This report analyzes 2025 performance data from a wide range of subscription apps using the RevenueCat platform. It provides a comprehensive snapshot of how apps across the iOS and Android ecosystems are performing in various scenarios, with an in-depth look at key trends including the rise of AI apps, monetization strategies, user churn and reactivation, and performance differences by platform.
1. Report Methodology and Key Insights 💡
RevenueCat compiled this report based on data from more than 75,000 subscription apps and over $10 billion in tracked revenue. The data is anonymized and provides comprehensive benchmarks for how diverse apps operate within the iOS and Android ecosystems.
Key Insights:
- Widening gap between winners and the rest: One year after launch, the top 5% of apps are earning more than 400× as much ($8,880) as the bottom 25% of apps (under $19). This gap has grown significantly from last year's 200×. 😲
- AI app profitability: Most AI apps generate more than $0.63 in revenue per install after 60 days — on par with health and fitness apps and double the overall median ($0.31). That said, AI alone is not enough to succeed; differentiation is critical.
- The importance of non-subscription revenue models: More than 35% of apps now blend consumables or lifetime purchases alongside subscriptions. Gaming (61.7%) and social & lifestyle (39.4%) categories are particularly aggressive in adopting this strategy.
- Fast and steep churn: Nearly 30% of annual subscriptions are cancelled in the first month. If you haven't won users back before the first year ends, they are gone — retention starts on day one.
- The effect of lower prices: Most apps with low-priced annual plans retain up to 36.0% of users after one year. By contrast, high-priced monthly plans retain only 6.7%.
2. Introduction and Candlestick Chart Interpretation 📊
Jacob Eiting, CEO and Co-Founder of RevenueCat, emphasizes that AI has changed everything about subscription apps. 🚀 He notes that AI-powered apps are already outpacing legacy categories and that AI-assisted development has made launching apps and iterating feel almost as easy as a hobby project. Running a subscription business is still hard, but AI makes it possible to do more, faster — making this the best possible time to build and invest in apps.
"Twelve months ago, I joked that AI would change everything about subscription apps. It did — just not in the ways I understood at the time."
– Jacob Eiting, CEO & Co-Founder
He also notes that this year's report is twice as long as last year's and includes more charts, with detailed data broken down by category, platform, region, price tier, engagement strategy, and more.
How to Read the Candlestick (Box-and-Whisker) Charts:
The report uses candlestick charts to visualize the distribution and clustering of app performance.
- Bottom whisker: Represents the bottom 25% (Q1). Apps below this line are in the bottom 25% of performance.
- Bottom edge of the box: Represents the median (Q2).
- Top edge of the box: Represents the top 25% (Q3).
- Top whisker: Represents P90 (the 90th percentile).
- Outliers: Occasionally shown as individual markers beyond the whiskers.
3. Conversion Rate Analysis 📈
3.1 Download to Trial
Conversion Rates by Category:
- Top apps outperform dramatically: The top 10% of apps show download-to-trial conversion rates 2–3× higher than the median across most categories. This underscores the importance of strong onboarding and paywall strategy.
- The challenge of low conversion: Bottom-25% apps struggle to convert downloads to trials even in high-performing categories like health and fitness. Testing trial lengths, paywall timing, and messaging is essential.
- Habit-forming apps lead: Business, health and fitness, and productivity apps convert at higher rates because users are looking for long-term solutions. Impulse-driven categories like gaming and media and entertainment convert at lower rates and need more optimization.
Conversion Rates by Region:
- North America and Asia Pacific lead: These regions are at the forefront of trial conversion rates. Emerging markets like MEA (Middle East and Africa) and Latin America show wider variance due to differences in user behavior and purchasing power.
Conversion Rates by Price Tier:
- Higher-priced apps convert better: Counterintuitively, higher-priced apps see higher download-to-trial conversion rates. The median conversion rate for premium-priced apps is 9.8%, compared to 4.3% for low-priced apps. This suggests that users who download expensive apps may already have stronger purchase intent.
- Quality over quantity: Low-priced apps generate more downloads, but convert to trials at lower rates. Higher-priced apps naturally filter for more motivated users.
- Price alone is not enough: Bottom-25% apps show low conversion regardless of price tier. Simply raising prices cannot guarantee higher conversion — execution matters more.
Phil Carter, Founder and CEO of Elemental Growth, says that optimizing onboarding flows to maximize trial start rates has an outsized impact on subscription apps.
"According to this year's report, 82% of trial starts happen on the same day a user installs the app. That's even higher than last year! As consumer attention spans shorten, the window to get new users into a trial has never been narrower."
"The best apps are far more efficient at getting users into a trial. P90 apps boast a 20.3% trial start rate — more than 3× higher than the median app (6.2%). Meanwhile, P90 apps are ~2× more efficient at converting a trial into a paying subscriber."
