State of Software 2025: Efficient Growth and AI-Driven Operating Models

ICONIQ's annual Growth & Efficiency report analyzes software market trends showing stabilization after two years of volatility, with efficient growth and the Rule of 40 emerging as dominant valuation signals. AI is reshaping software company operating models, with AI-native companies demonstrating 2-3x faster growth than traditional SaaS benchmarks. The report emphasizes that competitive advantage now depends on how intelligently companies integrate AI across products, workflows, and organizational structure.