Move over, SpaceX - this is the IPO we should all be focused on.
Entrata is a PE-backed software company that offers a property management OS and $575M or so in implied ARR.
But the key point is that they are GAAP operating-profitable. Meaning they actually make money and are growing 23%-24% per year.
According to Alex C. at Meritech, this may be the largest ever software IPO to have real profits and 20%+ growth.
So, to the key question - what the hell is this thing worth?
Is it 10x ARR? Is it 5x ARR? In the current market milieu, growth is weighted far more heavily than profitability and Entrata has been growing steadily but not spectacularly for years.
There are industry specifics and business model nuances to consider, certainly. But for the vast majority of PE and VC held software, this IPO will be more telling than whatever happens in the rarefied air of SpaceX. Here's hoping that decent growth and real, GAAP profits can still make a dent in the public portfolio.
The return of the small(er) IPO with more reasonable metrics would be a very welcome addition to 2026.
Rooting for you, Entrata!
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