Investing term

What is Revenue?

The top line — money the business earned from its primary activity over the period (also called sales).

Revenue — the "top line" — is the total money a company brought in from its core business over a period, before any costs are subtracted. It measures demand and scale, but high revenue means little on its own; a company can sell a lot and still lose money. Revenue growth is closely watched, especially for young companies not yet profitable.

For example

A company reports $10M in revenue for the quarter — the raw sales figure, from which every cost is then subtracted to find actual profit.

Revenue is taught hands-on in Stage 14 — Reading Financial Statements.

See the lesson →

Related terms

Accounts receivable (A/R)Money customers owe the company for goods or services already delivered but not yet paid.AccrualsAccounting entries that record revenue or expense before cash actually moves.Annual reportThe yearly disclosure that includes audited financials, MD&A, and footnotes — the primary source for serious investors.Balance sheetThe 'photo' statement — what the company owns, what it owes, and what's left for owners, on a single date.
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