Clouded Judgement: Q2 2025 Cloud Software Earnings Season Analysis
Cloud software companies delivered their strongest earnings performance since Q2 2022, with median revenue beats of 2.8% and meaningful upward guidance revisions, though stock prices have declined 6-8% amid AI disruption concerns. The analysis provides detailed SaaS valuation multiples, operating metrics benchmarks, and cohort data showing median NRR of 108%, CAC payback of 40 months, and FCF margins of 18% across the industry.
Metrics in this report
40months
median
Cloud software companies, subscription-derived metrics
5.1x
median
Overall cloud software index, Q2 2025
30.8x
median
Top 10 high-growth cloud software companies
33.5x
median
High-growth SaaS (>25% NTM growth)
8.1x
median
Mid-growth SaaS (15-25% NTM growth)
3.9x
median
Low-growth SaaS (<15% NTM growth)
18percent
median
Cloud software companies
16percent
median
G&A as % of revenue, cloud software companies
76percent
median
Cloud software companies
14percent
median
Cloud software companies, last 12 months actuals
11percent
median
Cloud software companies, forward 12-month guidance
108percent
median
Cloud software companies
-4percent
median
Cloud software companies
24percent
median
R&D as % of revenue, cloud software companies
2.8percent
median
Cloud SaaS companies, Q2 2025 earnings season
38percent
median
S&M as % of revenue, cloud software companies
-8percent
median
Cloud software index, 30-day trailing performance
-6percent
median
WCLD index, 30-day trailing performance