What is the median Rule of 40 for public SaaS companies?

The median Rule of 40 for public SaaS companies tracked on SaaSDB is approximately 33. Only 57 of public SaaS companies score above 40. Data is from SEC EDGAR filings, updated daily.

Homechevron_rightBenchmarkschevron_rightRule of 40

Rule of 40 Benchmarks

Name: Rule of 40 Benchmarks — Public SaaS Companies (2026)
Creator: SaaSDB
License: https://saasdb.app/terms/

Public SaaS Companies — 172 companies tracked

Median Score33.0

Scoring 40+57

electric_bolt

Track Rule of 40 in real-time

BriefStock monitors earnings releases and SEC filings to update these scores automatically. Get alerted when a company crosses the 40 threshold.

Try BriefStock Free

The Rule of 40 is the primary efficiency benchmark for public SaaS companies: revenue growth rate + FCF margin must equal or exceed 40. Companies above 40 are considered capital-efficient; below 40 signals a growth-profitability tradeoff that investors increasingly scrutinize at scale. All 172 companies are ranked below using the most recently reported quarterly data.

Ranked Rule of 40 Data

#	Company	Ticker	Sector	Rule of 40	Rev Growth	FCF Margin
1	GH Gloo Holdings, Inc.	GLOO	Vertical SaaS	221.4	307.7%	-86.3%
2	II INTUIT INC.	INTU	Vertical SaaS	162.0	157.9%	4.0%
3	AD Applied Digital Corp.	APLD	Vertical SaaS	118.6	171.1%	-52.5%
4	BI Block, Inc.	SQ	Vertical SaaS	99.5	44.8%	54.8%
5	RI Reddit, Inc.	RDDT	Vertical SaaS	98.8	64.6%	34.2%
6	PT Palantir Technologies Inc.	PLTR	Data & Analytics	96.1	64.1%	32.0%
7	EG Exzeo Group, Inc.	XZO	Vertical SaaS	95.7	43.5%	52.2%
8	FA FIRST ADVANTAGE CORP	FA	Vertical SaaS	88.2	79.0%	9.2%
9	HH Hinge Health, Inc.	HNGE	Vertical SaaS	82.0	53.5%	28.5%
10	II INNODATA INC	INOD	Vertical SaaS	76.2	58.0%	18.1%
11	VS VARONIS SYSTEMS INC	VRNS	Vertical SaaS	75.4	25.5%	49.9%
12	DI Duolingo, Inc.	DUOL	Vertical SaaS	74.9	39.9%	35.0%
13	CA Clearwater Analytics Holdings, Inc.	CWAN	Data & Analytics	69.4	62.7%	6.7%
14	RI Rubrik, Inc.	RBRK	Vertical SaaS	67.7	48.5%	19.2%
15	FI Figma, Inc.	FIG	Vertical SaaS	67.6	44.9%	22.7%
16	CI CoreWeave, Inc.	CRWV	Vertical SaaS	65.8	194.4%	-128.6%
17	BS BENTLEY SYSTEMS INC	BSY	Vertical SaaS	64.1	13.4%	50.7%
18	CS Clear Secure, Inc.	YOU	Vertical SaaS	62.9	18.5%	44.4%
19	RC Roblox Corp	RBLX	Vertical SaaS	62.9	36.5%	26.4%
20	QI QUALYS, INC.	QLYS	Vertical SaaS	62.1	10.2%	51.9%
21	VS Veeva Systems Inc.	VEEV	Vertical SaaS	60.5	16.3%	44.2%
22	SI ServiceNow, Inc.	NOW	IT Service Management	59.4	22.7%	36.7%
23	PS PROGRESS SOFTWARE CORP /MA	PRGS	Vertical SaaS	57.9	29.1%	28.8%
24	PI Paychex, Inc.	PAYX	HR Tech	55.9	21.1%	34.8%
25	DI Datadog, Inc.	DDOG	DevTools & Observability	55.8	29.7%	26.1%
26	SI Snowflake Inc.	SNOW	Data & Analytics	54.0	32.1%	21.9%
27	AI Autodesk, Inc.	ADSK	Vertical SaaS	53.8	17.2%	36.7%
28	DI Dynatrace, Inc.	DT	DevTools & Observability	52.2	13.2%	39.0%
29	BI Box, Inc.	BOX	Cloud Storage	52.0	8.0%	44.0%
