Definition
Financial projections showing what a company's metrics would look like under hypothetical conditions or future scenarios. Latin for 'as a matter of form,' startup-ese for 'this is the fantasy we're selling investors.'
Example Usage
The pro forma showed them reaching $100M ARR by year three, which everyone knew required perfect execution and a miracle.
Origin
Latin term adopted into accounting in the 19th century, formalized in SEC regulations in the 20th century
Fun Fact
During the dot-com bubble, companies abused pro forma accounting to exclude 'one-time' charges and make losses look like profits—leading to SEC crackdowns and stricter disclosure rules.
Source: SEC regulations and financial accounting standards
Related Terms
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See “pro forma” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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