A few weeks ago, we completed our seventh profit share at Buffer, distributing $377,005 to 75 teammates.
This represents more than a dollar amount. It reflects a real turnaround in our growth and in where we are headed.
Just a few years ago, we were not in a position to do this at all. We went through two years of net losses, made hard decisions, and focused deeply on rebuilding a healthy, sustainable business. There were moments when profitability and profit sharing felt far away.
So returning to this practice in 2025, with an average share of $5,095 per teammate, feels especially meaningful. It reflects the resilience of our team, the care people have put into their work, and the progress we have made together.
In this post, I’ll share more about this milestone, why profit sharing is so meaningful at Buffer, and detail how our formula works.
Why we share profits
At Buffer, profitability is not just a financial milestone. It’s what gives us the freedom to operate as an independent, long-term company.
We are now in our 15th year of business. Staying profitable allows us to continue investing in our product, our customers, our team, and our mission without compromising our values.
Our founder and CEO, Joel Gascoigne, often talks about how, if Buffer grows and succeeds, we should grow and succeed together. Profit sharing is one of the most tangible ways we put that belief into practice.
When the company does well, our teammates benefit directly. That creates a strong connection between our collective effort and real, meaningful outcomes in people’s lives. It also reinforces something we care deeply about: building a company where success is shared.
For me personally, profit sharing is a reminder that sustainable growth and people-first values do not have to be in tension. When done thoughtfully, they strengthen each other.
Our profit-sharing history
We started profit sharing in 2017. Here’s a look at our profit shares since then:
2017: Net income: $1,418,604 | Profit share pool: $300,000
2018: Net income: $3,418,352 | Profit share pool: $394,997
2019: Net income: $2,392,409 | Profit share pool: $368,051
2020: Net income: $1,940,828 | Profit share pool: $243,047
2021: Net income: $216,557 | Profit share pool: $89,828
2022: Net income: -$1,109,745 | Profit share pool: $0
2023: Net income: -$743,936 | Profit share pool: $0
2024: Net income: $156,244 | Profit share pool: $30,369
2025: Net income: $2,513,367 | Profit share pool: $377,005
Looking at this history, you can see a clear story.
We had several strong growth years, followed by a sharp decline in 2021. In 2022 and 2023, we were not profitable and did not issue a profit share. In 2024, we began rebuilding, but at a modest pace.
2025 represents something different. It is our second-largest profit share to date and a meaningful milestone after two challenging years. It reflects the work our team has done to stabilize, refocus, and rebuild a strong foundation for the future.
How Our Profit-Sharing Formula Works
We distribute 15 percent of our annual net profit using a formula designed to balance fairness, transparency, and impact.
Here’s how it works:
40 percent distributed equally
Every teammate receives the same amount from this portion, regardless of role or tenure.
40 percent based on salary
Each teammate receives a share proportional to their salary as a percentage of total company payroll. This reflects our broader compensation philosophy and our investment in building a thoughtful, transparent salary system.
20 percent based on tenure
This portion is based on how long each person has worked at Buffer relative to the total months worked by all teammates.
For 2025, this resulted in:
- Net profit: $2,513,367
- Profit share pool (15 percent): $377,005
- Team members: 75
- Average profit share: $5,095
Each part of the formula serves a clear purpose.
The equal distribution ensures that everyone shares in our success. The salary-based component reflects responsibility and scope. The tenure component recognizes long-term commitment and contribution.
We have learned over time that compensation systems only work when people understand them and trust them. That is why we prioritize simplicity and transparency. Our goal is to create a system that feels fair, consistent, and aligned with our values.
Looking Ahead
Completing our seventh profit share has been a meaningful moment for me.
It reflects the dedication of our teammates, the strength of our culture, and the belief that building a healthy company is a collective effort. It also reminds me that setbacks do not define us. How we respond to them does.
Profit sharing is not just a financial outcome. It is a reflection of trust, resilience, and shared ownership in what we are building together.
Over to you
If this post sparked questions for you about profit sharing or how we operate at Buffer, I would love to hear them. We are always learning, and we are grateful to be building this company alongside such a thoughtful community.
