How Leaders Achieve Profitable Growth in a Stagnant Market

While economic pressures from inflation, high interest rates, and rising expenses have stabilized, growth stalled for most mid-market firms in FY24 and shows signs of declining in FY25. In response to these challenging economic conditions, companies have taken steps to bolster profitability. But improvements to the bottom line have primarily come from right-sizing internal operations, not from better GTM execution. 

To understand how to overcome market pressures and drive growth in a stagnant environment, we evaluated “Rule of”  performance (i.e., the combination of revenue growth rate and EBITDA margin) at 300 mid-market companies from 2022 to 2024. This report highlights the differences in investment posture and GTM strategy that distinguished leaders from laggard peers. We offer four specific actions GTM leaders use to drive profitable growth. Projections for FY25 market performance are also included.