The $8B Economics of OnlyFans

OnlyFans' parent company published its FY 2024 financials, generating $7.2B in gross revenue, $1.4B in net revenue, and an operating profit of $666M.

We've looked at OF economics and its implied valuation multiples, and despite incredible performance, targeting adult creators makes OnlyFans a tough investment target. At an $8B valuation, OF would be valued at just 5.7x net revenue - a significant discount to both private and public markets, given the tremendous growth and profitability of the platform.

Vice 'ethics' aside, OnlyFans is a well-run, cash-flowing machine, generating $1.4B in net revenue with a nearly 50% profit margin. With 42 full-time employees, OF outperforms all large UGC platforms, almost all other tech companies in the world, and all large online marketplaces by the revenue per FTE metric (although OF does hire hundreds of contractors, mostly for its safety and compliance teams).

OF became a household name, but it's a brutal place to be for creators, following a classic power law distribution. 70%+ of total payouts go to just 10% of creators, and the average creator makes less than $150 (!) a month.