EBITDA

A company that has built a lot of plants carries heavy depreciation, so operating and net income look worse than the cash it actually generates. Stripping those items back out makes companies easier to compare. But because it does not subtract capital spending, it is also criticised for overstating the cash left over in businesses that must keep spending.

Predictions & track record (2)

• Awaiting grading In a quarter where revenue fell 7% and X-FAB posted a loss, what got confirmed was a 2028 storyScore on 2027 quarterly results. If the silicon carbide and data center design wins show up as revenue and growth turns positive year over year, the transition was crossed, and if 2027 revenue is still tied to weak automotive and industrial demand, the data center exposure never reached the results.
• Awaiting grading What pulled Reddit's stock down after it beat on revenue, profit and guidance was not the user countScore on Reddit's Q3 2026 results. If revenue holds the guided $865 million line, the search referral problem has not reached revenue yet, and if the growth rate bends clearly from 61%, the route in was the cause.

2 related posts

• Bull In a quarter where revenue fell 7% and X-FAB posted a loss, what got confirmed was a 2028 story Serenity (@aleabitoreddit) · 2026-07-31
• Watch What pulled Reddit's stock down after it beat on revenue, profit and guidance was not the user count Serenity (@aleabitoreddit) · 2026-07-31