Grammarly vs Notion: Revenue, Profit and Business Model
Grammarly reported $700M of revenue in FY2025 and — of net income. Notion reported $500M of revenue in FY2025 and — of net income.
Latest financial snapshot
Financial summary
Grammarly
Grammarly is private and does not publish audited financial statements. On May 29, 2025, while announcing $1 billion in nondilutive financing from General Catalyst, the company said it had more than $700 million in annual revenue and more than 40 million daily users. The General Catalyst money was structured as capital repaid from revenue generated by the sales and marketing it funds, not as new equity, so the company's last equity valuation is still $13 billion from the November 2021 round led by Baillie Gifford and BlackRock funds. The company was profitable and bootstrapped from 2009 until its first venture round of $110 million in 2017, then raised $90 million in 2019 at a valuation above $1 billion. It has not filed for an IPO.
Notion
Notion does not publish audited financials. Its key disclosed figure is annualized revenue of more than $500 million, stated to CNBC in September 2025 alongside the launch of Notion AI agents. CNBC later reported that half of Notion's Business and Enterprise customers pay for AI features, up from 10-20% a year earlier. Notion has raised roughly $330 million in total, most of it the $275 million Series C at a $10 billion valuation in October 2021, and has since used secondary tender offers rather than new primary rounds; the latest, at an $11 billion valuation, gave employees and early investors liquidity. Third-party estimates (e.g. Sacra) put 2026 ARR well above $500 million, but these are not company-confirmed.
Revenue and profit by year
Grammarly
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $700M | — | 0.0% | — | Source |
Notion
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $500M | — | 0.0% | — | Source |
Where the revenue comes from
Grammarly
- Individual subscriptions
Not disclosed
Monthly or annual Grammarly Pro plans bought by individuals.
- Business and enterprise plans
Not disclosed
Per-seat team, business and enterprise contracts, plus suite plans that include Superhuman Docs, Mail and Go.
- Education licenses
Not disclosed
Institutional plans for schools and universities.
Notion
- Plus subscriptions
Not disclosed
Per-member plans for small teams, about $10 per member per month billed annually.
- Business subscriptions
Not disclosed
About $20 per member per month billed annually, including full Notion AI, SAML SSO and private teamspaces.
- Enterprise contracts
Not disclosed
Custom-priced annual agreements with advanced security, admin controls and audit logs.
Business model and strategy
Grammarly
How it makes money
Grammarly runs a freemium subscription model. The free browser extension and apps give basic spelling and grammar fixes and pull in tens of millions of users.
Growth strategy
Grammarly's strategy since 2023 has been to move from correcting text to doing work for the user. It launched GrammarlyGO generative features in 2023. It agreed to acquire Coda in December 2024 and made Coda co-founder Shishir Mehrotra CEO.
Competitive advantage
Grammarly's main advantage is distribution. It runs inside more than 1 million apps and websites through one extension, so users get suggestions in Gmail, Slack, Google Docs, Word or a CRM without copying text into a chatbot. That reach, which the company calls its in-app 'rails', is what Superhuman Go now uses to deliver its own and partner AI agents.
Notion
How it makes money
Notion uses a freemium subscription model. Individuals can use a Free plan; teams pay per member per month for Plus (about $10 billed annually), Business (about $20, which since May 2025 includes full Notion AI such as agents, AI Meeting Notes and Enterprise Search) or custom-priced Enterprise contracts with SSO, audit logs and admin controls.
Growth strategy
Notion's growth plan has three parts: move AI into higher-priced plans (full Notion AI now sits in Business and Enterprise), expand the workspace into adjacent apps (Notion Calendar, Notion Mail, Sites, Forms, AI meeting notes), and sell upmarket to large enterprises with connectors to Microsoft Teams, SharePoint, Gmail and Slack plus Enterprise Search across those tools.
Competitive advantage
Notion's edge is a flexible block-and-database model that lets non-engineers build their own wikis, trackers and lightweight apps, plus a large creator and template community that drives organic sign-ups. Bottom-up adoption means many enterprise deals start with employees who already use Notion personally.
Questions about Grammarly vs Notion
Which company has higher revenue — Grammarly Inc. or Notion Labs, Inc.?
Grammarly Inc. reported $700.0M (FY2025), while Notion Labs, Inc. reported $500.0M (FY2025). By last reported revenue, Grammarly Inc. is the larger business, with Notion Labs, Inc. reporting a smaller revenue base.
Which is more financially efficient — Grammarly Inc. or Notion Labs, Inc.?
Grammarly Inc. generates $700k / employee in revenue per employee, while Notion Labs, Inc. generates $500k / employee. Grammarly Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Grammarly Inc. and Notion Labs, Inc. make money?
Grammarly Inc. and Notion Labs, Inc. generate revenue in fundamentally different ways. Grammarly Inc.: Grammarly runs a freemium subscription model. Notion Labs, Inc.: Notion uses a freemium subscription model.
Is Grammarly Inc. bigger than Notion Labs, Inc.?
By last reported revenue, Grammarly Inc. ($700.0M (FY2025)) is the larger company compared to Notion Labs, Inc. ($500.0M (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Grammarly vs Notion overview