Net loss refers to the situation when a company's total expenses exceed its total revenues during a specific period. This financial outcome indicates that the business is not generating enough income to cover its costs, which can be a sign of underlying issues in operations or market conditions. When a company experiences a net loss, it may need to reassess its strategies, reduce expenses, or find new revenue sources. Continuous net losses can lead to financial instability and may affect investor confidence, potentially impacting the company's stock price and overall market position.