{"ok":true,"canonical_url":"https://dealroom.so/glossary/gross-revenue","api_url":"https://dealroom.so/api/public/glossary/gross-revenue","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"gross-revenue","term":"Gross Revenue","group":"Reading the business","definition":"This is the total income a business generates from its sales of goods or services before any expenses are deducted. Buyers use it as a top-line indicator of business size and activity.","what_it_means":"While gross revenue shows the scale of a business, it doesn't tell the whole story about profitability. You'll use it to understand market share and growth trends, but always pair it with an analysis of expenses to determine net income. Don't rely solely on gross revenue for valuation; focus on cash flow metrics like SDE and EBITDA.","url":"https://dealroom.so/glossary/gross-revenue","official_sources":[],"related":[{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"How does declining revenue during due diligence impact loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-declining-revenue-during-due-diligence-impact-loan-approval"},{"question":"Does my business need to show consistent revenue over several years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-show-consistent-revenue-over-several-years"},{"question":"What if the acquired business primarily generates revenue from passive rental income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-primarily-generates-revenue-from-passive-rental-income"},{"question":"What if my business is seasonal, and revenue fluctuates throughout the year?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-is-seasonal-and-revenue-fluctuates-throughout-the-year"},{"question":"Is an SBA 7(a) loan only for businesses with very low revenue?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-only-for-businesses-with-very-low-revenue"},{"question":"What if the business I'm acquiring relies heavily on government contracts for revenue?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-relies-heavily-on-government-contracts-for-revenue"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Gross Revenue","url":"https://dealroom.so/glossary/gross-revenue","source_type":"DealRoom Data"}}