Financial Glossary

Net expansion

Definition

Net expansion is the growth or contraction of a company�s revenue from existing customers over a specific period, accounting for churn and expansion.

Related Services

Customer success management, financial analytics, and revenue operations services help businesses measure and drive net expansion through retention and upselling.

Problem and Application

Positive net expansion indicates that a business is growing revenue from its existing customer base, whereas negative expansion signals challenges in retention or satisfaction.

Conclusion

Net expansion is an important metric for businesses focused on customer retention and organic growth, particularly in subscription models.