FY2025 finished below plan. Revenue came in at **$11,238K against $11,600K budget, unfavourable by ($362K), or (3.1%)**. Operating income was **$388K against $583K, unfavourable by ($195K), or (33.5%)**. December was close to plan on revenue but not on profit. All figures come from the script, and the variances reconcile.

## Full year, line by line

| Line | Category | Actual | Budget | Variance | Var % |
|---|---|---|---|---|---|
| Revenue | Revenue | $11,238K | $11,600K | ($362K) | (3.1%) |
| Cost of goods sold | COGS | $7,947K | $8,143K | $196K | 2.4% |
| Freight out | COGS | $377K | $348K | ($29K) | (8.3%) |
| **Gross profit** | | $2,914K | $3,109K | ($194K) | (6.3%) |
| **Gross margin** | | 25.9% | 26.8% | (0.9) pts | |
| Salaries and wages | Opex | $1,562K | $1,524K | ($38K) | (2.5%) |
| Rent and occupancy | Opex | $431K | $408K | ($23K) | (5.6%) |
| Marketing | Opex | $94K | $132K | $38K | 28.5% |
| Technology | Opex | $143K | $168K | $25K | 15.0% |
| Professional fees | Opex | $97K | $96K | ($1K) | (1.4%) |
| Depreciation | Opex | $79K | $78K | ($1K) | (1.5%) |
| Other operating | Opex | $120K | $120K | $0.1K | 0.10% |
| **Operating expenses** | | $2,527K | $2,526K | ($1K) | (0.03%) |
| **Operating income** | | $388K | $583K | ($195K) | (33.5%) |

## December 2025, line by line

| Line | Category | Actual | Budget | Variance | Var % |
|---|---|---|---|---|---|
| Revenue | Revenue | $827K | $824K | $3K | 0.38% |
| Cost of goods sold | COGS | $584K | $578K | ($6K) | (1.0%) |
| Freight out | COGS | $27K | $25K | ($3K) | (10.8%) |
| **Gross profit** | | $215K | $221K | ($5K) | (2.4%) |
| **Gross margin** | | 26.1% | 26.8% | (0.7) pts | |
| Salaries and wages | Opex | $128K | $128K | ($0.3K) | (0.25%) |
| Rent and occupancy | Opex | $34K | $34K | $0.2K | 0.50% |
| Marketing | Opex | $7K | $10K | $3K | 34.2% |
| Technology | Opex | $10K | $14K | $4K | 25.2% |
| Professional fees | Opex | $6K | $6K | ($0.3K) | (5.6%) |
| Depreciation | Opex | $7K | $7K | ($0.1K) | (1.5%) |
| Other operating | Opex | $16K | $10K | ($6K) | (59.5%) |
| **Operating expenses** | | $208K | $208K | $0.4K | 0.21% |
| **Operating income** | | $8K | $13K | ($5K) | (38.0%) |

Positive means favourable and figures in parentheses are unfavourable. Each amount is rounded on its own, so the gross profit and operating income rows don't add up exactly.

## Draft commentary

The full note is in `output/bva-note.md`. Here are the main points:

- **Revenue:** the miss came from three months: March ($123K), July ($132K) and August ($105K). Each of the other nine months was within $7K of budget.
- **Margin:** Cost of goods sold was favourable by $196K, or 2.4%, but revenue missed by more. Gross margin fell (0.9) pts.
- **Cost overruns:** Salaries and wages was over by ($38K) and Freight out by ($29K). Both had their biggest overrun at year end, which makes them run-rate questions for next year.
- **Offsets:** Marketing ($38K) and Technology ($25K) underspends almost exactly cancelled the overruns. Total opex finished ($1K) from budget.
- **Professional fees:** this line reversed. It was ($31K) over at its March peak and finished the year at ($1K).

**Before Thursday:**
- **Causes are open questions.** The data shows where and when the variances happened, not why. The note asks the line owners, for example Sales about March, July and August. It doesn't state causes.
- **Some December lines aren't in the note.** The note's "Month" section covers only December's revenue and operating income. Other operating, ($6K) or (59.5%), and Freight out, ($3K), are in the December table above but not in the note's text. Add them if you want them discussed.

Files are in `output/`:
- bva.json
- bva-note.md