Entrata, the property management software company behind about 2.5 million US apartment units, filed to list its Class A stock on the New York Stock Exchange under the ticker ENT. Its latest registration statement, S-1/A Amendment No. 2 filed on September 1, 2026, shows revenue of $509.3 million in 2025 (up 24%), $294.6 million in the first half of 2026 (up 23%), net revenue retention of 117%, gross retention of 97%, a 60% gross margin and GAAP operating income of $82.6 million. Rebuilt from the filing, its Rule of 40 score is about 40 on free cash flow and 47 on non-GAAP operating margin, and its trailing magic number is 1.3 to 1.6. As of October 22, 2026 the IPO has not priced. The filing does not disclose a total ARR figure, and several common SaaS ratios need care because Entrata's definitions differ from the usual ones.
Figures from the S-1/A filed September 1, 2026 (financials through June 30, 2026); we will update this page at pricing. Every figure below cites the filing section and prospectus page. Ratios marked "computed" are our arithmetic, shown in full in How we calculated. This is a teaching example for founders, not investment advice.
Entrata at a glance
| Metric | Value | Source (S-1/A No. 2) |
|---|---|---|
| Revenue 2024 / 2025 | $412.0M / $509.3M (+24%) | MD&A, Results of Operations, p.118 |
| Revenue H1 2025 / H1 2026 | $238.8M / $294.6M (+23%) | p.118 |
| Trailing 12 months to June 30, 2026 | $565.1M (+22.8%), computed | Quarterly Results of Operations, p.136 |
| Revenue mix 2025 | 86% subscription-related, 14% Embedded Technology Solutions | MD&A, Our Revenue Model, p.103-104 |
| GAAP gross margin 2024 / 2025 / H1 2026 | 56% / 60% / 63% | p.118 |
| GAAP operating income 2025 | $82.6M (16% margin) | p.118 |
| Non-GAAP operating income 2025 | $117.8M (23% margin) | Non-GAAP Financial Measures, p.129 |
| Net income 2025 / H1 2026 | $50.7M / $44.9M | p.118 |
| Free cash flow 2025 | $87.1M (17%); $82.5M (16%) excluding customer deposits | p.130-131 |
| Net retention, Dec 31 2024 and 2025 | 117% both years | MD&A, Our Revenue Model, p.103 |
| Gross retention, Dec 31 2024 / 2025 | 99% / 97% | Prospectus Summary, p.3 |
| Units billed on the platform | 2,529,199 at June 30, 2026 (+9% YoY) | Key Operating Metrics, p.104 |
| Revenue per unit (ARPU) | $223 at June 30, 2026 (+13% YoY) | p.105 |
| Customers above $500K ARR | 233 (Dec 2025), up from 183; 84% of total ARR | Prospectus Summary, p.2 |
| Cash / term loan | $150.7M cash; $398.0M term loan at 6.4% | Liquidity and Capital Resources, p.139, p.142 |
| Price range / IPO price | Blank in the filing; not priced as of Oct 22, 2026 | Cover page; EDGAR filing index |
Where the Entrata IPO stands
Entrata confidentially submitted a draft registration on December 17, 2025, filed five amended drafts through May 15, 2026, then filed the public S-1 on May 28, 2026, Amendment No. 1 on June 11 and Amendment No. 2 on September 1 (EDGAR filing index, CIK 0002028464). As of October 22, 2026 there is no final prospectus (Form 424B4), no Form 8-A exchange registration and no amendment with a price range. The cover of Amendment No. 2 still reads "between $ and $" per share, so the roadshow has not started. Goldman Sachs runs the directed share program named in the filing.
Two items that circulated in coverage need correcting. First, the filing does not state a total ARR. The "$575 million ARR" figure in some write-ups is not in the S-1/A; Q1 2026 revenue of $143.5 million times four is $573.9 million, which is probably where it came from. That is a revenue run rate, not ARR as Entrata defines it. Second, the 23% growth figure is first-half 2026 revenue growth; full-year 2025 growth was 24%.
