Part 4: What to Expect in 2H 2025
Balancing Growth, Profitability, and Uncertainty
Are we entering a “new normal” for SaaS?
The 2025 benchmark data suggests we might be, with growth in the low double digits. However, there are still unknowns. As we move into the second half of 2025, macroeconomic uncertainty lingers. IT buyer sentiment has improved over the past two years but dipped slightly in the latest Bain & Company survey. The risk of further volatility remains on the horizon.
Continued uncertainty may result in several areas of concern for SaaS investors and operators:
- More scrutiny on operating efficiency – Value creation prior to 2023 had largely been driven by revenue growth. Although growth will still likely be the largest driver going forward, the decline in general macroeconomic sentiment will lead both SaaS companies and investors to look for ways to improve their resource allocation.
- Growth through retention – As buyers hold back on new purchases, revenue growth will need to be driven by maintaining and expanding with existing customers. Successful SaaS companies will put a new level of scrutiny on expanding their existing customer business (NRR, GRR, Renewal Rates) as well as fixing the causes of low retention.
- Stay ahead of peers – Uncertainty makes knowing where to invest and where to cut expenses ever more challenging. Companies need to both track a clear set of operational metrics and know how those metrics compare against other SaaS companies at their growth stage as a guidepost for decisions.
Whether you're leading a SaaS business or investing in one, understanding the scope of this “new normal” and how to measure success is key to operational efficiency.
Download the full Brief on 2025 SaaS Sector Operating Trends.
