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FINANCIAL TERMS

Top Line

Description

Top line means a company’s revenue or sales. In simple terms, top line shows how much money the company brings in before expenses are subtracted. Top line is important because it shows demand for a company’s products or services. Investors watch top-line growth to understand whether the business is expanding. For example, if a company says its top line grew 15%, it usually means revenue increased by 15%. Top line is not the same as bottom line. Top line is revenue, while bottom line usually refers to profit after costs and expenses.