Rule of 40
TopicHeard in 1 episode across 1 show since Jul 2026
The Rule of 40 is a financial heuristic used to evaluate the performance and health of software as a service (SaaS) companies. It states that a company's annual revenue growth rate combined with its profit margin (often measured as EBITDA margin) should equal or exceed 40%. This metric helps investors and management balance the trade-off between rapid growth and profitability.
Episodes
First heard
Expert statements
Episodes per month
Public PodLume episodes featuring it, over the last year.
Show the data
| Month | Episodes |
|---|---|
| Nov 2025 | 0 |
| Dec 2025 | 0 |
| Jan 2026 | 0 |
| Feb 2026 | 0 |
| Mar 2026 | 0 |
| Apr 2026 | 0 |
| May 2026 | 0 |
| Jun 2026 | 0 |
| Jul 2026 | 1 |
| Aug 2026 | 0 |
| Sep 2026 | 0 |
| Oct 2026 | 0 |
Email alert
Email me when Rule of 40 comes up on a podcast
One email a week at most, with the new episodes that mention Rule of 40. Free, no account needed, unsubscribe in one click.
What experts have said about Rule of 40
3 statements · 3 positive
A stock passes Cramer’s Rule of 40 screen when revenue growth plus margin exceeds 40.
“If it's over 40, then it's a keeper.”
Open the episode · Mad Money w/ Jim Cramer 10/16/26Listen at 42:28
A stock passes Cramer’s Rule of 40 screen when growth plus margin exceeds 40.
“If it's over 40, then it's a keeper.”
Open the episode · Mad Money w/ Jim Cramer 7/23/26Listen at 42:53
A stock passes the Rule of 40 when growth plus margin exceeds 40.
“over 40, then it's a keeper.”
Open the episode · Mad Money w/ Jim Cramer 11/17/25Listen at 42:53
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Episodes
1 episode featuring Rule of 40, newest first
