Revenue stream - Financial definition
Concise definition of the term revenue stream
The term revenue stream refers to the various sources of income generated by a company through its business activities.
Comprehensive definition of the term revenue stream
In corporate finance, a revenue stream encompasses the diverse channels through which a company earns income, such as product sales, service fees, licensing agreements, and subscription models. Understanding and optimizing revenue streams are vital for businesses to sustain profitability and foster growth amidst dynamic market conditions.
For instance, a software company may have revenue streams from software sales, maintenance contracts, and consulting services, each contributing to its overall financial health and competitive advantage.