Recurring Revenue Recurring Revenue is the portion of a business’s revenue that is expected to continue in the future on a regular, predictable basis. It is a fundamental metric for subscription-based businesses (like SaaS), service retainers, and long-term contracts, providing financial stability, visibility, and scalability. Types of recurring revenue:
Monthly Recurring Revenue (MRR)
Annual Recurring Revenue (ARR)
Subscription Fees
Service Retainers
Maintenance Contracts
High recurring revenue indicates strong customer retention and business model resilience, reducing reliance on new customer acquisition for revenue growth.