What is Gross Revenue Retention (GRR)?

Full Explanation

GRR = (Starting Revenue − Churned Revenue) / Starting Revenue. Using the previous example, GRR = (£100K − £10K) / £100K = 90%. GRR includes only the revenue retained without new expansion from existing customers. A GRR of 90% means the cohort experienced 10% revenue churn. GRR is useful for understanding the base stickiness of the product: if GRR is 85% but NRR is 105%, the company is expanding customers enough to offset churn — but this is unsustainable if expansion slows. If GRR is only 80% (high churn), expansion revenue would need to be massive to achieve positive NRR. Investors look at both: high GRR (90%+) suggests product-market fit and sticky customer relationships, reducing acquisition pressure. Strong NRR (110%+) suggests customers see ongoing value and willingly expand spending. Together, they paint a picture of business sustainability: high GRR + high NRR is the dream scenario.

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