10.2pp
24
PI
PagerDuty, Inc.		PDVertical SaaS84.5%+10.0pp
25
ZT
ZoomInfo Technologies Inc.		ZISales Intelligence83.9%+9.3pp
26
HI
HubSpot, Inc.		HUBSMarketing Tech83.7%+9.1pp
27
PI
PTC INC.		PTCVertical SaaS83.7%+9.1pp
28
PS
Paycom Software, Inc.		PAYCHR Tech83.4%+8.8pp
29
PT
Palantir Technologies Inc.		PLTRData & Analytics83.2%+8.6pp
30
QI
QUALYS, INC.		QLYSVertical SaaS82.7%+8.1pp
31
UI
UiPath, Inc.		PATHVertical SaaS82.3%+7.7pp
32
BS
BENTLEY SYSTEMS INC		BSYVertical SaaS81.7%+7.1pp
33
MG
Momentive Global Inc.		MNTVData & Analytics81.7%+7.1pp
34
DI
Dynatrace, Inc.		DTDevTools & Observability81.6%+7.0pp
35
FI
Figma, Inc.		FIGVertical SaaS81.6%+7.0pp
36
PS
PROGRESS SOFTWARE CORP /MA		PRGSVertical SaaS81.4%+6.8pp
37
CS
COMMVAULT SYSTEMS INC		CVLTVertical SaaS81.2%+6.6pp
38
BH
Bill.com Holdings, Inc.		BILLFintech80.8%+6.2pp
39
SH
SEMrush Holdings, Inc.		SEMRVertical SaaS80.5%+6.0pp
40
DI
Dropbox, Inc.		DBXCloud Storage80.2%+5.6pp
41
CC
Consensus Cloud Solutions, Inc.		CCSIVertical SaaS80.0%+5.4pp
42
RI
Rubrik, Inc.		RBRKVertical SaaS79.8%+5.2pp
43
HH
Hinge Health, Inc.		HNGEVertical SaaS79.8%+5.2pp
44
DI
Datadog, Inc.		DDOGDevTools & Observability79.6%+5.0pp
45
PT
Procore Technologies, Inc.		PCORVertical SaaS79.5%+4.9pp
46
DI
DOCUSIGN, INC.		DOCUVertical SaaS79.3%+4.7pp
47
SG
Silvaco Group, Inc.		SVCOVertical SaaS79.1%+4.5pp
48
CI
Cerence Inc.		CRNCVertical SaaS79.1%+4.5pp
49
BI
Box, Inc.		BOXCloud Storage79.1%+4.5pp
50
EA
ELECTRONIC ARTS INC.		EAVertical SaaS79.0%+4.4pp
51
GD
Gen Digital Inc.		GENVertical SaaS78.9%+4.3pp
52
GD
Gen Digital Inc.		GENVRVertical SaaS78.9%+4.3pp
53
LI
Life360, Inc.		LIFVertical SaaS78.5%+3.9pp
54
WI
WORKIVA INC		WKVertical SaaS78.4%+3.8pp
55
CI
Commerce.com, Inc.		CMRCVertical SaaS78.4%+3.8pp
56
TH
Tenable Holdings, Inc.		TENBVertical SaaS78.0%+3.4pp
57
MA
MANHATTAN ASSOCIATES INC		MANHVertical SaaS77.6%+3.0pp
58
UI
UPWORK, INC		UPWKVertical SaaS77.6%+3.0pp
59
SI
Salesforce, Inc.		CRMCRM & Sales77.5%+2.9pp
60
ZC
Zoom Communications, Inc.		ZMCommunications77.4%+2.8pp
61
SS
Sprout Social, Inc.		SPTMarketing Tech77.4%+2.8pp
62
OI
Okta, Inc.		OKTASecurity77.3%+2.7pp
63
NI
N-able, Inc.		NABLVertical SaaS77.1%+2.5pp
64
SI
ServiceNow, Inc.		NOWIT Service Management77.1%+2.5pp
65
JL
JFrog Ltd		FROGVertical SaaS76.9%+2.3pp
66
PG
Porch Group, Inc.		PRCHVertical SaaS76.7%+2.1pp
67
TT
The Trade Desk, Inc.		TTDMarketing Tech76.7%+2.1pp
68
JH
Jamf Holding Corp.		JAMFIT Service Management76.6%+2.0pp
69
EN
Elastic N.V.		ESTCDevTools & Observability75.9%+1.3pp
70
VS
Veeva Systems Inc.		VEEVVertical SaaS75.7%+1.1pp
71
SI
SYNOPSYS INC		SNPSVertical SaaS75.5%+0.9pp
72
KI
Klaviyo, Inc.		KVYOVertical SaaS75.5%+0.9pp
73
NR
New Relic, Inc.		NEWRDevTools & Observability75.5%+0.9pp
74
DH
Definitive Healthcare Corp.		DHVertical SaaS75.5%+0.9pp
75
BI
BLACKLINE, INC.		BLVertical SaaS75.5%+0.9pp
76
PH
Paylocity Holding Corporation		PCTYHR Tech75.4%+0.8pp
77
II
Intapp, Inc.		INTAVertical SaaS75.0%+0.4pp
78
AC
Appian Corporation		APPNLow-Code / No-Code74.9%+0.3pp
79
CD
CS Disco, Inc.		LAWVertical SaaS74.6%+0.0pp
80
PI
Pegasystems Inc.		PEGALow-Code / No-Code74.6%+0.0pp
—
Median Benchmark
—All Sectors74.6%—
81
CH
CrowdStrike Holdings, Inc.		CRWDVertical SaaS74.5%-0.1pp
82
YI
Yext, Inc.		YEXTVertical SaaS74.3%-0.3pp
83
CI
Confluent, Inc.		CFLTData & Analytics74.3%-0.3pp
84
DI
Domo, Inc.		DOMOData & Analytics74.2%-0.4pp
85
SI
SentinelOne, Inc.		SSecurity73.9%-0.7pp
86
AI
AvePoint, Inc.		AVPTVertical SaaS73.8%-0.8pp
87
CI
Cloudflare, Inc.		NETVertical SaaS73.8%-0.8pp
88
AI
Amplitude, Inc.		AMPLData & Analytics73.6%-1.0pp
89
PI
Paychex, Inc.		PAYXHR Tech73.5%-1.1pp
90
CI
CCC Intelligent Solutions Holdings Inc.		CCCVertical SaaS73.5%-1.1pp
91
EC
EGAIN Corp		EGANVertical SaaS72.5%-2.1pp
92
DI
Duolingo, Inc.		DUOLVertical SaaS72.3%-2.3pp