– Phil Carter, Founder and CEO at Elemental Growth
Key drivers of higher trial start rates:
- Streamlined registration via SSO options like Apple, Google, and Facebook.
- Personalized user experiences through simple onboarding quizzes.
- Maximizing paywall view rates and optimizing paywall design and copy.
- Experimenting with different trial formats and lengths.
Recently, reverse trials — giving full access to a premium product without upfront payment details — have also been gaining traction.
3.2 Time to Trial
Time to Trial by Category:
- The importance of immediate conversion: Across all categories, the majority of users start a trial right after downloading the app, with Day 0 conversion rates exceeding 80%. This signals that paywall placement and first impressions are critical to trial adoption.
Rosie Hoggmascall, Product Growth Consultant and Author at GrowthDives.com, emphasizes the importance of Day 0 conversion while arguing that optimization efforts after Day 0 still matter.
"Most trials will happen on Day 0, and they decline from there. But that doesn't mean you should stop optimizing."
"Ask yourself: How early does the user see the paywall? Do they have enough context before it appears? Is the paywall relevant to where the user is within the product? How many paywalls do they see in the first session?"
– Rosie Hoggmascall, Product Growth Consultant & Author of GrowthDives.com
Trial engagement is directly tied to how often users see the paywall, but quality beats quantity. A clear value proposition, strong pricing positioning, and good UX are what matter most.
3.3 Trial to Paid
Conversion Rates by Category:
- Travel apps lead: Travel apps have the highest trial-to-paid conversion rate at a median of 48.7%, followed by media and entertainment (43.8%). This appears to be because users in these categories immediately find value through compelling content or timely utility.
- Execution matters: Some categories like photo and video and shopping show large gaps between top and bottom performers, demonstrating that execution capability matters more than the category itself.
- Health and fitness potential: Health and fitness apps have a median of 39.9%, but the top 10% achieve 68.3% — one of the highest conversion rates of any category. This suggests that habit-forming features, community engagement, or premium content can drive exceptional conversion in this space.
Conversion Rates by Region:
- High-converting apps exist in every market: Latin America has a median of 25.0%, but top apps reach 53.3%, showing that high-converting apps exist in every market. This means localized pricing and marketing strategy can have a bigger impact on success than geography alone.
Conversion Rates by Trial Length:
- Longer trials convert better: Trials lasting 17–32 days achieve the highest median conversion rate at 45.7%. This suggests that sufficient time to experience value leads to stronger purchase intent.
Dan Layfield, Founder of Subscription Index, explains that trials play a critical role in letting users experience the value of a paid product.
"A trial's job is to give users enough time to experience the value of the paid product — but not more than that."
– Dan Layfield, Founder of Subscription Index
The time a user needs to realize value depends on the nature of their customer profile, how frequently the problem is solved, and their trust in the product and company.
3.4 Trial Cancellations by Day
Cancellation Rates by Trial Length:
- Short trials see high early cancellation: 3-day and 7-day trials see the highest cancellation rates on Day 0 and Day 1. This suggests that users may be rushing or cancelling preemptively to avoid being charged before they have time to explore the app.
- Cancellations spread out over long trials: 30-day trials see steady cancellations throughout the trial period. This means that while users are spending more time evaluating, longer trials alone are not enough to prevent churn — ongoing engagement is critical.
- Cancellation spike near trial end: As each trial period approaches its close, cancellations spike as users set reminders to cancel before being billed. Targeted messaging or in-app incentives during this window should be a retention priority.
Marcus Burke, Meta Ads & App Growth Consultant, advises focusing on quality trials rather than quantity.
"Most trial cancellations happen early in the user journey. There is a segment of users who cancel within minutes of starting a trial."
"Early cancellations can be a valuable signal about the quality of your overall cohort, providing insight into your user acquisition efforts. Because so many users cancel immediately, optimizing ad campaigns for a 'qualified trial' event — one that fires only when a user still has an active trial a few hours into their journey — has become a popular tactic."
– Marcus Burke, Meta Ads & App Growth Consultant
3.5 Download to Paid
Conversion Rates by Category:
- Education and media & entertainment lag: These categories have some of the lowest Day 35 conversion rates, likely due to high upfront engagement requirements (education) and alternative monetization options (media & entertainment, e.g. advertising).
- Bottom-25% apps struggle everywhere: Even in top categories, bottom-25% apps have very low conversion rates. This reinforces that pricing, onboarding, and product experience matter more than the category itself.
Conversion Rates by Region:
- The importance of localization strategies: In every region, the top 10% of apps dramatically outperform the median, suggesting that localized strategies and strong execution are more important than geography.
