Net loss

When a company spends more money than it earns, it has a net loss. When a company’s total expenses are higher than a company’s income or revenue, they make a loss. In business, a net loss means a company isn’t making enough profit to cover their expenses. When a company in growth reinvests their profit in the business, they may report a net loss. If net losses continue and a company is unable to make a profit, this may indicate that the business is in trouble.