Glossary · Defined term
Revenue
Revenue is the total money a company brings in from selling goods or services, before any costs are subtracted.
Last updated Oct 2, 2026
What it means
Revenue is the total money a company brings in from selling its goods or services, before any costs are subtracted. It sits at the top of the income statement, which is why it is called the top line; profit is what remains after costs. Growing revenue shows customers are buying more, but it says nothing about efficiency, since a company can grow sales while losing money on each one. Investors watch revenue trends alongside margins to judge whether growth is healthy. Revenue recognition rules determine when a sale officially counts, which matters for subscription and long-contract businesses.
An example
For illustration, a retailer sells $1 billion of merchandise in a year, so its revenue is $1 billion. After paying suppliers, staff, rent, and taxes, $60 million remains as profit. The $1 billion top line shows the scale of the business; the $60 million bottom line shows what shareholders actually kept.