What does adjusted EBITDA signify in financial terms?

Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial metric used to assess a company's operational profitability excluding certain expenses. It adds back non-cash expenses like depreciation and amortization and excludes items such as interest and taxes. Adjusted EBITDA provides a clearer picture of a company's core profitability from its ongoing operations, making it a useful metric for investors and analysts to evaluate financial performance and compare profitability across companies in different industries.