The 2026 state of agency finances
Everyone talked about AI. Owners asked about money. Here's what the books behind $75M+ in agency cash flow show.
Free 18-page PDF, sent to your inbox.
- 75%of owners asked if they're actually making money
- 3xthe growth of the average agency
- 4xas likely to hold 3 months of cash when profitable
Five questions owners asked us in 2026
The short answers are here. The full report has the charts, the benchmarks and what to do about each one.
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Is AI changing the fundamentals?
It hasn't yet. Companies expected AI to cut jobs, and far fewer did. At the agencies we work with, payroll grew 20% and revenue grew faster.
14%cut jobs for AI. 32% expected to.
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Are agencies growing?
Ours are. The typical agency we work with grew 24% this year, and more than 9 in 10 grew at all.
3xthe average agency's 7.5%
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What's a good profit margin?
10 to 25 cents on the dollar, rising with size. The typical agency we work with keeps 21.5 cents.
21.5¢vs 13¢ at the average agency
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Why isn't my profit in the bank?
Margin builds the reserve, and owner pay decides whether it stays. Profitable agencies were far more likely to hold 3 months of cash.
4xas likely to hold 3 months of cash
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What should I plan for 2027?
Over half of 2027 plans add people or pay. The report gives the order to do it in, so the hire doesn't sink your cash.
4steps, in order
What's inside the report
18 pages. One question per section, one number that answers it, and what to do next. Tap or swipe to turn the pages.
Pages 3 to 4
Get the full report
The charts, the benchmarks for your size, and a 2027 plan in four steps.
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Logan Smith founded We Got Your Books after 7+ years in corporate finance and Fortune 100 consulting.
Agency finance questions, answered
What's a good profit margin for a marketing agency?
10 to 25 cents of operating profit on every dollar, rising with size: 10 to 15 under $600K in revenue, 15 to 20 from $600K to $1.2M, and 18 to 25 above $1.2M. See the profit benchmarks by agency size.
How fast are marketing agencies growing in 2026?
The average digital agency grew 7.5% in 2025 (Promethean Research). The typical agency we work with grew 24% from January to September 2026, compared with the same months of 2025.
Is AI cutting agency jobs?
Less than expected. In McKinsey's 2026 survey, 32% of companies expected AI to cut headcount within a year and 14% did. At the agencies we work with, payroll grew 20% while revenue grew 28%.
How much cash should an agency keep in the bank?
Three months of costs, before raising owner pay or adding a salary. Profitable agencies we work with were 4x as likely to hold that much. See how to set owner pay.
When should an agency hire?
Once your profit goal and a 3-month cash reserve have held for a full quarter. A new salary starts on day one, long before the new person pays for themselves.
Where does the data come from?
From our own data: the books of the marketing and creative agencies we work with, which move $75M+ in cash flow a year. We compare it with outside research from Promethean Research, Gould+Partners and McKinsey.
Is the report free?
Yes. Enter your email above and the 18-page PDF comes straight to your inbox.