What Is Expansion MRR?
Expansion MRR is revenue gained from existing customers through upsells, cross-sells, or seat additions. When expansion MRR exceeds churn MRR, the company achieves 'negative churn', meaning the existing base grows even without adding new customers.
Why it matters: this metric helps founders separate random variation from real business movement. Decisions improve when the metric is tracked in trend form, not one-off snapshots.
How to use it in practice: pair this metric with at least one upstream and one downstream signal. That way, you can explain why it changed and what action should come next.
In AI Co-Founder, this term appears in context with related indicators so you can move from definition to decision without switching tools.