What Entrata sells, and how it charges
Entrata sells an operating system for apartment operators: leasing, accounting, payments, maintenance, resident apps, insurance and screening on one database. Its customers include 4 of the top 10 operators on the National Multifamily Housing Council's Top 50 list (Prospectus Summary, p.1). It names Yardi, RealPage, MRI and AMSI as legacy competitors and AppFolio, Buildium and Yardi Breeze at the smaller end (Business).
The pricing detail matters more than the product list. Entrata says its "pricing is based on the number of units that a customer manages on our Operating System, rather than the number of individual users or seats" (MD&A, p.103). Contracts usually run three to five years, are billed per unit per month, and most include annual price escalators. Payment processing is required for every customer on the platform and is charged per transaction.
That is why Entrata is a useful case in 2026. The SaaSpocalypse selloff punished software priced per seat, on the fear that AI agents shrink headcount. Entrata's revenue grows when its customers manage more apartments, not when they hire more leasing agents, so AI that cuts a property's staff does not cut Entrata's billing base.
The metrics an investor checks, and how Entrata defines them
Read the glossary of any S-1 before the numbers. Entrata's definitions are reasonable, but three of them differ from what most founders mean by the same words.
| Metric | Entrata's definition (Glossary, p.ii-iv) | Common definition | Why it matters |
|---|---|---|---|
| ARR | Annualized value of total invoiced billings at period end, including usage-based payment processing fees and insurance and screening revenue | Annualized contracted subscription revenue, excluding usage and one-off fees | Entrata's ARR moves with rent payment volume and insurance sales, so it is closer to a billings run rate than to contracted ARR |
| Net retention (117%) | Current ARR of the cohort active 12 months earlier, divided by that cohort's ARR then | Same formula | Formula is standard, but it inherits the broad ARR above, and includes units added when customers buy more buildings |
| Gross retention (97%) | Prior ARR less churned or reduced ARR, divided by prior ARR, excluding "property churn" | Includes every lost dollar | Property churn (a building leaves when it is sold to a new owner or operator) is excluded because Entrata sees it as outside its control |
| ARPU ($223) | Trailing 12-month revenue divided by units at period end | Usually revenue in a period divided by average units | Dividing a full year of revenue by year-end units understates ARPU when units grow fast |
| Customers | Each customer account; one operator can hold several | One company = one customer | The 233 customers above $500K may include several accounts of one operator |
Net retention of 117% against gross retention of 97% means expansion added about 20 points of ARR inside the existing base. The filing says where it comes from: about 60% of unit growth in 2025 came from existing customers adding properties, and "substantially all" ARPU growth came from existing customers buying more products (Key Operating Metrics, p.104-105). Entrata also notes that legacy point-solution customers make up less than 3% of ARR but about half of churn and downsell (Business, p.112). If you report NRR, the NRR guide covers the standard definition, and NRR vs GRR covers why investors want both.
The P&L: growth, a 60% gross margin and lean operating costs
Revenue rose every quarter from $92.1 million in Q1 2024 to $151.1 million in Q2 2026 (p.136). Unit growth slowed from 15% in 2025 to 9% year on year at June 2026, while ARPU growth sped up from 8% to 13%, so growth has shifted from new apartments to more products per apartment.
Gross margin is the number a SaaS reader will stop on. At 60% in 2025 it is well below the 76% median in the Benchmarkit 2026 report. The reason is accounting, not hosting cost: Entrata records payment processing fees "gross of any interchange and payment processing fees due to third parties" (MD&A, p.103), so card network costs sit in cost of revenue. Payment processing fees alone added $13.6 million to cost of revenue in 2025 (p.123). Gross margin still rose from 54% in Q1 2024 to 63% in Q2 2026 as the mix moved toward higher-margin products.
Operating costs are where Entrata looks unusual. As a share of 2025 revenue:
| Expense, 2025 | GAAP | % of revenue | H1 2026 % of revenue |
|---|---|---|---|
| Sales and marketing | $85.7M | 17% (14% non-GAAP) | 14% |
| Research and product development | $73.2M | 14% | 13% |
| General and administrative | $64.6M | 13% | 11% |
| Operating income | $82.6M | 16% | 25% |
Source: MD&A, Results of Operations, p.118; non-GAAP S&M, p.127.
