What is the median gross margin for public SaaS companies?

The median gross margin for public SaaS companies tracked on SaaSDB is approximately 74%. Data is sourced from SEC EDGAR 10-K and 10-Q filings and refreshed daily.

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Gross Margin Benchmarks

Name: Gross Margin Benchmarks — Public SaaS Companies (2026)
Creator: SaaSDB
License: https://saasdb.app/terms/

Public SaaS Companies — 159 companies tracked

Median Gross Margin74.3%

Excellent (75%+)75

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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

#	Company	Ticker	Sector	Gross Margin	vs. Median
1	BI Block, Inc.	SQ	Vertical SaaS	351.7%	+277.4pp
2	VS VARONIS SYSTEMS INC	VRNS	Vertical SaaS	181.9%	+107.5pp
3	IV i3 Verticals, Inc.	IIIV	Vertical SaaS	156.6%	+82.3pp
4	OI OOMA INC	OOMA	Vertical SaaS	150.1%	+75.8pp
5	WC Weave Communications, Inc.	WEAV	Communications	101.1%	+26.7pp
6	EI EVERTEC, Inc.	EVTC	Vertical SaaS	99.7%	+25.3pp
7	II INTUIT INC.	INTU	Vertical SaaS	98.7%	+24.4pp
8	CD CADENCE DESIGN SYSTEMS INC	CDNS	Vertical SaaS	98.5%	+24.2pp
9	WI Workday, Inc.	WDAY	HR Tech	98.4%	+24.0pp
10	IE Inspired Entertainment, Inc.	INSE	Vertical SaaS	97.5%	+23.2pp
11	NI NERDWALLET, INC.	NRDS	Vertical SaaS	92.8%	+18.5pp
12	RC Roblox Corp	RBLX	Vertical SaaS	92.3%	+18.0pp
13	RI Reddit, Inc.	RDDT	Vertical SaaS	91.2%	+16.8pp
14	AI Autodesk, Inc.	ADSK	Vertical SaaS	90.8%	+16.5pp
15	CI CarGurus, Inc.	CARG	Vertical SaaS	90.5%	+16.2pp
16	AI Adobe Inc.	ADBE	Marketing Tech	89.3%	+15.0pp
17	AI Asana, Inc.	ASAN	Project Management	89.0%	+14.6pp
18	SI Skillz Inc.	SKLZ	Vertical SaaS	87.3%	+13.0pp
19	GI GitLab Inc.	GTLB	DevTools & Observability	87.2%	+12.8pp
20	NI Nutanix, Inc.	NTNX	Vertical SaaS	87.1%	+12.7pp
21	AI AppFolio, Inc.	APPF	Vertical SaaS	86.6%	+12.3pp
22	CI Cars.com Inc.	CARS	Vertical SaaS	86.6%	+12.2pp
23	FI Freshworks Inc.	FRSH	Vertical SaaS	84.8%	+10.4pp
24	PI PagerDuty, Inc.	PD	Vertical SaaS	84.5%	+10.2pp
25	PT Palantir Technologies Inc.	PLTR	Data & Analytics	84.1%	+9.8pp
26	ZT ZoomInfo Technologies Inc.	ZI	Sales Intelligence	83.5%	+9.1pp
27	PI PTC INC.	PTC	Vertical SaaS	83.3%	+9.0pp
28	HI HubSpot, Inc.	HUBS	Marketing Tech	83.3%	+8.9pp
29	PS Paycom Software, Inc.	PAYC	HR Tech	83.2%	+8.9pp
30	QI QUALYS, INC.	QLYS	Vertical SaaS	83.1%	+8.8pp
31	UI UiPath, Inc.	PATH	Vertical SaaS	82.3%	+8.0pp
32	MG Momentive Global Inc.	MNTV	Data & Analytics	81.7%	+7.4pp
33	BS BENTLEY SYSTEMS INC	BSY	Vertical SaaS	81.7%	+7.3pp
