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Dictionary by pitch.dog
Revenue, costs & profit · Core

Operating expense

Also called: Opex

ELI5

Cost of running the business not classified as cost of revenue or another non-operating item.

Used in conversation

“Compare operating expense with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Operating expense” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.

Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.