Glossary/B2B & Growth/Annual Recurring Revenue (ARR)
B2B & Growth
Annual Recurring Revenue (ARR)
The yearly value of a company's recurring subscription revenue, a headline metric for SaaS businesses.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
Annual recurring revenue (ARR) is the yearly value of a company's recurring subscription or contract revenue, normalized to a twelve-month period. It excludes one-time fees such as setup or services. ARR is a headline metric for SaaS businesses because it shows predictable revenue scale and growth, and it underpins valuations and planning.