30	PI PTC INC.	PTC	Vertical SaaS	50.5	19.2%	31.3%
31	PI Pegasystems Inc.	PEGA	Low-Code / No-Code	50.2	11.6%	38.6%
32	GI GitLab Inc.	GTLB	DevTools & Observability	49.0	25.8%	23.2%
33	CH CrowdStrike Holdings, Inc.	CRWD	Vertical SaaS	48.9	21.7%	27.2%
34	MC Microsoft Corporation	MSFT	Cloud Infrastructure	48.9	27.2%	21.7%
35	NI nCino, Inc.	NCNO	Vertical SaaS	47.7	11.8%	35.9%
36	VA Verisk Analytics, Inc.	VRSK	Data & Analytics	47.1	6.8%	40.4%
37	SI Salesforce, Inc.	CRM	CRM & Sales	47.1	9.4%	37.7%
38	NI Nutanix, Inc.	NTNX	Vertical SaaS	45.8	27.3%	18.4%
39	AI Adobe Inc.	ADBE	Marketing Tech	45.3	11.5%	33.8%
40	PH Paylocity Holding Corporation	PCTY	HR Tech	44.0	29.3%	14.7%
41	ZC Zoom Communications, Inc.	ZM	Communications	43.9	4.2%	39.7%
42	TT The Trade Desk, Inc.	TTD	Marketing Tech	43.7	12.0%	31.7%
43	GD Gen Digital Inc.	GEN	Vertical SaaS	43.0	19.5%	23.4%
44	GD Gen Digital Inc.	GENVR	Vertical SaaS	43.0	19.5%	23.4%
45	EN Elastic N.V.	ESTC	DevTools & Observability	42.8	31.8%	11.0%
46	IV i3 Verticals, Inc.	IIIV	Vertical SaaS	42.3	17.7%	24.6%
47	AT Alkami Technology, Inc.	ALKT	Fintech	42.2	32.9%	9.3%
48	OC ORACLE CORP	ORCL	Vertical SaaS	41.9	17.6%	24.2%
49	RV Red Violet, Inc.	RDVT	Vertical SaaS	41.8	23.3%	18.6%
50	CI CarGurus, Inc.	CARG	Vertical SaaS	41.6	18.0%	23.6%
51	OI Okta, Inc.	OKTA	Security	41.5	12.0%	29.5%
52	CI Cloudflare, Inc.	NET	Vertical SaaS	41.1	31.4%	9.7%
53	JL JFrog Ltd	FROG	Vertical SaaS	41.1	26.1%	14.9%
54	DI DOCUSIGN, INC.	DOCU	Vertical SaaS	41.0	8.2%	32.9%
55	SA SOUNDHOUND AI, INC.	SOUN	Vertical SaaS	40.8	99.5%	-58.7%
56	SA SOUNDHOUND AI, INC.	SOUNW	Vertical SaaS	40.8	99.5%	-58.7%
57	SI Shopify Inc.	SHOP	Vertical SaaS	40.5	24.5%	16.0%
58	MI MongoDB, Inc.	MDB	Data & Analytics	39.7	22.4%	17.3%
59	CC Consensus Cloud Solutions, Inc.	CCSI	Vertical SaaS	39.3	0.2%	39.1%
60	SI SYNOPSYS INC	SNPS	Vertical SaaS	39.2	31.0%	8.2%
61	CS COMMVAULT SYSTEMS INC	CVLT	Vertical SaaS	38.9	18.9%	20.0%
62	ZG Zeta Global Holdings Corp.	ZETA	Vertical SaaS	38.5	29.9%	8.6%
63	KI Klaviyo, Inc.	KVYO	Vertical SaaS	38.5	32.5%	6.0%
64	BH Bill.com Holdings, Inc.	BILL	Fintech	38.2	22.1%	16.1%
65	ZT ZoomInfo Technologies Inc.	ZI	Sales Intelligence	37.7	2.2%	35.6%
66	CD CADENCE DESIGN SYSTEMS INC	CDNS	Vertical SaaS	37.7	14.9%	22.8%
67	II Intapp, Inc.	INTA	Vertical SaaS	37.7	28.8%	8.9%
68	NR New Relic, Inc.	NEWR	DevTools & Observability	37.4	21.2%	16.2%
69	LI Life360, Inc.	LIF	Vertical SaaS	37.3	31.0%	6.3%
70	HI HubSpot, Inc.	HUBS	Marketing Tech	37.2	20.5%	16.8%
71	BI Braze, Inc.	BRZE	Marketing Tech	37.1	25.4%	11.7%
72	FI Freshworks Inc.	FRSH	Vertical SaaS	36.9	17.3%	19.7%
73	TH Tenable Holdings, Inc.	TENB	Vertical SaaS	36.6	11.2%	25.4%
74	PS Paycom Software, Inc.	PAYC	HR Tech	36.1	10.4%	25.7%
75	CI CCC Intelligent Solutions Holdings Inc.	CCC	Vertical SaaS	36.0	11.9%	24.1%
76	NI Navan, Inc.	NAVN	Vertical SaaS	35.5	30.8%	4.7%
