Software & Internet
All research in Software & Internet — 25 reports.
Asana is a mid-cap, seat-based work-management SaaS now layering consumption-based AI onto a maturing land-and-expand model, with almost all of its $790.8 million FY2026 revenue still tied to the flagship platform. The 2026 story is a clean bull-bear standoff: margins inflected to a $56.7 million FY2026 non-GAAP operating profit and AI products already reached 17% of net-new ARR in Q1 FY2027, yet revenue growth has slowed to high single digits and management still flags PLG as a roughly two-point drag. Rating Watch: the stock is optically cheap at about 1.5x forward EV/revenue, but it needs firmer proof that AI can offset seat-growth maturity before the discount closes.
JFrog sells a software-supply-chain platform built around Artifactory artifact management, with cloud now 51% of revenue and security and AI-model governance layered on top. Its 2025 revenue was $531.8 million, up 24%, and Q1 2026 grew 26% with 120% net dollar retention, yet full-year 2026 guidance of $628 to $632 million implies only about 18.5% growth, and stock-based compensation of $156.7 million exceeds free cash flow, so owner earnings trail headline cash. At roughly 15.4x EV/sales versus GitLab's 4.7x, the price already embeds much future success. Rating Hold: cloud and security are real second-growth drivers, but at $78.48 the stock already prices in most of that success with no margin of safety.
monday.com is a low-code Work OS SaaS vendor whose customers build operational workflows across project management, CRM, service, and development, now shifting from seat-led pricing toward a seats-plus-AI-credits model. The bull-bear crux is monetization durability: Q1 2026 revenue grew 24% to $351.3 million with an 89% gross margin and $102.8 million of adjusted free cash flow, yet management guides only 19% to 20% growth for 2026 and admits it still cannot model agent and token-based revenue, so the stock trades near 1.6x forward EV/revenue versus far richer peers. Rating Cautious Buy: a still-profitable, cash-rich workflow platform is being priced as if its growth engine has already broken, while record large-customer traction says otherwise.
Constellation Software is a decentralized capital-allocation machine that buys and indefinitely holds more than 1,100 autonomous vertical-market software businesses, compounding sticky recurring maintenance cash flow into further niche acquisitions across nine operating groups. The investment debate is now about price and continuity, not quality: Q1 2026 revenue rose 20% to US$3.181 billion with 6% organic growth and free cash flow available to shareholders of US$733 million, yet at CA$2,882.02 the stock trades near 58.7 times trailing earnings and 22.9 times that cash flow while founder Mark Leonard's 2025 departure and AI fears cloud the outlook. Rating Hold: a rare software compounding machine, but today's price still assumes enough continuity that the margin of safety is thin.
HubSpot is an integrated CRM platform for SMBs and the mid-market, with 288,700 paying customers at the end of 2025, and is upgrading from a marketing tool into AI agents and seat-based SaaS. 2025 revenue was $3.13 billion, up 19%, GAAP operating profit turned positive, and free cash flow reached $595 million; however, valuation still stands at about 99x TTM P/E, while AI-driven pricing reconstruction remains unproven. Research rating Hold: fundamentals are solid, but wait for a pullback into the ideal buy zone of $135 to $145 before entering.
Kingsoft Office is China's leading office software company, with revenue supported by WPS personal subscriptions, institutional licensing, and collaboration SaaS. In 2025, revenue reached 5.929 billion yuan, WPS AI MAU climbed to 80.13 million, and annual paying personal users approached 49 million, but the surge in Q1 2026 net profit was mainly driven by investment income while operating PE still sits around 55x. Rating Hold: AI has truly moved into the conversion layer, but reported profit is distorted and valuation remains expensive.
Dassault Systèmes is a global leader in industrial software, built around the 3DEXPERIENCE platform and a virtual-twin portfolio spanning CATIA, SOLIDWORKS, SIMULIA, DELMIA, and Medidata. FY2025 revenue was €6.24 billion (+4% cc), recurring revenue was 82% of software revenue, non-IFRS operating margin was 32%, and the company held net cash, making it a very high-quality subscription software franchise. Rating Watch: a durable compounder whose valuation has de-rated sharply, but whose growth has not yet stabilized enough to create a clear margin of safety.