Sales and marketing at 17% of revenue is half the 35% median in the Benchmarkit 2026 report. Long contracts, an enterprise customer base and expansion that follows customers' own property purchases mean Entrata does not need to buy much of its growth. Note also the Q2 2025 spike: a one-time RSU release tied to an employee tender offer added $19.0 million of stock-based compensation in that quarter (p.118), which is why Q2 2025 operating margin was 2% and why the non-GAAP figures are worth reading alongside GAAP for that period.
Cash flow: the customer deposits trap
This is the section most worth copying into your own reporting, as a warning. Entrata collects rent from residents and holds it before paying operators. Those funds show up as customer deposits ($270.5 million at December 31, 2025) and their swings run through operating cash flow.
The effect is large. In 2024, GAAP operating cash flow was $161.9 million, of which $144.7 million came from a rise in customer deposits (p.130). Free cash flow on the usual formula was $152.4 million, a 37% margin. Excluding the deposit swing, Entrata's own "adjusted free cash flow" was $7.7 million, a 2% margin (p.131). Quarterly free cash flow margins swing from -32% to +83% for the same reason (p.134-135). Entrata reports both measures, which is the honest choice; a reader who takes only the GAAP line would think 2024 was its best cash year when it was its weakest.
If your company holds customer money (payments, payroll, marketplace balances, prepaid credits), show free cash flow with and without those balances. An investor will compute it anyway.
Entrata's Rule of 40, rebuilt from the filing
The Rule of 40 adds revenue growth to a profit margin. The answer depends on which margin you choose, and Entrata gives you four:
| Period | Growth | Margin used | Margin | Rule of 40 score (computed) |
|---|---|---|---|---|
| FY2025 | 23.6% | GAAP free cash flow | 17.1% | 40.7 |
| FY2025 | 23.6% | Adjusted FCF (ex deposits) | 16.2% | 39.8 |
| FY2025 | 23.6% | GAAP operating margin | 16.2% | 39.8 |
| FY2025 | 23.6% | Non-GAAP operating margin | 23.1% | 46.8 |
| TTM to Q2 2026 | 22.8% | Adjusted FCF (ex deposits) | 19.6% | 42.4 |
| TTM to Q2 2026 | 22.8% | GAAP free cash flow | 36.0% | 58.8 |
The defensible number is the adjusted free cash flow version: about 40 for 2025 and 42 for the twelve months to June 2026. The 58.8 is a deposit swing, not performance. Entrata gets there with mid-20s growth and mid-teens to high-teens cash margins, the "profitable grower" path, not the hypergrowth one. You can put your own figures through the Rule of 40 calculator and switch between FCF and EBITDA margins to see how much the choice moves your score.
Magic number: sales efficiency from quarterly data
The magic number divides annualized new revenue in a quarter by the prior quarter's sales and marketing spend. Most S-1s make this hard; Entrata publishes ten quarters of revenue and S&M (p.136, p.132), so it can be computed directly.
| Measure (computed) | GAAP S&M | Non-GAAP S&M |
|---|---|---|
| Trailing four quarters to Q2 2026 | 1.33 | 1.59 |
| Q2 2026 alone | 1.60 | 1.75 |
| Weakest quarter (Q4 2024) | 0.85 | 0.92 |
| FY2025 revenue increase ÷ FY2024 S&M | 1.31 | - |
Anything above 0.75 is usually read as efficient, so Entrata clears the bar by a wide margin. Two caveats keep this honest. The formula uses revenue, and Entrata's revenue includes payment volume and price escalators that do not come from sales spend. And a good part of its growth comes from customers adding buildings they bought, which a sales team supports but does not create. Adjusted for the 63% gross margin, the Q2 2026 figure falls from 1.75 to 1.10. Try different spend and growth inputs in the magic number calculator.
What the filing does not let you compute
CAC payback. A real CAC payback needs the cost of acquiring new customers and the gross profit those customers bring. Entrata discloses neither a new-customer count, nor new-logo ARR, nor a split of S&M between its new-customer and expansion sales teams (the filing says both exist). What can be computed is a blended proxy: 2025 S&M of $85.7 million divided by the year's revenue increase times gross margin ($97.3 million × 60.1%) gives about 17.6 months. Treat that as "months of S&M spend to buy one year of new gross profit", not as CAC payback.
