An "Operating Loss" occurs when a company's operating expenses exceed its revenues from core business activities. This situation indicates that the company is not generating enough income to cover its day-to-day costs, such as salaries, rent, and utilities. It is an important measure of a company's financial health and operational efficiency. Operating losses can arise from various factors, including decreased sales, increased production costs, or poor management decisions. Companies experiencing an operating loss may need to reevaluate their strategies or cut costs to return to profitability. Investors often monitor operating losses to assess a company's potential for future growth.