R&D Index (RDI Score)

The R&D Index (RDI Score) is a key metric that evaluates how efficiently SaaS companies convert their R&D investments into organic revenue growth. In a competitive landscape, innovation drives customer satisfaction, retention, and long-term expansion. Companies with higher RDI scores consistently outperform peers, delivering stronger total shareholder returns (TSR).

An RDI Score above 1.4 means a company generates more than $1.40 in revenue for every $1 spent on R&D—a hallmark of best-in-class performance. For context, the industry median is around 0.7, but among leading SaaS names, this metric often exceeds 1.3, signaling exceptional efficiency and innovation.

In Q4 2025, the top performers by RDI Score were: $PLTR with score at 5.9, $ NET at 2.1, $IOT, and $RBRK at 1.8, and $ZS at 1.7.

The median RDI Score for the SaaS companies I track is 1.2, up from 1.1 in the previous quarter.

At the lower end, $TEAM posted an RDI Score of 0.7, falling at the industry median—indicating less efficient R&D investment compared to peers.