Spotify Streaming Strong in Q2 2025 with 12% Subscriber Boost

Spotify, the streaming giant, saw its paid subscriber base rise 12% year-on-year to reach 276 million, while MAUs grew 11% to 696 million, with the total business revenue increasing by 10%.

By Minal Jain 07 Aug 2025 in Business

New Update

Spotifyreportedastrongsecond-quarter performance in 2025, with Premium subscribersup12% year-on-year to 276 million,toppingguidance byabout3 million,andMonthly Active Users (MAUs) increasing 11% to 696 million.

Overallrevenueinthe quartergrew 10% to around €4.19 billion (or $4.75 billion),althoughon a constant currency basis, growth reached closer to15%—meaningcurrency headwindstookabout 4–5 percentage points off reportednumbers.

Spotify's gross margingrew227 basis points to 31.5%duetoenhancedefficiencyinboth Premium and Ad-Supported segments,particularlyfrom podcast monetizationenhancements. Operating incomewas€406 million, whichfellshort ofexpectationspartlyduetohigher"social charges"and personnelexpensesrelatedtoincreasingshare-based compensation.

Albeitstrongtop-lineperformance, the companyrecordeda net loss of €86 million (≈$97 million),downfrom €274 million profit in theprior-yearperiod. This wasprimarilyduetoastunning€447 million in financeexpenses,relatedto fair valuechangeson €1.9 billion of Exchangeable Notesthatwerereclassifiedtocurrent liabilities.

On thepositiveside, Spotifyrealizeda record free cash flow ofapproximately€700 millioninQ2, and €2.8 billion over thelasttwelve months,leadingthe board toincreaseitsauthorizationtobuyback sharesto $2 billion.

Lookingforward, the companyprojectstoachieve281 million Premium subscribers and 710 million MAUs bytheendof Q3, withnetoperating income of €485 million and revenue ofapproximately€4.2 billion — bothmodestcomparedto street estimates.

Takeaway

Spotifymaintainsasolidpaceof usergrowthand marginexpansion,althoughbottom-line profitabilityisstillsubduedasaconsequenceofvolatilityin finances and procedures. Subscribertractionreflectsstrength inexecution—but investorsmightkeepa close eye ondebt-related exposures and ad segment performancein thenextquarters.

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