{"ok":true,"canonical_url":"https://dealroom.so/glossary/ebitda","api_url":"https://dealroom.so/api/public/glossary/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":"ebitda","term":"EBITDA","group":"Reading the business","definition":"Earnings before interest, taxes, depreciation, and amortization. A standard measure of what the business earns from operations.","what_it_means":"EBITDA strips out financing decisions, tax structures, and accounting-driven non-cash charges to give you a view of what the business actually generates from its core operations. It's the starting point for most business valuations and the number sellers use in marketing materials. For lenders, EBITDA is the foundation for calculating DSCR — they'll recast it further by adding back legitimate owner expenses to get adjusted EBITDA or SDE.","url":"https://dealroom.so/glossary/ebitda","official_sources":[],"related":[{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"}],"related_questions":[]},"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 — EBITDA","url":"https://dealroom.so/glossary/ebitda","source_type":"DealRoom Data"}}