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2Q26

SaaS M&A and Public Market Report

SaaS M&A Remains Active as Buyers Grow More Selective

SaaS M&A activity remained strong through the second quarter of 2026, even as public market valuations continued to reset. Across 106 public companies and 2,784 TTM SaaS M&A transactions, the market remains active but increasingly selective, with buyers placing greater emphasis on durable growth, strategic fit, proprietary data, embedded customer workflows, and credible AI strategies.

Despite continued pressure on valuation multiples, software company fundamentals remained exceptionally strong. On the public market side, median revenue reached a record $1.2 billion, median EBITDA increased nearly 70% year over year to $110 million, and revenue growth improved sequentially for the first time in several quarters, reinforcing the resilience of the SaaS business model.

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The Top 3 Highlights

2,784

TTM Deal Volume Through 2Q26

TTM SaaS deal volume reached 2,784 transactions, up 16% from 2Q25, marking the most active period SEG has tracked.

54.0%

Of All SaaS M&A Deals were Vertically Focused

Compared with 46% in 2Q26

70.0%

TTM EBITDA Increase YoY

The median TTM EBITDA of the SEG SaaS Index™ reached an all-time high of $110M in 2Q26

Public SaaS Companies

Our SEG SaaS Index™ tracks the performance, valuations, and financials of 106 publicly traded B2B software companies. In 2Q26, the Index began to stabilize after the sharp early-year selloff, even as valuations remained well below prior-year levels. The recovery also reinforced the growing dispersion across the Index. While the valuation reset was broad as AI reshapes the software landscape, the market is reserving premium valuations for companies that combine strong operating performance with defensible competitive advantages.

Notable Public SaaS Companies

SEG SaaS Index™ EV/TTM Revenue Multiple

Valuations across the SEG SaaS Index™ compressed further in 2Q26, with the median EV/TTM revenue multiple declining from 5.7x in 2Q25 to 3.2x. Even so, the data shows that SaaS businesses are larger, more profitable, and more operationally efficient than ever, with revenue growth increasing sequentially for the first time in several quarters. While the decline remained broad based, valuation dispersion across the Index continued to be significant. DevOps & IT Management continued to command the highest median multiple at 5.3x, followed by ERP & Supply Chain at 4.6x and Security at 4.3x.

EV/Revenue by Product Category

Quarterly Medians

2Q26

3Q25

4Q25

1Q26

2Q26

SEG SaaS Index

5.7x

5.3x

4.9x

3.7x

3.2

DevOps & IT Management

8.2x

7.7x

6.9x

5.3x

ERP & Supply Chain

9.0x

8.3x

7.3x

5.6x

4.6x

Security

7.3x

7.2x

6.3x

4.3x

Financial Applications

7.8x

6.4x

5.5x

3.9x

3.4x

Vertically Focused

6.0x

5.1x

4.8x

3.7x

2Q26

SEG SaaS Index

3.2

DevOps & IT Management

5.3x

ERP & Supply Chain

4.6x

Security

4.3x

Financial Applications

3.4x

Vertically Focused

3.7x

3Q25

SEG SaaS Index

5.3x

DevOps & IT Management

7.7x

ERP & Supply Chain

8.3x

Security

7.2x

Financial Applications

6.4x

Vertically Focused

5.1x

4Q25

SEG SaaS Index

4.9x

DevOps & IT Management

6.9x

ERP & Supply Chain

7.3x

Security

6.3x

Financial Applications

5.5x

Vertically Focused

4.8x

1Q26

SEG SaaS Index

3.7x

DevOps & IT Management

5.3x

ERP & Supply Chain

5.6x

Security

4.3x

Financial Applications

3.9x

Vertically Focused

3.7x

SaaS M&A Activity

SaaS M&A activity remained resilient through the first half of 2026, with 698 transactions announced in 2Q26, up 9.6% from 637 in 2Q25. On a TTM basis, deal volume reached 2,784 transactions, the most active period tracked, and activity through the first half of the year remains broadly in line with the elevated pace recorded in 2025. However, stable volume should not be interpreted as broad-based acceleration, as buyers are placing a higher bar on strategic fit, AI relevance, workflow embedment, and long-term defensibility. SaaS M&A valuations are also beginning to reflect the public-market reset, with the median EV/TTM revenue multiple declining from 4.2x to 4.0x and the average easing from 6.3x to 6.2x. While the broader distribution of disclosed outcomes has softened, scarce assets with differentiated data, security, AI capabilities, or mission-critical workflows continue to command premium valuations.

SaaS M&A Deal Volume

Quarterly

M&A Deal Volume

Monthly

Vertical M&A Activity

Vertical software represented 54% of SaaS M&A activity in 2Q26, up from 46% in 2Q25, reflecting continued buyer demand for software serving specialized end markets. Healthcare was the most active vertical, accounting for 16.0% of vertical SaaS transactions, up from 13.6% a year prior. Financial Services followed at 12.8%, though its share declined from 15.5% in 2Q25. Real Estate, Government, and Retail each represented approximately 7% of vertical SaaS activity, highlighting continued buyer interest across industries where specialized workflows, proprietary data, and mission-critical functionality create meaningful strategic value.

Analytics & Data Management and Content & Workflow Management remained the most active SaaS M&A product categories in 2Q26, with 126 and 123 transactions, respectively, continuing to account for a significant share of overall deal volume. Activity across both categories reflects sustained buyer demand for software embedded in core workflows, with Analytics & Data Management benefiting from continued investment in data infrastructure and AI-enabled decision making.

Financial Services

Healthcare

Real Estate

Education

Hospitality

Retail

Healthcare M&A

Quarterly

Buyers of SaaS

SaaS M&A transactions are evaluated based on acquirer backing, which we categorize into Strategic Buyers and Private Equity Investors. In 2Q26, private equity and venture involved buyers participated in 59% of all transactions, while direct platform investments remained at just 6.3%, well below the approximately 10% share they have historically represented. Strategic buyers, meanwhile, remained highly active, with transactions led by Salesforce, Apple, Snowflake, Qualcomm, Motorola Solutions, and CoStar demonstrating continued demand for acquisitions that enhance AI capabilities, proprietary data, embedded workflows, and competitive positioning. Together, these trends point to a market where sponsor backed buyers continue to drive overall activity, while strategic acquirers remain willing to pay for assets that strengthen existing platforms.

SaaS M&A Activity by Buyer Type

2Q26

Insights to Drive Stronger Software M&A Performance

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SEG SaaS M&A Deal Databse

guide

Market Maps

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The 22 Factors That Shape Software Exit Outcomes

Archived Reports

If you are looking for a past version of SEG’s Annual or Quarterly Reports, you can now download all previously published reports from our archived section.

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1Q26 QUARTERLY REPORT

3Q25 QUARTERLY REPORT

2Q25 QUARTERLY REPORT

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3Q24 QUARTERLY REPORT