Revenue leakage occurs when revenue that should have been captured is lost due to billing system gaps, incorrect pricing applied, uninvoiced usage, unenforced contract terms, or failed payment recovery. It is often invisible until a formal audit is performed.

Example: A SaaS company discovers that overage charges are not being billed due to a misconfiguration in the usage metering system. This gap has caused $120,000 in revenue leakage over the past 6 months. Fixing the configuration and retroactively billing customers recovers a portion of the lost revenue.