What It Took to Grow Into Profitability

Most posts like this open with the milestone and work backward.  I’d rather go in order, because the order is the part that was actually hard to run.

Snappt is profitable on an EBITDA basis as of Q3 2026.

The timing was a choice. We could have reached this point earlier by building less. What we were managing was when to cross, not whether or not we could.

Here’s how we got there. 

We invested the margin before we earned it

In the first half of this year, we heavily invested in launching our new applicant experience, VerifyMyWay. That investment created a gap in our annual operating plan. We told our board at the time, with the gap quantified and a plan to close it in the back half.

I want to be precise about why that’s interesting instead of humbling. Any company can produce a profitable quarter by opting not to build anything. The discipline is in sizing the investment, sequencing it, naming the gap it creates, and then closing that gap on the timeline you committed to.

Which is exactly what we did. Not by cutting the investment short, but because the product worked. Applicants finished what they started, completion rates climbed, and revenue arrived roughly when the model predicted. It proved that we were in control of our own profitability journey—and now we’re never looking back. 

What the numbers looked like underneath

• Rule of 40 improvement of 30 points year-over-year
• Net New ARR is more than 8x the same period last year
• Nine consecutive months of bookings finishing ahead of our operating plan, on the back of our strongest first half on record
• Revenue churn reduced by nearly 20% vs. the prior year

The Rule of 40 movement is the one I’d point to if you only look at a single line. A 30-point improvement within 12 months means the improvement came from the business becoming structurally more efficient, not from a single quarter’s timing.

What it doesn’t mean

We’re not done investing. The roadmap in front of us is funded and moving: Verification of Rent, Connected Payroll, Bank Linking, Identity Verification, and the agentic infrastructure underneath it all. What changes in profitability is where that funding comes from. We expect to exit 2026 cash flow positive, which means the roadmap is funded by the business.

But that doesn’t mean that the work is finished. Margin is a position you hold, not a milestone you clear. We’ll manage it the same way we did every month this year.

Why this is worth noting 

Multifamily operators are making multi-year platform decisions with companies whose financial durability they can’t see. That’s an uncomfortable position to be in, and it isn’t the operator’s fault. Private companies don’t publish, so the question goes unasked.

We’d rather get ahead of it. Verification sits inside a leasing workflow, a property management system, a compliance file, and an adverse action process. If the company providing it fails, the cost isn’t the software line. It’s the reintegration, the retraining, and the period of exposure while a portfolio sorts out what comes next.

A company asking operators to trust its decision-making should be willing to be transparent about its own foundations. That’s the standard we’re trying to set—and it should be the standard for our industry. 

Where to find us

Our team is at Blueprint this week, including our CEO, James Hyde, and our Chief Business Officer, Kyle Nelson. They’re the best people to talk to about what this means for a portfolio, a partnership, or a roadmap. I’m happy to take financial questions directly. You can reach me through the team.

Evan Heuser is Chief Financial Officer at Snappt, the multifamily industry’s Applicant Trust Platform, trusted by 18 of the top 25 NMHC managers.

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