B2B SaaS exits reveal harsh new reality of compressed valuations

Two major B2B SaaS exits this week reveal the harsh new reality of software valuations, as Navan IPO’d at a $4.7 billion valuation after losing 20% on its first day and JAMF sold for just $2.2 billion at 3.1x revenue. These deals underscore how dramatically the market has repriced B2B companies, with even profitable, scaled businesses now trading at multiples that would have been unthinkable just three years ago.

The big picture: While the Nasdaq hits all-time highs and Nvidia surpasses $5 trillion in market cap, B2B SaaS companies are facing a brutal valuation reset that’s left many late-stage investors underwater.

What happened with Navan: The corporate travel platform went public at $25 per share but closed at $20, giving it a 7.7x revenue multiple on $613 million in trailing revenue.

• Despite raising over $1.4 billion at a peak valuation of $9.2 billion in 2022, investors who bought in late rounds took a 50%+ haircut on day one.
• The company shows strong operational metrics with 10,000+ customers, 110% net revenue retention, and $7.6 billion in gross bookings up 34%.
• However, Navan still loses money at $600M+ revenue run rate, losing $38.6 million in Q2 2025 on $172 million in revenue.

JAMF’s sobering exit: The Apple device management company sold to Francisco Partners, a private equity firm, for $2.2 billion despite having $710 million in ARR and serving 75,000+ customers.

• The 3.1x revenue multiple represents less than half of JAMF’s IPO day valuation and 83% below its 2021 peak.
• The company actually tripled revenue from $225M to $710M over five years but saw growth decelerate from 37% to just 10-11%.
• JAMF’s Rule of 40 score fell to negative 1% (11% growth minus 12% operating margin loss), prompting two rounds of layoffs totaling 12% of workforce.

Why growth rate trumps scale: Both companies demonstrate that absolute revenue size means little if growth rates are declining.

• JAMF dominated its niche and reached massive scale but couldn’t maintain the 30%+ growth rates that command premium multiples.
• At 40% growth, companies double in ~2 years; at 12% growth, they take 6 years to double.
• A company growing $100M at 40% is worth more than a company growing $300M at 12%, according to current market dynamics.

The operating leverage problem: Neither company solved the fundamental challenge of improving profitability as they scaled.

• Navan burns cash despite $600M+ revenue and can’t articulate a clear path to profitability.
• JAMF shows a $48 million quarterly gap between GAAP losses and non-GAAP profits, indicating real stock compensation costs.
• Public investors expect margins to expand and G&A costs to decline as percentage of revenue at scale.

What this means for founders: The market has fundamentally repriced risk, making last round valuations potentially meaningless.

• Companies that raised at 20x ARR in 2021 would need to 3-4x revenue just to break even at today’s 5-7x multiples.
• Growth rates below 20% now result in 3-7x ARR valuations regardless of company size.
• The path to profitability within 12-24 months is no longer optional but required for premium valuations.

The uncomfortable math: Most late-stage rounds from 2020-2022 are structurally underwater.

• An estimated 80-90% of companies that raised at 15x+ ARR multiples will never grow into those valuations.
• Limited partners will discover this reality in 2026-2027 when funds can no longer hide behind inflated marks.
• The days of ‘growth at any cost’ are over, and the days of ‘we’ll figure out profitability later’ are over.

What’s coming next: The market is likely to see more down-round IPOs, take-privates at 3-5x multiples, and strategic M&A at compressed valuations.

• Companies with real revenue ($50M+ ARR), real growth (25%+), and credible profitability paths will still find success.
• But the era of premium multiples for mediocre growth companies has definitively ended.
• As one observer noted: “B2B SaaS isn’t magic anymore. It’s just business. And business has to make sense.”