{"ok":true,"canonical_url":"https://dealroom.so/glossary/adjusted-ebitda","api_url":"https://dealroom.so/api/public/glossary/adjusted-ebitda","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"adjusted-ebitda","term":"Adjusted EBITDA","aka":"EBITDA","group":"Reading the business","definition":"This metric represents a company's earnings before interest, taxes, depreciation, and amortization, further adjusted for non-recurring or discretionary expenses. It shows the core operating profitability for a new owner.","what_it_means":"Adjusted EBITDA is a key metric lenders use to assess a business's cash flow and repayment capacity for an acquisition loan. Your CPA will help you calculate this by identifying and adding back discretionary expenses, owner's salary adjustments, and non-recurring items to the reported EBITDA. It's often the basis for valuation multiples.","url":"https://dealroom.so/glossary/adjusted-ebitda","official_sources":[],"related":[{"slug":"discretionary-expenses","term":"Discretionary expenses","url":"https://dealroom.so/glossary/discretionary-expenses"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"How are variable interest rates for SBA 7(a) loans typically determined and adjusted?","url":"https://dealroom.so/sba-7a/questions/how-are-variable-interest-rates-for-sba-7-a-loans-typically-determined-and-adjusted"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Adjusted EBITDA","url":"https://dealroom.so/glossary/adjusted-ebitda","source_type":"DealRoom Data"}}