93
NI
Navan, Inc.		NAVNVertical SaaS71.8%-2.8pp
94
MI
MongoDB, Inc.		MDBData & Analytics71.5%-3.1pp
95
RI
RingCentral, Inc.		RNGCommunications71.4%-3.2pp
96
LH
LiveRamp Holdings, Inc.		RAMPVertical SaaS71.0%-3.6pp
97
SI
ServiceTitan, Inc.		TTANVertical SaaS70.7%-3.9pp
98
CI
CoreWeave, Inc.		CRWVVertical SaaS70.6%-4.0pp
99
KI
KALTURA INC		KLTRVertical SaaS70.5%-4.1pp
100
RI
Rapid7, Inc.		RPDVertical SaaS70.4%-4.2pp
101
MI
Marqeta, Inc.		MQVertical SaaS70.3%-4.3pp
102
VA
Verisk Analytics, Inc.		VRSKData & Analytics69.9%-4.7pp
103
SC
SPS Commerce, Inc.		SPSCVertical SaaS68.9%-5.7pp
104
VS
Verint Systems Inc.		VRNTSecurity68.6%-6.0pp
105
MC
Microsoft Corporation		MSFTCloud Infrastructure68.3%-6.3pp
106
TI
Trimble Inc.		TRMBVertical SaaS68.2%-6.4pp
107
VI
Veritone, Inc.		VERIVertical SaaS68.2%-6.4pp
108
ZI
Zuora, Inc.		ZUOFintech67.8%-6.8pp
109
SI
Sprinklr, Inc.		CXMMarketing Tech67.3%-7.3pp
110
BI
Braze, Inc.		BRZEMarketing Tech67.2%-7.4pp
111
SI
Snowflake Inc.		SNOWData & Analytics67.1%-7.5pp
112
CI
Certara, Inc.		CERTVertical SaaS66.9%-7.7pp
113
NI
Netskope Inc		NTSKVertical SaaS66.9%-7.7pp
114
CA
Clearwater Analytics Holdings, Inc.		CWANData & Analytics66.8%-7.7pp
115
AH
Alarm.com Holdings, Inc.		ALRMVertical SaaS66.1%-8.5pp
116
8I
8X8 INC /DE/		EGHTVertical SaaS65.7%-8.9pp
117
IH
Instructure Holdings, Inc.		INSTVertical SaaS65.5%-9.1pp
118
LI
LEGALZOOM.COM, INC.		LZVertical SaaS65.0%-9.6pp
119
VI
Vertex, Inc.		VERXVertical SaaS64.0%-10.6pp
120
SI
SailPoint, Inc.		SAILVertical SaaS63.7%-10.9pp
121
GS
Guidewire Software, Inc.		GWREVertical SaaS63.4%-11.2pp
122
US
Unity Software Inc.		UVertical SaaS62.3%-12.3pp
123
NI
nCino, Inc.		NCNOVertical SaaS61.1%-13.5pp
124
BI
Backblaze, Inc.		BLZEVertical SaaS60.6%-14.0pp
125
ZG
Zeta Global Holdings Corp.		ZETAVertical SaaS60.5%-14.1pp
126
TC
TERADATA CORP /DE/		TDCVertical SaaS59.7%-14.9pp
127
DH
DigitalOcean Holdings, Inc.		DOCNCloud Infrastructure59.1%-15.5pp
128
BI
BLACKBAUD INC		BLKBVertical SaaS59.0%-15.6pp
129
PH
PowerSchool Holdings, Inc.		PWSCVertical SaaS59.0%-15.6pp
130
SI
Shutterstock, Inc.		SSTKVertical SaaS58.3%-16.3pp
131
AT
Alkami Technology, Inc.		ALKTFintech57.8%-16.8pp
132
FI
Fastly, Inc.		FSLYVertical SaaS57.4%-17.2pp
133
TT
TAKE TWO INTERACTIVE SOFTWARE INC		TTWOVertical SaaS57.3%-17.3pp
134
MN
Model N, Inc.		MODNFintech56.6%-18.0pp
135
EG
Exzeo Group, Inc.		XZOVertical SaaS55.4%-19.2pp
136
FI
Five9, Inc.		FIVNCommunications55.2%-19.4pp
137
QH
Q2 Holdings, Inc.		QTWOVertical SaaS55.1%-19.5pp
138
CI
Coursera, Inc.		COURVertical SaaS54.9%-19.7pp
139
TI
Twilio Inc.		TWLOCommunications49.0%-25.6pp
140
SI
Shopify Inc.		SHOPVertical SaaS48.9%-25.7pp
141
CS
CSG SYSTEMS INTERNATIONAL INC		CSGSVertical SaaS48.6%-26.0pp
142
ST
SS&C Technologies Holdings Inc		SSNCVertical SaaS48.4%-26.2pp
143
AW
ACI WORLDWIDE, INC.		ACIWVertical SaaS47.2%-27.4pp
144
TT
TYLER TECHNOLOGIES INC		TYLVertical SaaS47.2%-27.4pp
145
SA
SOUNDHOUND AI, INC.		SOUNVertical SaaS42.4%-32.2pp
146
SA
SOUNDHOUND AI, INC.		SOUNWVertical SaaS42.4%-32.2pp
147
CI
C3.ai, Inc.		AIVertical SaaS41.8%-32.8pp
148
WI
WEX Inc.		WEXFintech40.5%-34.1pp
149
VT
Via Transportation, Inc.		VIAVertical SaaS39.4%-35.2pp
150
BI
Bandwidth Inc.		BANDCommunications39.1%-35.5pp
151
OC
ORACLE CORP		ORCLVertical SaaS36.5%-38.1pp
152
3S
3D SYSTEMS CORP		DDDVertical SaaS35.3%-39.3pp
153
GD
GRID DYNAMICS HOLDINGS, INC.		GDYNVertical SaaS34.8%-39.8pp
154
II
INNODATA INC		INODVertical SaaS34.6%-40.0pp
155
TI
Toast, Inc.		TOSTVertical SaaS26.3%-48.3pp
156
BH
BigBear.ai Holdings, Inc.		BBAIVertical SaaS25.7%-48.9pp
157
BH
BigBear.ai Holdings, Inc.		BBAI-WTVertical SaaS25.7%-48.9pp
158
AD
AUTOMATIC DATA PROCESSING INC		ADPVertical SaaS6.0%-68.6pp
159
AD
Applied Digital Corp.		APLDVertical SaaS1.0%-73.5pp

