What is run rate?
Run rate is the annualised projection of a company’s revenue, expenses or other financial metric based on a current short-term period (typically monthly or quarterly). The most common formulation is Annual Run Rate (ARR) calculated as current month × 12.
Run rate is a useful shortcut when actual trailing-twelve-month figures aren’t yet meaningful, but it can mislead in seasonal or rapidly growing businesses. Investors typically pair run rate with trailing TTM and forward forecasts to triangulate true revenue scale.