SaaSPulse SaaS health check SaaS Health Check · USD 59
MRR is up 31 percent and net revenue retention is 91
Twelve months of revenue movement, split into the four components that actually explain it.
You are growing and you are leaking. New business has been strong enough to cover contraction and churn every month, which means the growth number has never forced anyone to look at the retention number. At 91 percent net revenue retention, every new customer is partly replacing one you already had.
MRR up 31 percent over twelve months, and 91 percent net revenue retention means the existing base shrank by 9 percent over the same period. Two thirds of that is contraction rather than churn, which is a different and more fixable problem.
Movement
What is actually moving
The upper line is what you report. The lower line is only the accounts you already had in October, tracked forward. It has fallen every month but one. Growth has been entirely carried by new business, and the base underneath it is shrinking. Note the axis starts at 40, not zero, so the gap between the lines is the subject rather than the absolute size.
| Component | 12 month total | Monthly average | Read |
|---|---|---|---|
| New business | +USD 26,800 | +USD 2,233 | Strong and consistent |
| Expansion | +USD 4,100 | +USD 342 | Weak for this model |
| Contraction | -USD 6,900 | -USD 575 | Seat reductions, mostly |
| Churn | -USD 7,100 | -USD 592 | Nine accounts |
| Net | +USD 16,900 | +USD 1,408 |
Expansion of USD 342 a month against contraction of USD 575. For a seat-based product with 218 accounts, expansion should comfortably exceed contraction, and it is the single clearest gap in these numbers.
Retention
Where the base goes
| M3 | M6 | M9 | M12 | ||
|---|---|---|---|---|---|
| Q3 2024 | USD 9.1k | 98% | 95% | 92% | 89% |
| Q4 2024 | USD 11.4k | 99% | 96% | 93% | 91% |
| Q1 2025 | USD 13.8k | 97% | 93% | 90% | 88% |
| Q2 2025 | USD 15.2k | 96% | 91% | 87% | |
| Q3 2025 | USD 18.6k | 95% | 90% | ||
| Q4 2025 | USD 16.9k | 97% | 94% | ||
| Q1 2026 | USD 19.3k | 98% |
Every cohort is below 100 at month three, which means accounts start shrinking almost immediately rather than after a year. No cohort has ever expanded net. That is the pattern to explain.
Concentration
The risk nobody has priced
| Segment | Accounts | Share of MRR | Net retention | Note |
|---|---|---|---|---|
| Top 5 | 5 | 31% | 103% | Healthy, and dangerous to depend on |
| Next 20 | 20 | 29% | 94% | |
| Mid tail | 93 | 31% | 88% | Where the contraction is |
| Long tail | 100 | 9% | 79% | Small accounts, high churn |
| All | 218 | 100% | 91% |
Your largest five accounts are 31 percent of revenue and are the only segment expanding. Losing any one of them removes about 6 percent of MRR overnight, which is four months of current net growth.
Next
What to do with this
- This month
Look at renewals 90 days out, not 30
Thirty eight seat reductions all happened at renewal. A conversation eight weeks before renewal, about usage rather than price, is the single intervention these numbers point at.
- This month
Find out why seats are removed
You have the fact and not the reason. Call ten of the 38. This is the most valuable thing in the plan and it costs nothing.
- This quarter
Build one expansion motion
Expansion is USD 342 a month across 218 accounts. There is currently no trigger, no owner and no offer. Any of the three would move it.
- This quarter
Name the concentration risk out loud
Five accounts, 31 percent. Decide what the plan is if one leaves, before one leaves.
- Next check
Re-run with 90 days of new data
The Q4 2025 cohort is holding better than Q1 to Q3. If that continues it is the most encouraging thing in this document and it is too early to call.
- Net revenue retention reported monthly, alongside MRR
- Renewal list visible 90 days ahead
- Ten seat-reduction accounts interviewed
- Expansion trigger defined and owned
- Concentration stated in board reporting
- Cohort table refreshed quarterly