What is Gross Margin?

Gross margin is gross profit — revenue minus cost of goods sold (COGS) — expressed as a percentage of revenue. For SaaS businesses, COGS typically includes hosting infrastructure, customer support, and third-party software costs. It is the most direct indicator of a software product's unit economics.

Formula: Gross Margin = (Revenue − COGS) / Revenue × 100

What good looks like: Best-in-class public SaaS companies maintain gross margins of 75–85%. Margins below 60% suggest higher infrastructure or services costs, often seen in companies with large professional services components or early-stage cloud migration costs. Gross margin is a prerequisite for long-term profitability — a company cannot FCF-positive without a healthy gross margin.

Related guides & definitions

Gross Margin: full definition →DevTools & Observability — highest gross margin sector →

Frequently Asked Questions

What is a good gross margin for a SaaS company?

A good gross margin for a SaaS company is 70% or above, with best-in-class companies reaching 75–85%. Pure software companies (no significant services revenue) commonly achieve 80%+ gross margins. Companies with professional services or embedded hardware components typically run 60–70%.

Why does gross margin matter for SaaS valuation?

Gross margin is a prerequisite for long-term profitability. High gross margins (75%+) allow SaaS companies to invest aggressively in R&D and sales while still generating positive operating income at scale. Investors use gross margin as a quality signal — companies with low gross margins face structural headwinds reaching profitability regardless of growth rate.

Which SaaS sectors have the highest gross margins?

DevTools, cybersecurity, and pure-play SaaS companies typically achieve the highest gross margins (75–85%). Companies with embedded professional services, marketplace models, or payments processing tend to have lower gross margins (55–70%).

AH
Author

Ara Housepian

Founder & Lead SaaS Analyst, Araho Digital

Ara is the founder of Araho Digital and SaaSDB. He has spent over a decade in software development, SaaS operating metrics modeling, and investment data analysis. Ara holds a degree in Computer Science and focuses on building financial tooling and data pipelines that make institutional-grade SaaS benchmarking accessible to growth operators.

languageWebsite|mailContact|verifiedVerified Expert

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Data sourced from SEC EDGAR filings · Updated daily · As of 2026-04-25

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