Spotify has released its financial results for Q2 2025, revealing strong user growth but missing key revenue and profit targets.
The global music streaming platform added 8 million new premium subscribers, bringing the total to 276 million—exceeding projections by 3 million.
Compared to Q2 2024, Spotify’s premium subscriber base grew by 12%, reflecting continued demand for its paid service. However, ad-supported subscribers dropped by 1%, indicating a minor dip in its free-tier user segment.
The platform also achieved 696 million Monthly Active Users (MAUs) in Q2 2025, marking an 11% year-over-year increase. This figure also surpassed Spotify’s own forecast of 689 million MAUs. The surge was largely driven by international market expansion and promotional campaigns.
Despite this user growth, Spotify’s financials underperformed. The company reported €4.2 billion in total revenue, slightly below the expected €4.3 billion, and an operating income of €406 million, missing the projected €539 million. A key reason for the shortfall was €98 million in unplanned social charges linked to Sweden’s regulations and a higher stock price, which increased employer contributions to social security.
Looking ahead to Q3 2025, Spotify projects 710 million MAUs and 281 million premium subscribers, maintaining strong momentum in its user base. However, the company expects revenue to hold steady at €4.2 billion, with a projected operating income of €485 million. Social charges are anticipated to be around €25 million, based on Q2’s share price.
In a strategic financial move, Spotify’s Board of Directors has expanded its share repurchase program by $1 billion, taking the total to $2 billion. Already, $104 million has been used to buy back shares, indicating confidence in long-term growth.
Despite missing some financial benchmarks, Spotify’s strong subscriber growth signals continued user engagement, even as the company navigates international expenses and evolving monetization strategies.