Zuora Subscription Economy Index Continues to Outperform S&P 500: Flexible Revenue Models That Evolve With Market Conditions and Consumer Expectations Thrive

New data from 600+ companies and 3,000+ consumers indicates ongoing demand amidst economic uncertainty

Zuora, Inc., a leading monetization platform for modern business, today released the latest Subscription Economy Index™ (SEI) report, which found that, over the last two years, companies in the SEI have experienced an 11% faster revenue growth rate compared to the broader economy (represented by the S&P 500). In addition to data from more than 600 companies, Zuora® commissioned The Harris Poll to include new data from over 3,000 U.S. adults, which revealed 68% of consumers subscribed to a new service for the first time in 2024.

The Subscription Economy® has fundamentally transformed how the world consumes products and services. But the report highlights that long-term success hinges on nuanced and hybrid monetization approaches that go beyond a single subscription revenue stream to flex with changing market conditions and customer expectations. Finance leaders are at the forefront of this evolution, with increasing responsibility to introduce new, sustainable revenue models without breaking the ability to forecast accurately.

This year’s SEI report also introduces the Product Portfolio Balance Score (PPBS), which looks at the diversity of products and services available and how often those offers are sold to customers. A higher PPBS reflects an optimized product catalog that increases Average Revenue Per Account (ARPA).

In the latest SEI report, The Subscribed Institute at Zuora found:

• Despite ongoing economic uncertainty, subscriptions continue to attract new users and provide value: Companies in the SEI experienced a 25% increase in unique subscribers over the past two years, and 84% of consumers say they’ve continued to receive the same (50%) or even greater (34%) value from subscription services over the past year.
• Subscription cancellations are primarily driven by price increases: Among consumers who canceled a subscription in 2024, the most common reason was price increases, which nearly half (47%) of those who canceled cited.
• There is an opportunity to rethink Generation AI (GenAI) monetization, as consumers are still resistant to pay extra for these services: Although consumers are increasingly using GenAI services (40% said they used these services in January 2025 compared to in 28% in May 2024), 64% of consumers said they are still not willing to pay extra for these services.
• Resilience and growth come from a mix of revenue models: Companies in the SEI that employed multiple revenue models grew faster than their peers, with higher ARPA growth and reduced churn. Companies with 4+ revenue models achieved 2.3% faster ARPA growth than those with 2-3 models and 4.5% faster ARPA growth than those with only 1.
• Increasing growth requires tailoring and balancing the product portfolio: As SEI companies focus on more customer-centric strategies, they’ve improved portfolio alignment with subscriber purchasing preferences, driving a 118% increase in PPBS over the last four years. Moreover, businesses that adopted hybrid approaches, combining a dynamic mix of revenue models, achieved higher ARPA growth.

“This year’s SEI report highlights just how far the Subscription Economy has evolved—and how much opportunity still lies ahead,” said Amy Konary, Senior Vice President and Founder of The Subscribed Institute at Zuora. “Companies that blend recurring revenue models with smart monetization strategies consistently outperform the market. But the playbook is changing. Success today requires more than just launching new revenue streams—it’s about thoughtfully packaging value in ways that resonate with your customers. Finance leaders are positioned to lead this shift, driving innovation and resilience through smarter portfolio balancing and greater monetization flexibility.”

Zuora’s SEI report analyzes the growth and resilience of businesses leveraging various monetization models designed to provide recurring growth. Comprised of anonymized, aggregated, system-generated activity on the Zuora Billing service along with publicly available data from 17 selected subscription-based companies, the SEI measures the change in the volume of business for more than 600 companies. This year’s report also includes consumer data, which is a result of a Zuora-commissioned survey conducted by The Harris Poll of 3,087 adults in the United States.

To read the full report, visit here.

About Zuora, Inc.

Zuora provides a leading monetization platform to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue recognition, Zuora’s flexible, modular software solutions are designed to help companies evolve and scale monetization with demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s unique combination of technology and expertise to transform their financial operations and how they go to market. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements

This report contains forward-looking statements that involve a number of risks, uncertainties, and assumptions, including but not limited to statements regarding the expected growth and trends of recurring revenue-based companies, such as subscriptions (including companies in the SEI report) and non-recurring revenue based companies. Any statements that are not statements of historical fact may be deemed to be forward-looking statements, and actual results could differ materially from those stated or implied in forward-looking statements. This report also includes market data and certain other statistical information and estimates from industry analysts and/or market research firms. Zuora believes these third party reports to be reputable, but has not independently verified the underlying data sources, methodologies, or assumptions. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties and may differ materially from actual events or circumstances.

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