Recurring Revenue

Recurring revenue means revenue that a company expects to receive repeatedly over time. In simple terms, recurring revenue is money that keeps coming in again and again. Recurring revenue is important because it can make a business more predictable and easier to value. Companies with strong recurring revenue may have more stable cash flow and investor confidence. For example, annual software contracts, subscriptions, and maintenance fees can create recurring revenue. Recurring revenue is not the same as one-time revenue. One-time revenue comes from a single sale, while recurring revenue repeats over a period.