A revenue waterfall (also called a revenue bridge) maps when contracted revenue will flow through the income statement. It combines committed ARR, renewal expectations, and projected new business to create a forward-looking revenue schedule.

Example: A SaaS company uses a revenue waterfall to show that $4M of its Q4 revenue is already locked in from existing contracts, $800,000 is expected from renewals, and $600,000 needs to come from new deals to hit the $5.4M quarterly target.