Conversion Rates by Access Model:
- Hard paywalls convert significantly better: Hard paywall apps have far higher download-to-paid conversion rates than freemium apps. This suggests that a forced commitment model can be effective when value is clearly communicated.
- Top freemium apps still perform well: Although the median is low, the best freemium apps still perform strongly. This shows that strong feature gating, timely upselling, and premium content can drive long-term paid conversion.
- Higher churn risk: Hard paywall apps convert quickly, but risk higher churn if users feel locked in too early. Onboarding and the early experience are critical.
Hannah Parvaz, Founder of Aperture, advises maximizing conversion through premium positioning and hard paywalls.
"Looking at download-to-paid, North America continues to lead with impressive numbers — 5.5% at the top 25% and 10.5% at P90."
"The hard paywall data is especially interesting. The median conversion rate sits at 12.11%, compared to 2.18% for freemium apps. Drilling into categories, health and fitness hits 12.1% at P90, and business hits 10.1%. Premium pricing also shows strong results. The download-to-paid median for high-priced apps is 2.66% versus 1.49% for low-priced. But interestingly, lower price points actually show higher trial-to-paid conversion rates (47.8% versus 28.4% for high-priced apps)."
"Key insight: 80–90% of all trials happen on Day 0. This truly underlines how important the onboarding experience is. You only get one shot. The data shows that longer trials currently yield better conversion rates (45.7% versus 26.8% for short trials) — but don't take that as gospel. The best apps are achieving 60%+ trial-to-paid conversion regardless of trial length. That's what we should all be aiming for."
– Hannah Parvaz, Founder of Aperture
Conversion Rates by Price Tier:
- High-priced apps convert better: High-priced apps have a median Day 35 conversion rate of 2.7%, compared to 1.5% for low-priced apps. This suggests that high-value propositions attract more committed paid users.
3.6 Time to Paid
Time to Paid by Category:
- Immediate paid conversion: Across all categories, the majority of trial-to-paid conversions happen instantly. This underscores the importance of first impressions, a clear value proposition, and a well-optimized paywall.
Time to Paid by Region:
- Later conversions in Latin America and ROW: These regions see a higher share of Week 6+ conversions. This suggests that users may need more time, pricing incentives, or reminders before committing to a purchase.
3.7 Download to Trial (Additional Analysis)
- Hard paywalls convert fast: The majority of hard paywall users convert on Day 0. This shows that when users are forced to make an upfront decision, they either commit quickly or leave.
- Freemium converts gradually: Freemium users convert in larger numbers several weeks after download. This suggests that progressive engagement strategies, timely upselling, and feature gating play an important role in long-term monetization.
- Top freemium apps achieve strong Day 0 conversion: While hard paywall apps convert faster on average, top freemium apps also achieve strong Day 0 conversion rates — proving that execution matters more than the monetization model itself.
4. Monetization Strategies 💰
4.1 Trial Strategy
Trial Strategy by Category:
- Health and fitness apps favor blended strategies: Health and fitness apps (56%) use blended trial strategies more than any other category. By contrast, shopping and social & lifestyle apps have the highest proportion of apps using no trial strategy at all (44%). Gaming apps most commonly adopt a pure trial strategy (34%).
4.2 Trial Durations
Year-over-Year Changes:
- In 2024, more than half of all trials (52%) were offered at 5–9 days, up from 48.5% in 2023. Meanwhile, trials of 4 days or fewer declined, suggesting a slight trend toward longer trial periods across app categories.
Trial Durations by Category:
- Gaming apps prefer short trials: 96.3% of gaming apps favor trials of 4 days or fewer. This may be because developers prioritize fast conversion based on high early engagement within the first few days.
- Education and health apps offer longer trials: More than 80% of education and health and fitness apps offer trials of 5 days or more. This may be because users need to experience enough content to commit — especially in contexts where progress takes time.
- Balanced distribution for media & entertainment and travel: These categories have a higher share of trials extending beyond 9 days, giving users more time to experience and evaluate the service before converting to a paid subscription.
4.3 Price Points
Year-over-Year Prices by Plan Duration:
- Overall, median prices were unchanged year-over-year. However, the most expensive apps became even more expensive, with P75 and P90 prices rising slightly across most plan durations.
Eric Crowley, Partner at GP Bullhound, emphasizes that pricing consumer subscription software in 2025 should focus on experimentation, premiumization, and value clarity.
"Pricing consumer subscription software in 2025 can feel like navigating a maze blindfolded. Should you prioritize subscribers, margin, or revenue? There's no single right answer. To find the right approach, focus on three things: experiment, don't be afraid to go premium, and communicate your value clearly to customers."
