Core Insights - Middle-market finance executives reported strong performance in 2025, with significant improvements in cash flow, productivity, profitability, and customer acquisition compared to previous years [2][3] Financial Performance - 92% of financial decision-makers rated last year's cash flow as "good" or "very good," a 13 percentage point increase from the previous year [2] - Productivity increased by 10 percentage points to 95%, profitability rose by 10 percentage points to 89%, and customer acquisition improved by 6 percentage points to 85% [3] - Employee retention and customer retention also saw increases of 5 and 4 percentage points, reaching 84% and 89% respectively [3] Challenges and Risks - 31% of respondents identified inflation and interest rates as significant challenges in achieving performance goals, followed by 30% citing difficulties in finding good employees and 21% regarding the cost or availability of materials [4] - The report highlighted execution gaps, noting that while 49% rated profit margin management as "very important," only 36% felt effective in managing margins [6] Operational Insights - Strong performance raises the stakes for operational efficiency, with companies needing to tighten execution to navigate rising costs and talent shortages [5] - Inefficient processes can lead to manual workarounds that hinder productivity and increase operational risk, blurring visibility when quick and informed decisions are necessary [7]