Spotify reports rise in subscribers and strong profitability in Q3 2025

The streaming platform’s global Premium subscriber base reached 281 million at the end of September, an increase of five million compared with the previous quarter and in line with company guidance. Spotify’s total Monthly Active Users (MAUs) rose to 713 million, up 11% year on year and 17 million higher than the previous quarter. The figure exceeded the firm’s forecast of 710 million.

The company attributed subscriber growth to expansion across all regions, with particularly strong performance in Latin America and North America, supported by promotional campaigns. MAU growth was led by gains in Rest of World, Europe and North America, alongside the global launch of enhancements to Spotify’s mobile free tier.

Financial performance

Spotify generated €4.27 billion ($4.9bn) in total revenue during the quarter, up 12% year on year at constant currency. Premium subscription revenue rose 13% to €3.83 billion, driven by continued subscriber growth. Ad-supported revenue was €446 million, broadly flat on a constant currency basis.

Average revenue per Premium user (ARPU) stood at €4.53, unchanged from the same period last year. The company said pricing increases had supported ARPU, though this was offset by changes in product and market mix.

Spotify posted an operating income of €582 million, up 33% year on year and above expectations, helped by lower marketing and personnel costs as well as stronger margins. Net income rose to €899 million, compared with a net loss of €86 million in the previous quarter and a €300 million loss a year earlier.

Gross margin improved to 31.6%, from 31.1% in Q3 2024

Spotify said operating income was partially affected by €16 million in “Social Charges”, €41 million below forecast, which it attributed to movements in its share price during the quarter. These charges relate to payroll taxes tied to the value of share-based compensation in certain markets.

According to the company’s investor presentation, Europe accounted for 37% of Spotify’s Premium subscribers, North America 25%, and Latin America 23%. The remaining share was spread across the rest of the world.

Looking ahead, Spotify expects to end the year with 745 million MAUs, representing an increase of around 32 million, and 289 million Premium subscribers, up by about 8 million. It projects €4.5 billion in total revenue and €620 million in operating income for the fourth quarter.

Spotify founder and CEO Daniel Ek, who will transition to the role of Executive Chairman in early 2026, said the business was performing well.

“The business is healthy. We’re shipping faster than ever. And we have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion,” Ek said.

He added that Spotify’s long-term growth remained anchored in user engagement.

“It all comes back to user fundamentals and that’s where we are: 700 million users who keep coming back, engagement at all-time highs. We’re building Spotify for the long term.”

Spotify said it remained confident about its performance heading into 2026, citing growth potential and improving margins.