Practical Law Glossary Item 3-518-8137 (Approx. 3 pages)
Emerging Growth Company (EGC)
A category of issuer created under the Jumpstart Our Business Startups (JOBS) Act of 2012, an emerging growth company is a company with annual gross revenues of less than $1,235,000,000 (initially $1 billion, but adjusted for inflation in April 2017 and September 2022) during its most recent fiscal year. A company retains emerging growth company status until the earliest of:
The end of the fiscal year in which its annual revenues exceed $1,235,000,000.
The end of the fiscal year in which the fifth anniversary of its IPO occurred. For example, if a company with a December 31 fiscal year-end completed its IPO on May 2, 2012, it would have ceased to be an emerging growth company by December 31, 2017 (see Question 40, JOBS Act Frequently Asked Questions: Generally Applicable Questions on Title I of the JOBS Act (May 3, 2012)).
The date on which the company has, during the previous three-year period, issued more than $1 billion in non-convertible debt.