Recurring Revenue

Recurring revenue refers to the predictable and ongoing income that a company generates from a stable, often subscription-based source. It is revenue that a business can rely on to continue coming in on a regular basis, rather than being tied to one-time sales.

Various sources can generate recurring revenue, including monthly or annual subscriptions, service contracts, and maintenance fees. Recurring revenue is highly valued by investors and business owners because it provides a more stable and predictable income stream. This stable income stream can help to reduce the risks associated with fluctuations in sales and seasonal demand.

By building a strong base of recurring revenue, companies can achieve long-term financial stability and growth.