Hibernian recorded a loss of £277,000 last season.
The Leith side won the Ladbrokes Championship and reached the William Hill Scottish Cup semi-finals but could not break even in the 12 months to June 30.
However, the capital outfit announced their highest turnover figures since 2013 at £7.7million while their cash balances were up £1million to £3.5million at the end of the year after a boost in season ticket sales.
In a letter to shareholders, chairman Rod Petrie admitted this year's loss was "some way short of our financial target which is to at least break even".
However, he remains confident the club's financial outlook will improve in the coming months.
He wrote: "Given the winning 2016-17 season, there was probably more activity in the summer transfer window than many had anticipated.
"The departure of our top scorer [Jason Cummings to Nottingham Forest} early in the window was balanced by the welcome return of some familiar faces. And it was the deals that were not done - by rejecting a number of offers for players - which gives us hope that season 2017-18 can build on the success of last season as head coach Neil Lennon embarks on his second season with the club, supported by head of football operations George Craig and our chief executive Leeann Dempster.
"The sporting and financial results for last season can be viewed with satisfaction.
"But this is also a time to look forward - and to look forward with confidence and anticipation. The board has done all that it can to match the efforts of supporters and deliver a competitive budget for this season."
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