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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceEBITDA

Marketing Finance

EBITDA

Earnings before interest, taxes, depreciation, and amortization, a common proxy for a company's operating profitability.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a common proxy for a company's operating profitability, removing the effects of financing, tax, and accounting decisions. Investors use it to compare businesses, though it is a non-GAAP measure that ignores capital spending and can flatter heavily indebted companies.