In the shadowed corridors of Dallas venture capital, Sammy Abdullah, founder and managing partner of Blossom Street Ventures, has become the unofficial scorekeeper for public software-as-a-service companies. His firm’s meticulous tracking of every SaaS outfit that went public since late 2017 offers a granular view into an industry long battered by post-pandemic resets. As of Q3 2025 earnings, the 37 surviving public companies posted median year-over-year revenue growth of 16%, a figure unchanged for four straight quarters—a sign of hard-won equilibrium after years of deceleration.

“Growth has now held in the mid-teens for four consecutive quarters, suggesting real stabilization,” Abdullah wrote in a LinkedIn analysis. Net dollar retention, a critical measure of customer stickiness and expansion, clocked in at a median 109%, with 66% of firms reporting the metric. This marks a trough from 2022 peaks above 120%, but recent quarters show no further erosion, hinting at a new baseline for mature SaaS operators.

Financials tell a tale of disciplined cost-cutting. Median operating margins improved from negative 30% in early 2022 to mid-single-digit losses at negative 5% in Q3 2025, with 55% of companies posting operating profits. Even among the unprofitable majority, efficiency shines: firms generated $1.73 in incremental revenue for every $1 of operating loss, alongside a median payback period of 0.6 years.

Blossom Street’s Relentless Tracking

Blossom Street Ventures, which targets SaaS firms with $2 million to $30 million in annual recurring revenue, has built its reputation on data dashboards that dissect public peers. The firm’s website and Medium posts provide quarterly breakdowns, revealing how median quarterly revenue ballooned to $219 million in Q3 2025 from $102 million in Q1 2022. This surge stems partly from smaller players delisting and giants like Waystar, ServiceTitan, and SailPoint entering the public fray, Abdullah noted in Dallas Innovates.

“The revenue profile is stabilizing while the financial profile is improving,” Abdullah declared. His Q1 2025 review of 58 publics showed similar patterns: 15% median growth, 108% NDR, and margins at negative 9%, per a Medium post. A separate analysis pegged Q3 NDR at 109% across 32 reporters out of 57 tracked, confirming the steadying trend.

These metrics arrive amid broader industry signals. Public SaaS multiples hovered around 5x revenue in late 2025, per Blossom Street’s updates, a far cry from 2021 excesses but stable versus recent lows. On X, observers like Andrei M noted re-acceleration after years of flat cloud spending, with valuations near decade lows amid improving net revenue retention and margins.

Efficiency Over Antiquated Rules

Abdullah dismisses the Rule of 40—growth rate plus profit margin equaling 40%—as “a useless and antiquated rule.” Instead, he champions practical benchmarks: keep payback under 1.5 years with NDR above 100%, and “investors are generally comfortable funding losses to grow ARR.” This stance resonates as 50% of Q1 2025 publics turned operating profits, and efficiency ratios hit 7.49x revenue per dollar of loss.

Fundraising implications are clear for private founders. Blossom Street, self-styled as “the People’s VC,” leads rounds from $1 million to $4 million in three to five weeks for cash-efficient operators growing 20% to 100%+. Public data sets the bar: median annualized revenue reached $876 million in Q3 2025, with even losers posting 6.9x revenue-to-loss ratios.

Broader benchmarks align. Benchmarkit’s 2025 report highlights Rule of 40 adherence yielding 121% valuation premiums, while Aventis Advisors noted each 10-point Rule improvement tied to 1.1x higher EV/revenue multiples in Q3 2025. Yet Abdullah’s focus on payback and NDR cuts through the noise for growth-stage bets.

Historical Arc of Deceleration and Discipline

Trace the arc: Q1 2022 median growth hit 36%, plunging to 15%-18% by 2025 amid rate hikes and spending scrutiny. NDR followed suit, from 120%-125% to high-100s. Margins flipped from deep red to breakeven for half the cohort. SaaS Capital’s surveys show bootstrapped firms outperforming equity-backed on profitability, narrowing gaps as venture outfits slash burn.

X chatter underscores dispersion. Sergey CYW highlighted high-growth names like AppLovin and Cloudflare commanding premiums despite margin lags, while security plays like CrowdStrike trade above trends. Garry Tan predicted vertical SaaS blooms hitting $100 million ARR with lean teams, signaling pockets of vigor.

Blossom Street’s Q3 2025 multiples for 87 publics showed medians at soft levels, with premiums for top growers at 7.65x. As Q4 2025 earnings loom—testing NDR stability further—the data paints public SaaS not as reborn hypergrowth, but as mature engines tuned for endurance.

Fundraising Benchmarks for Private Operators

For entrepreneurs pitching Blossom Street or peers, Abdullah’s playbook is prescriptive. “Even where companies are losing money, they are doing so efficiently,” he wrote. Private medians lag publics slightly—19%-21% growth per Rockingweb’s 2025 benchmarks—but AI-native firms double traditional paces at 100% versus 50%.

VC dry powder exceeds $260 billion for top SaaS funds, per SaaSRise, favoring 50%+ growers. Yet caution reigns: BuccoCapital noted select firms up 200%-300% since 2022 via rigor, while others falter. Jero LMAO warned sub-20% growers at $10 million-$300 million ARR face reckoning, demanding unit economics overhauls.

Blossom Street’s thesis—back pragmatic founders—thrives in this milieu. With public stabilizers signaling investor tolerance for efficient expansion, 2026 could reward those mirroring the medians: steady teens growth, 100%+ NDR, sub-1.5-year paybacks.

Outlook Amid Multiples and Market Shifts

Public SaaS trades at 5x-7.5x revenue, per Bessemer and Blossom trackers, versus 18x peaks. Eqvista pegged private medians at 16.11x in Q1 2025, aligning with public top quartiles. Rule of 40 scorers command 10.7x, but Abdullah prioritizes retention and speed-to-value.

On X, MoneyShow touted recurring revenue for stability as margins reset. As cloud budgets normalize post-rate peaks, re-acceleration flickers—Andrei M cited improving ARR amid 5x valuations. For insiders, Blossom’s data heralds not a boom, but a viable path: stabilize, efficientize, endure.