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FINANCIAL TERMS

Gross Revenue

Description

Gross revenue means the total money a company earns from sales before subtracting returns, discounts, or other adjustments. In simple terms, gross revenue is the full sales amount before reductions. Gross revenue is important because it shows the largest view of a company’s sales activity. Investors may look at it to understand customer demand, sales volume, and business scale before adjustments are made. For example, if a company sells products worth $1 million before refunds or discounts, its gross revenue is $1 million. Gross revenue is not the same as net revenue. Net revenue is what remains after returns, discounts, allowances, or similar adjustments are subtracted.