This study investigates the impact of financial analytics capability on managerial decision-making and organizational performance in small and medium-sized enterprises (SMEs). Using an integrated quantitative design, survey-based managerial constructs were combined with objective financial statement indicators from 214 SMEs to provide a rigorous data-driven assessment. Financial analytics capability was conceptualized as a strategic organizational competence that enhances managers’ ability to interpret financial information and structure evidence-based decisions. Structural equation modeling results reveal that financial analytics capability significantly improves managerial decision-making (β = 0.58, p < 0.001), explaining 34% of its variance. In turn, managerial decision-making positively influences organizational performance (β = 0.41, p < 0.001), with the full model explaining 47% of performance variance. Although financial analytics capability also demonstrates a direct effect on performance (β = 0.24, p < 0.001), mediation analysis confirms that managerial decision-making partially mediates this relationship. These findings indicate that performance gains are not solely technology-driven but are substantially behavioral, arising from managerial competence in leveraging analytical insights. By integrating perceptual managerial measures with objective financial metrics, the study strengthens empirical validity and advances understanding of how financial analytics capability creates sustainable value through decision effectiveness in SME contexts