Spotify reported solid gains in paid subscribers and overall users for the second quarter of 2025, but the streamer came up short of its revenue target and posted a net loss for the period.
The company highlighted the positives: In the first half of 2025, subscriber net additions grew more than 30% compared with the first half of 2024, according to Spotify. The quarter also marked the company’s second-highest Q2 for monthly active user net additions.
Spotify Premium subscribers climbed to 12% year over year to 276 million, a net gain of 8 million in the quarter. Total MAUs grew 11% to 696 million. And Spotify expects Q3 growth in subs and MAUs to be robust.
Total revenue for Q2 increased 10% to €4.2 billion and gross margin improved to 31.5% (versus 29.2% a year ago). However, that was shy of Spotify’s guidance for Q2 on those metrics.
Spotify posted a net loss of €86 million in the June 2025 quarter, compared with a net profit of €274 million in the year-ago quarter. Operating expenses increased 8% the most recent quarter, driven primarily by an increase in personnel and related costs, professional services and marketing spend, the company said. In addition, net finance costs for Q2 2025 were €358 million, compared with net finance income of €4 million a year earlier.
“By constantly evolving, we create more and more value for the almost 700 million people using our platform,” Spotify founder and CEO Daniel Ek said in prepared remarks. “This value not only benefits users but it’s attracting more people to streaming and as a result, it’s also boosted the industries of music, podcasts and audiobooks.”
For Q3 2025, Spotify anticipates total revenue of €4.2 billion (up from €4.0 billion a year prior); paid subscribers of 281 million and total MAUs of 710 million; gross margin of 31.1%; and operating income of €485 million.
Spotify now hosts about 7 million podcast titles and more than 430,000 video podcast shows, the company said. It offers 350,000-plus audiobooks available for a la carte purchase. At the end of Q2, Spotify had 7,309 full-time employees globally (up from 7,261 at the end of 2024 but down from 9,123 at the end of 2023).
variety.com
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