P&L
Profit and Loss
P&L (Profit and Loss): a profit and loss statement summarizing revenue, expenses and the financial result for a period, campaign or project.
What is P&L (Profit and Loss)?
P&L (Profit and Loss) is a report that shows how much money was earned and how much was spent over a chosen period. The result is called profit or loss. In a broader sense, the term refers both to the document itself and to the financial result that follows from it.
## How it is calculated
The basic formula is simple: revenue minus expenses. For a company, this means revenue minus cost of goods sold, operating expenses and taxes. For an individual campaign or offer in high-risk verticals, the calculation is usually simplified: partner payout or GGR minus the cost of traffic, bonuses, payment processor fees, refunds and chargebacks.
## Where it is used
In gambling and betting, P&L is built for each brand and geo, accounting for deposits, withdrawals, the bonus pool and gameplay margin. In crypto and fintech, P&L includes exchange and network fees, currency differences and losses from volatility. In nutra and dating, traffic purchases, COD refunds and lead costs are counted separately.
## Common mistakes
The most common mistake is looking at P&L only through revenue and ignoring deferred expenses: payment processor reserves, holds, refunds and delayed payouts from partners. Mixing cash-basis and accrual accounting, and not breaking results down by traffic source, also distorts the picture.
FAQ
How is P&L different from a balance sheet?
P&L shows the result over a period: revenue and expenses. A balance sheet records the state of assets, liabilities and equity on a specific date.
What is a campaign P&L?
It is a simplified calculation of the result for a single setup: offer, traffic, geo and source. It helps you see which campaigns generate profit and which should be stopped.
Why can P&L differ from payment system data?
The usual reasons are different accounting dates, holds, reserves and fees that are deducted later. That is why reconciliation is done for the same period and using the same rules.