Spotify’s second quarter of 2025 came with mixed results – while the company exceeded subscriber growth expectations, it fell short on the financial front. The music streaming giant added a massive 8 million premium subscribers in Q2, outperforming projections by 3 million. That brings the total number of premium users to 276 million, a 12% increase year-over-year.
Meanwhile, overall Monthly Active Users (MAUs) reached 696 million, also above the forecast of 689 million.
However, revenue numbers didn’t hit the same high notes. Spotify generated €4.2 billion in total revenue – missing its €4.3 billion guidance. Operating income also dipped below target, landing at €406 million instead of the expected €539 million. One of the culprits? Social charges linked to its Swedish incorporation, which climbed €98 million higher than anticipated due to a surge in stock price.
The company’s ad-supported user base didn’t help either, dropping 1% compared to Q2 last year, despite overall user growth. Still, Spotify remains optimistic for Q3, forecasting 710 million MAUs and 281 million premium subscribers. Revenue is expected to stay flat at €4.2 billion, with €485 million in operating income – accounting for around €25 million in social charges assuming stock prices remain steady.
In a separate move, Spotify’s board authorized a $1 billion boost to its share buyback program, bringing the total to $2 billion. So far, $104 million has been used for repurchases.