How to Read an Agency P&L

Agency Gross Income (AGI) is a financial metric that represents the actual revenue an agency retains from its client work, after subtracting all pass-through expenses and third-party costs. Sometimes referred to as “net revenue” or “adjusted gross income,” AGI reflects the money available to cover internal costs like salaries, overhead, and profit.

Pass-through costs are client expenses your agency manages — media buys, printing, software. Learn how to handle them, markup strategies, and cash flow tips.

This post provides key insights to help you and your agency plan for the future by simplifying the process of measuring and improving agency profitability.

Discover proven formulas and strategies to calculate and improve your agency’s billable utilization rate.

Discover how to boost agency profitability. Enhance services and optimize operations for better profit margins.

Calculate agency utilization from billable hours, capacity, role targets, and realization so client-service teams can judge 60%-85% benchmarks.

Calculate real agency profit margins and compare benchmarks. Learn cash flow vs. margins, identify margin leaks, and improve pricing, delivery, and cash flow.

Revenue per employee measures your agency's productivity. Learn industry benchmarks, how to calculate it using AGI, and how to improve it.