NSCA, a not-for-profit association representing the commercial integration industry, released its 2025 Financial Analysis of the Industry report. The report provides industry-specific information for systems integrators on key business fundamentals like markets served, systems and technologies offered, sales trends, labor breakdowns, and company financial health.

Drawing on insights from nearly 100 integration firms across 31 states, three Canadian provinces, and Puerto Rico, the 17th edition of NSCA’s Financial Analysis of the Industry report delivers the following key findings:

• Industry shifts in sales strategies: The 2025 report reveals a continued move away from competitive bidding and toward negotiated/direct sales, which now account for approximately 72% of total industry revenues.
• Improved profitability and cash flow: Despite economic unpredictability, median gross profit margins improved to 34.2%, while cash-on-hand saw a healthy boost, signaling stronger financial resilience overall.
• Diverging employment trends: When it comes to utilization rates, smaller firms especially report operating at or over capacity, while larger firms show more signs of underutilization and workforce reconfiguration as they adjust staffing levels to fluctuating workloads.
• Recurring revenue growth: Recurring revenue now represents the largest share of revenue ever. This reflects a strategic shift toward managed services and more predictable income streams.

NSCA worked with ESG Professional Accountants, an independent research firm, to preserve confidentiality while developing this report. The firm helped collect data from the 99 integration firms that participated in the 2025 Financial Analysis of the Industry survey.

“Many NSCA members make the Financial Analysis of the Industry a central part of their strategic planning process,” said Tom LeBlanc, executive director, NSCA. “It’s a credible window into what companies of similar size, geographic areas and spending and earning in specific budget categories, as well as insight into personnel usage and utilization. Additionally, the data in the Financial Analysis of the Industry helps many integration industry companies develop realistic and impactful KPIs for their departments and individual employees.”

The information presented in the 2025 Financial Analysis of the Industry report provides an in-depth look at integrator operations and dynamics.

NSCA is also hosting an exclusive webinar on Nov. 18, 2025 to hear insights from LeBlanc, Joel Harris, president of Solutions360, and Chris Mounts, chief financial officer of AVI Systems. Register for the webinar online.