– Eric Crowley, Partner at GP Bullhound. Head of Consumer Subscription Software ("CSS") practice
Core pricing strategies:
- Experiment: RevenueCat data shows the median CSS app is priced at $29.99, while the top 25% of apps are priced roughly 3× higher. Continuous A/B testing is essential.
- Go premium: Consumers are willing to pay a premium for products that solve their problems exceptionally well. Make sure your app's value justifies its price.
- Clarify value: In a world overflowing with free apps, communicating your app's value quickly and effectively is critical. Highlight the unique benefits that differentiate your app and show users that value clearly.
Plan Duration by Category:
- Annual subscriptions dominate health and fitness and travel: Health and fitness (67%) and travel (65%) apps are dominated by annual subscriptions, while gaming (78%) relies heavily on weekly plans. As developers prioritize longer commitment, annual plans are the largest share in 7 out of 12 categories.
Nathan Hudson, Founder and CEO of Perceptycs, argues against the hasty decision to "just get rid of monthly plans" and emphasizes the importance of a tailored plan strategy that accounts for category and regional characteristics.
"'Just kill the monthly plan…' Not so fast!"
"For years, publishers have been pushing annual plans hard. There are good reasons — faster payback and stronger realized LTV. And it has worked. Annual is winning. But maximizing the share of annual plan subscribers isn't always the best thing for your app. Not every category is suited to long-term commitment. And forcing it can risk reducing total revenue."
– Nathan Hudson, Founder and CEO of Perceptycs
Key questions:
- What commitment duration does our app's value proposition naturally support?
- How do we offer the right plan, in the right market, at the right time — while maximizing realized LTV without hurting total revenue?
4.4 Monetization Mix
- Most categories rely heavily on subscriptions: Nearly every category leans heavily on subscriptions. About 20% of social and lifestyle apps offer a mix of subscriptions and consumables, while gaming apps use a more balanced monetization strategy.
Vahe Bagdasaryan, Growth Manager at Flo Health and App Growth Consultant, argues that the hybrid monetization model — combining subscriptions and consumables — is an underutilized strategy for increasing LTV.
"One of the most overlooked strategies in subscription apps is adopting a hybrid monetization model that combines subscriptions with consumable in-app purchases. Gaming apps have successfully leveraged this approach for years, but subscription-based apps are lagging behind."
– Vahe Bagdasaryan, Growth Manager at Flo Health & App Growth Consultant
Benefits of the hybrid model:
- Monetize different user segments: Users who don't commit to a full subscription can still generate additional revenue through small purchases like premium content, AI-generated insights, and feature unlocks.
- Reduce churn and improve retention: The hybrid model effectively monetizes a wider range of user segments, reducing churn and improving retention.
- Stay competitive: As the subscription market matures, adopting this strategy is increasingly important for sustained growth and profitability.
5. Revenue Analysis 💰
5.1 Average Revenue Per Install (ARPI)
After 14 Days, by App Category:
- Top-25% apps generate 2.75× more revenue than the median at 14 days. Health and fitness apps lead all categories with a median 14-day ARPU of $0.44, with the top-25% value reaching $1.31.
After 60 Days, by App Category:
- Health and fitness apps continue to lead in long-term revenue per install, with the highest P90 value ($4.19) and strong performance across all quartiles.
- Education apps show significant revenue uplift at the high end: P90 ($3.13) is nearly 8× the median ($0.40). This means that while most education apps generate modest revenue, the top performers create exceptionally high revenue through long-term subscriptions, premium content, and more.
- Photo and video, social and lifestyle, and travel apps show similar trends, with top performers earning 5–7× more than the median.
Greg Stewart of Ladder explains how to use segmentation to maximize LTV.
"1. Segment early to acquire the right users: Long-term retention starts before the user downloads the app. Ladder uses quiz-based onboarding to segment prospective users and tailor messaging and acquisition strategy to fitness personas. Reaching the right audience from the start leads to higher engagement and better retention."
"2. Optimize the trial experience for activation, not just conversion: Instead of pushing for immediate sign-up, Ladder removes the credit card barrier and focuses on getting users to complete their first workout. Users who complete at least two workouts during their trial are far more likely to convert to paid and remain long-term subscribers."
"3. Tailor pricing offers to user engagement: Not all trial users should see the same offer. Ladder segments post-trial users based on their workout completion history. Activated users are guided toward an annual plan; inactive users are offered a monthly plan with a first-month discount to lower the barrier to entry."
– Greg Stewart, Ladder
After 14 Days, by Region:
- North America leads in revenue per install (median $0.39), with Asia Pacific close behind. IN/SEA and Latin America have the lowest medians ($0.06–$0.09), highlighting regional monetization gaps.
