Film Accounting Glossary
Pro forma
What is a pro forma?
Also called proforma, or revenue projection.
A pro forma is a projected financial statement modeling how a picture is expected to perform: revenue by window and territory, the recoupment waterfall, and each participant's likely return under stated assumptions.
It is a sales and decision document, not a record, and its credibility rests entirely on whether the sales estimates behind it are realistic. Investors read the assumptions page before the outputs page.
Example
A pro forma shows $22M of revenue across windows, the waterfall applied, and a 1.8x return to equity. Every number depends on the sales estimates behind it, which is why investors read the assumptions page before the outputs page.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
A sales and decision document produced in financing, never a record of what happened.
Common mistake
Presenting a pro forma as a forecast rather than a model. Its outputs are only as sound as the sales estimates behind them, and investors read those first.
Related questions
- What is a film pro forma?
- A projected financial model showing expected revenue by window and territory, the waterfall applied, and the likely return to each position.
- How reliable is a film pro forma?
- Only as reliable as its sales estimates and its assumptions about timing and cost. It is a decision tool, never a record of anything that happened.