It is when support costs are negligible and they use 40 cents of server resources.
It’s hard to have another business model when you know nothing about the user. Please read up on how Mullvad works and then come back with a coherent argument on how they could be making money off user data.
Lots of video streaming services seem to be in the $10/mo range, and they have to deal with licensing all the shows and storing them. $3/mo seems pretty reasonable off the cuff for a VPN service.
Don't forget all the youtubers a VPN has to pay and all the 75% off deals with the promocode ILOVEMYYOUTUBER.