# Non-GAAP Earnings

*Accounting & Reporting — Finicade finance glossary*

Non-GAAP earnings are management adjusted profit, excluding items they call non-recurring or non-cash: restructuring, impairments, stock compensation.

Non-GAAP earnings are management's adjusted profit figure, excluding items they consider non-recurring or non-cash — restructuring, impairments, stock compensation. Some adjustments are legitimate; excluding stock-based compensation is not, since it's a real cost paid in shares. The test is whether the same 'one-off' appears every year, and whether the gap to reported earnings is widening over time.

**Also known as:** adjusted earnings, adjusted EBITDA, pro forma earnings

**Related terms:** [EBITDA](https://finicade.com/glossary/ebitda), [Accrual Accounting](https://finicade.com/glossary/accrual-accounting), [Amortization of Intangibles](https://finicade.com/glossary/amortization-of-intangibles), [Impairment](https://finicade.com/glossary/impairment), [EPS (Earnings Per Share)](https://finicade.com/glossary/eps)

Source: https://finicade.com/glossary/non-gaap-earnings