Explore commonly used personal finance terms.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company’s operating performance after removing non-recurring, irregular, or one-time expenses. By adjusting EBITDA, analysts gain a clearer picture of core business profitability, allowing for more accurate comparisons across companies or periods. Adjusted EBITDA is widely used by investors to assess operational health, as it eliminates factors that may distort earnings, offering a consistent metric for evaluating financial performance.
