Adjusted EBIT (non-GAAP)

Adjusted EBIT starts from GAAP EBIT and adds back items the company labels non-recurring, non-cash, or non-operational. The SEC allows the presentation under Regulation G provided the reconciliation to the GAAP measure is in the same release, the GAAP measure has equal prominence, and the adjustments are described^{[Reg G]}.

Common add-backs

Stock-based compensation (SBC): the largest single add-back for large-cap tech. See SBC page.
Restructuring charges: severance, lease-exit, facility consolidation. See restructuring page.
Impairments: goodwill or intangible-asset write-downs. Seeimpairment page.
Acquisition-related expenses: legal, advisory, retention.
Litigation settlements: case-by-case.

What the SEC will not let you do

Label a recurring charge "non-recurring"^[CDI].
Give the non-GAAP measure greater prominence than the GAAP measure in a release.
Omit the reconciliation to the closest GAAP measure.

The defensible reconciliation format

GAAP EBIT                          [from /methods/from-net-income]
+ Stock-based compensation         [non-cash, dilutive]
+ Restructuring charges            [program-specific, dated]
+ Goodwill impairment              [non-cash, one-off]
= Adjusted EBIT                    [for trend / multiples]

See Snowflake FY25 for the SaaS canonical example and Uber FY25 for the platform inflection example.