OpEx — Operating Expenditure
Definition: Day-to-day costs of running the business — salaries, rent, software subscriptions. OpEx hits the P&L immediately, which is why CFOs often prefer shifting CapEx to OpEx via leases or SaaS.
Example
In board meetings, you'll often hear something like: "Let's pull the latest OpEx numbers before we make a call" — shorthand for operating expenditure.
When you'll hear it
OpEx shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to operating expenditure — and they expect the room to already know what that means.
FAQs
What does OpEx stand for?
OpEx stands for Operating Expenditure.
What does OpEx mean in business and finance?
Day-to-day costs of running the business — salaries, rent, software subscriptions. OpEx hits the P&L immediately, which is why CFOs often prefer shifting CapEx to OpEx via leases or SaaS.
Where will I hear OpEx used at work?
OpEx comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for operating expenditure, so people assume you already know the term.