Spotify noticed its world Premium Subscriber base develop to 276 million paying customers in Q2 – because it achieved robust working profitability within the three months to finish of June.
That’s in line with the corporate’s newest monetary outcomes (for Q2 2025), filed earlier at this time (July 29).
Spotify’s Premium Subscriber base on the shut of Q2 was up by +8 million internet subs on the 268 million that the agency counted on the finish of the prior quarter (Q1 2025).
This +8 million development was forward of steerage by 3 million.
Spotify reported that this Premium Subscriber efficiency was fuelled by “Q/Q and Y/Y development throughout all areas, with outperformance led by Latin America, Europe, North America and Remainder of World” plus “robust world promotional marketing campaign consumption”.
Spotify breaks down its Premium Subscriber base by area inside its investor presentation, reporting that Europe accounted for 37% of its complete premium subscriber base as of the top of Q2 (see under).
North America accounted for 25% of SPOT’s complete subscriber base in Q2, whereas Latin America accounted for 23%.
Month-to-month Energetic Customers:
Spotify’s complete Month-to-month Energetic Customers, which mix paying customers and ad-supported customers, grew 11% 12 months over 12 months to 696 million.
That was up +18 million MAUs from the 678 million reported for the prior quarter (Q1 2025), and above steerage by 7 million (Spotify forecast that it might attain 689 million MAUs in Q2).
Spotify stated MAU efficiency in Q2 mirrored “Y/Y development throughout all areas, with outperformance led by Remainder of World, Latin America and Europe” in addition to “profitable advertising campaigns in choose growing markets” and “favorable shifts in competitor dynamics”.
REVENUE
Spotify generated EUR €4.193 billion (USD $4.75bn) in complete quarterly income in Q2 (together with Premium and ad-supported), up 15% YoY at fixed forex.
Spotify’s Premium/subscriber revenues grew 16% YoY at fixed forex to €3.740 billion ($4.24bn), pushed by subscriber development.
The agency’s Premium month-to-month ARPU stood at €4.57 ($5.18) — up 3% YoY at fixed forex.
Spotify famous in its investor presentation that “excluding the influence of FX, ARPU efficiency was pushed by value improve advantages, partially offset by product/market combine”.
Spotify’s Advert-Supported Income in Q2 2025 was €453 million ($514m), up 5% YoY on a continuing forex foundation, reflecting development throughout music and podcast promoting.
PROFITABILITY
When it comes to profitability, Spotify posted a quarterly working revenue of €406 million ($460m) for Q2.
That was up 50% YoY at fixed forex, however down QoQ – and under steerage – on account of increased ‘Social Expenses’ and personnel prices.
SPOT reported that its working Revenue was impacted by €116 million ($131.5m) in ‘Social Expenses’, which have been €98 million above forecast on account of share value appreciation in the course of the quarter.
Spotify defined to buyers: “Social Expenses are payroll taxes related to worker salaries and advantages in choose nations the place we function. Since a portion of those taxes is tied to the intrinsic worth of share-based compensation awards, actions in our inventory value can result in fluctuations within the taxes we accrue.”
Regardless of its robust working efficiency, Spotify reported a internet lack of €86 million ($97.5m) for the quarter, in comparison with internet revenue of €225 million in Q1 2025 and €274 million in Q2 2024.
The online loss was primarily pushed by excessive quarterly finance prices of €447 million ($507m), which considerably outweighed finance revenue of €89 million ($100.9m), making a internet finance value of €358 million ($406m).
Mixed with revenue tax bills of €134 million ($152m), this pushed the corporate right into a internet loss place.
The corporate’s Gross Margin completed at 31.5% in Q2 2025, up from 29.2% in Q2 2024.
GUIDANCE FOR Q3
When it comes to steerage for Q3, Spotify forecasts reaching 710 million MAUs on the shut of September, an addition of round 14 million internet new MAUs within the quarter.
The corporate initiatives its complete Premium Subscriber base to hit 281 million by the top of Q3, an addition of roughly 5 million internet new subscribers.
Spotify additionally forecasts an working revenue of €485 million for Q3, and complete quarterly income of €4.2 billion.
“Total, we proceed to view the enterprise as well-positioned to ship development and bettering margins in 2025 as we reinvest to help our long-term potential,” the corporate said in its shareholder replace.
All EUR-USD conversions on this report made on the common quarterly price for Q2 2025 of 1.1338, in line with the European Central Financial institution.Music Enterprise Worldwide