34	DI Dynatrace, Inc.	DT	DevTools & Observability	81.7%	+7.3pp
35	HH Hinge Health, Inc.	HNGE	Vertical SaaS	81.7%	+7.3pp
36	PS PROGRESS SOFTWARE CORP /MA	PRGS	Vertical SaaS	81.4%	+7.1pp
37	CS COMMVAULT SYSTEMS INC	CVLT	Vertical SaaS	81.2%	+6.9pp
38	SG Silvaco Group, Inc.	SVCO	Vertical SaaS	80.8%	+6.5pp
39	BH Bill.com Holdings, Inc.	BILL	Fintech	80.8%	+6.5pp
40	SH SEMrush Holdings, Inc.	SEMR	Vertical SaaS	80.5%	+6.2pp
41	FI Figma, Inc.	FIG	Vertical SaaS	80.4%	+6.0pp
42	CC Consensus Cloud Solutions, Inc.	CCSI	Vertical SaaS	80.2%	+5.9pp
43	DI Dropbox, Inc.	DBX	Cloud Storage	80.0%	+5.6pp
44	RI Rubrik, Inc.	RBRK	Vertical SaaS	79.8%	+5.5pp
45	EA ELECTRONIC ARTS INC.	EA	Vertical SaaS	79.8%	+5.5pp
46	PT Procore Technologies, Inc.	PCOR	Vertical SaaS	79.7%	+5.4pp
47	DI Datadog, Inc.	DDOG	DevTools & Observability	79.4%	+5.0pp
48	WI WORKIVA INC	WK	Vertical SaaS	79.3%	+5.0pp
49	DI DOCUSIGN, INC.	DOCU	Vertical SaaS	79.3%	+5.0pp
50	BI Box, Inc.	BOX	Cloud Storage	79.1%	+4.7pp
51	CI Cerence Inc.	CRNC	Vertical SaaS	78.9%	+4.6pp
52	LI Life360, Inc.	LIF	Vertical SaaS	78.5%	+4.1pp
53	MA MANHATTAN ASSOCIATES INC	MANH	Vertical SaaS	78.3%	+4.0pp
54	GD Gen Digital Inc.	GENVR	Vertical SaaS	78.1%	+3.7pp
55	GD Gen Digital Inc.	GEN	Vertical SaaS	78.1%	+3.7pp
56	TH Tenable Holdings, Inc.	TENB	Vertical SaaS	77.8%	+3.5pp
57	UI UPWORK, INC	UPWK	Vertical SaaS	77.6%	+3.3pp
58	JL JFrog Ltd	FROG	Vertical SaaS	77.5%	+3.2pp
59	SI Salesforce, Inc.	CRM	CRM & Sales	77.5%	+3.1pp
60	SS Sprout Social, Inc.	SPT	Marketing Tech	77.5%	+3.1pp
61	ZC Zoom Communications, Inc.	ZM	Communications	77.4%	+3.1pp
62	CI Commerce.com, Inc.	CMRC	Vertical SaaS	77.3%	+3.0pp
63	OI Okta, Inc.	OKTA	Security	77.3%	+3.0pp
64	NI N-able, Inc.	NABL	Vertical SaaS	77.1%	+2.8pp
65	JH Jamf Holding Corp.	JAMF	IT Service Management	76.6%	+2.2pp
66	TT The Trade Desk, Inc.	TTD	Marketing Tech	76.0%	+1.7pp
67	EN Elastic N.V.	ESTC	DevTools & Observability	75.9%	+1.6pp
68	VS Veeva Systems Inc.	VEEV	Vertical SaaS	75.7%	+1.3pp
69	BI BLACKLINE, INC.	BL	Vertical SaaS	75.6%	+1.2pp
70	SI SYNOPSYS INC	SNPS	Vertical SaaS	75.5%	+1.2pp
71	NR New Relic, Inc.	NEWR	DevTools & Observability	75.5%	+1.2pp
72	DH Definitive Healthcare Corp.	DH	Vertical SaaS	75.5%	+1.1pp
73	PH Paylocity Holding Corporation	PCTY	HR Tech	75.4%	+1.1pp
74	PG Porch Group, Inc.	PRCH	Vertical SaaS	75.1%	+0.8pp
75	II Intapp, Inc.	INTA	Vertical SaaS	75.0%	+0.7pp
76	SI ServiceNow, Inc.	NOW	IT Service Management	74.9%	+0.6pp
77	CD CS Disco, Inc.	LAW	Vertical SaaS	74.7%	+0.3pp