After 60 Days, by Region:
- North America and Asia Pacific continue to lead at 60-day revenue per install. Their medians are comparable to the top-25% values in most other regions.
Steve P. Young, Founder and CEO of App Masters, emphasizes that early monetization varies significantly by app category and should be optimized accordingly.
"The revenue per install (RPI) data reveals significant differences in early monetization across app categories. Health and fitness apps are dominant, with a median RPI of $0.44 and P90 of $2.97, suggesting strong early subscription adoption. Business ($0.29) and education ($0.27) apps also perform well thanks to premium content and professional tools. Gaming ($0.08 median), by contrast, struggles with early monetization and relies on long-term engagement and in-app purchases."
– Steve P. Young, Founder and CEO of App Masters
Key tips for developers:
- Prioritize subscriptions in high-revenue categories: Health, business, and education apps should consider free trials, high annual prices ($99.99+), and hard paywalls.
- Optimize early engagement for low-RPI apps: Gaming, social, and media apps need strong retention strategies before monetization.
- Leverage in-app purchases and upselling: Travel, productivity, and utility apps can benefit from a freemium model with premium features.
- Improve first-week monetization for shopping apps: Use limited-time discounts or personalized offers to drive early purchases.
- A/B test onboarding and paywalls: High P90 values show that some users are willing to pay significantly early on — test pricing models to maximize revenue.
5.2 Realized LTV per Payer
After 1 Month, by Category:
- Health and fitness apps lead in payer LTV, with both their median ($16.44) and top-25% ($31.12) values surpassing every other category. Business apps show a large spread between their median ($14.82) and P90 ($52.41), pointing to strong monetization potential at the very top.
After 1 Year, by Category:
- Across all categories, LTV grows by roughly 60% from 1 month to 1 year. Shopping and travel apps show the largest increase in top-25% LTV from month 1 to year 1, suggesting strong long-term spending from activated users despite lower initial per-payer revenue.
After 1 Year, by Access Model and Price Tier:
- Higher prices lead to higher LTV: High-priced apps generate a median LTV ($55.21) nearly 7× that of low-priced apps ($8.08), showing that premium pricing captures far more long-term value per payer.
- Low-priced apps struggle with long-term monetization: Low-priced apps have trouble monetizing over the long term — even their P90 is just $22.43, showing that even the best low-priced apps fall short of the revenue potential of mid- and high-priced apps.
- Wide spread in high-priced and hard paywall apps: The gap between the top 25% and P90 is largest for high-priced and hard paywall apps, suggesting that some apps in these categories create exceptionally high per-payer lifetime value.
Sylvain Gauchet, Chief Insights Miner at GrowthGems.co, suggests reconsidering pricing and paywalls to raise 1-year realized LTV.
"First: high prices still mean higher 1-year realized LTV. If you haven't tested pricing in the last 6–9 months, it's time to run a new experiment!"
"Next — should you use a hard paywall? As Thomas Petit has noted, mobile growth is a business model competition — and the D60 and 1-year realized LTV for hard paywalls is very compelling. There are many factors to consider, but if you're at an early stage, really need cash flow, or don't have a clear freemium strategy, now may be the time to prioritize testing a hard paywall. Finally, it's worth studying the top apps in the business category. They are by far leading in 1-year realized LTV."
– Sylvain Gauchet, Head of Growth at Reading.com and Chief Insights Miner at GrowthGems.co
6. Retention and Reactivation 🔁
6.1 Retention
- Large differences by category: Media and entertainment, travel, and shopping apps have the highest monthly plan retention rates, while categories like gaming and social & lifestyle show significantly lower retention across both plan types.
- Weekly plans retain poorly: Across all categories, weekly plan retention barely exceeds 10% after 6 months, and falls below 5% in many categories. This highlights how difficult it is to retain short-term subscribers.
- Social & lifestyle apps struggle most: This category has the lowest retention across both weekly and monthly plans, pointing to high churn rates and potential difficulty sustaining user engagement beyond the initial subscription period.
Thomas Petit, independent app growth consultant, explains the reality of churn rates and how top apps overcome these challenges.
"Only a tiny fraction of users pay for a subscription, so you might expect the most dedicated users to stick around. Yet churn is very high. For monthly plans, only 10% of payers reach year two. For weekly plans, under 5% reach month six! But there is hope. The best apps beat these odds — especially in travel, shopping, media, and business. Han Solo said 'never tell me the odds.' Instead, use these benchmarks to aim for the top. The top 25% retain 60–75% on annual plans. That's twice the median!"
– Thomas Petit, Independent app growth consultant
Key insights and potential actions:
- First renewal is the biggest moment: Churn of 30–50% on weekly plans and 15–40% on monthly plans means the first renewal is the highest-stakes moment. Since preventing churn is easier than reversing it, analyze the behavior of early-active users and deliver that value to more users.
