Sydney Gay and Lesbian Mardi Gras’ newly released annual report reveals the organisation’s previously reported $401,750 surplus for 2025 was underpinned largely by early sponsorship payments from American Express, which recently ended its partnership with the charity mid-contract.
Although the surplus figure was disclosed earlier this month in financial statements released on November 7, the annual report published on Thursday provides fresh detail of the organisation’s finances, including how each of its events performed financially (more on that later).
The report confirms for the first time that sponsorship and grant income exceeded budget expectations by $302,409 “thanks to the early sponsorship funds from Principal Partner American Express”.
“Because of this, for the financial year ended 30 June, Sydney Gay and Lesbian Mardi Gras has delivered a net operating surplus of $401,750,” the report states.
This year’s reported surplus stands in stark contrast to 2024, when the charity recorded a net operating deficit of about $1.24 million.
The disclosure of the surplus follows Gay Sydney News’ September report that revealed American Express, one of the festival’s biggest financial backers, withdrew its “principal partner” sponsorship in June, midway through a two-year contractual agreement – although it still fulfilled its financial commitments for 2026.
In a statement in September, Mardi Gras told Gay Sydney News it was “currently canvassing for a Principal Partner for the 2026 festival”. Coles remains its “presenting partner” for the 2026 festival.
The newly released annual report – published later than in previous years and just two days before the charity’s annual general meeting on Saturday – also shows Mardi Gras cut its overheads by 22.96 per cent compared with 2024 “through employee expense cost control and reduction in occupancy costs due to free City of Sydney accommodation” for its headquarters.
How individual events performed
The report goes on to detail how individual events performed across the 2025 festival.
The parade remained Mardi Gras’ most expensive undertaking, costing $1,527,191 to stage and generating $109,071 in revenue, resulting in a deficit of $1,422,737.
Although the parade workshop returned a surplus of $193,050 and parade viewing areas generated a further $23,371, these gains were not enough to offset the total cost of the parade segment, which finished with a combined deficit of $1,206,316.
Its celebration events, however, performed strongly overall, recording a combined surplus of $63,054 before overheads. Only two parties fell short of covering their costs: the official Mardi Gras Party, which recorded a $143,161 deficit, and Ultra Violet, which was down $18,091.
All other celebration events delivered surpluses: Sissy Ball ($47,807), Paradiso pool party ($42,033), Kaftan pool party ($25,856), Laneway ($74,636), Hot Trans Summer ($588) and Laugh Out Proud ($33,386).
Fair Day, one of the festival’s largest community events, brought in $806,729 in revenue but incurred $1,083,981 in costs, resulting in a $281,703 deficit. Mardi Gras said Fair Day welcomed 50,000 attendees in 2025 and hosted 320 stallholders.
A separate “festival” line item recorded a surplus of $12,169 on revenue of $13,708.
Community programs generated a gross surplus of $55,156, or $46,084 after allocated overheads. Volunteer operations ended the year with a $62,982 deficit, and community events posted a deficit of $15,191.
“The overall profit of Celebration events was a significant improvement on 2024’s result which was hampered by the 2024 Bondi Beach Party’s ticket sales results,” the report says.
Across the 2025 financial year, Mardi Gras recorded $10,607,162 in revenue and $8,420,601 in event-related costs. After overheads of $1,784,811, the organisation finished the year with a $401,750 operating surplus.
Sponsorship the big revenue driver
Sponsorship was Mardi Gras’ largest revenue source, delivering $4,406,379 for the year, while grants contributed $75,000.
Membership fees brought in $134,476, down from $142,615 last year, with total membership falling from 3761 to 3164.
Overall, Mardi Gras said the festival attracted an estimated 417,709 attendees across 17 days, supported by 16.7 million social-media impressions, 4.1 million video views, 575,000 followers and an engagement rate of 2.1 per cent.
Board priorities and strategic direction
The annual report’s executive finance section outlines a renewed focus for Mardi Gras on governance, financial resilience and stability ahead of the organisation’s 50th anniversary in 2028.
“With the 50th anniversary approaching, the Board has adopted a low risk appetite across financial and operational activities,” it says.
“The priority is to consolidate reserves, strengthen governance, and ensure sustainable delivery of our flagship events. Strategic investments will be limited to initiatives with clear community and reputational returns.
“The Board has also engaged a new Fractional CFO [part-time/temporary/contracted chief financial officer] and is actively searching for a director with significant experience in Finance and Accounting. We will also be rolling out a new collaborative festival model to further reduce expenditure.”
It also says the organisation “continues to learn from audience feedback and market shifts – refining ticket pricing, enhancing accessibility, and expanding opportunities for community participation”.
“Our focus on partner retention and deeper engagement with sponsors, artists, and local businesses is helping build stability and trust across our ecosystem,” it says.
Editor’s note: Journalist Ben Grubb pays $50 annually for Mardi Gras membership to access discounts, including at retail stores and bars, but does not use the membership’s voting rights.
Ben Grubb is the founder and editor of Gay Sydney News, an independent publication covering LGBTQIA+ news. A journalist with more than 15 years' experience, he has reported and edited for The Sydney Morning Herald, The Age, WAToday, Brisbane Times, The Australian Financial Review, News.com.au, ZDNet, TelecomTimes and iTnews, primarily on the topic of technology. He previously hosted The Informer, a queer current affairs program on Melbourne’s JOY 94.9 radio station, and contributes to LGBTQIA+ media including Stun Magazine. Ben has also appeared as a technology commentator on Channel Ten's The Project, ABC RN’s Download This Show and commercial radio stations 2UE, 2GB and 6PR. Contact Ben: [email protected]
