# Run rate

A recent short period stretched out to look like a full year.

A seller quotes it when the last twelve months do not flatter them. It is legitimate exactly when the change behind it is permanent and already in the numbers: a signed contract, a price rise that has fully landed, a location open all year that was not. It is not legitimate when the recent months are the busy season. The test takes one question and is worth asking every time: what does the figure become if the last three months repeat, and will they?

In numbers: A shop quoting $900k of run-rate revenue off a $225k quarter is annualizing its busiest one; the [trailing twelve months](https://searchspheresource.com/glossary/ttm) read $760k, and the price should follow the smaller figure.

Source: https://searchspheresource.com/glossary/run-rate
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt