Business operating system

How Quadratic itself scales

The company model behind the platform: operating discipline first, surplus capital later.

Capital progression

Survival → Growth → Surplus Capital → Quadratic Group

Survival
cash control

→

Growth
reinvest in product

→

Surplus
durable FCF

→

Group
holdings / ventures / property

Payment priority engine

Cash has an order

Taxes & statutory obligations
Employees / payroll
Vendors & contractors
Software / infrastructure
Contractual obligations
Operating reserve & working capital
CAPEX / product / R&D / growth
Strategic reserves & investments
Founder distributions only when eligible

Financial readiness

Profit ≠ distributable cash

HQ distinguishes revenue collected, gross profit, operating profit, net profit, taxable profit, cash generated, free cash flow, retained earnings and distributable cash.

Distribution blocked

Example: reserve coverage below configured threshold.

Pre-pilot recurring snapshot

R916

ChatGPT R400 • GitHub Team R66 • bank fees R50 • Supabase R400.

Future structure

Quadratic Group Holdings

Technology • IP • Ventures • Capital/Treasury • Properties — subject to legal/tax/accounting modelling when the readiness gates are actually open.

Profit engines

Beyond SaaS

Implementation, migration, custom work, integrations, AI/OCR usage, premium support, training, consulting, managed services, API access, licensing, hardware margin and later approved investments/acquisitions/property.

Explicit exclusions

No hidden marketplace strategy

Marketplace revenue and payment-processing revenue remain excluded unless a later founder decision deliberately reopens them.