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Financial Reporting  ·  Management Analysis

Comparative Income Statement
with EBITDA Integration

Fiscal year-to-date results, January–August 2026, with prior-year comparison
EntitySuiteStep, LLC — Parent Company (Consolidated)
Reporting PeriodsJan–Aug 2026 vs. Jan–Aug 2025
PreparedAugust 24, 2026
BasisNetSuite Income Statement, accrual, USD
Total Revenue
$8.39M
vs. $7.04M PY  ·  +19.1%
EBITDA
$1.20M
vs. $0.73M PY  ·  +64.8%
EBITDA Margin
14.27%
vs. 10.32% PY  ·  +3.95 pts
Net Income
$1.17M
vs. $0.70M PY  ·  +66.6%

Contents

Section 1

Executive Summary

For the eight months ended August 31, 2026, SuiteStep, LLC recorded consolidated revenue of $8,388,816.61, an increase of $1,346,000 (19.1%) over the comparable prior-year period. EBITDA reached $1,197,136.86, an increase of $470,528 (64.8%), with EBITDA margin expanding 395 basis points to 14.27%.

The disproportionate growth in EBITDA relative to revenue reflects two concurrent factors: (i) gross margin expansion of approximately 205 basis points, as cost of sales grew 15.2% against revenue growth of 19.1%; and (ii) operating expense discipline, with operating expenses excluding depreciation and amortization increasing 10.6% — roughly half the rate of revenue growth.

Net income for the period was $1,174,240.26 (14.00% of revenue), against $704,877.12 (10.01%) in the prior-year period. No income tax expense was recorded in either period. All EBITDA figures presented herein reconcile exactly under both the top-down and bottom-up methods (Section 3).

Principal observation

The business exhibited pronounced operating leverage in the period: each incremental revenue dollar carried approximately 35 cents to EBITDA, versus a blended EBITDA margin of 10.3% in the prior year. The largest single discretionary variance was Training Expense (account 6260), which increased $55,362 (+150.8%) and accounts for approximately 28% of total operating-expense growth.


Section 2

Comparative Income Statement with EBITDA

Parent Company (Consolidated) · Amounts in USD · Parentheses denote deductions or unfavorable amounts.

Line Item Jan–Aug 2026 Jan–Aug 2025 Variance $ Variance % % of Rev '26
Total Revenue8,388,816.617,042,817.03+1,345,999.58+19.1%100.00%
Total Cost of Sales(5,101,961.61)(4,428,026.84)(673,934.77)+15.2%60.82%
Gross Profit3,286,855.002,614,790.19+672,064.81+25.7%39.18%
Selling Expenses (6050)(168,842.00)(150,670.00)(18,172.00)+12.1%2.01%
General & Administrative (6100)(1,774,987.15)(1,600,770.68)(174,216.47)+10.9%21.16%
Marketing Expenses (6750)(144,991.49)(136,740.44)(8,251.05)+6.0%1.73%
Operating Expenses excl. D&A(2,088,820.64)(1,888,181.12)(200,639.52)+10.6%24.90%
Operating EBITDA1,198,034.36726,609.07+471,425.29+64.9%14.28%
Other non-interest income / (expense)(897.50)(897.50)n/m(0.01%)
EBITDA1,197,136.86726,609.07+470,527.79+64.8%14.27%
Depreciation & Amortization (6800)(6,497.56)(6,104.48)(393.08)+6.4%0.08%
EBIT1,190,639.30720,504.59+470,134.71+65.3%14.19%
Interest Expense (8100)(16,399.04)(15,627.47)(771.57)+4.9%0.20%
Pre-Tax Income1,174,240.26704,877.12+469,363.14+66.6%14.00%
Income Taxesn/m
Net Income1,174,240.26704,877.12+469,363.14+66.6%14.00%
Presentation note. Non-interest items outside ordinary operations — Gain (Loss) on Sale of Assets (7500), Other Expenses (8000), Duty Expense (8200), and Freight Expense (8300) — are presented below Operating EBITDA but within EBITDA. Interest Expense (8100) is excluded from EBITDA by definition. An alternative convention excluding all Section-7000/8000 items from EBITDA would yield "Operating EBITDA" as shown ($1,198,034.36); the difference in the current period is $897.50 and is immaterial.

