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    RetentionLast updated: 2025-Q27 data points

    Net Revenue Retention (NRR) Benchmarks 2025

    Net Revenue Retention is the single metric that most reliably predicts long-term SaaS valuation multiples. Companies with NRR above 120% can grow without adding a single new customer — their existing base compounds revenue automatically. The median NRR across all SaaS companies is approximately 105%, but this hides enormous dispersion: PLG companies with seat-based models routinely hit 115–130%, while low-ACV transactional SaaS can sit at 90–95%. The data from Bessemer shows a near-linear relationship between NRR and revenue multiples at IPO — each 10-point NRR improvement corresponds to roughly 2–4x higher EV/Revenue at comparable growth rates. Usage-based pricing models are now leading the NRR table, averaging 118% vs. 108% for seat-based models.

    MetricValueSourceYearContext
    Median NRR, All SaaS105%Bessemer Venture Partners State of the Cloud 20242024A 105% NRR means existing customers grow revenue by 5% annually on average — modest but still a growth engine.
    Top-Quartile NRR Threshold120%+Bessemer Venture Partners State of the Cloud 20242024Above 120% NRR, the growth model becomes largely self-funding for organic revenue growth — new customer acquisition drives acceleration, not survival.
    Median NRR, Usage-Based Pricing118%OpenView Partners SaaS Benchmarks 20242024Usage-based models capture revenue expansion naturally as customers grow, without requiring active upsell motions.
    Median NRR, Seat-Based SaaS108%OpenView Partners SaaS Benchmarks 20242024Seat expansion through organic headcount growth plus proactive tier upsells drives this segment's NRR.
    Median NRR, SMB-Focused SaaSSMB98%ChartMogul SaaS Benchmarks 20242024Sub-100% NRR in SMB is common due to high churn; expansion revenue rarely compensates for customer-level attrition at this segment.
    Median NRR, Enterprise-Focused SaaSEnterprise115%KeyBanc Capital Markets SaaS Survey 20242024Enterprise NRR is driven by land-and-expand motions — initial deployments grow into enterprise-wide rollouts over 2–4 years.
    NRR of Public SaaS Companies at IPO120% medianBessemer Venture Partners State of the Cloud 20242024Public market investors price NRR aggressively — companies IPO-ing with sub-110% NRR face meaningful multiple compression vs. peers.

    Methodology

    Bessemer Venture Partners State of the Cloud Report, SaaStr Annual Benchmarks, KeyBanc Capital Markets SaaS Survey. NRR defined as (Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) / Starting MRR × 100.

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