Software Valuations Drive Down 10x ARR Club

Public B2B software valuations have collapsed in February 2026, with median revenue multiples falling from roughly 18x in 2020 to about 4x today and the average near 6.6x. The sector-wide selloff, driven by AI disruption fears, left only a handful of firms — led by Palantir, Cloudflare, Shopify, CrowdStrike and Snowflake — trading at or near 10x revenue.