Spotify Hits 696M Users, Adds 276M Premium Subscribers, Posts Q2 Loss

Spotify reported strong user growth in the second quarter of 2025, with monthly active users rising 11% to 696 million and premium subscribers increasing 12% to 276 million, adding 8 million new paying customers. Despite a 10% revenue increase to €4.19 billion, the company posted a net loss of €86 million, missing analyst revenue and earnings per share expectations. Advertising revenue declined slightly, attributed to pricing softness and podcast inventory optimization, while subscription revenue remained the main contributor to growth. Spotify's CEO Daniel Ek emphasized that evolving the platform continues to attract users and benefit the music, podcast, and audiobook industries. The company is also increasing its share buyback program to $2 billion through 2026 as it invests to stay competitive in a streaming market with tight margins. Overall, Spotify’s expanding user base reflects strong demand for streaming despite ongoing financial challenges.