SaaSpocalypse: $285B Wiped from SaaS Valuations as AI Seat Compression Reaches Earnings Reports
Intellectia.ai·high signal
The so-called SaaSpocalypse has now hit financial markets with $285B erased from SaaS stock valuations as AI-enhanced workers accomplish more with fewer licenses; multiple SaaS companies reported slowing Q4 2025 growth from seat reduction rather than churn. IDC predicts pure seat-based pricing will be obsolete by 2028, and vibe-coding tools like Bolt and Lovable let non-coders build specific workflow replacements at near-zero marginal cost, accelerating the cannibalization. Traditional B2B SaaS median revenue churn rose from 11.34% to 12.50% across private startups in 2025.