Burn multiple. The burn multiple is net burn divided by net new ARR. Entrata does not burn cash on any of its free cash flow measures for 2025 or the first half of 2026, so the ratio has no meaningful value. That is a fine problem to have, but it means you cannot benchmark it here.
An ARR waterfall. Without starting ARR, new, expansion, contraction and churn in dollars, you cannot rebuild Entrata's ARR bridge. If you want to see how a 117% NRR and 97% GRR combine with new bookings, the ARR waterfall calculator lets you build the bridge from assumptions.
Capital structure: a debt-funded dividend and a controlling sponsor
The financing history says as much about the business as the P&L. In May 2025 Entrata sold 8,650,520 shares to an investor at $23.12 per share for $200.0 million, with a top-up that guarantees the investor a 12.5% IRR if Entrata is sold within three years (Notes to the financial statements, p.F-31). In September 2025 it took a $400 million term loan from JPMorgan, maturing in 2032, at SOFR plus 2.75-3.00% (6.4% at June 30, 2026; p.139). In November 2025 it paid a one-time dividend of $1.99 per share, $356.3 million in total, "financed with cash on hand and a portion of the net proceeds" of that loan (Dividend Policy, p.93).
After the IPO, Silver Lake will hold more than 50% of the voting power, which makes Entrata a "controlled company" under NYSE rules (The Offering, p.22). Class B shares carry ten votes and go to Silver Lake, CEO Adam Edmunds and President Chase Harrington; Class C shares held by a Dragoneer entity carry no vote. Use of proceeds is general corporate purposes, tax withholding on RSUs that settle at the IPO, and possibly repaying part of the term loan (Use of Proceeds, p.91).
What is Entrata worth? The private mark, not a price
Until the price range is filed, the only valuation anchors are the private ones in the filing. For year-end 2025 equity awards Entrata assumed a fair value of $21.13 per share (Executive Compensation, p.197), and a director bought shares at $21.13 on January 28, 2026. On the 179.1 million common shares outstanding at June 30, 2026 (balance sheet), that implies:
| Step (computed) | Value |
|---|---|
| Equity value: 179.104M shares × $21.13 | $3.78B |
| Plus term loan outstanding | +$398.0M |
| Less cash | -$150.7M |
| Implied enterprise value | $4.03B |
| ÷ TTM revenue to June 30, 2026 ($565.1M) | 7.1x |
| ÷ FY2025 revenue ($509.3M) | 7.9x |
This uses basic shares only, so it leaves out about 15.8 million options (about 11.9 million of them performance options tied to share-price or sponsor-return targets) and unsettled RSUs. Treat it as a floor reference, not a forecast of the IPO price. For context, the SaaS Capital Index of public SaaS companies stood at 4.2x run-rate revenue on September 30, 2026 (see our SaaSpocalypse valuation update), so the private mark already prices Entrata above the public median, consistent with a Rule of 40 near 40 and 117% NRR. The SaaS valuation guide explains how growth and retention move a multiple, and the SaaS valuation calculator runs the same comparison on your numbers. When Entrata files a price range, we will add the implied multiple at the midpoint.
Five lessons for a private SaaS founder
- Pick a billing unit that grows with your customer's business, not their headcount. Entrata bills per apartment, so it grows when customers buy buildings and is not exposed to AI shrinking their staff. If you bill per seat, model a 20-40% seat decline and know your answer before an investor asks.
- Write your metric definitions down, and disclose the exclusions. Entrata's GRR excludes property churn and its ARR includes usage and insurance. Both are defensible because they are stated in the glossary. A buyer will forgive a non-standard definition; it will not forgive one it discovers in diligence.
- Separate customer money from your cash flow. A 37% versus 2% free cash flow margin in the same year is the clearest example you will find of why. If you hold funds for customers, report FCF with and without them from your first board deck.
- Show the expansion engine, not just the ratio. 117% NRR is persuasive because the filing explains it: units from existing customers (about 60% of unit growth) plus more products per unit (ARPU up 13%). Break your own NRR into those parts.
