™Revenue of $1 million minus stated expenses of $800,000 leaves $200,000 of profit under the example's accounting scope; cash generation is a separate question.
Fundamentals
Earnings
A company’s profit for a period after applicable costs and expenses.
Plain-English context
Put the definition to work.
Identify the accounting basis, period and claimholders. Net income, operating profit and adjusted earnings are not interchangeable.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide