Spotify Reports Mixed Q2 2025 Results with User Growth and Financial Loss

Luxembourg City, Luxembourg — Spotify Technology S.A. announced its second-quarter financial results on July 29, 2025, revealing strong user growth but financial metrics that fell short of expectations.

The audio streaming company reported that it ended June with 276 million paying premium subscribers, an increase from 268 million at the end of the first quarter. Monthly active users (MAUs) also grew to 696 million from 678 million, surpassing previous forecasts.

Spotify’s CEO, Daniel Ek, expressed optimism, saying, “People come to Spotify and they stay on Spotify. By constantly evolving, we create more and more value for the almost 700 million people using our platform.” He noted that this value benefits users and attracts more individuals to streaming, boosting the music, podcast, and audiobook industries.

Despite these gains, Spotify reported a quarterly loss of €86 million ($100 million) compared to a profit of €274 million in the same period last year. Operating expenses rose 8 percent to €914 million ($1.06 billion), impacting the bottom line.

Analysts had expected a profit, but the rising personnel and marketing costs, along with payroll taxes linked to the company’s stock price appreciation, led to the loss.

Revenue for the quarter reached €4.19 billion ($4.85 billion), reflecting a 10 percent year-over-year increase. Premium revenue growth of 12 percent significantly contributed to this figure, although advertising-supported revenue experienced a slight decline.

Looking ahead, Spotify projected its MAUs to grow to 710 million and premium subscribers to reach 281 million in the third quarter. However, it faces expected challenges from foreign exchange fluctuations.

The company also announced a $1 billion increase in its share repurchase program, bringing the total to $2 billion. Analysts expressed mixed views, with some highlighting potential risks associated with currency impacts and operational costs.