ARR stands for annual recurring revenue. It is a subscription business metric that measures the predictable revenue a company expects to receive over a year from recurring contracts, such as software subscriptions or managed services.
In cyber security, ARR matters because many defensive tools are sold on subscription models: endpoint protection, SIEM, identity security, cloud monitoring, and managed detection services. A rising ARR can signal that organizations are committing to continuous protection rather than one-time purchases. For vendors, it also shows how stable their revenue base is, which affects investment in research, support, and incident-response capabilities.
ARR is not a technical control, but it often appears in security market reports and procurement decisions. It can help defenders judge whether a provider is growing, retaining customers, and delivering long-term value. In practice, strong recurring revenue is common in services designed to reduce risk over time, including tools that detect intrusions, contain lateral movement, and support recovery after an attack.