77	SI ServiceTitan, Inc.	TTAN	Vertical SaaS	35.5	24.5%	11.0%
78	SC SPS Commerce, Inc.	SPSC	Vertical SaaS	35.0	17.8%	17.2%
79	AI AvePoint, Inc.	AVPT	Vertical SaaS	34.9	27.7%	7.2%
80	UI UiPath, Inc.	PATH	Vertical SaaS	34.5	12.7%	21.9%
81	EA ELECTRONIC ARTS INC.	EA	Vertical SaaS	34.5	0.9%	33.6%
82	NI Netskope Inc	NTSK	Vertical SaaS	33.9	31.7%	2.1%
83	WI WORKIVA INC	WK	Vertical SaaS	33.5	20.9%	12.7%
84	AI AppFolio, Inc.	APPF	Vertical SaaS	33.4	21.5%	11.9%
85	NI NERDWALLET, INC.	NRDS	Vertical SaaS	33.3	21.2%	12.1%
86	WI Workday, Inc.	WDAY	HR Tech	33.2	13.2%	20.0%
87	PT Procore Technologies, Inc.	PCOR	Vertical SaaS	33.0	15.7%	17.3%
—	Median Benchmark	—	All Sectors	33.0	—	—
88	SI SentinelOne, Inc.	S	Security	32.8	22.6%	10.2%
89	SH SEMrush Holdings, Inc.	SEMR	Vertical SaaS	30.8	17.7%	13.0%
90	TI TaskUs, Inc.	TASK	Vertical SaaS	30.5	18.3%	12.2%
91	SI SailPoint, Inc.	SAIL	Vertical SaaS	30.4	24.4%	6.0%
92	LI LEGALZOOM.COM, INC.	LZ	Vertical SaaS	30.0	13.3%	16.7%
93	PI PagerDuty, Inc.	PD	Vertical SaaS	29.8	4.5%	25.3%
94	PG Porch Group, Inc.	PRCH	Vertical SaaS	29.8	32.8%	-3.0%
95	BI BLACKLINE, INC.	BL	Vertical SaaS	29.5	7.2%	22.3%
96	MA MANHATTAN ASSOCIATES INC	MANH	Vertical SaaS	29.1	4.9%	24.2%
97	WC Weave Communications, Inc.	WEAV	Communications	28.8	19.9%	8.9%
98	AC Appian Corporation	APPN	Low-Code / No-Code	28.7	17.7%	11.0%
99	QH Q2 Holdings, Inc.	QTWO	Vertical SaaS	28.7	15.3%	13.4%
100	TC TERADATA CORP /DE/	TDC	Vertical SaaS	27.4	-3.7%	31.1%
101	ZI Zuora, Inc.	ZUO	Fintech	26.3	14.1%	12.2%
102	CI Confluent, Inc.	CFLT	Data & Analytics	26.3	21.1%	5.2%
103	AD AUTOMATIC DATA PROCESSING INC	ADP	Vertical SaaS	26.1	14.7%	11.4%
104	SI Sprinklr, Inc.	CXM	Marketing Tech	26.1	7.6%	18.4%
105	TI Toast, Inc.	TOST	Vertical SaaS	25.9	24.0%	1.9%
106	EI EVERTEC, Inc.	EVTC	Vertical SaaS	25.8	10.6%	15.2%
107	SS Sprout Social, Inc.	SPT	Marketing Tech	25.7	12.9%	12.8%
108	IL IBEX Ltd	IBEX	Vertical SaaS	25.4	22.0%	3.4%
109	DI Dropbox, Inc.	DBX	Cloud Storage	25.0	-1.3%	26.3%
110	RI RingCentral, Inc.	RNG	Communications	24.3	4.8%	19.5%
111	AW ACI WORLDWIDE, INC.	ACIW	Vertical SaaS	24.2	6.9%	17.3%
112	FI Five9, Inc.	FIVN	Communications	23.4	10.8%	12.7%
113	TT TYLER TECHNOLOGIES INC	TYL	Vertical SaaS	23.3	10.9%	12.4%
114	TI Twilio Inc.	TWLO	Communications	22.7	14.6%	8.1%
115	DH DigitalOcean Holdings, Inc.	DOCN	Cloud Infrastructure	22.4	17.5%	4.9%
116	ST SS&C Technologies Holdings Inc	SSNC	Vertical SaaS	22.0	6.5%	15.5%
117	GD GRID DYNAMICS HOLDINGS, INC.	GDYN	Vertical SaaS	21.9	16.9%	5.0%
118	MI Marqeta, Inc.	MQ	Vertical SaaS	20.8	22.0%	-1.3%
119	TI Trimble Inc.	TRMB	Vertical SaaS	20.4	-3.4%	23.8%
120	CI Certara, Inc.	CERT	Vertical SaaS	19.3	9.6%	9.7%
121	EC EGAIN Corp	EGAN	Vertical SaaS	19.0	-3.0%	22.0%
122	AH Alarm.com Holdings, Inc.	ALRM	Vertical SaaS	18.7	8.0%	10.7%
123	CI Coursera, Inc.	COUR	Vertical SaaS	18.6	8.9%	9.7%
124	NI N-able, Inc.	NABL	Vertical SaaS	18.2	10.4%	7.8%
125	YI Yext, Inc.	YEXT	Vertical SaaS	18.0	6.1%	11.9%
