The SaaS market is proving more resilient than many expected in late 2025, thanks to sustained macro-momentum, strategic dealmaking, and rapid technology change. In our latest SaaS Industry Update, we unpack the major forces driving the software landscape today—and highlight where savvy investors and operators are focusing their attention.

Key Highlights

• Macro tailwinds still in place. Despite concerns of softness in job growth and global uncertainty, leading market voices point to strong consumer activity and ongoing tech investment as pillars of support.

• AI is no longer optional—it’s foundational. The narrative at the recent Silicon Y’all 2025 Summit was clear: companies must embed AI into their core strategy, not treat it as a side experiment.

• Metrics reflect the evolving SaaS reality. While growth rates have moderated and retention has slightly slipped, margins are improving and M&A volumes remain strong—testament to investor confidence in the long-term value of software businesses.

• Valuation discipline meets strategic opportunity. Transaction activity continues at a robust pace, and public multiples highlight the differentiation between high-growth, high-margin leaders and the rest of the pack.

If you or someone you know have questions regarding anything discussed, or the general SaaS marketplace, please feel free to reach out to Chris Weingartner, Managing Director of Founders’ Tech & Business Services Group.