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Original data · Published quarterly

Small Business Financial Health Report

Q2 2026 Edition

Aggregated, anonymized financial benchmarks from small businesses ($1M–$25M revenue) that connect QuickBooks to The Pro CFO app. No individual business is identifiable.

62
Aggregate Business
Health Score (0–100)
▼ −9.9 vs Q1
33.3%
Median gross
margin
▼ −10.2 pts vs Q1
2.5%
Median net
margin
▼ −1.2 pts vs Q1
76
Median days
cash on hand
▼ −30.8 days vs Q1
11
Median AR
days outstanding
▲ +4 days vs Q1

Medians used throughout, so outliers don't skew the numbers.

Median Health Score — by quarter since tracking began

The Business Health Score is a 0–100 composite of cash flow, profitability, and efficiency, computed per company and aggregated as the median across all reporting businesses each month.

8074686155 62 Q3 '25Q4 '25Q1 '26Q2 '26

Three things the Q2 data says

1. Q2 was the softest quarter we've tracked.

The median Business Health Score fell to 61.6 from 71.5 in Q1, the lowest quarterly reading since tracking began in mid-2025. Cash and margins both pulled back at the same time.

2. Cash buffers were drawn down.

Median days cash on hand fell to 76 from 107 in Q1, and the timing lines up with April and June tax payments. Even after the drawdown, the median business held roughly triple the ~27-day buffer research has documented for typical U.S. small businesses.

3. Margins slipped, and collections slowed slightly.

Median gross margin eased to 33.3% from 43.5%, and median net margin to 2.5% from 3.7%. Median AR days rose to 11.1 from 7.1, which is still fast by small-business standards. Worth watching, not worrying.

Methodology

Data covers small businesses ($1M–$25M annualized revenue) with QuickBooks Online connected to The Pro CFO app and completed monthly accounting closes. All metrics are computed per company each month and aggregated as medians; each quarterly figure is the median of the quarter's three monthly medians, so one unusual month can't drive the result — individual businesses are never identifiable. The Business Health Score is a 0–100 composite: 40% cash flow, 35% profitability, 25% efficiency, with frozen thresholds across editions. Figures may be revised as additional closes sync.

Citing this report: free to cite with attribution and a link to this page.

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