EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating performance by showing profit from core operations without effects of financing and accounting decisions. Calculate by adding back interest, taxes, depreciation, and amortization to net income. For example: $100K net income + $20K interest + $30K taxes + $15K depreciation = $165K EBITDA. Used to compare companies across industries and evaluate operational efficiency. Higher EBITDA margins indicate stronger operational health.