Entrata (ENT) Registration filing summary

Company overview and business model

• Provides a unified, cloud-native operating system for the rental property market, integrating CRM, ERP, property operations, and resident engagement.

• Serves 2.5 million units as of March 31, 2026, representing about 10% of the U.S. multifamily market.

• Focuses on enterprise operators and offers embedded AI (ELI) for automation across leasing, payments, renewals, and maintenance.

• Revenue model is based on recurring subscriptions, payment processing, and embedded technology solutions such as insurance and resident screening.

• Customers include 4 of the top 10 and 10 of the top 50 NMHC operators, with strong retention and expansion dynamics.

Financial performance and metrics

• Revenue for the twelve months ended March 31, 2026 was $536M, with 23% YoY growth.

• Net income for the same period was $60M, with an 18% GAAP operating margin and 25% non-GAAP operating margin.

• Gross retention rates were 99% in 2024 and 97% in 2025; net retention rate was 117% for both 2024 and 2025.

• Free cash flow margin was 38% for the three months ended March 31, 2026.

• Operating income grew from $52.5M in 2024 to $82.6M in 2025; non-GAAP operating income grew from $58.4M to $117.8M.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for general corporate purposes, including working capital, operating expenses, and capital expenditures.

• A portion may be used for acquisitions or investments, and to satisfy tax withholding obligations related to RSU settlements.

• May also use proceeds to repay outstanding indebtedness under the company’s credit agreement.