Grammarly vs Suno: Revenue, Profit and Business Model
Grammarly had $700M of annual revenue in FY2025. Suno had $200M of annual revenue in FY2025.
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.
Suno
Suno is private and does not publish audited results. It reported $300 million in ARR and 2 million paid subscribers as of February 2026, and it was valued at $5.4 billion in its June 2026 Series D. Its model is freemium: free daily credits bring in users, and paid subscriptions add commercial rights and faster generation. Generating each song uses costly GPU computing, which is the company's main expense.
Revenue and profit by year
Grammarly
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $700M | — | — | — | Source |
| FY2024 run-rate | $650M | — | — | — | Source |
| FY2022 run-rate | $500M | — | — | — | Source |
Suno
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 run-rate | $300M | — | — | — | Source |
| FY2025 | $200M | — | — | — | Source |
| FY2024 run-rate | $45M | — | — | — | 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.
Suno
No segment breakdown is published.
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.
Suno
How it makes money
Suno operates a highly optimized B2C and B2B 'AI Software as a Service' (SaaS) model. 1. The Web Platform (The large core): A simple interface (and Discord integration) where users prompt songs. 2. Pro Subscriptions (The profit engine): Charging users $10-$30 a month to generate hundreds of songs and, crucially, to legally own the commercial rights to monetize those songs on YouTube or Spotify. 3.
Growth strategy
Suno's growth depends on resolving its legal position and on winning over working musicians. Universal, Sony and Warner sued the company, alleging that it trained its model on copyrighted music without permission, and Suno has argued fair use.
Competitive advantage
Suno's advantage is generating whole songs with realistic vocals. Other models, such as Google's MusicLM, produced instrumental music, while Suno was early to generate convincing singing that follows a lyric. Because the results sound like finished music, users share them on platforms such as TikTok, which brings in new users without paid marketing.
Questions about Grammarly vs Suno
Which company has higher revenue — Grammarly Inc. or Suno?
Grammarly Inc. had $700.0M (FY2025), while Suno had $200.0M (FY2025). By latest annual revenue, Grammarly Inc. is the larger business, with Suno showing a smaller revenue base.
How does revenue per employee compare for Grammarly Inc. and Suno?
Grammarly Inc. generates $700k / employee in revenue per employee. A comparable figure for Suno requires matching employee and revenue data from the same reporting period.
How do Grammarly Inc. and Suno make money?
Grammarly Inc. and Suno generate revenue in fundamentally different ways. Grammarly Inc.: Grammarly runs a freemium subscription model. Suno: Suno operates a highly optimized B2C and B2B 'AI Software as a Service' (SaaS) model.
Is Grammarly Inc. bigger than Suno?
By last reported revenue, Grammarly Inc. ($700.0M (FY2025)) is the larger company compared to Suno ($200.0M (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 Suno overview