As trailed in Music Week’s last Spotify earnings report coverage, the DSP has now become the first audio streaming service to top 300 million paying subscribers.
According to the streaming giant’s Q2 results, revenue growth accelerated and gross margin (33.4%, up 190 bps year-on-year) hit an all-time record.
Spotify’s premium subscribers increased by 9% year-on-year to 300 million, while monthly active users (MAUs) were up 12% year-on-year to 777m. Subscriber growth of seven million Premium users compared to the prior quarter was one million ahead of the guidance, while MAUs were slightly below guidance.
Premium average revenue per user (ARPU) of €4.89 represented a year-on-year increase of 7.4% at constant currency.
Total revenue increased 15% year-on-year at constant currency to €4.8 billion. Operating Income reached €655m.
Our position gives us an opportunity space as wide as our users want it to be
Alex Norström
Spotify continues to add new features including today’s big announcement of a partnership with the independent sector (via Merlin) for its paid AI add-on tool enabling fans to create covers and remixes of songs by their favourite artists.
Alex Norström, Spotify co-CEO, said: “We have a scale that few companies in history have reached, a business that is healthy and compounding, and opportunities only we are positioned to pursue. Spotify lives across your whole day – the commute, the workout, studying, gaming, the dinner table, and sleep. At our scale, that is rare… Our position gives us an opportunity space as wide as our users want it to be.”
Gustav Söderström, co-CEO, added: “Investor Day described where we believe Spotify is going in the future. This quarter demonstrated that we are already building that future: better engineering, faster shipping, new products and new ways for users to engage. We are still in the very early stages of what is possible and will continue to have a high bar for investments… Our job remains the same: understand the technology early and deeply, and turn it into something people love. Creating value for our stakeholders.”
As previously reported, Spotify paid out $11bn to the music industry in 2025, with $70bn paid out to the music industry since its founding 20 years ago.
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