EBITDA growth

EBITDA growth measures how much a company's EBITDA expanded or contracted compared to a prior period, usually the same quarter or year one year earlier.

The formula is:

EBITDA growth can move very differently from revenue growth in the same period, since it also reflects changes in operating margin. A company can grow revenue while EBITDA growth turns negative if costs rise faster than sales, the same margin compression pattern that shows up when a company's EBITDA margin itself is shrinking. Because EBITDA excludes interest, taxes, depreciation, and amortization, EBITDA growth isolates how operating profitability trended before financing and accounting choices are layered on top.