126	FI Fastly, Inc.	FSLY	Vertical SaaS	18.0	14.8%	3.2%
127	CI Cars.com Inc.	CARS	Vertical SaaS	18.0	0.1%	17.9%
128	EI EverCommerce Inc.	EVCM	Vertical SaaS	17.6	4.1%	13.5%
129	DH Definitive Healthcare Corp.	DH	Vertical SaaS	17.6	-6.5%	24.0%
130	VI Vertex, Inc.	VERX	Vertical SaaS	17.4	12.5%	4.8%
131	IE Inspired Entertainment, Inc.	INSE	Vertical SaaS	17.3	-0.1%	17.5%
132	VT Via Transportation, Inc.	VIA	Vertical SaaS	16.4	24.1%	-7.8%
133	BI Backblaze, Inc.	BLZE	Vertical SaaS	16.3	15.0%	1.3%
134	CI CareCloud, Inc.	CCLD	Vertical SaaS	15.8	5.9%	9.9%
135	CI CareCloud, Inc.	CCLDO	Vertical SaaS	15.8	5.9%	9.9%
136	JH Jamf Holding Corp.	JAMF	IT Service Management	15.6	22.5%	-6.9%
137	VS Verint Systems Inc.	VRNT	Security	15.1	-6.6%	21.6%
138	CI Commerce.com, Inc.	CMRC	Vertical SaaS	13.9	2.0%	11.9%
139	OI OOMA INC	OOMA	Vertical SaaS	12.9	9.5%	3.4%
140	RI Rapid7, Inc.	RPD	Vertical SaaS	12.7	1.0%	11.8%
141	GH GoodRx Holdings, Inc.	GDRX	Vertical SaaS	12.3	0.5%	11.8%
142	AI Asana, Inc.	ASAN	Project Management	12.2	9.2%	3.1%
143	SI Shutterstock, Inc.	SSTK	Vertical SaaS	10.7	3.6%	7.1%
144	8I 8X8 INC /DE/	EGHT	Vertical SaaS	10.3	2.0%	8.3%
145	UI UPWORK, INC	UPWK	Vertical SaaS	9.9	2.0%	7.8%
146	MG Momentive Global Inc.	MNTV	Data & Analytics	9.2	7.6%	1.6%
147	BI BLACKBAUD INC	BLKB	Vertical SaaS	8.7	-3.4%	12.1%
148	TT TAKE TWO INTERACTIVE SOFTWARE INC	TTWO	Vertical SaaS	8.3	12.5%	-4.2%
149	CI Cerence Inc.	CRNC	Vertical SaaS	8.0	-3.6%	11.6%
150	AI Amplitude, Inc.	AMPL	Data & Analytics	7.8	15.4%	-7.6%
151	GS Guidewire Software, Inc.	GWRE	Vertical SaaS	6.8	30.0%	-23.3%
152	DT DXC Technology Co	DXC	Vertical SaaS	6.4	-1.8%	8.2%
153	MN Model N, Inc.	MODN	Fintech	5.8	16.3%	-10.5%
154	US Unity Software Inc.	U	Vertical SaaS	4.4	2.3%	2.1%
155	LH LiveRamp Holdings, Inc.	RAMP	Vertical SaaS	3.2	7.6%	-4.4%
156	DI Domo, Inc.	DOMO	Data & Analytics	-0.1	0.6%	-0.6%
157	CS CSG SYSTEMS INTERNATIONAL INC	CSGS	Vertical SaaS	-0.5	1.4%	-1.9%
158	BI Bandwidth Inc.	BAND	Communications	-0.6	0.9%	-1.4%
159	KI KALTURA INC	KLTR	Vertical SaaS	-5.0	0.7%	-5.7%
160	IH Instructure Holdings, Inc.	INST	Vertical SaaS	-14.4	33.4%	-47.8%
161	SG Silvaco Group, Inc.	SVCO	Vertical SaaS	-18.4	4.8%	-23.2%
162	PH PowerSchool Holdings, Inc.	PWSC	Vertical SaaS	-21.0	16.2%	-37.1%
163	CD CS Disco, Inc.	LAW	Vertical SaaS	-21.1	8.8%	-29.8%
164	SI Skillz Inc.	SKLZ	Vertical SaaS	-25.3	11.6%	-36.8%
165	CI C3.ai, Inc.	AI	Vertical SaaS	-33.9	-4.2%	-29.7%
166	XI Xperi Inc.	XPER	Vertical SaaS	-41.3	-9.7%	-31.6%
167	3S 3D SYSTEMS CORP	DDD	Vertical SaaS	-44.1	-14.5%	-29.6%
168	BH BigBear.ai Holdings, Inc.	BBAI	Vertical SaaS	-53.0	-14.8%	-38.2%
169	BH BigBear.ai Holdings, Inc.	BBAI-WT	Vertical SaaS	-53.0	-14.8%	-38.2%
170	WI WEX Inc.	WEX	Fintech	-59.6	-1.3%	-58.3%
171	DG DigitalBridge Group, Inc.	DBRG	Cloud Infrastructure	-80.5	-80.5%	0.0%
172	VI Veritone, Inc.	VERI	Vertical SaaS	-137.3	-41.7%	-95.6%

