Wolves made a pre-tax loss of £23.184m in the year ending May 31, 2017 - their first year under Chinese owners Fosun International.
The current Sky Bet Championship leaders made a significant investment in the playing squad in summer 2016, signing the likes of Helder Costa (£13m), Ivan Cavaleiro (£7m) and Romain Saiss (£3m).
The financial loss, which compares to a profit of £5.831m the previous year, has been attributed to increased expenditure on players, player wages and continued investment in the training facilities at Compton.
Wolves' managerial changes (Kenny Jackett was sacked, while Walter Zenga and Paul Lambert came and went during the season) also proved costly, while profit from player sales was down from £9.9m the previous year to £2.2m.
The club were in their first year without the benefit of the Premier League's parachute payments and turnover dropped to £23.8m (£27.2m in 2016), but was offset by a £2.6m uplift in increased ticketing, broadcasting and commercial income - according to Wolves.
EFL to discuss Mendes' Wolves role
The EFL Board will discuss on Thursday whether Wolves are breaking the league's strict rules on third-party ownership, Sky Sports News understands, with Championship competitors believing super-agent Jorge Mendes' role at the Midlands club represents a conflict of interest.
Mendes works closely with Fosun International and represents head coach Nuno Espirito Santo, winger Ivan Cavaleiro, midfielder Ruben Neves and forward Diogo Jota.
Wolves, who currently sit six points clear at the top of the Championship, are adamant they have not broken any rules.