Net Revenue Retention (NRR) is a signal about product, onboarding, pricing, and customer success

Investor

22 Dec 2025 — 1 min read

NRR tells you whether growth is structural or just sales-driven. It shows what happens to revenue after the contract is signed.

NRR < 100 %: The company is leaking value. New sales are masking churn.
NRR ≈ 100 %: The business is stable, but not compounding.
NRR > 120 %: Customers are expanding. Growth is embedded in the product.

For a board, NRR answers three critical questions:

Is the product delivering sustained value?
Is growth capital-efficient?
Can the company scale without linear sales headcount?

Low NRR is not a sales issue. It is a signal about product, onboarding, pricing, and customer success.

If you want predictable, durable growth, track NRR as closely as cash and runway.

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