As Wall Street debates artificial intelligence's growth trajectory, a parallel financial crisis emerges in the SaaS sector. Major software-as-a-service incumbents accumulated substantial debt during the valuation boom, leveraging inflated multiples for aggressive expansion. Now facing compressed valuations and market corrections, these companies confront significant financial obligations with limited flexibility. This analysis explores how excessive borrowing during favorable market conditions has created structural vulnerabilities, potentially triggering a reckoning across the enterprise software landscape.

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