Section 3

EBITDA Reconciliation

EBITDA is a non-GAAP measure. The tables below reconcile EBITDA to Net Income — the most directly comparable GAAP measure — for both periods. Top-down (from Gross Profit) and bottom-up (from Net Income) derivations agree to the cent in each period.

Jan–Aug 2026
Net Income$1,174,240.26
Add: Income Taxes
Add: Interest Expense (8100)16,399.04
Add: Depreciation & Amortization (6800)6,497.56
EBITDA$1,197,136.86
✓ Ties to top-down derivation (Gross Profit − OpEx excl. D&A − other non-interest items)
Jan–Aug 2025
Net Income$704,877.12
Add: Income Taxes
Add: Interest Expense (8100)15,627.47
Add: Depreciation & Amortization (6800)6,104.48
EBITDA$726,609.07
✓ Ties to top-down derivation (Gross Profit − OpEx excl. D&A − other non-interest items)

Section 4

Graphical Analysis

Exhibit 4.1 — EBITDA Bridge, Prior Year to Current Year
Jan–Aug 2025 EBITDA to Jan–Aug 2026 EBITDA · thousands of USD
0 350 700 1,050 1,400 726.6 +672.1 −18.2 −174.2 −8.3 −0.9 1,197.1 EBITDA 2025 Gross Profit increase Selling expenses G&A expenses Marketing expenses Other items EBITDA 2026

The single favorable driver — gross profit growth of $672.1K — outweighed aggregate operating-expense growth of $200.6K and immaterial other items by a factor of approximately 3.3×.


Exhibit 4.2 — Margin Comparison, Current vs. Prior Period
Percent of total revenue · emerald denotes current period
0% 10% 20% 30% 37.13% 39.18% 10.32% 14.27% 10.01% 14.00% Gross Margin EBITDA Margin Net Margin Jan–Aug 2025 Jan–Aug 2026

Section 5

Variance Commentary

5.1  Revenue — +$1,346.0K (+19.1%)

Product revenue (4210) contributed $1,273.7K of the increase (+19.5%); service revenue (4310) added $60.7K (+12.1%). Freight revenue (4450) grew from $4.1K to $15.5K, a small but notable +275.7%. Sales Returns & Allowances (4320) appears in 2026 with a de-minimis balance of $282.22 and no prior-year activity.

5.2  Cost of Sales — +$673.9K (+15.2%); gross margin +205 bps

Purchases (5310) grew 13.9%, below the revenue growth rate, and is the principal source of margin expansion. Cost of Sales (5340, +30.9%) and 3rd Party Contracting (5360, +14.2%) grew faster. Two accounts new to 2026 — Stock Adjustment (5370, a favorable $9.0K credit) and Purchase Price Variance (5205, $3.2K unfavorable) — net to a $5.9K benefit.

5.3  Operating Expenses excl. D&A — +$200.6K (+10.6%)

G&A (6100) accounts for $174.2K (87%) of the growth. Within it, the dominant discrete movements are Training Expense (6260, +$55.4K, +150.8%) and Salaries & Wages (6210, +$58.6K, +9.2%), with associated payroll costs up proportionately. A broad set of accounts grew at a uniform ≈4.9%, consistent with an inflation-level adjustment across recurring spend. Accounts newly active in 2026 — Automobile (6250, $3.0K), Postage & Delivery (6340, $0.4K), Bad Debt (6690, $0.1K), and Freight-out (6080, a $30 credit) — are individually immaterial.

5.4  Below Operating EBITDA

D&A remains small in absolute terms ($6.5K vs. $6.1K), comprising machinery depreciation (6810, new in 2026 at $91.67) and amortization (6880). Interest expense grew 4.9% to $16.4K. Other items — a $223 loss on asset sale (7500), $750 of other expenses (8000), and small credits in duty (8200) and freight (8300) — net to $(897.50). No income tax expense was posted in either period.

Matters warranting management attention

1. Training Expense (6260) — the +$55.4K (+150.8%) increase represents 28% of total operating-expense growth; confirm this reflects a deliberate program rather than misclassification.

2. The recurring ≈4.9% pattern — numerous unrelated accounts (dues, bank charges, contributions, professional fees, insurance, IT, interest) grew at almost exactly 4.9%, suggesting a uniform escalation factor; verify vendor contracts reflect this.

3. Absence of tax provision — with pre-tax income of $1.17M, confirm whether a tax accrual is expected at the entity level or is recorded outside this consolidation.