- Regional differences: North America often shows higher conversion rates, while Europe and Asia Pacific see comparable retention. Always consider the full revenue picture.
- Short plans renew at much lower rates: Short plans have far lower year-one renewal rates, with weekly plans showing the steepest year-over-year decline (−27%!). Annual subscriptions can help recoup high acquisition costs faster and offer longer-term advantages.
- Refund rates: 2–5% of payers request refunds (more so in health and fitness and education apps). Monitor this closely and use new features to reduce refunds.
- Extreme variability in renewal rates: Renewal rates vary wildly by plan length (weekly is hardest), price tier (higher-priced plans renew less), and region. Although individual segments declined, average year-one retention rose overall. Isolate your top and bottom performers and change the mix to avoid the trap of averages.
6.2 Renewals
- Weekly plans have the lowest retention: Weekly plans retain users at the lowest rates, with categories like social & lifestyle and entertainment falling below 50% by the third renewal. This suggests that weekly subscriptions may function more as short-term trial periods than as long-term revenue drivers.
- High variability in gaming and social & lifestyle: These categories show the most variability — some apps retain over 75% of subscribers while others approach 50%. This indicates that app-specific factors have an outsized influence on user retention in these segments.
- Annual renewals achieve the highest long-term retention: Annual renewals show the highest long-term retention across multiple categories, often exceeding 85%. Business and utility apps lead in user commitment, suggesting that these verticals provide ongoing value that justifies annual renewal.
6.3 Refund Rate
Refund Rate by App Category:
- Education and health & fitness apps have the highest refund rates: Education (4.86%) and health & fitness (4.71%) apps see the highest refund rates. This hints at potential issues around mismatched user expectations, unclear pricing, or aggressive upselling.
- Travel apps have the lowest refund rates: Travel apps see the lowest refund rates (1.51%), likely due to strong purchase intent and the essential nature of subscriptions in this category.
- Gaming and business apps are below average: Gaming and business apps show below-average refund rates (2.67–2.88%), suggesting users better understand the value proposition before subscribing.
Refund Rate by Region:
- Western Europe and Asia Pacific have low refund rates: Both regions show relatively low refund rates (under 3.0%), which may reflect stronger user trust, better subscription transparency, or more stable payment infrastructure.
Refund Rate by Price Tier:
- Low-priced plans have the lowest refund rates: Low-priced plans see the lowest refund rates (2.2%). This supports the idea that lower financial risk leads to fewer refund requests.
Refund Rate by Access Model:
- Hard paywall apps have higher refund rates: Hard paywall apps show significantly higher refund rates (5.8%) than freemium apps (3.4%). This suggests that users required to pay upfront may experience more dissatisfaction or unmet expectations.
- The importance of the refund gap: The large refund gap between access models underscores the need for clear value communication. Hard paywall apps could benefit from improved onboarding, clearer pricing, or refund mitigation strategies.
6.4 Cancellation Reasons
By App Store:
- Voluntary unsubscribing dominates: On both platforms, unsubscribing is the primary reason for cancellation — 74.5% on the App Store and 67.2% on Google Play. This suggests that user churn is more often voluntary than driven by external factors.
- Google Play sees more billing errors: On Google Play, billing errors account for 28.2% of cancellations — significantly higher than the App Store's 15.1%. This may reflect regional payment processing issues or lower transaction success rates on Android.
- Price increases are not a cancellation reason: Price increases are not reported as a cancellation driver, suggesting that price changes are either rare or do not significantly affect subscriber retention.
Google Churn Survey Responses:
- "Not enough usage" is the top reason: "Not enough usage" is the highest-cited cancellation reason across all categories, ranging from 32% to 47%. This suggests that many churned users simply did not find consistent value in their subscriptions.
Cancellation Timeline:
- High cancellation spike in the first month: Across all categories, cancellations spike most heavily in the first month, often exceeding 30%. This suggests that many users reconsider after purchase or opt out early out of concern about forgotten renewals later.
Alice Muir Kocourková, Growth Lead, notes that monthly plans reactivate best but that higher price tiers generate stronger revenue.
"Monthly subscriptions show the highest reactivation rates, likely due to their lower commitment barrier. Weekly plans follow at 9.37%, while annual plans struggle at 4.58%. This highlights the need for a strong, evolving value proposition to retain annual subscribers. Photo and video and productivity apps lead in monthly reactivation, while gaming may lag due to player fatigue. Shopping apps also struggle due to limited repeat engagement. Annual reactivation is strongest in media and entertainment and photo and video apps, which benefit from ongoing content refresh."
