What is the bottom line?
The bottom line refers to a company’s net income or net profit — the final figure after subtracting all expenses, taxes and interest from revenue. The term originates from the position of net income at the bottom of the income statement.
Bottom-line growth is a key indicator of operational efficiency and pricing power. Many high-growth startups deliberately accept negative bottom lines (losses) to invest in growth, but eventual bottom-line profitability is essential for IPO eligibility and sustainable equity value.