Comparative financial analysis · NetSuite TD3016323

Period Comparison: Q2 2026 vs Q2 2025

Revenue, expense, and profitability comparison for the quarter ended June 2026 against the same quarter of 2025, with drivers traced to accounts, products, and customers.

Prepared 2026-09-23 · Consolidated, subsidiaries 1-3, elimination excluded · Source: NetSuite general ledger via SuiteQL · Prompt: Period Comparison Analyzer, NetSuite AI Prompt Library v1 · Standard Review depth

Executive Summary

Comparing: the quarter April to June 2026 with the same quarter of 2025, consolidated across the three operating subsidiaries, elimination entity excluded. Revenue rose +20.5% to $3,130,018. Gross margin held at 39.2%, down 0.4 points. Operating expenses rose only +4.5%, so operating income increased +57.8% to $454,480 and operating margin expanded 3.4 points to 14.5%. The story of the quarter is operating leverage: the cost base barely moved while revenue grew a fifth.

One qualification governs how the revenue figure should be read. 84% of recognized income in the current quarter, and 88% in the prior, was posted by journal entry rather than by invoices or cash sales. The revenue traceable to billing documents was $508,809 against $317,443, a +60.3% increase, which is stronger growth than the headline but on a much smaller base. Both views are shown below. The driver analysis is built on billing documents, because journal-posted revenue carries no item, customer, or quantity to analyze.

Revenue Comparison

Integrity check: where recognized revenue comes from

Income postings by source transaction type. The journal series moved from $2.28M to $2.62M, a +15.0% step that accounts for 64% of the total revenue increase. Whether that series represents real activity is a question for the controller, and it is flagged for human review; this analysis takes the ledger as posted.

Revenue by product class, billing documents only

The growth in billed revenue came from two places. Home and Decor nearly doubled on volume: 436 units against 267, led by the Contour Rhapsody Breeze mattress line, where every size sold 23 or 24 units against 10 a year earlier. Delivery service revenue more than doubled, 29 engagements against 8, which follows the furniture volume. Apparel revenue grew 9% on flat units, so that gain is price or mix. Beauty was flat in both revenue and units.

Volume and price effects

Based on: volume effect = change in units x prior average unit revenue; price effect = change in average unit revenue x current units. Mix within a class is included in the price effect.

Customer movement

Ten customers invoiced in the current quarter had no invoices in the prior quarter, and four prior-quarter customers had none in the current. Existing customers grew 23%. The largest lost account, Mercury Co. at $80,079, also carries an $80,079 open receivable that is 460 days past due, so the loss and the collection problem are the same account. The largest new account, Falcon Systems at $86,007, has not yet paid any of it. Both are flagged for human review.

Expense Comparison

Cost of goods sold rose +21.2%, a point faster than revenue, which is the whole of the 0.4-point gross margin decline. Operating expenses rose $33,236 on a base of $739,636. Two accounts explain the increase and everything else was flat or slightly lower: salaries and wages, up $25,744 or 10.8%, and advertising, up $8,189 or 15.0%. Twenty-two general and administrative accounts each declined by roughly 2%, a pattern regular enough to suggest a uniform adjustment rather than twenty-two separate decisions.

Profitability Analysis

Gross margin: 39.6% to 39.2%, immaterial under the 1-point threshold. Operating margin: 11.1% to 14.5%, material at 3.4 points. The expansion is arithmetic: gross profit grew $199,669 and operating expenses grew $33,236, so 83% of the incremental gross profit reached operating income. On the billing-document view alone, the same conclusion holds with more force: billed revenue grew 60% and operating expenses grew 4.5%.

Key Drivers

30 / 60 / 90 day framing

• Next 30 days. Have the controller characterize the journal series that posts to product revenue. Until it is explained, quote revenue growth on the billing-document basis in external communication.
• 60 days. Confirm that Falcon Systems and the other new accounts are collectible before counting the quarter's growth as realized. Review Mercury Co. for reserve.
• 90 days. If furniture volume holds through the third quarter, the operating leverage seen here is structural and worth planning around: the cost base supports meaningfully more revenue than it carries today.

Appendix: Data Lineage

Adaptations from the prompt's templates: amounts come from transactionaccountingline rather than transactionline.amount, so that they match the posted ledger; periods are selected by posting period for the P&L and by transaction date for the item and customer detail; the elimination subsidiary is excluded through the line-level subsidiary, because transaction.subsidiary is not exposed to SuiteQL; item class comes from the transaction line rather than the item record, which is unclassified for most items in this account.

SELECT a.acctnumber, a.fullname, a.accttype,
       SUM(CASE WHEN ap.startdate >= DATE '2026-04-01' AND ap.enddate <= DATE '2026-06-30' THEN -tal.amount ELSE 0 END) AS cur_amt,
       SUM(CASE WHEN ap.startdate >= DATE '2025-04-01' AND ap.enddate <= DATE '2025-06-30' THEN -tal.amount ELSE 0 END) AS prior_amt
FROM transactionaccountingline tal
JOIN transaction t ON t.id = tal.transaction
JOIN transactionline tl ON tl.transaction = tal.transaction AND tl.id = tal.transactionline
JOIN account a ON a.id = tal.account
JOIN accountingperiod ap ON ap.id = t.postingperiod
WHERE tal.posting = 'T' AND a.accttype IN ('Income','COGS','Expense','OthIncome','OthExpense') AND tl.subsidiary <> 4
  AND (both period windows)
GROUP BY a.acctnumber, a.fullname, a.accttype

-- same query grouped by t.type, restricted to accttype = 'Income'  (DL-002)

SELECT tl.item, BUILTIN.DF(tl.item), i.itemtype, BUILTIN.DF(tl.class),
       SUM(CASE WHEN current quarter THEN -tl.quantity END), SUM(CASE WHEN prior quarter THEN -tl.quantity END),
       SUM(CASE WHEN current quarter THEN -tl.netamount END), SUM(CASE WHEN prior quarter THEN -tl.netamount END)
FROM transaction t JOIN transactionline tl ON tl.transaction = t.id JOIN item i ON i.id = tl.item
WHERE t.type IN ('CustInvc','CashSale') AND t.posting = 'T' AND tl.mainline = 'F' AND tl.taxline = 'F' AND tl.subsidiary <> 4
GROUP BY tl.item, BUILTIN.DF(tl.item), i.itemtype, BUILTIN.DF(tl.class)

SELECT t.entity, BUILTIN.DF(t.entity), SUM(current quarter foreigntotal), SUM(prior quarter foreigntotal)
FROM transaction t WHERE t.type = 'CustInvc' AND t.posting = 'T' GROUP BY t.entity, BUILTIN.DF(t.entity)

Appendix: Period Definitions, Assumptions, and Verification

Confidence: 95% in the period figures as posted; 80% in the driver attribution for billed revenue (price and volume effects are computed per class and include mix); the journal series is reported, not explained, and its characterization requires human review.