"North America leads in monthly and weekly reactivation but struggles with annual reactivation. By contrast, MEA and Western Europe show stronger annual retention, indicating longer-term user commitment."
"Higher-priced plans show stronger reactivation rates."
– Alice Muir Kocourková, Growth Lead
6.5 Churners
Churner Reactivation by App Category:
- Shopping apps show a strong reactivation trend among weekly plan churners (18.3%), suggesting that even short-term churners still find value in occasional access to these services.
Churner Reactivation by Region:
- Monthly churners show the highest reactivation rates across all regions, exceeding 13% in most cases. This suggests that short-term churners are more likely to return than long-term subscribers.
Churner Reactivation by Price Tier:
- High-priced subscriptions show the highest reactivation rates (11.9%), suggesting that users who left premium plans still see enough value to return within a year.
7. User Acquisition 🤝
7.1 Cost Per Install (CPI)
- CPI gap between iOS and Google Play: The CPI gap between iOS and Google Play in North America is striking. In some categories, iOS CPI is nearly 3× that of the Google Play Store.
- CPI differences by category: CPI varies significantly by category, with photo and video apps leading on iOS in particular. The top-25% CPI for this category exceeds $14. A highly competitive environment is likely driving this category's elevated CPI.
- CPI differences by region: Google Play CPI in North America is lower than iOS but still shows significant variation by category. Western Europe has substantially lower CPI than North America, though variability across categories is similar.
Shane Ly of AppsFlyer shares how to optimize user acquisition across major advertising channels.
"1. Signal recovery is improving ad efficiency: iOS signal loss has made UA harder, but the advanced self-reporting networks (SRNs) of TikTok, Meta, and Snapchat are restoring key data points. Apple Search Ads now supports view-through attribution, helping capture conversions that might otherwise be missed."
"2. Web-to-app funnels are creating new acquisition opportunities: More apps are using landing pages and web subscriptions to secure high-intent users before directing them to the app. Meta and Google Ads support these flows, allowing apps to bypass platform fees and test more flexible pricing strategies."
"3. Reddit and alternative channels are gaining attention: Reddit is investing in app install campaigns, making it an overlooked but promising UA channel — especially for niche communities. AppsFlyer data shows spend increasing across multiple platforms as trust in attribution continues to improve."
– Shane Ly, AppsFlyer
7.2 Cost per Paying User on iOS (CPPU)
- CPPU varies greatly by region, with Africa and the Indian subcontinent showing extreme outliers. Japan and Korea, along with North America, see high CPPU in generative AI and lifestyle apps, while emerging markets like Eastern Europe and LATAM remain lower across most categories.
7.3 Cost per Paying User on Android (CPPU)
- ANZ books and reference apps show the highest CPPU, while utility, health and fitness, and generative AI apps see high CPPU in premium markets. Gaming apps and emerging markets tend to have lower CPPU.
8. Google Play & App Store Comparison 🍎🤖
8.1 Median Prices by Plan:
- Annual subscription prices are generally higher on the App Store than Google Play, except in North America. Monthly and weekly plan prices show greater variability by region, with prices notably lower on Google Play in some emerging markets.
8.2 Download to Paid Conversion:
- Day 35 download-to-paid conversion rates are consistently higher on the App Store than Google Play across all categories, with the largest gaps in business, health and fitness, and education apps.
8.3 Trial to Paid Conversion:
- Google Play outperforms the App Store on trial conversion rates in the business and media & entertainment categories, at medians of 42.6% and 41.2% respectively. This may reflect stronger regional adoption or user trust in these categories on Android.
8.4 Offer Usage:
- The App Store shows significantly higher offer adoption, with 17.6% of users taking advantage of some form of offer compared to just 7.3% on Google Play. This suggests that the Apple ecosystem encourages more promotional usage.
- Introductory offers dominate offer usage, accounting for 13.5% of transactions on the App Store and 5.9% on Google Play. These offers are a key driver of trial-based acquisition on both platforms.
- Despite the difference in offer adoption rates, the majority of transactions on both platforms occur without any offer — 82.3% on the App Store and 92.7% on Google Play. This underscores that core pricing strategy is the primary revenue driver.
8.5 Revenue per Install:
- North America leads revenue per install on both platforms — median $0.66 on the App Store and $0.35 on Google Play — highlighting strong monetization in premium markets.
- The App Store consistently outperforms Google Play across all regions, with a global median D60 revenue of $0.38 vs. $0.14, reinforcing Apple's stronger monetization potential.
- Google Play sees its highest revenue per install in Asia Pacific (median $0.35), reflecting strong growth potential in that region relative to other emerging markets.
8.6 1-Year Realized LTV:
By Region:
- Asia Pacific shows competitive performance between the two stores, with a median LTV of around $35. This points to strong growth potential for subscription monetization across the region.
