Net Revenue

Net revenue means the money a company keeps from sales after subtracting returns, discounts, and allowances. In simple terms, net revenue is the adjusted sales amount a company actually reports. Net revenue is important because it gives investors a cleaner view of sales than gross revenue. It shows how much revenue remains after common sales reductions are removed. For example, if a company has $1 million in gross revenue but $100,000 in returns and discounts, its net revenue is $900,000. Net revenue is not the same as profit. Net revenue is still sales, while profit is what remains after costs and expenses are subtracted.