Streaming platform expects to hit 710m monthly active users later this year
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Daniel Ek, Spotify
Spotify posted strong growth figures in the second quarter of 2025, with the number of monthly active users rising to 696 million (up 11% year-on-year), well above expectations. The number of premium subscribers also increased sharply, reaching 276 million (up 12%).
Revenue grew by 10% to €4.19 billion, mainly thanks to subscriptions. Advertising revenue declined slightly. The gross margin remained stable at 31.5%.
Nevertheless, Spotify posted a net loss of €86 million, compared to a profit of € 274 million in the same quarter last year. Rising costs – mainly due to higher wages, staff expansion, and social charges – weighed heavily on the results.
Notable is the strong growth in audiobook listening time, with a 35% increase in key markets such as the US, UK, and Australia.
Looking ahead to the third quarter, Spotify expects a further increase to 710 million monthly active users and 281 million premium subscribers, with revenue around €4.2 billion.
The company’s shares have risen by about 120% over the past 12 months – a strong recovery after the record lows of 2022. This surge was mainly driven by price increases and a more efficient cost structure.
Earlier this month, the stock reached a record high of $738.45, although it has since dipped slightly in the run-up to Tuesday’s quarterly report.
The huge surge in Spotify’s share price follows a major restructuring of the company, including layoffs, changes in leadership, and a withdrawal from expensive exclusive podcast deals. After investing $1 billion in building its podcast division, the company has since streamlined its approach and narrowed its focus.
“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,” said Daniel Ek, Spotify founder & CEO (pictured). “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.”
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