Independent OD practices net 31% of revenue, IDOC benchmarks show

The median independent optometry practice devoted 31% of collected revenue to doctor pay and profits in 2025, according to IDOC's 2025 Optometry Benchmarks Report.¹ The third annual report, released October 7, 2026, also found variable costs fell from the prior year for the first time since IDOC began tracking them.^1,2

The data come from more than 175 IDOC Books & Benchmarks bookkeeping clients across the United States, ranging from practices under $1 million in revenue to multisite groups.¹ For practice owners, the report offers peer reference points on overhead and profitability across seven expense areas.

What does sustainable overhead look like for an independent optometry practice?

IDOC's template for evaluating overhead allocates about 50% of collected revenue to cost of goods sold (COGS) and non-OD staff, less than 20% to fixed costs, and more than 30% to doctor pay and profits.¹ In the aggregated 2025 data, cost of sales accounted for 51% of revenue, fixed overhead for 17%, and practice net for 32%.¹ IDOC described the split as a return to historical norms after three years of inflation-driven increases in variable costs.¹

Half of practices spent more than 51% of revenue on COGS and non-OD staff combined, with the 20th and 80th percentiles at 46% and 56%.¹ The 20th and 50th percentiles for variable costs each dropped 1% from 2024.¹ Median COGS was 26% of revenue, and median non-OD staff compensation was 24%, with the middle 60% of practices spending 20% to 28% on staff.¹

Fixed overhead ran from 14% to 22% of revenue in the middle 60% of practices.¹ Median occupancy cost was 6%, median general and administrative spending was 9%, and marketing typically accounted for 1% to 2%.¹ IDOC noted its clients tend to be larger than average practices, which likely lowers the fixed-cost benchmark.¹

Revenue, OD compensation, and profitability benchmarks

The median practice collected $1.57 million in gross revenue in 2025, with the 20th and 80th percentiles at $800,000 and $2.64 million.¹ Median revenue growth was 6%, down from 7% in 2024, and the 20th percentile showed no growth.¹

OD compensation, covering wages and benefits for owner and associate ODs, had a median of 18% of revenue and a middle-60% range of 13% to 22%.¹ Practice net, which combines OD compensation with earnings before interest, taxes, depreciation, and amortization (EBITDA), ranged from 25% to 38% with a median of 31%.¹ Median unadjusted EBITDA was 16% of revenue.¹

IDOC said it generally expects at least $1 million in collections per full-time OD, and a full-time OD with a full schedule can often generate more than $1.5 million.¹ For practices relocating, the report considers occupancy costs of 10% to 12% of current revenue acceptable, citing typical growth of 20% to 25% in the first year or two in a new space.¹

IDOC also cautioned owners against reading low spending as success, stating practices are more likely underspending than overspending.¹ The report recommends investing in staff, space, technology, and marketing to support growth rather than cutting costs to protect short-term margins.^1,2

"A lot of independent practice owners are flying blind when it comes to their finances," Nathan Hayes, director of financial services at IDOC, said in a statement.² Hayes wrote the data narrative for the report.

For OD practice owners, the report suggests addressing out-of-range expenses through revenue first, including fee schedules, claims follow-up, and schedule fill, before cutting costs.¹ The benchmarks reflect IDOC's own bookkeeping clients rather than a random national sample, and IDOC markets bookkeeping and benchmarking services to independent practices.¹

References

1. IDOC. 2025 Optometry Benchmarks Report. IDOC; 2026. Accessed October 8, 2026. https://idoc.net/add-ons/optometry-bookkeeping-accounting/optometry-annual-industry-report/

2. IDOC releases benchmark report to give independent practice owners a roadmap to profitable growth. News release. IDOC. October 7, 2026. Accessed October 8, 2026. https://www.prweb.com/releases/idoc-releases-benchmark-report-to-give-independent-practice-owners-a-roadmap-to-profitable-growth-302901348.html