GoDaddy is an SMB digital platform that starts with domains and extends into websites, email, marketing, payments, and commerce tools. At about $85.83, the stock has fallen back into a researchable range, with a conservative owner-earnings multiple of roughly 9-11 times and a 20%-30% discount to neutral intrinsic value, though the margin of safety is not thick; the ideal buy range is $70-$80. Research rating Cautious Buy: a durable cash-flow compounder with real platform value, but not enough downside protection for an aggressive position.
Tyler Technologies is the leading U.S. vertical software provider for local governments, spanning courts, public safety, tax, ERP, and payments, with recurring revenue at 87%, client retention at 98%, and very high switching costs. The core thesis is that this is a high-quality, durable business, but the current share price of about $313 already embeds a premium for quality software and leaves limited margin of safety. Report rating Watch: a compounder worth tracking, with an ideal buy range of $220 to $260.
Trimble is an industrial software, positioning/field systems, and logistics platform company that is shifting from hardware toward subscription and recurring revenue. Its moat is a stack of moderate advantages, cash-flow quality is improving, but governance still carries blemishes. Research rating Watch: at about USD 56, the stock looks closer to fair value than cheap, with insufficient margin of safety and an ideal buy range of USD 38-45.
PTC is an industrial software vendor whose CAD/PLM/ALM/SLM tools form a product-data backbone for manufacturing customers, with roughly 95% recurring revenue, high switching costs, and strong cash conversion. The business quality is sound, but at the current share price of about $138.73, the conservative owner-earnings yield is only around 4%, not generous relative to U.S. Treasuries, leaving an insufficient margin of safety. Research rating Watch: a durable compounder worth tracking, with a preferred entry range of $95 to $115.
The dominant vertical SaaS provider built solely for life sciences, with 1,552 customers, FY2026 revenue of $3.195 billion, net income of $909 million, and almost no interest-bearing debt. A great business at an unremarkable price, with an ideal buy range of $125-140. Rating Watch: a high-quality compounder worth tracking closely, but today's price leaves no clear margin of safety.
Salesforce is the global CRM leader, with FY2026 revenue of $41.525 billion, free cash flow of $14.402 billion, subscriptions at 95% of revenue, and cRPO of $35.1 billion. At the current share price of $180.07, the stock trades at roughly 13.5 times conservative owner earnings, within a reasonable value band but without a clear margin of safety. Research rating Watch: a high-quality software platform whose cash-flow durability is evident, but whose current price leaves limited room for execution risk.
The leading enterprise workflow operating-system platform (post-split share price $102.25), with strong subscription stickiness and high cash-flow quality, yet on a conservative Owner Earnings basis that treats stock-based compensation as a real cost, the roughly 41x multiple still looks tight; ideal buy range $70-85. Rating Watch: an excellent business, but at today's price you are buying the expectation of continued excellence rather than an obviously undervalued asset.
A high-quality, subscription-heavy cloud security platform: FY2026 Q2 subscription mix at 84%, steady ARR growth, and 3.5 billion in net cash. The catch is price: forward EV/S near 8.2x, P/FCF near 33x, GAAP still in the red, and heavy stock-based compensation that drags down true owner earnings, leaving today's roughly 180 dollars sitting at the low end of an optimistic scenario. Rating Watch: an excellent business at a price that offers conservative investors little margin of safety.
FY2026 subscription revenue is 92% of the total, subscription backlog stands at 28.1 billion dollars, and gross retention is 97%, so business quality is solid. But how you treat stock-based compensation directly determines real shareholder returns, buyback timing has been off (average price 226.62 dollars versus 128.14 today), and the stock looks cheap on P/FCF yet not cheap on a GAAP basis, leaving a thin margin of safety. Rating Watch: a high-quality operator that has not yet earned an unarguable margin of safety.
