Chargebee’s 2025 “State of Recurring Revenue & Monetization Report,” a survey of 473 US and UK finance, product, and GTM leaders, finds companies using AI and hybrid pricing are seeing 2x the growth and margin gains.
Chargebee, a leading billing and monetization platform, announced the release of its 2025 “State of Recurring Revenue & Monetization Report,” a comprehensive study of how companies are pairing innovation with strategic monetization to drive growth.
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In partnership with third-party research firm Centiment, Chargebee surveyed 473 finance, product, and GTM leaders across US- and UK-based companies to understand how organizations adapt to rapid change, evolve their revenue strategies, and rethink pricing in the face of technological disruption. The findings are clear: innovation alone is no longer enough; monetization is the new competitive advantage.
In particular, the report reveals that companies adopting AI and evolving their pricing models are nearly twice as likely to achieve high growth as those who adopt AI without changing pricing. Meanwhile, businesses using hybrid pricing models, combining elements like recurring subscriptions, usage- and outcome-based pricing, or flat fees, are achieving profit margin improvements at more than 2x the rate of those using purely usage-based models.
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“We’re entering a new era where monetization innovation is just as important as product innovation,” said Krish Subramanian, co-founder and CEO at Chargebee. “Growth isn’t just built, it’s monetized. This report shows how the best-performing companies are future-proofing their revenue by aligning innovation with value delivery.”
Key Findings From the 2025 State of Recurring Revenue & Monetization Report Include:
- 96% of the 473 surveyed companies expect to grow revenue this year, with two-thirds expecting more than 20% growth.
- AI is the top tech priority and growth driver: 77% cite AI as their #1 tech investment, up 67% from 2024, and more than double the next category (finance automation). AI adopters are significantly more likely to forecast growth (96% vs. 69%).
- The AI monetization divide: 80% of companies adding AI to their products are also evolving their pricing. Those that aligned pricing with AI innovation are twice as likely to expect high growth. Meanwhile, 83% of non-AI firms made no pricing changes.
- Retention anxiety splits the field, with 53% of businesses citing customer retention as a top concern. But, AI adopters are more focused on product innovation and CX, while non-AI companies remain fixated on acquisition and hitting 100 %+ Net Revenue Retention.
- 70% raised pricing in 2024, but 40% failed to align those increases with perceived customer value, exposing a cost-value disconnect.
- Speed wins in pricing experiments: 83% tested pricing before making changes, but those who act within a month are more likely to see success. Top blockers: metering gaps, usage model complexity, and technical limitations.
- Pricing is cross-functional: exec teams lead pricing decisions (29%), followed by Finance (17%), Sales (15%), and RevOps (14%)—reinforcing pricing’s multidisciplinary nature.
- Hybrid pricing wins: 67% of companies using a hybrid pricing model (subscription + pay-per-use) expect improved margins, compared to just 32% using pure usage-based pricing. Subscription still features in 75% of pricing strategies.
“This report confirms what many GTM and product leaders already feel: pricing is no longer just a finance lever; it’s a strategic growth function,” said Guy Marion, CMO at Chargebee. “Companies that proactively evolve their monetization models are not only outperforming financially, they’re building better customer outcomes.”
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The 2025 State of Recurring Revenue & Monetization Report is a blueprint for subscription-first and AI-driven businesses looking to optimize monetization strategies and turn innovation into scalable, sustainable revenue.
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Source: BusinesNewswire