What is the Rule of 40?

The Rule of 40 was popularized by venture capitalist Brad Feld as a quick health check for SaaS companies. The idea: add your annual revenue growth rate (%) to your profit margin (%). If the sum is 40 or above, the company is healthy — whether it prioritizes growth or profitability.

Formula: Rule of 40 = Revenue Growth Rate (%) + FCF Margin (%)

Interpretation: A company growing 60% YoY with −20% FCF margin scores 40. A company growing 20% with 20% FCF margin also scores 40. Both are considered balanced. Companies scoring below 40 may be burning cash without commensurate growth.

Related guides & definitions

Rule of 40: full definition & formula →Understanding ARR growth & efficiency →DevTools & Observability — highest avg Rule of 40 sector →

Frequently Asked Questions

What is a good Rule of 40 score for a SaaS company?

A Rule of 40 score above 40 is considered the benchmark for a healthy SaaS company — meaning revenue growth rate plus free cash flow margin equals at least 40%. Best-in-class public SaaS companies like Palantir and Veeva have posted scores above 60. Scores below 20 signal that a company is not generating enough growth or profitability to justify its cost structure.

How is Rule of 40 calculated?

Rule of 40 = Revenue Growth Rate (YoY %) + Free Cash Flow Margin (%). Some investors use EBITDA margin or operating margin instead of FCF margin. On SaaSDB, we use the FCF margin definition: (operating cash flow − capex) / revenue × 100.

Does Rule of 40 work for early-stage companies?

The Rule of 40 is most relevant for companies with at least $50M ARR. Early-stage companies may have very high growth rates that naturally satisfy the rule regardless of profitability. For mature SaaS businesses (>$500M ARR), both components matter equally — growth alone is no longer sufficient.

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

format_quoteCite This Data

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

Plain text

SaaSDB (2026). Rule of 40 Benchmarks — Public SaaS Companies. Retrieved 2026-06-03 from https://saasdb.app/benchmarks/rule-of-40/

HTML

<a href="https://saasdb.app/benchmarks/rule-of-40/">Rule of 40 Benchmarks — Public SaaS Companies — SaaSDB</a>

Markdown

[Rule of 40 Benchmarks — Public SaaS Companies](https://saasdb.app/benchmarks/rule-of-40/)

mail

Free weekly

SaaS benchmarks digest

NRR trends, Rule of 40 movers & insider trades — every Monday.