SEC Reg G Non-GAAP

Adjusted EBITDA

EBITDA adjusted for non-recurring expenses, stock-based compensation, and M&A integration costs.

Detailed Definition & Corporate Finance Context

Adjusted EBITDA serves as a vital financial metric in corporate FP&A, treasury management, and institutional valuation. Governed by SEC Reg G Non-GAAP, monitoring Adjusted EBITDA allows CFOs and finance leaders to optimize capital allocation, refine financial forecasts, and communicate performance to investors.

In enterprise corporate FP&A models and ERP financial planning suites (Oracle NetSuite PBCS, SAP Analytics Cloud, Anaplan), tracking Adjusted EBITDA provides real-time visibility into operational margin efficiency and cost structure leverage.

Mathematical Standard & Equation
Adjusted EBITDA = Net Income + Taxes + Interest + D&A + Non-Recurring Add-Backs

Common Operational Pitfalls

  • Conflating reported GAAP net income with cash flow generated from core operations.
  • Failing to normalize non-recurring add-backs when calculating adjusted EBITDA metrics.
  • Relying on static annual budgets rather than rolling 12-month FP&A forecasts.

Used in these FP&A Calculators

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Authoritative Source

Source: https://www.sec.gov/rules/final/33-8176.htm ↗