Spotify gains subscribers in Q2 but posts net loss, misses revenue target

In the second quarter of 2025, Spotify experienced significant growth in its subscriber base, adding millions of new users. However, the music streaming service reported a net loss and fell short of its revenue projections. The company revealed that its Premium subscriber count rose by 12% year-over-year, reaching a total of 276 million, which marks an increase of 8 million from the previous quarter. Monthly active users (MAUs), including both free and paid subscribers, increased by 11%, reaching 696 million. This marks Spotify's second-best quarter for user growth, and the company anticipates strong performance in the upcoming quarter as well. Revenue for the quarter rose by 10%, totaling €4.2 billion, while the gross margin improved to 31.5%, up from 29.2% a year earlier. Despite these gains, both figures fell short of Spotify's earlier forecasts. The company reported a net loss of €86 million for the quarter ending in June 2025, a stark contrast to the net profit of €274 million recorded in the same period the previous year. Operating expenses rose by 8%, a rise Spotify attributed to increased investment in staff, services, and marketing initiatives. Additionally, finance costs surged to €358 million, compared to a gain of €4 million in Q2 of the previous year. CEO Daniel Ek expressed confidence in the platform's ongoing enhancements, highlighting their role in providing increased value to nearly 700 million users and in fostering growth within the music, podcast, and audiobook sectors. Looking forward to Q3 2025, Spotify projects it will reach 281 million paid subscribers and 710 million MAUs, with expectations for revenue to remain at €4.2 billion and operating income estimated at €485 million. Furthermore, Spotify announced that it now hosts 7 million podcasts, over 430,000 video podcast shows, and more than 350,000 audiobooks available for individual purchase. As of June 2025, the company employed 7,309 full-time staff worldwide.