Written by Echols AI · echols.ai

Quarterly Financial Report — Landscaping Company

Quarter: Current Quarter Prepared for: Richard

1. Executive Summary

This quarter delivered $52,300 in net profit on $184,200 in revenue — a 28.4% net margin. Revenue grew $32,400 (+21.3%) over last quarter's $151,800, driven by a healthy job volume of 212 completed engagements. Payroll remains the dominant cost at over half of total expenses, and materials are the second-largest spend. The business is profitable and trending upward, but the cost structure is labor-heavy: payroll alone consumes 38.5% of every dollar of revenue. Protecting margin going forward means watching labor efficiency and job mix, not just chasing more volume.

2. Profit & Loss Breakdown

Category	Amount	Share of Revenue	Share of Costs
Revenue	$184,200	100.0%	—
Payroll	$71,000	38.5%	53.8%
Materials	$28,400	15.4%	21.5%
Fuel & Vehicle	$12,900	7.0%	9.8%
Insurance	$6,100	3.3%	4.6%
Marketing	$4,200	2.3%	3.2%
Everything Else	$9,300	5.0%	7.1%
Total Costs	$131,900	71.6%	100.0%
Net Profit	$52,300	28.4%	—

3. Margins & Per-Job Economics

Net margin: 28.4% — solid for a service business running its own vehicles and crew.
Gross operating margin (recovery before "everything else"): 33.4%.
Average revenue per job: $869 (212 jobs).
Recurring contracts: 38 of 212 jobs (17.9%) — these are your most predictable revenue stream and typically your cheapest sales to close since they don't require fresh marketing or quoting.

A 28%+ net margin means roughly one in every three revenue dollars becomes profit. That's healthy, but it's also thin enough that a modest cost overrun — a few thousand in payroll or fuel — can erode it quickly.

4. What Changed Versus Last Quarter

Metric	Last Quarter	This Quarter	Change
Revenue	$151,800	$184,200	+$32,400 (+21.3%)
Net Profit	Unknown*	$52,300	—
Jobs Completed	Unknown	212	—

*Last quarter's cost breakdown wasn't provided, so a profit-to-profit comparison isn't possible yet.

What the revenue jump tells us: A 21% revenue gain in one quarter is strong. Without last quarter's job count, the most likely drivers are (a) more jobs, (b) larger or higher-priced jobs (more seasonal cleanups or premium bagging contracts), or (c) better repeat-business volume from the 38 recurring contracts. If job count stayed flat, your average job value rose — which is good but worth confirming so you know whether the gain is repeatable or a one-time seasonal bump.

5. What You Should Do About It

Lean into what's working

Your recurring contracts (38 jobs) are your margin engine. They close with little marketing spend and predictable scope. Consider formalizing a recurring-season pipeline so retention grows quarter over quarter rather than relying on re-quoting.

Watch the labor ratio

Payroll at 38.5% of revenue is the single biggest lever in your cost structure. If revenue grows but payroll grows faster, margin collapses fast. Track hours per job — if it's creeping up, that's where profit leaks before you feel it in cash terms.

Understand the revenue jump before it repeats

Pull last quarter's job count and cost split. If this quarter's gain came from bigger jobs (seasonal cleanouts at $150–300/yd, premium bagging at $60/week), plan for a possible drop next quarter when that seasonal demand cools. If it came from more jobs, you have a volume engine you can scale.

Pressure-test the small costs

Insurance ($6,100) and marketing ($4,200) are low and lean — no action needed. "Everything else" at $9,300 is 5% of revenue and 7% of costs; break that bucket into named categories next quarter so hidden growth in it doesn't sneak up.

Set a margin floor

Decide on a minimum acceptable net margin (e.g., 25%). If a future quarter dips below it, that's your trigger to cut labor hours, renegotiate recurring scopes, or raise pricing on standard weekly work — not to wait and hope it recovers.

Recommendation: bring last quarter's cost breakdown and job count into the next report and I'll give you a true quarter-over-quarter profit and efficiency comparison.

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