In a surprising turn of events, the social network X has witnessed a significant rise in in-app spending over the past year, even as its active user base has shrunk. According to data from app intelligence firm Appfigures, global consumer spending on X's mobile app surged by 76.3% year-over-year between two similar periods in January. While this growth is encouraging for X, it contrasts sharply with a decline in daily active users, particularly in the U.S. and globally. The introduction of AI features and sports content may have contributed to this spending boost, but the long-term sustainability remains uncertain as rival platforms gain traction.

Boost in Consumer Spending Amidst User Decline

In the vibrant digital landscape of early 2025, X experienced a remarkable increase in consumer spending through its mobile applications. During the first three weeks of January, global spending reached an impressive $13.4 million, up from $7.6 million in the same period the previous year. This surge was driven primarily by in-app purchases, excluding advertising revenue and web-based subscriptions. Notably, the U.S. market saw a 61.4% growth, climbing from $4.4 million to $7.1 million during the same timeframe.

The addition of advanced AI chatbot Grok appears to have played a pivotal role in this financial uptick. Shortly after X introduced a free version of Grok in November 2024, there were noticeable spikes in net revenue. Further enhancements, such as a faster model and a dedicated Grok button in mid-December, likely sustained this momentum. Additionally, the launch of an NFL portal in late November aimed to bolster sports engagement, which could have attracted more users to spend within the app.

Despite these positive financial indicators, the number of active users has been declining. Estimates from Sensor Tower reveal that both U.S. and worldwide daily active users fell by approximately 13% year-over-year. Monthly active users also dipped slightly. Meanwhile, competing platforms like Bluesky and Instagram Threads saw substantial increases in their user bases, growing by 170% and 495%, respectively. These trends suggest that while X's monetization strategies are effective, retaining users remains a challenge.

The highest monthly spending occurred in December 2025, reaching $25.6 million, following steady increases starting in October. Conversely, February marked the lowest point with $9.6 million in spending. Top in-app purchases included various premium subscriptions, highlighting users' willingness to pay for enhanced features.

Implications and Reflections

From a journalistic perspective, X's ability to boost in-app spending despite a decline in active users raises intriguing questions about the platform's future. On one hand, the success of AI integrations and sports content demonstrates a strategic approach to monetization. On the other hand, the loss of active users signals potential issues with user retention and satisfaction. As competitors continue to grow rapidly, X must find a balance between generating revenue and maintaining a loyal user base. The coming months will be crucial in determining whether these financial gains can be sustained or if new strategies are needed to reverse the trend of declining user numbers.