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What is adjusted EBITDA?
Adjusted EBITDA is a financial metric that removes various one-time, irregular, and non-recurring items from Earnings Before Interest Taxes, Depreciation, and Amortization (EBITDA). It is adjusted to better reflect a company's true operating cash flow.
The adjustments done in adjusted EBITDA can vary from company to company. It depends on what is considered irregular charges for each business.
Typically, the adjustments include omitting things such as one-time expenses, share-based compensation, and restructuring charges. Adjusted EBITDA is often used by investors and analysts to better understand a company's true value.
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