Study 6: Private Company Revenue and EBITDA Growth Rates

Private companies in the Private Performing Credit Index (PPCI) reported revenue growth of 12.3% and adjusted EBITDA growth of 14.4% for the quarter ended June 30, 2025, compared to the same quarter in 2024. This marks the eighth consecutive quarter where these companies’ revenue growth exceeded that of the S&P 500 benchmark. This performance highlights the private sector’s consistent ability to achieve robust growth in both revenue and profitability.

The adjusted EBITDA weighted average margin was 32.7% in Q2 2025 for the PPCI companies. This is up from the 12-quarter average of 24.5%.

The YoY measurement compares the aggregate result of the reported quarter with the aggregate result of the quarter 12 months prior. For the PPCI, the results are measured as changes in weighted averages, consistent with the PPCI methodology. The S&P 500 results are calculated from aggregate income statement items provided by S&P Capital IQ for all companies represented in that index.

In an alternative view of the growth rates, this chart illustrates the cumulative growth observed since Q4 2022. Both revenues and EBITDA for the companies in the S&P 500 saw modest growth, the averages of which are 5.1% and 6.6%, respectively. On the other hand, PPCI companies demonstrated more robust growth: Their average revenues surged by 15.4%, and their adjusted EBITDAs grew by 17.2%.

Growth is calculated as the rate of change in a quarter multiplied by the previous quarter’s index value, beginning with a value of 100. In this way, a downward line illustrates that the change in the metric was negative versus the change in the previous period.

Margins

When comparing margins, public companies exhibited narrower but more consistent margins than their private counterparts within the PPCI. These margins are calculated by dividing adjusted EBITDA by revenue during the specified reporting period (not as Last Twelve Months). Currently, the average margin for public companies stands at 19.9%, while private companies maintain an average margin of 24.5%. These figures remain consistent with historical averages.

Cumulative EBITDA Growth Across Industries (Q3 2022 – Q2 2025)

The graph below illustrates cumulative EBITDA growth for PPCI companies across various industries during the past 12 quarters, starting from Q3 2022. Energy sectors and technology, media, and telecom sectors led the way, posting remarkable growth rates of 76% and 71%, respectively. On the other end of the spectrum, real estate showed a decline of 3%. Additionally, business services, financial institutions, and healthcare sectors exhibited strong performance, achieving a growth rate of 64%, 62%, and 55%, respectively.

Growth is calculated as the rate of change in a quarter multiplied by the previous quarter’s index value, beginning with a value of 100. In this way, a downward line illustrates that the change in the metric was negative versus the change in the previous period.

Quarterly Change by Industry

This chart presents the QoQ change in adjusted EBITDA and Revenue for the weighted average of each industry and the PPCI index in aggregate.

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