EBITDA

Earnings before interest, tax, depreciation and amortisation — a rough proxy for operating profitability.

Example

Operating profit of $200k with $50k of depreciation gives EBITDA of $250k.

Important

Mostly irrelevant to an early startup and heavily used by later-stage buyers. If someone asks for it pre-revenue, they may not understand your stage.

Related terms

• Operating expenses (OpEx)
• Income statement (P&L)
• Profitability