A commerce operating system for independent merchants, with 2025 GMV of $378.4 billion, revenue of $11.556 billion, and reported FCF of $2.007 billion; after deducting SBC and capital tied up in lending, conservative owner earnings come to just $1.2 billion, with an ideal buy range of $75-95. Rating Watch: a high-quality compounder whose current price still lacks a sufficient margin of safety on a conservative basis.
A top-tier platform cash machine whose 2025 revenue cleared $400 billion for the first time, with a Search cash cow layered on a Cloud/AI upcycle. At roughly $383.47 the shares already sit near the top of the optimistic case, leaving thin margin of safety. Conservative intrinsic value is $90-120, fair value $200-260, optimistic $340-390. Rating Watch: a superb business worth tracking, but wait for the price rather than chase it.
A high-quality cloud observability platform with 30% growth and strong cash flow, but at the current 218.04 dollars it trades 56%-129% above a fair intrinsic value of 95-140 dollars, leaving no margin of safety. Rating Watch: an excellent business whose price already prices in years of flawless execution.
A high-stickiness leader in professional design software, with FY2026 recurring revenue at 97% of total and free cash flow of 2.4 billion dollars. But at roughly 244 dollars the stock sits in the optimistic zone, SBC erodes true earnings, and the margin of safety is thin. Rating Watch: a high-quality compounder priced for optimism rather than safety; ideal buy range 140-180 dollars.
A sticky database/ERP software cash cow layered with a capital-intensive AI/OCI expansion: an excellent business, but at roughly $181 the stock already sits near the top of the optimistic case. Rating Watch: a great company whose current price leaves little margin of safety.
A long-term, platform-monopoly stickiness machine with relentless cash generation and a front-row reinvestment seat into the AI era; at the current price the market cap sits near $3.15 trillion, putting it on roughly 28x conservative Owner Earnings and a strict 43x FCF. At $423.54 the stock is close to fair value but lacks a margin of safety, with a sensible buy range of $300–360 (fair value $390–470 at a 20–30% discount). Rating Watch: a superb business at a reasonable-to-slightly-rich price, worth following closely rather than chasing here.
A top-tier compounding platform (retail network + AWS + advertising + third-party sellers), with 2025 revenue of 716.9 billion dollars and operating profit of 80.0 billion dollars; but AI capex has surged to 128.3 billion dollars, leaving TTM free cash flow at just 1.2 billion dollars. At the current 264.86 dollars, the stock sits near the upper edge of the optimistic case, and the margin of safety is thin. Fair buy 150-210 dollars, comfortable entry 120-155 dollars. Rating Watch: a world-class business, but priced as expensive excellence rather than cheap greatness.
Palantir has shifted from "high growth but chronic losses" to "high growth plus strong cash flow": FY2025 revenue of 4.475 billion (+56%), GAAP net income to shareholders of 1.625 billion, and free cash flow of 2.101 billion; Q1 2026 revenue grew 85%, with U.S. commercial up 133%. Yet at the current 133.99, a 344.5 billion market cap implies a trailing PE of roughly 150.6x, P/FCF of roughly 128x, and SBC-adjusted P/OE of roughly 176x. This is an excellent company priced for near-perfection, worth owning for the long run but not worth acquiring at today's price. The three DCF scenarios land at 18-30 / 35-60 / 75-110, leaving the current price well above even the optimistic range. Rating Watch: a high-quality compounder whose price already prices in a decade of extraordinary success.
A high-quality growth asset that is richly priced: DBNRR of 118% and 4,416 large customers spending $100K+ are still expanding, yet Q1 2026 gross margin slipped from 76% to 71%, and at $197.56 the market has already pulled forward a decade of high growth and margin expansion, with little evidence of high-quality owner earnings net of stock-based compensation. Rating Watch: an excellent business at a demanding price that leaves no margin of safety today.