Net revenue refers to the total income generated by a business from its sales, minus any returns, allowances, and discounts. It provides a clearer picture of a company's actual earnings from its core operations, as it excludes non-operational income and expenses. This figure is crucial for assessing a company's financial health and performance over time. Investors and stakeholders often analyze net revenue to understand how effectively a business is generating income from its products or services, making it an essential metric in financial reporting and analysis.