78	KI Klaviyo, Inc.	KVYO	Vertical SaaS	74.6%	+0.3pp
79	CH CrowdStrike Holdings, Inc.	CRWD	Vertical SaaS	74.5%	+0.1pp
80	YI Yext, Inc.	YEXT	Vertical SaaS	74.3%	+0.0pp
—	Median Benchmark	—	All Sectors	74.3%	—
81	CI Confluent, Inc.	CFLT	Data & Analytics	74.3%	-0.0pp
82	DI Domo, Inc.	DOMO	Data & Analytics	74.2%	-0.1pp
83	SI SentinelOne, Inc.	S	Security	73.9%	-0.5pp
84	AI AvePoint, Inc.	AVPT	Vertical SaaS	73.5%	-0.8pp
85	PI Paychex, Inc.	PAYX	HR Tech	73.5%	-0.8pp
86	AC Appian Corporation	APPN	Low-Code / No-Code	73.5%	-0.8pp
87	CI CCC Intelligent Solutions Holdings Inc.	CCC	Vertical SaaS	73.5%	-0.9pp
88	PI Pegasystems Inc.	PEGA	Low-Code / No-Code	73.4%	-1.0pp
89	CI Cloudflare, Inc.	NET	Vertical SaaS	72.8%	-1.5pp
90	DI Duolingo, Inc.	DUOL	Vertical SaaS	72.6%	-1.7pp
91	EC EGAIN Corp	EGAN	Vertical SaaS	72.5%	-1.8pp
92	AI Amplitude, Inc.	AMPL	Data & Analytics	71.9%	-2.4pp
93	NI Navan, Inc.	NAVN	Vertical SaaS	71.8%	-2.6pp
94	RI RingCentral, Inc.	RNG	Communications	71.7%	-2.6pp
95	KI KALTURA INC	KLTR	Vertical SaaS	71.5%	-2.8pp
96	MI MongoDB, Inc.	MDB	Data & Analytics	71.5%	-2.8pp
97	SI ServiceTitan, Inc.	TTAN	Vertical SaaS	70.7%	-3.6pp
98	LH LiveRamp Holdings, Inc.	RAMP	Vertical SaaS	70.7%	-3.7pp
99	CI CoreWeave, Inc.	CRWV	Vertical SaaS	70.6%	-3.8pp
100	RI Rapid7, Inc.	RPD	Vertical SaaS	70.4%	-4.0pp
101	VA Verisk Analytics, Inc.	VRSK	Data & Analytics	69.9%	-4.5pp
102	MI Marqeta, Inc.	MQ	Vertical SaaS	69.9%	-4.5pp
103	SC SPS Commerce, Inc.	SPSC	Vertical SaaS	69.2%	-5.1pp
104	VS Verint Systems Inc.	VRNT	Security	68.6%	-5.7pp
105	MC Microsoft Corporation	MSFT	Cloud Infrastructure	68.3%	-6.0pp
106	TI Trimble Inc.	TRMB	Vertical SaaS	68.2%	-6.1pp
107	VI Veritone, Inc.	VERI	Vertical SaaS	68.2%	-6.2pp
108	ZI Zuora, Inc.	ZUO	Fintech	67.8%	-6.6pp
109	SI Sprinklr, Inc.	CXM	Marketing Tech	67.3%	-7.1pp
110	BI Braze, Inc.	BRZE	Marketing Tech	67.2%	-7.1pp
111	SI Snowflake Inc.	SNOW	Data & Analytics	67.1%	-7.2pp
112	NI Netskope Inc	NTSK	Vertical SaaS	66.9%	-7.5pp
113	CA Clearwater Analytics Holdings, Inc.	CWAN	Data & Analytics	66.8%	-7.5pp
114	LI LEGALZOOM.COM, INC.	LZ	Vertical SaaS	66.1%	-8.3pp
115	CI Certara, Inc.	CERT	Vertical SaaS	65.9%	-8.5pp
116	AH Alarm.com Holdings, Inc.	ALRM	Vertical SaaS	65.7%	-8.6pp
117	IH Instructure Holdings, Inc.	INST	Vertical SaaS	65.5%	-8.9pp
118	US Unity Software Inc.	U	Vertical SaaS	64.5%	-9.8pp
119	VI Vertex, Inc.	VERX	Vertical SaaS	64.2%	-10.2pp
120	8I 8X8 INC /DE/	EGHT	Vertical SaaS	64.0%	-10.3pp
121	SI SailPoint, Inc.	SAIL	Vertical SaaS	63.7%	-10.6pp
