---
title: "Stated MRR above last month's collected revenue"
url: https://firstpassmemo.com/flags/mrr-above-revenue-collected/
updated: 2026-10-07
publisher: FirstPass Memo (hello@firstpassmemo.com)
---

Red flag explained · Numbers that disagree

# Stated MRR above last month's collected revenue

Short answer: MRR is what subscriptions are worth on paper. Collected revenue is what arrived. When MRR is more than 15% above last month's revenue, failed payments, discounts or refunds may sit in between. Ask the seller to reconcile MRR to cash collected before you pay a multiple of MRR.

Updated 7 October 2026 · Checker rule MRR_VS_COLLECTED

## When the checker raises it

Raised as medium severity when stated MRR is more than 1.15 times last month's revenue.

## Why it matters

Subscription dashboards often count a subscriber as MRR until they cancel, even if the card has failed twice. Discounts and coupons can also be left out of the headline figure.

What you buy is the cash. A business with $4,000 of MRR and $3,300 collected is a $3,300 business until the gap is explained.

## A worked example

Composite example, not a real listing

SaaS form builder for small clinics Asking price: $80,000 MRR: $4,000 Last month revenue: $3,300 Average monthly profit: $2,900 Revenue verified via Stripe Churn: 3% monthly Business age: 3 years Owner hours: 5 hours per week

Traffic or revenue sources typed in: Organic search 30%, Direct 40%, Referral 30%.

What the red-flag checker (https://firstpassmemo.com/checker/) returns: payback of 27.6 months on average monthly profit, and this flag:

Medium Stated MRR is above last month's revenue

MRR $4,000 against $3,300 collected last month. Failed payments, discounts or refunds may sit in between.

Ask: Can you reconcile MRR to cash collected (failed payments, discounts, refunds, annual plans)?

The same example also raises: Concentration not disclosed (https://firstpassmemo.com/flags/concentration-not-disclosed/).

## What to check

- Ask the seller to reconcile MRR to cash collected: failed payments, discounts, refunds and annual plans.

- Ask for the payment processor's monthly payout report for six months.

- Ask how many subscriptions are past due today.

## Questions to send the seller

- Can you reconcile MRR to cash collected (failed payments, discounts, refunds, annual plans)?

- Are the revenue figures before or after refunds, chargebacks and platform fees?

- Is the P&L on a cash or accrual basis, and how are annual plans and prepayments counted?

- Are there debts, unpaid invoices, or prepaid customer obligations that come with the business?

## Related flags

- ARR and MRR disagree (https://firstpassmemo.com/flags/arr-and-mrr-disagree/)

- Churn above 5% a month (https://firstpassmemo.com/flags/monthly-churn-above-5-percent/)

- No connected data source (https://firstpassmemo.com/flags/no-connected-data-source/)

- All red flags explained (https://firstpassmemo.com/flags/)

## Useful next

- Buying a micro-SaaS (https://firstpassmemo.com/buy/micro-saas/)

- Free red-flag checker (https://firstpassmemo.com/checker/): paste a listing and see which flags it raises.

The checker is a set of plain rules, not an AI model, and its flags are prompts for questions, not verdicts. Composite examples are invented. Informational screening only, not investment, legal or tax advice.

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FirstPass Memo is informational screening, not investment, legal, tax, accounting or valuation advice, and not an audit. Seller figures are not independently verified. HTML version: https://firstpassmemo.com/flags/mrr-above-revenue-collected/