Spotify Surpasses 700 Million Users in Q3 2025 Earnings

2025-11-04 companies

New York, Tuesday, 4 November 2025.
Spotify exceeded 700 million Monthly Active Users, reporting a significant 12% increase in premium subscribers and achieving a net income of €1.05 billion in Q3 2025.

Robust Growth in User Base and Revenue

In its third quarter earnings report for 2025, Spotify Technology SA (SPOT) disclosed impressive growth metrics, highlighting a milestone of 713 million Monthly Active Users (MAUs), marking an 11% year-over-year increase. This surge in user numbers is complemented by a 12% rise in premium subscribers, reaching 281 million [1][3][4]. The company’s revenue for the quarter also saw a notable rise, achieving €4.3 billion, which reflects a 12% increase when adjusted for constant currency effects [1][3][4].

Strategic Enhancements and Market Position

Spotify’s strategy, termed ‘Accelerated Execution’, has been pivotal in driving this growth. This approach includes launching over 30 new features within the year, such as lossless audio and enhanced playlist tools, which have contributed to user engagement and satisfaction [1][4][7]. Additionally, Spotify’s integration with technologies like ChatGPT and collaborations with major platforms such as Netflix for video podcasts further solidify its competitive edge in the streaming market [4][7].

Financial Performance and Outlook

The financial health of Spotify is underscored by a gross margin improvement of 31.6% and an operating income of €582 million, reflecting a 28% year-over-year increase [3][5]. Moreover, Spotify’s net income reached €1.05 billion, surpassing Wall Street expectations [5][6]. Looking ahead, Spotify has set ambitious targets, forecasting a total of 745 million MAUs and 289 million premium subscribers by the end of Q4 2025 [4][7].

Future Innovations and Leadership Changes

Spotify continues to innovate, with plans to expand its service offerings and improve user experience through AI-driven personalized recommendations and new audio formats. On the leadership front, Daniel Ek, Spotify’s CEO, will transition to the role of executive chairman starting January 2026, with Gustav Söderström and Alex Norström stepping in as co-CEOs [3][4][7]. These strategic moves are expected to maintain Spotify’s trajectory of growth and market leadership.

Sources

earnings Spotify