2025 Best Practices Study Summary

PROFITABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Pre-Tax Profit

25.1% 27.9% 26.9% 28.2%

25.7% 28.9% 26.9% 29.7%

25.5% 29.2% 28.6% 29.6%

23.1% 25.5% 25.6% 28.1%

19.6% 21.7% 22.9% 24.9%

13.5% 18.3% 19.0% 22.3%

5.4% 9.5%

Pro Forma Pre-Tax Profit

EBITDA

19.5% 23.1%

Pro Forma EBITDA 1

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Pre-Tax Profit

33.1% 31.0% 36.5% 36.0%

35.4% 39.1% 35.4% 39.1%

34.1% 35.8% 35.5% 36.1%

31.1% 32.4% 33.6% 35.8%

25.5% 25.7% 28.2% 30.3%

21.8% 23.7% 27.2% 27.2%

19.2% 18.8% 23.9% 27.2%

Pro Forma Pre-Tax Profit

EBITDA

Pro Forma EBITDA 1

1 Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other).

Pre-Tax Profit

35.4%

34.1%

33.1%

31.1%

25.7%

25.5%

25.5%

25.1%

23.1%

21.8%

19.6%

19.2%

13.5%

5.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma Pre-Tax Profit

39.1%

35.8%

32.4%

31.0%

29.2%

28.9%

27.9%

25.7%

25.5%

23.7%

21.7%

18.8%

18.3%

9.5%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Cross Category Comparison

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