New report shows annual app subscribers rarely return after they cancel – Charm

RevenueCat has published part two of its State of Subscription Apps 2026 report, with new insights into how likely users are to cancel or renew their subscriptions, based on region, subscription plan, and the app’s overall pricing strategy. Here are the details.

95% of canceled annual app subscribers never come back

Last March, RevenueCat released part one of its State of Subscription Apps 2026 report, offering interesting insights into the sustainability of the subscription app market.

Now, the company has published part two of its report, which focuses on subscriber retention and the challenge of winning users back after they cancel.

According to the report, “more than half of trial cancellations now happen on the first day,” with the churn rate dramatically dropping below 10% for apps with 30-day and 14-day trials after Day 2.

When it comes to the timing of annual subscription cancellations, RevenueCat says that “Month 1 accounts for 35% of all annual cancellations overall,” with shopping apps standing out with the earliest churn: around half of annual cancellations happen in the first month.

On the flip side, education apps have the lowest first-month cancellations, with 30% happening in the first 30 days.

Perhaps more importantly, the report shows that winning back users who cancel annual subscriptions is a tough task. RevenueCat says that “annual reactivation sits at just 5%,” while “monthly subscribers come back at 4× the rate.”

The good news is that annual subscriptions also offer the most reliable retention, once users make it to renewal. Yearly plans renew at 83.4% overall, more than four times the rate of weekly subscriptions and roughly twice the rate of monthly plans.

The report adds that subscribers who renew during the first year are more likely to keep renewing. Renewal rates rise from a 23% to 40% median range for the first annual renewal, to 44% to 64% for the second, and 56% to 70% for the third.

RevenueCat’s report also looks into other interesting factors, including how reactivation varies by geography and price tier, as well as broader year-over-year retention trends across subscription plans.

To check out the full part 2 of RevenueCat’s State of Subscription Apps 2026 report, follow this link.