Skip to content
New: more US companies explained, plain-English terms and earnings dates

Term explained · Reading results

What is ARPU? Average revenue per user, with real US companies

ARPU is revenue divided by a company's average users. How US companies work it out, where it sits in a 10-K or 10-Q, and real examples.

By · Checked against filings: , 1 min read, Seen in 7 companies on Cityfort. Editorial policy. Corrections

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

What is average revenue per user (ARPU)?

ARPU is a company's revenue from its users, divided by how many users it had on average.[S2] Each company chooses which revenue, which users and which period to count.[S1]

The name varies too: per user, per person, per account or per subscriber.

How is ARPU worked out?

The basic formula is revenue in a period ÷ average number of users in that period.

Three companies on Cityfort use three methods:

  • Meta divides a quarter's Family of Apps revenue by its average daily active people. It calls this ARPP.[S4] Its yearly ARPP was 57 US$ per person (FY2025).
  • Reddit divides a quarter's revenue in a region by its average daily users there.[S2]
  • Verizon divides postpaid wireless service revenue by its average postpaid accounts. It calls this ARPA.[S3]

Where do you find ARPU in a 10-K or 10-Q?

It is not in the financial statements. Look in Management's Discussion and Analysis (MD&A): Item 7 of a 10-K, or Part I, Item 2 of a 10-Q.[S5][S6] Meta's sits under "Trends in Our Family Metrics."[S4]

SEC guidance expects a clear definition and how it is calculated.[S1]

What does ARPU leave out?

  • Costs. It counts revenue only, not the cost of serving each user.[S4]
  • Some revenue. Verizon's ARPA leaves out device payment plan billings, insurance premiums and regulatory fees.[S3]
  • The notes' regional split. Reddit places ad revenue where ads were shown, not by billing address.[S2]
  • A fixed method. Meta updated its ARPP definition in the first quarter of 2024 and recast earlier figures.[S4]

How does Cityfort show ARPU?

Each row below is the company's own figure, so the rows are not like for like. See non-GAAP measures.

See it in real companies

Average revenue per user or account, as the company measures it at companies on Cityfort

7 companies on Cityfort, listed A–Z (not ranked).

AT&T
58.9 dollars a monthQ3 FY2026 · Postpaid phone revenue per subscriber, the company's own measure; nearest GAAP figure: Wireless service revenue, Advanced Connectivity, Q3 FY2026, $17.8B · source S24
Meta
57 US$ per personFY2025 · Average revenue per person (ARPP), the company's own measure; no GAAP figure measures this · source S1
Reddit
6.9 US$ per userQ3 FY2026 · Average revenue per unique (ARPU), the company's own measure; nearest GAAP figure: Revenue, Q3 FY2026 (US$ million), $895M · source S13, S1
Robinhood
200 US$Q3 FY2026 · Revenue per customer (ARPU), annualized, the company's own measure; nearest GAAP figure: Revenue, Q3 FY2026, $1.4B · source S14
SpaceX
69 dollars a monthQ3 FY2026 · Average revenue per Starlink consumer user, the company's own measure; nearest GAAP figure: Starlink consumer revenue, Q3 FY2026 (US$ million), $3.1B · source S3
T-Mobile
155.7 $ per monthQ3 FY2026 · Postpaid revenue per account, the company's own measure; no GAAP figure measures this · source S11
Verizon
168.1 $ per monthQ3 FY2026 · Postpaid revenue per account, the company's own measure; no GAAP figure measures this · source S13, S32

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

Questions people ask

Is ARPU a GAAP number?
No. It is a company's own metric, not a line in the financial statements. SEC guidance names average revenue per user as a metric that should come with a clear definition and how it is calculated.[S1]
What are ARPA and ARPP?
They are versions of ARPU with a different divisor. Verizon's ARPA divides by postpaid wireless accounts. Meta's ARPP divides by daily active people across its apps.[S3][S4]
Are two companies' ARPU figures like for like?
No. Each company picks its own revenue, users and period. Reddit's figure covers one quarter. Meta's yearly figure adds up its four quarterly figures.[S2][S4]
Why can ARPU grow more slowly than revenue?
New users can bring in less at first. Reddit says its ARPU tends to grow more slowly than revenue in periods of strong user growth.[S2]
Can a company change how it calculates ARPU?
Yes. SEC guidance asks companies to consider disclosing a changed method, why it changed and its effect. Meta updated its ARPP definition in the first quarter of 2024 and recast earlier figures.[S1][S4]

Sources

  1. S1Commission Guidance on Management's Discussion and Analysis of Financial Condition and Results of Operations (key performance indicators and metrics), Release Nos. 33-10751 and 34-88094, Jan 30, 2020 · U.S. Securities and Exchange CommissionTier 1: company or exchange filing · Jan 30, 2020
  2. S2Reddit, Inc.: Form 10-Q for the quarter ended Sep 30, 2026, Part I, Item 2 (Management's Discussion and Analysis), Key Metrics (ARPU) · Reddit, Inc. (SEC EDGAR)Tier 1: company or exchange filing · Oct 30, 2026
  3. S3Verizon Communications Inc.: Form 10-Q for the quarter ended Sep 30, 2026, Part I, Item 2 (Management's Discussion and Analysis), operating statistics definitions (wireless retail postpaid ARPA) · Verizon Communications Inc. (SEC EDGAR)Tier 1: company or exchange filing · Oct 29, 2026
  4. S4Meta Platforms, Inc.: Form 10-K for fiscal year 2025, Item 7 (Management's Discussion and Analysis), Trends in Our Family Metrics (ARPP) · Meta Platforms, Inc. (SEC EDGAR)Tier 1: company or exchange filing · Jan 29, 2026
  5. S5Investor Bulletin: How to Read a 10-K, September 2011 (Item 7, Management's Discussion and Analysis) · U.S. Securities and Exchange Commission, Office of Investor Education and AdvocacyTier 1: company or exchange filing · Sep 1, 2011
  6. S6Form 10-Q, Part I, Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operations) (form version SEC 1296, 02-25) · U.S. Securities and Exchange CommissionTier 1: company or exchange filing · Feb 1, 2025

Next lesson

Each week: one company explained in 5 points, picked by earnings date.

Free, no tips, unsubscribe anytime.

We'll send a confirmation email. See our privacy policy.

Read next

All terms, guides, traps and cases on Learn

Disclaimer

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a registered investment adviser or other qualified professional.

Cityfort, its owners and contributors may or may not hold securities of companies covered. Cityfort is not paid by any company it covers. Content is not an offer or solicitation to buy or sell any security, including in any initial public offering.

Read the positions policy
Read the full disclaimer

Cityfort publishes general educational content that explains how listed companies work. Cityfort is not registered with the US Securities and Exchange Commission or any state securities regulator as an investment adviser, and is not a broker-dealer or a member of FINRA. Cityfort does not provide investment, tax or legal advice, recommendations, ratings, price targets or any opinion on whether to buy, sell or hold any security. Nothing on the site is tailored to any person's circumstances.

All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.