Recurring Revenue

Income that repeats without a new transaction -- management fees on assets under management, subscriptions, data and index licenses. It is the half of a financial firm's revenue that survives a dead quarter, which is why the market capitalizes it at a higher multiple than deal fees. Two things to check before trusting the label: whether the fee base can fall with markets (an asset-based fee is recurring but not stable), and whether the company's own definition of recurring has widened over time to include revenue that is merely repeated rather than contracted.

Related terms

Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Ancillary Spend per Visit

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