4. Low reported D&A — at 0.08% of revenue, D&A is unusually light for an inventory-carrying business; if depreciation is embedded in COGS or held at a subsidiary excluded from group 6800, EBITDA would differ. See Assumption A-3.


Section 6

Appendix A — Account-Level Detail

All posting accounts and group totals as rendered by the source report. Amounts in USD; parentheses denote credits/contra balances. "n/m" — not meaningful (no prior-year balance).

AccountJan–Aug 2026Jan–Aug 2025Variance $Var %
Revenue
4210 — Revenue - Products7,810,157.626,536,465.771,273,691.85+19.5%
4310 — Revenue - Services562,906.62502,233.3060,673.32+12.1%
4320 — Sales Returns & Allowances282.22282.22n/m
4450 — Freight Revenue15,470.154,117.9611,352.19+275.7%
Total Income8,388,816.617,042,817.031,345,999.58+19.1%
Cost of Sales
5310 — Purchases4,162,328.073,654,028.41508,299.66+13.9%
5340 — Cost of Sales482,613.52368,625.10113,988.42+30.9%
5360 — 3rd Party Contracting462,908.90405,373.3357,535.57+14.2%
5370 — Stock Adjustment(9,048.88)(9,048.88)n/m
5205 — Purchase Price Variance3,160.003,160.00n/m
Total Cost of Sales5,101,961.614,428,026.84673,934.77+15.2%
Gross Profit3,286,855.002,614,790.19672,064.81+25.7%
Selling Expenses (6050)
6060 — Advertising168,872.00150,670.0018,202.00+12.1%
6080 — Freight-out(30.00)(30.00)n/m
Total Selling Expenses168,842.00150,670.0018,172.00+12.1%
General & Administrative (6100)
6090 — Recruitment Costs11,530.5910,988.07542.52+4.9%
6210 — Salaries & Wages697,996.19639,423.0658,573.13+9.2%
6230 — Payroll Expenses73,295.1366,998.556,296.58+9.4%
6235 — Sick Leave30,748.1829,301.521,446.66+4.9%
6240 — Supplies Expense21,420.7220,412.741,007.98+4.9%
6250 — Automobile Expense3,000.003,000.00n/m
6260 — Training Expense92,062.1336,700.1455,361.99+150.8%
6310 — Insurance Expense (group)95,758.1490,395.205,362.94+5.9%
6320 — Dues & Subscriptions8,478.308,079.41398.89+4.9%
6330 — Bank Service Charges8,433.188,036.44396.74+4.9%
6340 — Postage & Delivery350.00350.00n/m
6350 — Contributions23,676.1022,562.161,113.94+4.9%
6400 — T&E Expenses (group)189,318.87179,715.989,602.89+5.3%
6470 — Professional Fees50,734.5048,347.512,386.99+4.9%
6480 — Outside Services51,195.7148,787.042,408.67+4.9%
6600 — Facilities Related (group)201,603.28185,913.3615,689.92+8.4%
6650 — IT Expenses (group)215,236.18205,109.5010,126.68+4.9%
6690 — Bad Debt Expense149.95149.95n/m
Total G&A Expenses1,774,987.151,600,770.68174,216.47+10.9%
Total Marketing Expenses (6750, 11 accounts)144,991.49136,740.448,251.05+6.0%
Depreciation & Amortization (6800)
6810 — Depr Exp - Machinery & Equipment91.6791.67n/m
6880 — Amortization Expense6,405.896,104.48301.41+4.9%
Total D&A6,497.566,104.48393.08+6.4%
Total Expense2,095,318.201,894,285.60201,032.60+10.6%
Net Ordinary Income1,191,536.80720,504.59471,032.21+65.4%
Other Income and Expenses
7500 — Gain (Loss) on Sale of Assets(223.00)(223.00)n/m
8000 — Other Expenses750.00750.00n/m
8100 — Interest Expense16,399.0415,627.47771.57+4.9%
8200 — Duty Expense(75.00)(75.00)n/m
8300 — Freight Expense(0.50)(0.50)n/m
Net Income1,174,240.26704,877.12469,363.14+66.6%
Group rows (6310 Insurance, 6400 T&E, 6600 Facilities, 6650 IT, 6750 Marketing) are presented at group-total level for readability; the source report contains the member-account detail (e.g., 6750 comprises 11 marketing accounts, 6751–6761). Sign convention follows the source report: expense-side credit balances shown in parentheses.

