For the first time in more than a decade Scottish Premier League teams made a collective operating profit, albeit a rather modest one of £2.8m.
So says the 17th Annual Financial Review of Scottish Football published by PricewaterhouseCoopers LLP.
Combined debt fell to £129m from £184m, thanks mainly to Rangers' £52m rights issue, and wage costs fell below £100m for the first time in five years.
Seven of the 12 clubs now have a wage to turnover ratio of less than 60%.
David Glen, partner at PricewaterhouseCoopers, said of the figures that refer to season 2004/05: "Clubs are now feeling the effects of the financial recovery which began last year.
"But before we get too carried away it is important to understand that the results benefit from one-off credits which total £22m.
"These include a £15m accounting gain at Rangers, £3.6m from debt write-off at Dundee and a similar £3.3m debt write off at Dunfermline."
He added: "Clubs have continued to reign in spending on wages (£96m total). They have also resisted the urge to spend major amounts in the transfer market.
"With debts gradually going in the right direction after a tumultuous few years it is now time for clubs to look forward to the next phase, to try to secure and increase revenues and attain a truly sustainable business model."
The review shows that Celtic (£62m revenue) and Rangers (£55m revenue) continue to be the financial powerhouses in Scotland's top flight.
Meanwhile, clubs outside the Old Firm have seen revenues increase by an average of 18%.