Earnings before interest, taxes, depreciation, amortization
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company's core operational profitability, stripping out financing and accounting decisions. It's widely used in acquisition and valuation discussions.
A SaaS company with $10M revenue, $4M in salaries, and $1M in infrastructure costs has an EBITDA of $5M — before interest, tax, and depreciation are factored in.