Service Leadership Report Reveals Historic Growth for IT Solution Providers and the Operational Factors Defining This Economic Shift

Annual profitability benchmark finds best-in-class IT solution providers sustained 19%+ adjusted EBITDA for a record sixth consecutive year as AI-driven automation, operational discipline, and scalable execution redefine the economics of IT solution provider growth

TAMPA, Fla., June 23, 2026 (GLOBE NEWSWIRE) -- Service Leadership, Inc.®, a ConnectWise company, today released the findings of its Service Leadership Index® 2026 Annual IT Solution Provider Industry Profitability Report™, the industry’s leading benchmark for financial and operational performance among IT solution providers worldwide. The comprehensive, vendor-neutral report reveals that IT solution providers continued to deliver historically strong results in 2025, extending one of the most significant performance runs the industry has ever seen and signaling a clear shift toward more efficient, AI-enabled operating models.

The annual report provides empirical insight into the business models, operating practices, and performance benchmarks that separate top-performing businesses from the rest of the market. It also reinforces ConnectWise’s broader commitment to advancing the IT solution provider industry through trusted insights, community, and the ConnectWise Platform with AI-native innovation designed to help partners move beyond reactive operations into the era of Predictive IT. As providers face mounting pressure to improve margins, scale operations, and navigate rising customer expectations, ConnectWise continues to help partners create operational leverage by unifying data, workflows, automation, and intelligence across the business.

Key findings from the report include:

• Best-in-class IT solution providers achieved 19%+ adjusted EBITDA profitability for the sixth consecutive year, the longest run in industry history and a clear indicator of the sector’s sustained strength.
• Business valuations and valuation multiples for best-in-class IT solution providers reached record highs in 2025, driven by continued revenue growth and even stronger profitability growth. For the average IT solution provider, this contributed to an approximate 15% increase in enterprise value from 2024.
• Managed service providers saw total revenue growth rebound to 9.6%, up from 7.1% in the prior year, while adjusted EBITDA grew even faster at 17.1%, reinforcing that the next phase of profitable growth will be defined by efficiency, scale, automation, and operational execution.
• Value-added resellers experienced a significant revenue rebound, growing 8.9% in 2025 compared to 1.8% in the prior year, driven by a recovery in product sales while maintaining adjusted EBITDA dollar growth of 17.0%.

“Managed services growth improved in 2025, while strong profitability persisted, demonstrating both the maturity and overall health of the industry,” said Peter Kujawa, EVP and GM of Service Leadership and IT Nation at ConnectWise. “Top-performing IT solution providers are not simply growing faster. They are operating smarter. Continued improvement in wage inflation, combined with a sharper focus on efficiency and AI automation, is helping the best-run businesses expand service gross margin output and build more scalable operating models. As the industry moves toward Predictive IT, the providers that can operationalize this across their business will be best positioned to protect margins, increase enterprise value, and scale with greater confidence.”

In addition to core profitability benchmarks, the report includes recurring analysis on:

• Macroeconomic impacts on IT solution provider performance
• 2022-2025 budget attainment and 2026 budgets
• Financial performance by geographic region, including Australia/New Zealand, Europe, and North America
• MSP sales and marketing costs and best practices

The 2026 report also includes special sections examining:

• Recent performance of private equity-backed MSPs
• MSP scale thresholds where economics change
• The impact of AI on the financial and operational KPIs that matter most
  

Now in its 21st year, the Service Leadership Index® draws on quarterly benchmarking data from IT solution providers across 104 countries, giving owners and executives an objective view into the practices driving profitability, growth, valuation, and operational maturity. Together, the findings help IT solution providers understand where the industry is heading, how top performers are outpacing the market, and which operational levers can help them move from manual, reactive execution toward more predictive, intelligent, and profitable business models.

To receive a complimentary executive summary and learn how to purchase the full 300+ page Service Leadership Index® 2026 Annual IT Solution Provider Industry Profitability Report™, click here.

About Service Leadership, Inc. 

Service Leadership, Inc.®, a ConnectWise company, is dedicated to providing total profit solutions for IT solution providers directly and through industry consultants and global technology vendors. The company publishes the leading vendor-neutral, IT solution provider financial and operational benchmark: Service Leadership Index®. This includes private diagnostic benchmarks for individual IT solution providers, business coaches, and consultants. The company also publishes SLIQ™, the exclusive web application for IT solution provider owners and executives to drive financial improvements by confidentially assessing and driving their Operational Maturity Level™. For more information, visit service-leadership.com. 

About ConnectWise

Trusted by 100K+ IT providers worldwide, The ConnectWise Platform brings together PSA, RMM, cybersecurity, and data protection with predictive intelligence woven throughout to help partners operate more efficiently and respond to complexity at scale. By combining intelligent automation with an open ecosystem of integrations, ConnectWise enables providers to proactively manage, secure, and support their clients with greater speed, accuracy, and confidence. With a relentless focus on innovation and partner success for more than 40 years, ConnectWise has helped partners sustain and grow their businesses by simplifying operations, enhancing service delivery, and enabling scalable business models. Learn more at connectwise.com.

Media Contact
Keith Giannini
Inkhouse for ConnectWise
connectwise@inkhouse.com

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