Why are your business metrics important?

𝗦𝘁𝗿𝗼𝗻𝗴 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 = 𝘀𝘁𝗿𝗼𝗻𝗴 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻. 𝗧𝗵𝗲 𝗹𝗮𝘁𝗲𝘀𝘁 𝗱𝗮𝘁𝗮 𝗽𝗿𝗼𝘃𝗲𝘀 𝗶𝘁.

GLC Advisors' recent Q2 2025 Software Report confirms that investors continue to reward higher valuations to SaaS companies with strong operating performance across certain key metrics..

Enterprise Value/Revenue Multiples by Net Revenue Retention (NRR):

>110% → 15.5x

100–110% → 4.9x

<100% → 2.3x

Enterprise Value/Revenue Multiples by Rule of 40:

>60% → 14.1x

40–60% → 10.7x

20–40% → 5.2x

<20% → 3.1x

Key takeaways;

• The premium for the top Net Revenue Retention cohort has increased significantly — 15.5x, up from 8.1x last quarter.

• SaaS businesses with 90%+ Gross Revenue Retention and strong Rule of 40 metrics are commanding the highest valuations.

• Underperformance in these areas leads directly to valuation compression.

If you are not already tracking these benchmarks, or aren’t sure how your metrics stack up, please feel free to get in touch. At GRAY Financial Modelling, we help businesses build investor-grade financial models and intuitive Dashboards that highlight the metrics that matter — like NRR, GRR, CAC payback, and the Rule of 40. Our models don’t just calculate the numbers; they help you understand and tell your growth story with clarity and confidence.