The term for a company’s total expenses exceeding its total revenues in a period is net loss.
Net loss is the negative result of an income statement: revenues and gains are less than expenses and losses for the reporting period. It is the counterpart of net income or net profit, which occurs when the result is positive. Because it measures performance across an interval, it differs from a balance sheet, which reports financial position at a specific date.
A net loss may result from weak sales, high operating costs, interest expense, depreciation, unusual charges, taxes, or a combination of these factors. It does not necessarily mean the company’s cash balance fell by the same amount, because accrual accounting includes noncash items and revenues or expenses recognized before payment.
A net loss generally reduces retained earnings, although the precise effect can also reflect distributions, prior balances, and accounting adjustments. “Gross loss” is narrower: it usually refers to revenue falling below cost of goods sold before other operating and non-operating expenses are included.