Sam here.
As promised, we’re releasing our full Q3 P&L Benchmark Report this week.
Eighteen companies, revenues ranging from under $10M to $100M+, dissected line by line to show you what’s actually happening in the market.
You’ll also see we’ve partnered with A2X for our benchmark report series – the only tool we trust for accurate ecommerce revenue reconciliation. I would say that even if they weren’t helping us get this report in more founder’s hands.
Last week, I gave an overview of big stories from Q3.
Here is a quick recap:
- Revenue growth is steady: the best companies are growing at 40%
- Tariffs are starting to hit the mid-market: We’re seeing higher landed costs and declining gross margins in the $10-$50M cohort with more pressure on contribution margin.
- ROAS is down across every cohort and AI isn’t helping (yet): ROAS is down at least 4% across the board and the middle cohort down 10%.
- Gross margin is still the great filter: Nearly every 8-9 figure brand maintains 70%+, while the lower cohorts still show huge variability in the mid-50s to mid-70s.
For even more…
Check out the full report for all this, plus more data, insights, and CFO perspective on things like…
- Marketing spend increases across all cohorts
- How much brands are spending on ads
- Positive indicators from G&A data
And if you have an audience of ecom founders, and you’d like us to come do a detailed breakdown for them (e.g., blog post, podcast interview, newsletter write-up, etc.) hit reply and let me know.
— Sam
📊 Benchmark Reports
- Cash Unlocks Report: We analyzed inventory turns, months of runway, and working capital (current ratio) across 5 DTC brands ranging from under $10M and above $50M. This report includes all the benchmarks and insights to identify and attack locked up cash in your business.
🧭 Footnotes
Other Resources Clients Find Helpful: Here are a few tools we’ve built for clients and find ourselves sharing over and over…
💼 DTC Dealflow + Talent Flow
As trusted advisors, specializing in 7- to 9-figure ecommerce, we get an early look at a lot of the most important financial and hiring decisions clients and colleagues make, and are always happy to help with introductions…
- Seeking Acquisition: DTC coffee brand generating $7M revenue and $900K EBITDA (2025E). 8,000 recurring subscribers, strong organic marketing engine, and built on Shopify. Backed by a $300M CPG parent, now divesting as non-core. Clear upside with a focused operator.
- Seeking Acquisition: DTC furniture brand scaled from $0.9M (2022) to $2.9M (2024) on a single hero SKU. 57% gross margins, $2,000 LTV on $724 CAC. Untapped upside in wholesale, new SKUs, and COGS optimization.
- Seeking Acquisition: Premium DTC brand that peaked with $14M in revenue in 2023. EBITDA-positive in 2024 despite limited capital. 7,500+ 5-star reviews, strong NPS. No wholesale push yet — upside remains untapped.
- Seeking Acquisition: A few of our larger clients are in the early stages of exploring acquisition. If you’re a buyer writing checks for more than $10M, message me privately.
If you’re buying, selling, or hiring in this space, and want more visibility, reply to this email or grab a call with me here. Everything you say is fully confidential.