- Efficiency compounds into options. S&M at 17% of revenue and a magic number above 1 let Entrata reach a 16% GAAP operating margin, borrow $400 million against its cash flow and pay a dividend before listing. A company with these economics chooses when to go public instead of needing to.
Every item above is a line in an operating model: units or customers, revenue per unit, expansion, churn excluding and including the events you cannot control, S&M as a share of revenue, and cash with and without customer balances. Adlega builds that driver-based 36-month SaaS model, tracks NRR, gross margin and Rule of 40 as you change assumptions, and its AI CFO shows the formula behind each number.
How we calculated
All inputs come from S-1/A Amendment No. 2, filed September 1, 2026 (SEC EDGAR), in thousands of dollars unless stated. We checked that the four 2024 and 2025 quarters sum to the audited annual revenue and S&M before using them.
Revenue growth = Revenue (period) ÷ Revenue (same period a year earlier) − 1FY2025: 509,295 ÷ 412,000 − 1 = 23.6%. TTM: 565,109 ÷ 460,016 − 1 = 22.8%
Rule of 40 = Revenue growth % + Margin %FY2025, adjusted FCF: 23.6 + (82,498 ÷ 509,295 = 16.2) = 39.8
Magic number = (Revenueq − Revenueq−1) × 4 ÷ S&Mq−1Q2 2026, non-GAAP S&M: (151,142 − 143,483) × 4 ÷ 17,457 = 1.75. Trailing: sum of the last four quarterly numerators ÷ sum of the four prior-quarter S&M figures
S&M payback proxy (months) = S&M ÷ (Revenue increase × Gross margin) × 12FY2025: 85,725 ÷ (97,295 × 60.1%) × 12 = 17.6 months. Not CAC payback
Implied EV ÷ revenue = (Shares × Price + Debt − Cash) ÷ TTM revenue(179.104M × $21.13 + $398.0M − $150.7M) ÷ $565.1M = 7.1x
TTM figures are the sum of Q3 2025 to Q2 2026 from the quarterly tables (p.132-136). "Adjusted FCF" is Entrata's own measure: operating cash flow less capital expenditure, excluding the change in customer deposits (p.131). Percentages are rounded to one decimal; Entrata's tables round to whole numbers, so a few of ours differ by a point.
FAQ
Has Entrata gone public yet?
Not as of October 22, 2026. Entrata filed its public S-1 on May 28, 2026 and amendments on June 11 and September 1, 2026, and has applied to list on the NYSE under the ticker ENT. No price range, final prospectus or exchange registration has been filed on EDGAR, so the IPO has not priced and the stock does not trade.
What is Entrata's revenue?
Entrata reported revenue of $509.3 million for 2025, up 24% from $412.0 million in 2024, and $294.6 million for the first half of 2026, up 23%. Trailing twelve-month revenue to June 30, 2026 was $565.1 million. About 86% is subscription-related revenue, which includes payment processing, and 14% comes from insurance, resident screening and similar services.
What is Entrata's ARR?
The S-1/A does not disclose a total ARR figure. It defines ARR as the annualized value of invoiced billings, including usage-based payment fees, and uses it for retention and for its 233 customers above $500,000 of ARR (84% of total ARR). Figures such as "$575 million ARR" in press coverage match Q1 2026 revenue times four, not a number in the filing.
Is Entrata profitable?
Yes on a GAAP basis. Operating income was $82.6 million in 2025 (16% margin) and $74.4 million in the first half of 2026 (25%), and net income was $50.7 million and $44.9 million. Free cash flow excluding customer deposits was $82.5 million in 2025.
What is Entrata's valuation?
There is no IPO valuation yet because the price range is blank. The filing gives private marks: $23.12 per share for a $200 million investment in May 2025 and $21.13 per share after the November 2025 dividend. At $21.13 and 179.1 million basic shares, equity value is about $3.8 billion and enterprise value about $4.0 billion, roughly 7.1x trailing revenue. This is our arithmetic, not a price forecast or investment advice.
How does Entrata calculate net revenue retention?
It takes the ARR of customers who were active twelve months earlier and divides their current ARR by their ARR then, including expansion, contraction and churn. The result was 117% at the end of both 2024 and 2025. Its gross retention (97% for 2025) excludes properties a customer drops after selling them to a new owner or operator.