122	GS Guidewire Software, Inc.	GWRE	Vertical SaaS	63.4%	-11.0pp
123	BI Backblaze, Inc.	BLZE	Vertical SaaS	62.3%	-12.0pp
124	NI nCino, Inc.	NCNO	Vertical SaaS	61.1%	-13.3pp
125	EG Exzeo Group, Inc.	XZO	Vertical SaaS	61.0%	-13.4pp
126	ZG Zeta Global Holdings Corp.	ZETA	Vertical SaaS	60.0%	-14.3pp
127	BI BLACKBAUD INC	BLKB	Vertical SaaS	60.0%	-14.4pp
128	FI Fastly, Inc.	FSLY	Vertical SaaS	59.9%	-14.4pp
129	TC TERADATA CORP /DE/	TDC	Vertical SaaS	59.7%	-14.6pp
130	PH PowerSchool Holdings, Inc.	PWSC	Vertical SaaS	59.0%	-15.4pp
131	SI Shutterstock, Inc.	SSTK	Vertical SaaS	58.1%	-16.2pp
132	AT Alkami Technology, Inc.	ALKT	Fintech	57.7%	-16.6pp
133	TT TAKE TWO INTERACTIVE SOFTWARE INC	TTWO	Vertical SaaS	57.6%	-16.7pp
134	DH DigitalOcean Holdings, Inc.	DOCN	Cloud Infrastructure	57.5%	-16.9pp
135	MN Model N, Inc.	MODN	Fintech	56.6%	-17.7pp
136	QH Q2 Holdings, Inc.	QTWO	Vertical SaaS	56.6%	-17.7pp
137	CI Coursera, Inc.	COUR	Vertical SaaS	56.0%	-18.3pp
138	FI Five9, Inc.	FIVN	Communications	54.8%	-19.6pp
139	TI Twilio Inc.	TWLO	Communications	48.7%	-25.7pp
140	CS CSG SYSTEMS INTERNATIONAL INC	CSGS	Vertical SaaS	48.6%	-25.7pp
141	SI Shopify Inc.	SHOP	Vertical SaaS	48.4%	-25.9pp
142	ST SS&C Technologies Holdings Inc	SSNC	Vertical SaaS	48.1%	-26.2pp
143	TT TYLER TECHNOLOGIES INC	TYL	Vertical SaaS	47.3%	-27.1pp
144	AW ACI WORLDWIDE, INC.	ACIW	Vertical SaaS	46.2%	-28.1pp
145	SA SOUNDHOUND AI, INC.	SOUNW	Vertical SaaS	42.4%	-32.0pp
146	SA SOUNDHOUND AI, INC.	SOUN	Vertical SaaS	42.4%	-32.0pp
147	CI C3.ai, Inc.	AI	Vertical SaaS	41.8%	-32.5pp
148	WI WEX Inc.	WEX	Fintech	41.6%	-32.8pp
149	VT Via Transportation, Inc.	VIA	Vertical SaaS	39.7%	-34.6pp
150	BI Bandwidth Inc.	BAND	Communications	39.1%	-35.3pp
151	OC ORACLE CORP	ORCL	Vertical SaaS	36.5%	-37.8pp
152	3S 3D SYSTEMS CORP	DDD	Vertical SaaS	35.7%	-38.6pp
153	GD GRID DYNAMICS HOLDINGS, INC.	GDYN	Vertical SaaS	34.7%	-39.6pp
154	II INNODATA INC	INOD	Vertical SaaS	30.7%	-43.6pp
155	BH BigBear.ai Holdings, Inc.	BBAI	Vertical SaaS	28.7%	-45.6pp
156	BH BigBear.ai Holdings, Inc.	BBAI-WT	Vertical SaaS	28.7%	-45.6pp
157	TI Toast, Inc.	TOST	Vertical SaaS	26.6%	-47.8pp
158	AD AUTOMATIC DATA PROCESSING INC	ADP	Vertical SaaS	6.0%	-68.4pp
159	AD Applied Digital Corp.	APLD	Vertical SaaS	1.0%	-73.3pp

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%).

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.

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

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