Business models
Recurring revenue
Also called: Subscription revenue
Revenue that repeats regularly, such as subscriptions, service contracts or maintenance fees.
Some revenue comes in once (selling a lift); some keeps coming (servicing that lift for decades). Recurring revenue from subscriptions, maintenance or service contracts is more predictable, which is why many companies highlight it.
It often grows out of an installed base: every product sold today can create service or subscription income for years.
General explanation for education only, not investment advice. Company-specific definitions can differ; each breakdown uses the company’s own.