Deezer reports higher first-half profit as direct subscriptions drive revenue growth

Direct revenue rose 6.7% to €185.2 million, driven by subscriber growth in France and other markets. The number of subscribers in France increased by 8.4% to 3.9 million, while subscribers in the rest of the world grew by 9.2%.

The growth in direct revenue was partly offset by a 7.6% decline in partnerships revenue to €70.7 million, primarily due to the expected run-off of the company's agreement with Mercado Libre. Deezer said the segment stabilised sequentially in the second quarter, while average revenue per user increased by 19.1% to €3.70.

Other revenue, comprising advertising and ancillary income, fell 27.5% to €12.3 million following the expiry of a content licensing agreement in the fourth quarter of 2025.

Deezer's adjusted EBITDA rose to €8.5 million from €2.1 million in the first half of 2025, while net income increased to €6.7 million from a loss of €7.6 million a year earlier.

The company also reported free cash flow of €37.4 million, up from €1 million in the same period last year. Cash and cash equivalents stood at €99.8 million at the end of June, compared with €65.4 million at the end of December 2025.

“The first half of the year demonstrates that our strategy is delivering,” Deezer chief executive Alexis Lanternier said. “Our Direct business continues to grow, profitability has become sustainable, and our strong financial position allows us to invest confidently in future growth.”

He added that partnerships revenue had stabilised in the second quarter and that Deezer would continue investing in artificial intelligence initiatives.

“We also continued to strengthen Deezer’s leadership in AI music, advancing fairness and transparency for the music ecosystem, while creating selective new monetisation opportunities,” he said.

The company highlighted several initiatives during the first half, including the launch of an AI music detection tool and the expansion of its AI detection technology through licensing agreements with Hungary's Bureau for the Protection of Performers’ Rights and Dutch collecting society BumaStemra.

Deezer said it was receiving nearly 90,000 AI-generated tracks daily, accounting for more than half of all music delivered to the platform at peak times.

The company also launched Remix Lab, an in-app feature that allows users to create remixes of selected songs with prior approval from participating artists. Deezer said streams generated by the remixes are attributed to the original recordings to support rights compliance and artist remuneration.

In its business division, Deezer unveiled a revamped Deezer for Business offering covering partnerships, music-as-a-service, advertising, professional services and AI detection.

The company also announced a partnership with Winamp on 1 July, under which Deezer will provide music streaming technology and catalogue access for a new premium subscription service integrated into Winamp.

Deezer maintained its full-year 2026 guidance, expecting revenue to remain broadly stable compared with 2025, while forecasting positive adjusted EBITDA and positive free cash flow for the third consecutive year.

The company said it would continue making selective investments in the second half of the year while maintaining a focus on profitability and cash generation.