RevenueCat’s 2026 State of Subscription Apps report underscores a notable difference in subscription revenue growth between high-performing apps and those in the mid-tier range. The report indicates that although 2025 experienced an unprecedented number of new app launches, fueled by progress in AI-enhanced development tools, the revenue performance gap has expanded.
The top 25% of apps recorded a remarkable 80% year-over-year increase in monthly recurring revenue, with the leading 10% realizing an astonishing 306% rise. Conversely, the bottom quartile of apps encountered a 33% drop, while the other apps achieved only a slight 5% growth.
Significantly, the proportion of new apps exceeding the $1,000/month recurring revenue benchmark diminished from 19% in 2024 to 17% in 2025. Similarly, the percentage of new apps that reached the $10,000/month level decreased from 5.3% to 4.6%. The Photo & Video category was prominent in the $1k/month revenue bracket, whereas Gaming apps excelled in the $10k/month segment. On the other hand, sectors like Education, Productivity, Travel, Shopping, and Business posed greater challenges for new entrants.
The report also shows that higher-priced apps generate a considerably larger lifetime value per user, averaging $62.19 annually, in contrast to $10.69 for lower-priced apps. Interestingly, lower-priced apps exhibited superior user retention, with a median retention rate of 36% compared to 23% for higher-priced apps.
Moreover, paywalls consistently outperform freemium models in conversion rates, converting nearly six times as many users, despite comparable retention rates of 27% for paywalls and 28% for freemium apps.
For an in-depth analysis of the findings, including regional insights, the complete report is available on RevenueCat’s website. This document is the first part of a two-part series, with additional information anticipated in the upcoming release.