We underwrite 100+ public software companies on R&D return, GAAP profitability, and intrinsic value to own long-term compounders and avoid dilutive cash burners.
Underwriting notes and data exhibits published to support our investment decisions. New releases stay open for 7 days.
Atlassian scales TTM revenue 23.8% to $6.91B at an 84.8% gross margin, yet spending 49.7% of sales on R&D and $1.61B on stock pay leaves a 0.2% GAAP operating margin and -$287.5M of FY2026 owner cash.
Workiva crossed $1.00B in TTM revenue (+18.9% YoY) at an 80.2% gross margin and swung to a +3.3% GAAP operating margin, yet stock pay still absorbs 55.4% of TTM FCF, keeping us at Hold against our $113.06 base DCF.
FICO converts $2.53B of FY2026 revenue into a 51.7% GAAP operating margin and $884.5M of owner cash on just $2.1M of capex, yet at $1,653.48 shares trade 71.2% above our $965.54 base DCF amid mortgage regulatory scrutiny.
Paylocity expanded GAAP operating margin 930 bps to 23.4% while cutting absolute SBC dollars three straight years, tripling annual Owner FCF to $358.4M and leaving shares at $142.14 at a 40% discount to our $236.62 base DCF.
We allocate capital across public software companies on revenue growth, GAAP operating profit margin, gross margin, and 1-year R&D payback, paired with House Portfolio conviction and fundamental research.
Screen our House Portfolio conviction tiers (Core, Watch, Avoid) and 0 to 100 quality scores weighted 30% to revenue growth, 30% to GAAP operating margin, 20% to gross margin, and 20% to 1-year R&D payback.
Every new fundamental note and featured company tear sheet stays open free for 7 days after publication before moving into the permanent Full Access archive.
Run interactive 3-statement and 5-year discounted cash flow scenarios burdened for stock-based compensation and equity dilution on any covered software company.
Full Access unlocks all software quality scores, House Portfolio conviction tiers, 5-year fair values, and the permanent research archive.
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