What is 'Recurring Revenue'
Recurring revenue is the portion of a company's revenue that is highly likely to continue in the future. This is revenue that is predictable, stable and can be counted on in the future with a high degree of certainty.
BREAKING DOWN 'Recurring Revenue'
For example, a cable company that has millions of customers paying monthly could consider a large portion of its monthly revenues to be recurring in nature. Many market pundits consider recurring revenue to be a highly desirable quality for a company to have.