When things go wrong
Net loss
When costs, interest, write-downs and taxes add up to more than revenue: the bottom line is negative.
A net loss means the company spent more than it earned over the period. One loss year can come from one-off items such as a write-down or restructuring costs; repeated losses mean the business model itself doesn't yet cover its costs.
Young, fast-growing companies often run losses on purpose while they build scale. Whether that works depends on how long their cash lasts.
General explanation for education only, not investment advice. Company-specific definitions can differ; each breakdown uses the company’s own.