Modest CAC Increase as Accelerating ARR Growth Is Offset by Higher S&M Spend

研报英文原文证据摘录

Modest CAC Increase as Accelerating ARR Growth Is Offset by Higher S&M Spend

Equity Research

8 July 2026 | 6:01AM EDT

AMERICAS BENCHMARKING SOFTWARE

Modest CAC Increase as Accelerating ARR Growth Is Offset by Higher

S&M Spend

1Q26 customer acquisition cost (CAC) modestly increased QoQ in our software Matthew Martino

+1(212)902-0695 |

sample set of 39 companies, marking a reversal of the quarterly improvement in matt.martino@gs.com

Goldman Sachs & Co. LLC

4Q25. The modest sequential step up in CAC was driven by an acceleration in

Gabriela Borges, CFAtrailing-twelve month sales & marketing growth (+14.2% in 1Q vs. +12.9% in +1(212)902-7839 |

4Q), which more than offset the sequential improvement in median ARR growth gabriela.borges@gs.comGoldman Sachs & Co. LLC

(+22.4% in 1Q26 vs. +19.7% in 4Q) that marked the first quarter of 20%+ growth Callie Valenti

in ARR since 2Q25 (Exhibit 1). While we are encouraged by the sequential increase +1(212)357-2790callie.valenti@gs.com|

in median ARR growth, we note this is partially attributable to easing comps in 1Q Goldman Sachs & Co. LLC

Nance(with 1Q25 representing the second lowest ARR growth in our sample set), as well as Will +1(212)357-7438 | will.nance@gs.com

select inorganic contributions and FX dynamics across our coverage universe. Goldman Sachs & Co. LLC

Improving ARR growth is a positive signal, though investors remain focused on Greyson Sklba

+1(212)357-2534 |

the long-term value and AI disruption debate in software - we think it will likely greyson.sklba@gs.com

take multiple consecutive quarters of improving fundamentals, as well as

Maura Hager

favorable AI datapoints through the year, for this data to materially impact +1(212)9028724 | maura.hager@gs.com

investor sentiment. Goldman Sachs & Co. LLC

Max Gamperl