Spotify hits 276M subscribers and strong user growth in Q2, but revenue and profit fall short of targets

Spotify added millions of new subscribers and users in the second quarter of 2025, but the music streaming giant still reported a net loss and missed its revenue targets.

The company said Spotify Premium subscribers rose by 12% year over year, reaching 276 million, which is 8 million more than the previous quarter.

Monthly active users (MAUs), which include both free and paid users, grew by 11% to 696 million. Spotify said this was its second-best Q2 for user growth, and it expects strong results in the next quarter too.

Revenue for the quarter increased 10% to €4.2 billion, and the gross margin improved to 31.5%, up from 29.2% a year earlier. However, both numbers fell short of what Spotify had forecasted.

How Much Has Spotify Lost in Revenue?

The company posted a net loss of €86 million for the quarter ending June 2025. This is in contrast to a net profit of €274 million during the same period last year.

Operating costs rose by 8%, which Spotify attributed to increased spending on staff, services, and marketing. Finance costs also grew sharply to €358 million, compared to a gain of €4 million in Q2 last year.

Spotify CEO Daniel Ek said the platform’s ongoing improvements are bringing more value to its nearly 700 million users and helping to grow the music, podcast, and audiobook industries.

Looking ahead to Q3 2025, Spotify expects to reach 281 million paid subscribers and 710 million MAUs, with revenue expected to stay at €4.2 billion and operating income projected at €485 million.

Spotify also shared 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, it had 7,309 full-time employees worldwide.