
EBITDA Benchmarks for Recurring Revenue Models
EBITDA is a core profitability metric for recurring revenue businesses because it highlights how efficiently predictable subscription revenue converts into operating cash flow. In 2025, mature SaaS and subscription companies typically post 25–40% EBITDA margins and command premium valuations when paired with strong retention, low churn, and Rule of 40 compliance. As markets prioritize sustainability over pure growth, businesses that balance scalable revenue with disciplined EBITDA performance earn the highest multiples.











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