Profit & Loss¶
Refreshed April 29, 2026 using new 2024 monthly P&L, 2025 monthly P&L, Q1 2026 P&L, and prior 2025 full-year P&L PDF.
Source Reconciliation Warning¶
There are multiple P&L/tax views for 2025, and they do not tie exactly:
| Source | Revenue | COGS | Gross Profit | Net / Ordinary Income |
|---|---|---|---|---|
| 2025 monthly P&L workbook | $3,617,208 | $2,143,028 | $1,474,180 | $480,814 |
| 2025 full-year P&L PDF | $3,892,993 | $2,274,248 | $1,618,745 | $799,168 |
| 2025 federal tax return | $3,707,280 | $2,269,256 | $1,438,024 | $585,209 |
Do not use a single 2025 number without naming the source. The acquisition model should include a reconciliation tab.
Q1 2026 Profit & Loss¶
| Line | Amount |
|---|---|
| Nontaxable Sales | $1,520,354 |
| Services | $1,699 |
| Total Income | $1,522,053 |
| Direct Materials | $293,320 |
| Direct Labor | $164,862 |
| Subcontract | $58,145 |
| Other COGS | $86 |
| Total COGS | $516,413 |
| Gross Profit | $1,005,640 |
| Gross Margin | 66.1% |
| Total Operating Expenses | $157,634 |
| Net Operating Income | $848,006 |
| Net Other Income | $1,040 |
| Net Income | $849,046 |
| Net Margin | 55.8% |
Q1 2026 Expense Highlights¶
| Expense | Amount |
|---|---|
| Salaries and Wages | $58,233 |
| Taxes | $18,049 |
| Rent | $16,000 |
| Shop Supplies | $10,201 |
| Insurance | $9,077 |
| Accounting | $8,190 |
| Utilities | $6,361 |
| Office Supplies | $5,743 |
| Repairs | $4,373 |
| Health Insurance | $3,753 |
Interpretation: Q1 2026 is extremely strong. The biggest diligence risk is whether costs are fully matched to revenue. Confirm April 2026 results and job-level margins before annualizing.
2025 Monthly P&L Workbook Summary¶
| Line | Amount |
|---|---|
| Total Income | $3,617,208 |
| Total COGS | $2,143,028 |
| Gross Profit | $1,474,180 |
| Gross Margin | 40.8% |
| Total Operating Expenses | $994,420 |
| Net Income | $480,814 |
| Net Margin | 13.3% |
2025 COGS and Expense Drivers¶
| Category | Amount |
|---|---|
| Direct Materials | $1,396,708 |
| Direct Labor | $648,358 |
| Subcontract | $96,650 |
| Salaries and Wages | $251,948 |
| Depreciation Expense | $161,828 |
| Rent | $104,000 |
| Insurance | $77,764 |
| Payroll Taxes | $72,986 |
| Shop Supplies | $56,167 |
| Outside Services | $27,047 |
| Continuing Education | $25,245 |
| Accounting | $24,501 |
Notable: December 2025 includes a large $161,828 depreciation expense, which is likely one reason the monthly workbook net income is lower than the prior full-year P&L PDF.
2024 Monthly P&L Workbook Summary¶
| Line | Amount |
|---|---|
| Total Income | $1,985,347 |
| Total COGS | $1,163,649 |
| Gross Profit | $821,699 |
| Gross Margin | 41.4% |
| Total Operating Expenses | $619,651 |
| Net Income | $207,090 |
| Net Margin | 10.4% |
Monthly Volatility¶
| Period | Lowest Revenue Month | Highest Revenue Month |
|---|---|---|
| 2024 | $47,548, Feb | $322,272, Dec |
| 2025 | $22,722, Sep | $946,411, Oct |
This supports a diligence approach based on backlog, job-level profitability, and trailing twelve-month performance, rather than monthly snapshots.
Prior 2025 Full-Year P&L PDF¶
The earlier full-year P&L PDF showed:
| Line | Amount |
|---|---|
| Total Income | $3,892,993 |
| Total COGS | $2,274,248 |
| Gross Profit | $1,618,745 |
| Total Operating Expenses | $819,401 |
| Net Income | $799,168 |
Keep this page as a source, but reconcile it against the new monthly workbook and tax return before using it in the purchase model.
SDE / Buyer Model Notes¶
Potential addbacks to test:
| Item | Status |
|---|---|
| Owner salary / draws | Need final owner comp schedule |
| Depreciation | Significant; 2025 monthly workbook shows $161,828 depreciation expense in Dec |
| Section 179 | Tax return shows $138,095 in 2025 |
| Interest | Small but addbackable if debt not assumed |
| Owner auto / personal expenses | Previously confirmed some personal expenses run through business |
| Non-recurring continuing education | Prior note says certifications recur every 3-5 years, so do not automatically treat as fully one-time |