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Reading your own company's money
You'll be able to read your own income statement, tell COGS from OpEx, and know exactly what your numbers mean before an investor grills you on them.
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Concept 1 of 6
Revenue vs Gross Profit vs EBITDA vs Net Income
These are decreasing checkpoints down the income statement: Revenue → minus COGS → Gross Profit → minus OpEx (excluding D&A) → EBITDA → minus D&A, interest, and taxes → Net Income. EBITDA strips out non-cash and non-operating items to make operating performance comparable across companies, but it isn't a GAAP metric and isn't the same as cash flow. Most venture-backed startups run negative net income for years by design — that alone isn't a red flag without context on burn and runway.