🔍 Summary:
A recent report from RevenueCat, which analyzed data from over 75,000 mobile apps, reveals that most apps struggle to generate significant revenue, with the majority failing to earn $1,000 per month within their first two years. The 2025 State of Subscription Apps report, drawing from a dataset that includes more than $10 billion in revenue and over a billion transactions, highlights the difficulties faced by app developers in monetizing their products, particularly through subscriptions.
The findings show that only about 20% of apps across all categories reach $1,000 in monthly revenue, and a mere 5% achieve $10,000. The report also notes a steep revenue drop-off, with approximately 50% of apps falling short at each revenue milestone. This underscores the challenge of maintaining growth beyond initial revenue benchmarks.
Certain app categories, such as photo, video, and gaming, are more likely to hit the $1,000 monthly revenue mark within two years, whereas shopping, travel, and utilities apps are among the least likely. The median time for apps to reach the $1,000/month revenue threshold is 60 days, although this varies by category.
The report also highlights a growing disparity in earnings among apps, with the top 5% of apps by revenue making up to 500 times more than the remaining 95%. This gap has widened significantly, indicating increasing revenue concentration within a small fraction of successful apps.
Furthermore, the report found that a significant portion of developers in North America (76.1%) earn over 80% of their revenue from iOS apps. The data also suggests that most users who start a trial subscription do so on the day they install the app, with a high rate of cancellation within the first month.
Given these challenges, RevenueCat’s VP of Growth, Rik Haandrikman, predicts that developers will likely implement more paywalls, upsells, and possibly price hikes to improve monetization. He also anticipates that AI-powered apps may adopt usage-based pricing models in addition to subscriptions.
Overall, the report from RevenueCat provides a detailed look at the tough landscape for mobile app developers trying to earn through subscriptions, highlighting both the challenges and the strategies likely to be employed to overcome them.