By Category:
- The business and health and fitness categories generate the highest LTV on both platforms, with median LTV exceeding $25. This reflects strong demand for productivity and wellness subscriptions.
- The App Store generally leads Google Play on LTV across most categories, but the gap narrows in health and fitness and business, where Google Play's top-25% LTV is competitive with Apple's.
8.7 First 3 Renewals by Plan Duration:
- Google Play outperforms the App Store on first-month renewal rates across all plan durations. However, the App Store catches up at the second and third renewal, particularly for annual plans.
8.8 Platform Revenue Split by Geography:
- Most apps generate the majority of their revenue from the App Store. Across all regions, more than 67% of apps earn at least 80% of their revenue from iOS users, reinforcing Apple's stronger monetization potential.
- Very few apps rely solely on Google Play — only 10–14% of apps in each region earn all of their revenue from Android users. Even in Google Play's strongest regions, most apps still generate significant revenue from iOS.
- Emerging markets like Latin America and India/Southeast Asia have the highest proportion of apps with more balanced revenue, with around 10% of apps earning 50–70% of revenue from the App Store. This suggests greater platform balance in price-sensitive regions.
8.9 Cancellation Reasons by Store:
- Billing errors are far higher on Google Play (28.2%) than on the App Store (15.1%), pointing to potential payment processing issues or regional inconsistencies in Android's billing system.
- Unsubscribing is the primary cancellation reason on both platforms — 74.5% on the App Store and 67.2% on Google Play — highlighting voluntary churn as the dominant factor.
9. Native & Cross-Platform 💻
9.1 Download to Paid Conversion by Framework:
- React Native leads in conversion rates, with a median of 2.2% and a 90th percentile of 11.2%. This suggests that apps built with this framework are able to better optimize for monetization.
9.2 Revenue per Install by Framework:
- Native and Flutter apps show similar median revenue (~$0.19), but Flutter apps reach a higher 90th percentile ($1.55 vs. $1.11), indicating stronger top-end performance.
- React Native maintains the strongest revenue trajectory, reaching a median of $0.44 and a 90th percentile of $3.54, demonstrating sustained monetization beyond the initial install.
- Flutter apps surpass native apps at the top-25% and 90th percentile levels, with top-end performance of $2.29 vs. $1.53. This suggests that the best Flutter apps can generate stronger revenue.
Charlie Cheever, CEO and Co-Founder of Expo, emphasizes that AI is revolutionizing the way apps are built, and that Expo is at the center of it.
"AI is causing an explosion in the way people build apps — and Expo is at the center of it."
"Tools like Bolt, Replit, and Create.xyz have partnered with Expo so that anyone can build a React Native app from a prompt alone. We've seen this AI app movement explode over the past month, and we expect it to change everything about how apps are built for the next year and beyond."
– Charlie Cheever, CEO and Co-Founder of Expo
He explains that the React Native and React ecosystems are converging, and that advances in Expo Router have made it far easier to unify web and iOS/Android into a single codebase. He also notes that React Native itself has matured and become easier to use, resulting in many popular and successful React Native apps — and that almost all VC-funded US startups now choose React Native when they need an app.
9.3 1-Year Retention by Plan and Framework:
- Flutter and React Native show slightly lower retention on both monthly and annual plans compared to native and other frameworks. This may be attributable to app experience or payment optimization factors.
9.4 1-Year Realized LTV per Payer by Framework:
- React Native delivers the strongest long-term revenue per payer, with a median of $22.80 and a P90 of $85.26, reflecting strong lifetime value from activated users.
- Flutter falls slightly behind native at the median ($13.81 vs. $16.15), but surpasses native above the top 25%, showing that the best Flutter apps can monetize more effectively.
- Other frameworks show strong performance at the high end, with a 90th-percentile LTV of $70.90 — suggesting that some alternative approaches can generate competitive revenue.
Closing Thoughts 💡
The 2025 subscription app market is undergoing unprecedented change, fueled by the explosive growth of AI. The gap between winners and the rest continues to widen, and while AI apps show strong revenue potential, differentiation is essential. A hybrid monetization strategy that combines subscriptions with consumables or lifetime purchases is becoming increasingly important rather than relying on subscriptions alone. User churn remains a major challenge — with many cancellations occurring in the first month — making early onboarding and sustained value delivery critical. The data also underscores that longer trials and lower-priced annual plans are more effective at retaining users. Meaningful performance differences between iOS and Google Play persist, and the rise of cross-platform frameworks like React Native is worth watching. Building a successful subscription app in this environment will require continuous data-driven analysis and experimentation to optimize value propositions, pricing strategies, onboarding experiences, and retention efforts.