Section 7

Appendix B — Methodology, Sources & Assumptions

B.1  Data source

All figures were extracted from the NetSuite standard Income Statement report (internal report ID -200) in account TD3016323 (production), executed August 24, 2026 by Sonar AI under the requesting user's role. No figures were derived from raw general-ledger queries; the amounts herein are exactly those rendered by NetSuite's financial reporting engine and will tie to the on-screen report.

B.2  Report executions (queries used)

Run 1 — Current period (Jan–Aug 2026)
reportRun { reportId: -200,
  filters: [ { crit_1_mod: "TFYTP" },  // "This Fiscal Year to Period"
            { crit_2: "-1" } ] }    // Subsidiary context: Parent Company (Consolidated)
→ Resolved period range: internal IDs 173–182 (Jan 2026 – Aug 2026)
→ Rendered header: "From Jan 2026 to Aug 2026" · periodVerified: true · 2026-08-24 17:17 UTC
Run 2 — Prior period (Jan–Aug 2025)
reportRun { reportId: -200,
  filters: [ { crit_1_mod: "LFYTP" },  // "Last Fiscal Year to Period"
            { crit_2: "-1" } ] }
→ Resolved period range: internal IDs 156–165 (Jan 2025 – Aug 2025)
→ Rendered header: "From Jan 2025 to Aug 2025" · periodVerified: true · 2026-08-24 17:19 UTC
Filter verification
Both runs returned periodVerified: true (submitted period filters were applied verbatim), and the rendered report headers were independently inspected to confirm the period labels. The two runs produced materially different figures, ruling out session-state carry-over between executions. No Class, Department, Location, Customer, or Item filters were applied (all set to "– All –").
Derived-metric computation
EBITDA, EBIT, variances, margins, and the bridge were computed programmatically (sandboxed JavaScript), not by manual arithmetic, and validated by the dual reconciliation in Section 3.

B.3  EBITDA definition applied

EBITDA = Net Income + Income Taxes + Interest Expense (8100) + Depreciation & Amortization (6800)
        = Gross Profit − Operating Expenses excl. D&A ± other non-interest items (7500, 8000, 8200, 8300)
EBIT   = EBITDA − D&A   ·   Operating EBITDA = Gross Profit − Operating Expenses excl. D&A

B.4  Assumptions register

RefAssumptionBasis and sensitivity
A-1D&A equals account group 6800 onlyAccounts 6810 and 6880 are the only depreciation/amortization accounts posting in either period. If depreciation is embedded in cost-of-sales accounts, EBITDA is understated by that amount.
A-2Interest equals account 8100 onlyNo other interest-bearing accounts appear in the report. No interest income accounts posted in either period.
A-3Income taxes are zero in both periodsNo tax expense accounts rendered in either period; consequently Pre-Tax Income equals Net Income. If a tax provision is recorded elsewhere, the EBITDA reconciliation is unaffected (taxes add back), but net-income comparisons would change.
A-4Non-interest other items included in EBITDAItems 7500/8000/8200/8300, netting to $(897.50) in 2026 and $0.00 in 2025, are retained within EBITDA. The alternative (exclusion) is presented as "Operating EBITDA"; the difference is immaterial (<0.08% of EBITDA).
A-5Consolidated view is elimination-inclusive"Parent Company (Consolidated)" includes the xElim elimination subsidiary; intercompany activity is therefore eliminated in the presented figures.
A-6Comparable-period alignmentBoth periods span exactly eight fiscal months (January–August) on a calendar fiscal year; the account operates in a single currency (USD), so no translation effects exist.
A-7Period-end statusAugust 2026 was in progress or recently closed at extraction (August 24, 2026). Late postings to Aug 2026 after extraction would change current-period figures; the prior-year period is presumed closed and stable.

B.5  Reproduction in the NetSuite user interface

Reports → Financial → Income Statement; set Column to "Total", Subsidiary Context to "Parent Company (Consolidated)", and the period selector to "This Fiscal Year to Period" (respectively "Last Fiscal Year to Period"). To persist an EBITDA-integrated layout natively: Customize → Edit Layout → insert a formula row "EBITDA" = Net Income + group 6800 + account 8100, position groups 6800 and 8100 below it, and Save As "Income Statement w/ EBITDA".