ARR
Annual Recurring Revenue
Recurring subscription revenue normalized to a one-year period.
Plain English
The yearly value of repeatable subscription revenue.
In context
ARR helps subscription businesses compare recurring revenue scale while excluding one-time fees by convention.
Example
“The enterprise contract adds significant ARR.”
When you'll hear this
- business review
- fundraising
- sales planning
Common misunderstanding
ARR is a normalized run rate and may differ from recognized accounting revenue.
Also known as
annual recurring revenue
Commonly used by
Related terms
Often compared with
Updated: 2026-08-25
