Northwind Studio

Board review

Q2 2026

Prepared from Northwind Studio's books, closed and reconciled.

Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

In short

Q2 2026 at a glance

What went well

  • Revenue up 12% on the same quarter last year
  • Gross margin held at 66% through the rate change
  • The two largest accounts signed annual terms

What did not

  • Days sales outstanding moved from 39 to 47
  • The senior designer hire slipped a full quarter

What we are asking the board for

  • Approve the second delivery pod, $38k a month from September
  • Sign off on 2% net-30 early payment terms for the top five accounts
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

Since last time

What we said we would do

Every decision from the last meeting, and what happened to it.

Done Put payment terms on the two largest accounts Signed in May.
Carried Hire the senior designer Offer out, start date in August.
Done Cut software spend by $2k a month Landed at $2.3k.
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

The quarter

How Q2 2026 went

Every figure against Q2 2025, the same quarter a year ago. Quarter on quarter is distorted by seasonality.

Revenue

$1.1M

+12% vs Q2 2025

Gross profit

$723k

+12% vs Q2 2025

Net income

$376k

+16% vs Q2 2025

Cash at quarter end

$2.7M

+82% vs Q2 2025

The quarter closed ahead of last year on both revenue and gross margin. Collections ran slower in June, which shows up in the cash walk rather than the P&L.

The decision in front of the board is the second delivery pod: the pipeline supports it, and the reforecast shows what happens if we hold instead.

Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

The shape

The last 8 quarters

The headline numbers with their history behind them, so one quarter cannot pass itself off as a trend.

Revenue

$1.1MQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Gross margin

66%Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Cash at quarter end

$2.7MQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

Profit to cash

The P&L says one thing. Here is what the bank did.

Each line is from the books, and they add exactly: this is the whole explanation, not a summary of one.

Cash at the start of the quarter $2,306,772
Net income What the quarter earned on paper. $376,337
Collected vs billed Billed but not yet in the bank. This is money sitting in receivables. ($53,000)
Paid vs booked Costs booked but not yet paid out. This cash leaves later. $27,000
Cash at the end of the quarter $2,657,109
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

Cash

The next thirteen weeks

Built from the invoices and bills already on the books, paid on their due dates.

Expected If collections run two weeks late
$0 $668k $1.3M $2.0M $2.7M Jul 6Jul 27Aug 17Sep 7Sep 28
Week ofJul 6Jul 13Jul 20Jul 27Aug 3Aug 10Aug 17Aug 24Aug 31Sep 7Sep 14Sep 21Sep 28
Money in$82k$0$64k$91k$0$73k$88k$0$61k$94k$0$78k$83k
Money out($69k)($74k)($78k)($83k)($69k)($74k)($78k)($83k)($69k)($74k)($78k)($83k)($69k)
Cash at week end$2.7M$2.6M$2.6M$2.6M$2.5M$2.5M$2.5M$2.4M$2.4M$2.5M$2.4M$2.4M$2.4M
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

Rest of year

At this pace, 2026 lands near $1.5M net

Booked months as booked; the rest carried at the average of the last three closed months ($365k revenue, $240k expenses a month). A straight run-rate with no growth or seasonality assumed: the question it asks is whether that pace is the year the board wants.

Month Revenue Expenses Net
Jan $402k $261k $142k
Feb $401k $261k $140k
Mar $391k $257k $134k
Apr $377k $250k $127k
May $364k $237k $127k
Jun $355k $233k $122k
Julprojected $365k $240k $125k
Augprojected $365k $240k $125k
Sepprojected $365k $240k $125k
Octprojected $365k $240k $125k
Novprojected $365k $240k $125k
Decprojected $365k $240k $125k
Full year 2026 $4.5M $2.9M $1.5M
Northwind Studio · Q2 2026 Prepared by Luca · runluca.com

Risks and decisions

What needs the board

Customer concentration

The top two accounts are 38% of the quarter's revenue.

Decision Approve the outbound budget so no single account exceeds 25% by year end.