Earnout

noun

noun ·Rare ·Advanced level

Definitions

Noun
  1. 1
    A formula by which the management of a company earns a share of the company's share capital by achieving results above pre-determined levels.

    "The earnout was definitely getting in the way of running Skype the way we wanted to run it."

Example

More examples

"The earnout was definitely getting in the way of running Skype the way we wanted to run it."

Etymology

From earn + out.

Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.