IPO Financial Model Template

IPO Model Three-Statement Engine

Revenue Build

Builds total revenue from the ground up: historical actuals link in directly, 2026–2027
quarters are grown off an implied prior-year quarter (using a seasonality split of the
FY2025 actual), and 2028–2031 grow off the prior fiscal year. Revenue is also broken out
across three illustrative segments (Product, Subscription, Services) with an editable mix
percentage, so the underlying business shape — not just the topline — is visible and
adjustable.

Cost Build

Converts the Key Assumptions margin and opex ratios into dollar figures — cost of goods
sold, gross profit, sales & marketing, R&D, and G&A — culminating in EBITDA and EBITDA
margin for every period. This is the tab that translates “what % of revenue” assumptions
into the actual cost structure that feeds the P&L.

P&L (IPO Income Statement)

The presentation-ready income statement. Revenue and costs link in from the
Revenue Build and Cost Build tabs; D&A, interest expense/income, and tax all link from
their respective supporting schedules. The tab carries margin analytics at every
subtotal (gross, EBITDA, EBIT, net income) and finishes with diluted EPS, giving a clean,
single-sheet view of profitability across the full eight-year span.

IPO Cash Flow

The cash flow statement — operating, investing, and financing — built from
net income plus non-cash add-backs (D&A, SBC), the change in net working capital, capex,
debt movements, and the one-time IPO net proceeds inflow (booked in 2026 Q2, consistent
with the IPO pricing date). A memo section also calculates unlevered free cash flow for
use in the DCF and KPI dashboard.

Balance Sheet

The  balance sheet, built entirely from the supporting schedules — cash from
Cash Flow, receivables/inventory/payables from Working Capital, PP&E from Capex &
Depreciation, debt from the Debt Schedule, and equity from Share Capital. A balance check
row at the bottom confirms assets equal liabilities plus equity in every single period,
including through the IPO quarter.

Working Capital

Models accounts receivable, inventory, accounts payable, and accrued liabilities using
days-based assumptions (DSO, DIO, DPO) linked from Key Assumptions, and calculates the
resulting net working capital and its period-over-period cash flow impact.

IPO Capex & Depreciation

Builds capital expenditure as a percentage of revenue and rolls forward the PP&E balance
using a straight-line depreciation convention applied to the beginning asset base — a
standard simplification that avoids needing a full vintage-by-vintage capex schedule
while still tying out exactly.

IPO Debt Schedule

Tracks a single term-loan tranche from its historical opening balance through a scheduled
amortization profile, calculating interest expense on the beginning-of-period balance
(deliberately avoiding a circular reference back through cash and net income) and rolling
up to a net debt figure used throughout the valuation tabs.

IPO Tax Schedule

Computes pre-tax income, tax expense, and net income for every period — EBIT from the
operating engine, interest expense from the Debt Schedule, and interest income accrued on
the prior period’s cash balance. For FY2023–FY2025, this tab links directly to the actual
reported figures rather than recomputing them, ensuring the historical periods tie out
exactly to what was reported.

Share Capital

Rolls forward the fully diluted share count from the pre-IPO base through option
exercises and the IPO issuance itself, then calculates weighted-average basic and diluted
shares and basic/diluted EPS for every period. It also rolls forward the Common Stock &
APIC balance, capturing both the IPO’s net proceeds and the ongoing stock-based
compensation credit.

IPO Stock-Based Compensation

Calculates total SBC expense as a percentage of revenue and shows an illustrative
allocation of that expense across COGS, S&M, R&D, and G&A — a non-cash expense that flows
through the P&L within those functional lines and is added back on the Cash Flow
Statement.