AI-NATIVE SOFTWARE COMPANIES LEAD ON GROWTH, BUT STRONGER ECONOMICS HAVE NOT YET FOLLOWED
PR Newswire•13/11/2026•15:04 ET
2
Key Highlights
- ➤Core AI product companies: 34% median ARR growth in 2025, versus 22% for embedded AI companies
- ➤Core AI product companies: (12%) median EBITDA margin, versus (1%) for embedded AI companies
- ➤Embedded AI companies: $201K ARR per FTE, versus $117K for core AI product companies
- ➤AI-driven ARR projected to grow 128% in 2026, reaching 12% of total ARR
- ➤44% of respondents report AI spending over budget year to date
- ➤Overall median EBITDA margin projected to improve from (3%) in 2025 to 1% in 2026
Expert Statements
Scott Peterson, Managing Director, Software Investment Banking at KeyBanc Capital Markets
“For 17 years, this benchmark has given software operators and investors a clear view of how the industry is performing. This year, the central question is whether AI is creating a durable advantage”
Scott Peterson, Managing Director, Software Investment Banking at KeyBanc Capital Markets
“AI is accelerating growth and compressing development cycles, but AI spend is running ahead of budget and the economics are still catching up. 2026 is a proving year for AI-driven revenue.”
Scott Peterson, Managing Director, Software Investment Banking at KeyBanc Capital Markets
“Developer headcount has historically been one of the biggest constraints for software development. AI coding tools are loosening that constraint as developer productivity improves”
Scott Peterson, Managing Director, Software Investment Banking at KeyBanc Capital Markets
“But rather than let those gains drop to the bottom line, companies are reinvesting them to ship more product faster.”
AI-NATIVE SOFTWARE COMPANIES LEAD ON GROWTH, BUT STRONGER ECONOMICS HAVE NOT YET FOLLOWED PR Newswire
17th annual benchmark from KeyBanc Capital Markets, formerly the SaaS Survey, expands to measure how AI is reshaping the private software industry
Get started
Create a free account to read the full story.