What Is Cash Flow?
The net amount of cash moving in and out of a business.
The net amount of cash moving in and out of a business.
Cash flow measures the actual cash moving into and out of your business. Positive cash flow means you're generating more cash than you're spending; negative cash flow means the opposite.
For SaaS companies, cash flow often differs from revenue because of deferred revenue (annual prepayments), payment timing, and non-cash expenses like depreciation and stock-based compensation.
Cash flow positive is a major milestone for SaaS companies. It means the business is self-sustaining and no longer dependent on external funding to operate. Monthly billing SaaS companies typically need to be profitable before achieving positive cash flow.
Is your pricing page leaking upgrades?
Personalized report, 7-day refund. The $19 is credited toward the $299 Pricing Decision + Rewrite.
→ Get your Free Instant Pricing Page Score
Explore SaaSPriceLab
- Pricing calculators
- SaaS metrics calculators
- Churn & retention calculators
- Startup financial tools
- Founder decision tools
- Methodology & assumptions
- Free Instant Pricing Page Score
- Full sitemap
Is your pricing page leaking upgrades?
Personalized report, 7-day refund. The $19 is credited toward the $299 Pricing Decision + Rewrite.