Recurly’s 2026 State of Subscriptions shows how more intentional consumer behavior is strengthening recurring revenue
Recurly, a leading subscription growth platform trusted by top subscription brands, released its 2026 State of Subscriptions report. Consumers are changing how they use subscriptions, and the shift is making the business model stronger.
Rather than treating subscriptions as set it and forget it expenses, consumers are managing them more actively. They pause when they need a break, cancel when value drops, and return when a service fits their lives again. This more intentional behavior is reshaping subscription growth and driving steadier, more predictable revenue for businesses.
According to Recurly’s 2026 State of Subscriptions report, based on data from more than 2,200 subscription businesses and tens of millions of subscribers, growth is increasingly driven by renewals, upgrades, and returning customers.
“Consumers have not lost interest in subscriptions,” said Joe Rohrlich, CEO of Recurly. “They are simply making clearer choices. That is leading to healthier long-term growth.”
Consumers are cycling, not leaving
The data shows that cancellation is no longer the end of the relationship.
Nearly one in four new subscriptions now comes from a former customer, as people move in and out of services based on usage and life changes. Brands that offer pause options are seeing stronger outcomes. Pause usage rose 337%, and 75% of customers who pause eventually return.
“People are practical about subscriptions,” said Brian Geier, VP of Business Intelligence at Recurly. “When brands support flexibility, customers come back when the value is there.”
Design and flexibility matter
As consumers take a more active role, subscription structure is playing a bigger role in success.
Micro-subscriptions, short-term passes that replace traditional free trials, convert 13% of users into ongoing subscribers, while trial conversion has stabilized at 34%. Annual plans continue to generate 50 to 60% more revenue per user than monthly plans, especially when paired with thoughtful renewal strategies, while monthly plans continue to offer subscribers the flexibility they want.
AI is helping brands respond faster
More than 40% of consumers say they are comfortable with AI managing parts of their subscription experience, particularly for fraud prevention, payment recovery, and personalized offers. Many brands are using AI to act on customer signals in real time, helping them retain and re-engage subscribers more effectively.
What this means for 2026
Subscriptions are becoming more intentional for consumers and more durable for businesses. The brands that win next will be those that make it easy for customers to stay, leave, and return on their own terms.
“The next chapter of subscriptions is about trust and relevance,” Rohrlich said. “When brands get that right, recurring revenue becomes more dependable.”
